EUHA 2023
19 October 2023
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 competitors and other factors outside Sonova's control. Should one or more of these risks or uncertainties materialize or should underlying assumptions prove incorrect, actual outcomes may vary materially from those forecasted or expected. Each forward-looking statement speaks only as of the date of the particular statement, and Sonova undertakes no obligation to publicly update or revise any forward-looking statements, except as required by law.
This presentation constitutes neither an offer to sell nor a solicitation to buy any securities. This presentation does not constitute an offering prospectus within the meaning of Article 652a of the Swiss Code of Obligations nor a listing prospectus within the meaning of the listing rules of SIX Swiss Exchange.
Sonova name, products names and logos are registered trademarks of Sonova.
Sennheiser™ is a registered trademark of Sennheiser electronic GmbH & Co. KG used under license by Sonova.
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Market and strategy
Arnd Kaldowski, CEO
Key reasons to invest in Sonova
Attractive market
- Attractive secular growth drivers
- Significant penetration potential incl. mild loss population and high growth developing markets
- Continued potential to innovate "Better Hearing"
- Opportunity to elevate hearing aid adoption and value capture through focus on known comorbidities
Focus on sustainability
- Strong purpose and positive impact on society by providing advanced hearing health care
- IntACT" ESG strategy executed across the Group
- Ambitious climate actions linked toscience-based targets
- Industry leading ESG performance, recognized by respective rating agencies
Leading market position
- Leading position in the Hearing Industry
- Advanced vertically integrated business model
- Broadest and most advanced product offering
- Global and differentiated distribution network, incl. scaled direct consumer access
Strong financials
- Highest profit margin in the industry
- Strong balance sheet and cash generation
- Significant capacity for organic andin-organic growth investments
- Low tax rate
- The fundamentals of Sonova's business remain strong and offer attractive value creation opportunities
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Market and Sonova dynamics
Summary
- Market environmentremains volatilewith sequential slowdown in 2Q 2023 - re-acceleration in 3Q 2023
- Good market growth in North Americawith additional contribution from higher growth in developing marketswhile overall Europe remains more subdued
- Value growth supported byASP liftfrom pricing initiatives in both HI and AC business
- Strong execution drivinggood growth in AC business, organically and through acquisitions
- HI business stabilizingafter the headwinds in the prior 12 months - starting to regain positive momentum through recent product launches and pro-active engagement with our customers
Hearing care market development - North America
Monthly unit market development (sell-in) and current trends
US - Commercial market | Apr. - Sep. YoY: +8.6% |
4Y CAGR : +6.1% | |
Sep. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep.
Canada | Apr. - Sep. YoY: +8.3% |
4Y CAGR: +5.1% | |
Sep. | Oct. | Nov. Dec. Jan. | Feb. Mar. | Apr. | May | Jun. | Jul. | Aug. Sep. |
Actual | Same period of the prior year | ||
US - Veterans Affairs (VA) | Apr. - Sep. YoY: +4.2% | ||
4Y CAGR: +2.6% | |||
Sep. | Oct. | Nov. Dec. | Jan. | Feb. Mar. | Apr. | May | Jun. | Jul. | Aug. Sep. |
- Strong growth momentum in North America, driven by recovery of general consumer confidence
- US Commercial market - Growth largely driven by Managed Care and large retail
- US VA market - YoY growth driven by continued increase inRIC-rechargeable form factor
- Canada - Continued market recovery, normalizing post Covid; acceleration over the course of 1H 23/24
Source: Official Industry Reports (HIA, CAEA)
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Hearing care market development - EU / UK
Monthly unit market development (sell-in) and current trends
France | Apr. - Sep. YoY: -11.2% |
*4Y CAGR: +14.5% | |
Sep. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep.
UK - Private market | Apr. - Aug. YoY: +7.9% |
* Apr.-Jun. 4Y CAGR: +6.8% |
Sep. | Oct. | Nov. Dec. | Jan. | Feb. Mar. | Apr. | May | Jun. | Jul. | Aug. Sep. |
Actual | Same period of the prior year | ||
Germany | Apr. - Sep. YoY: -1.5% | ||
4Y CAGR: +2.3% |
Sep. | Oct. | Nov. Dec. | Jan. | Feb. | Mar. | Apr. | May | Jun. | Jul. | Aug. | Sep. |
- France - market headwinds as the impact of the reimbursement change in Jan 2021 wears off and restrictions on GP prescription took effect in Nov 2022
- Germany - reimbursement change by some insurers extending the defined life cycle from 6 to 7+ years as well as muted consumer confidence weighing negatively on the market
- UK Private market - market rebounding driven by all channels; growth momentum started from the independent sector and more recently, picked up in large retail accounts
Source: Official Industry Reports (XERFI, BVHI, BIHIMA) | 7 |
* Note. France and UK monthly data available from Sept 2021 and Jan 2020 respectively; comparable on quarterly basis | |
Our strategy
Strategic pillars
Lead innovation in audiological
performance & consumer experience
Leverage M&A
to accelerate growth
strategically
Continuous process
improvementthrough Sonova X
& structural optimization
Invest inhigh growth developing markets
- Consistent implementation of our proven strategy progressing
Expand consumer access
throughomni-channel
audiological care network and
consumer device business
Extend reach through
multi-channel,value-adding partnerships & commercial excellence
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Leverage M&A to accelerate growth
Significant progress achieved in the past two years
Lead innovation in audiological
performance & consumer experience
Leverage M&A | Expand consumer access |
throughomni-channel | |
to accelerate growth | |
audiological care network and | |
strategically | |
consumer device business | |
Continuous process | Extend reach through |
multi-channel,value-adding | |
improvementthrough Sonova X | |
partnerships & commercial | |
& structural optimization | |
excellence | |
Invest inhigh growth developing markets
Achievements in the past two years
March 2022: Sennheiser Consumer Division
- Creating new Consumer Hearing business to expand consumer access with established consumer brand
March 2022: Alpaca Audiology in the US
- Doubling our US network in the world's largest audiological care market
December 2023: HYSOUND in China
- Expanding direct consumer access in audiological care building initial Sonova footprint in China
Continued solid pace of bolt-on acquisitions
- Build-upof our clinic network to increase store density in served geographies - total AC network up by >600 POS since September 2021
- Over CHF 1 bn invested in acquisitions in FY 21/22 and FY 22/23 to expand consumer access
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Lead innovation
Building on core strength in hearing aids and driving market expansion
Innovation framework | Our R&D focus investments | |
- Effortless communication in daily life
- Natural and authentic sound quality
- Seamless adaptation to environment
- Multi-mediastreaming
• … | • | Wearing comfort |
• | Size, aesthetics, | |
handling | ||
• | Rechargeability | |
• | Reliability | |
• | Waterproof | |
• | … |
• | Fitting tool innovation | ||
• | Early-entry solutions | • | Personalization / user |
empowerment | |||
• | Tinnitus therapy | • | Audiology Service |
• | Clinical comorbidities | Innovation | |
• | … | • ... |
- Continued expansion of processing power
- Proprietary processing and connectivity chip technologies
- Elevating algorithms to enhance hearing performance
- Augmenting existing algorithm technology with AI technologies
- Expanding access and enhancing consumer experience
- Broadening portfolio to range ofearly-entry solutions
- Developing digital solutions to facilitate flexible and personalizedomni-channel consumer journey
- Enriching functionality towards additional medical benefits
- Collaborations with medical institutions on clinical research of comorbidities
- Developing technology enabled services beyond hearing
►Advancing innovation to elevate audiological performance and consumer experience
- Expanding R&D investments, DD 3-year CAGR
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Sonova Holding AG published this content on 19 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 October 2023 11:56:03 UTC.