DEMANT A/S Investor news
Capital Markets Day 2024
Sharpened focus on
On Tuesday,
Background
Since our latest CMD in 2021, Demant has undergone significant strategic changes. Following the decisions to discontinue our Hearing Implants business area and to undertake a strategic review of Communications, we are now emerging as a more focused and more profitable company. This allows us to be fully focused on our core
Key messages from today’s Capital Markets Day
Under the theme, Sharpened focus on
- We upgrade our view on the hearing aid market, which we now expect to grow 4-6% p.a. in value (previously 2-5% p.a.), reflecting annual unit growth of 4-6% and flattish yearly ASP development (previously negative by 1-2% p.a.), which is in line with the estimated recent historical ASP development. For the hearing healthcare market, which also includes the market for diagnostic equipment, we thus expect annual value growth of around 5% (previously 4%).
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Our medium- to long-term outlook now relates to our Hearing Aids, Hearing Care and Diagnostics business areas, collectively our
Hearing Healthcare business. Driven by our more positive view on the hearing healthcare market and our aspiration of continued market share gains, we aim for annual revenue growth of 8-10% in local currencies, which comprises organic growth of 6-8 percentage points and growth from bolt-on acquisitions of around 2 percentage points. - Over the medium to long term, we expect incremental EBITmargin expansion, and we consider scale a significant parameter for delivering improved profitability.
- Innovation remains at the core of our company, and we believe that being leaders in audiological performance is an important part of sustaining a competitive advantage in our industry. As we go forward, we are committed to continuing to invest in next-generation hearing healthcare solutions using groundbreaking sound-processing based on deep neural networks and other advances in artificial intelligence.
- We still believe strongly in the value of professional, in-person counselling and care for patients through either external customers or our own Hearing Care network. We will continue to invest in global distribution, including continued expansion of Hearing Care both organically and through acquisitions, to further increase the scale and profitability of our Group.
- We remain a highly cash-generative business, and despite continuous value-adding investments in R&D and distribution, we expect free cash flow generation to remain strong going forward, leaving ample room for cash returns to shareholders in the form of share buy-backs. Our gearing multiple target remains unchanged at 2.0-2.5.
- We are a positive-impact business and employ sustainable business practices as an integrated part of our strategy. Over the last years, we have seen a steady improvement of our ESG performance, and we remain committed to enhancing our sustainability efforts both in terms of disclosure and by delivering on our targets within climate and diversity, equity and inclusion.
Agenda
11:00 | Welcome | Peter Pudselykke Head of Investor Relations |
11:10 | Sharpened focus on | Søren Nielsen President & CEO |
12:00 | Lunch break and product demos |
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13:00 | Fuelling innovation and core technology development in Hearing Aids | Various speakers from Hearing Aids |
14:30 | Break and product demos |
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14:55 | Succeeding in the US hearing aid market | President, Hearing Aids |
15:45 | Continuing our Hearing Care growth journey | President, Hearing Care |
16:30 | Break |
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16:40 | Driving scale benefits to deliver long-term shareholder value | CFO |
17:10 | Final Q&A and concluding remarks |
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17:30 | End of event |
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Outlook for 2024 announced in February remains unchanged
2024 has been off to a good start in line with expectations, and we reiterate our outlook for the year of organic growth of 4-8%, EBIT of
For our discontinued business areas, we still expect the divestment of our cochlear implants business to close in H1 2024, as the process is progressing according to plan. The bone-anchored hearing systems business will remain with the Group for now, pending a review of our strategic options. The strategic review of Communications is still ongoing as planned, and we expect it to be concluded by the end of H1 2024.
Practical matters
For in-person attendance, registration will open at
Further information: Søren Nielsen, President & CEO Phone +45 3917 7300 www.demant.com | Other contacts: Peter Pudselykke, Head of Investor Relations |
Contacts
Henrik Axel Lynge Buchter , External Communication Manager, Corporate Communication & Sustainability, +45 2264 9982, heey@demant.com
About Demant A/S
Demant is a world-leading hearing healthcare group that offers solutions and services to help people with hearing loss connect with the world around them. In every aspect, from hearing devices, hearing implants, diagnostics to audio and video solutions and hearing care all over the world, Demant is active and engaged. Our innovative technologies and know-how help improve people’s health and hear-ing. We create life-changing differences through hearing health.
Attachments
Investor News - Capital Markets Day 2024.pdf
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