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.

2

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

4

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)

6

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

8

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

9

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

10

Attachments

  • Original Link
  • Original Document
  • Permalink

Disclaimer

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.