Annual Report - Sonova Holding AG
Annual Report - Sonova Holding AG Annual Report - Sonova Holding AG
OUTLOOK Sales – outgrow the market once again We are confident that Phonak’s sales will continue to develop positively thanks to our ongoing investment of human and financial resources in product innovation and the expansion of the distribution network. We expect the current growth trend in the hearing instrument industry to continue during 2006/07. We anticipate being able to once again outgrow the market, based on our recent and planned product launches. Further enhance gross profit margin In 2006/07, we expect a further increase in the gross profit margin. After years of exceptionally strong growth, however, the rise will be more moderate, i.e. less than in previous financial years. The most important drivers will be the growing quota of products based on the PALIO platform and economies of scale achieved through higher production volumes. Continuous measures to improve productivity and optimize production processes will also help to increase the gross profit margin. These forecasts assume no significant change will occur in the product mix – the percentage of total sales contributed by first class, business class, and economy class hearing systems. Increase spending on research and development Spending on research and development is expected to increase again significantly in 2006/07. Major projects include new product developments, hardware and software platform development, and new technology research. Further improve EBIT margin Management expects a further improvement in the EBIT margin as a result of the expected gross margin increase as well as a reduction in operating expenses as a percentage of sales. Slightly increase capital expenditures To provide the additional infrastructure needed to boost our sales, we plan to slightly increase our capital expenditures in 2006/07. Major investment projects will include tooling for new products, production equipment, and IT infrastructure and systems. Use of financial resources The financial resources of the Group are used primarily to finance capital expenditures and for the repayment of debt according to existing terms. In addition, the Phonak Group will invest a portion of its financial resources to further expand its distribution channels. We believe these investments will lead to further sales growth, increased market share, and an attractive return in profits. Outlook 15
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- Page 1 and 2: Annual Report 2005/06 Annual Report
- Page 3 and 4: FIVE-YEAR KEY FIGURES (Consolidated
- Page 5 and 6: CHAIRMAN’S FOREWORD In 2005/06, t
- Page 7: Move with the melody
- Page 10 and 11: digital entry-level product line, w
- Page 12 and 13: MARKETS General market development
- Page 15 and 16: NEW TECHNOLOGIES AND PRODUCTS Platf
- Page 17: OPERATIONS AND STAFF Operations Wit
- Page 22 and 23: This report describes the principle
- Page 24 and 25: Capital Structure Changes in capita
- Page 26 and 27: Left to right: Robert F. Spoerry, D
- Page 28 and 29: Andy Rihs (born in 1942) has been C
- Page 30 and 31: Dr. Valentin Chapero Rueda (born in
- Page 32 and 33: Share and option ownership of membe
- Page 34 and 35: Highest total compensation The high
- Page 36 and 37: Investor Relations Calendar July 6,
- Page 39 and 40: SUSTAINABILITY Phonak’s managemen
- Page 41 and 42: Our customers buy a better quality
- Page 43 and 44: Corporate Governance Phonak’s Boa
- Page 45: Push your performance
- Page 49 and 50: Consolidated Income Statement 1,000
- Page 51 and 52: Consolidated Statement of Cash Flow
- Page 53 and 54: Notes to the Consolidated Financial
- Page 55 and 56: equity method, the investment in an
- Page 57 and 58: Short-term debts Short-term debts c
- Page 59 and 60: Employee benefit plans Phonak has v
- Page 61 and 62: 5. Segment information Profit or lo
- Page 63 and 64: 6. Consolidated Income Statement by
- Page 65 and 66: 9. Financial income/(expenses), net
- Page 67 and 68: 11. Earnings per share Basic earnin
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