Annual Report 2010/11 - Sonova

82
Financial Review
– setting the course for sustainable growth
In the financial year 2010/11 Sonova generated record revenues of CHF
1,616.7 million and a growth of 13.3% in local currencies, or 7.8% in Swiss Francs.
The EBITA decreased to CHF 326.6 million and the EBITA
margin to 20.2%, mainly due to the voluntary recall
of Advanced Bionics and the strong Swiss franc which
generated negative currency impacts.
With an equity financing ratio of 61.9% and net debt of
CHF 111.3 million, the Group has a very solid financial position.
The hearing instruments segment achieved good performance
in all regions, with above-average results achieved in
the EMEA region and accounted for 39.5% of Group sales.
The USA remains the strongest single sales market for
Sonova. The region accounts for 36.8% of total Group sales
in the financial year 2010/11.
THE FINANCIAl RESUlTS 2010/11 AT A GlANCE
million Sales
1,616.7CHF
– Operating free cash flow:
CHF 221.5 million
– ROCE: 19.0%
– ROE: 17.7%
Advanced Bionics and Phonak Acoustic Implants have been
consolidated into a single division, with the objective
of leveraging technology and business processes. In this
context, CHF 35.5 million of previously capitalized development
costs were impaired as a number of past development
projects no longer fit into the combined development
plan. The financial statements for 2009/10 were restated to
reflect the finalized acquisition accounting for Advanced
Bionics and, as a result of the temporary recall’s impact on
sales, the business plan was updated and a goodwill
impairment charge of CHF 156.6 million was recorded in
the 2009/10 figures. In the mid to long term, Sonova
expects not only to regain its position in the hearing implant
segment, but to increase its market share as a result of
new product introductions.
– EBITA: CHF 326.6 million
– EBITA margin: 20.2%
– Cash-based basic earnings per share:
CHF 4.27
– Proposed distribution per share: CHF 1.20
million
Cash flow from
operating
activities 344.6CHF