Annual Report 2010/11 - Sonova

In the financial year 2010/11 Sonova generated revenues
of CHF 1,616.7 million, another record sales level, and
a growth of 13.3% in local currencies, or 7.8% in Swiss
Francs. Profitability, as indicated by an EBITA margin
of 20.2%, has decreased compared to the previous year,
mainly due to the voluntary recall of Advanced Bionics
and the strong Swiss franc. With an equity financing ratio
of 61.9% and net debt of CHF 111.3 million, the Sonova
Group has a very solid financial position.
This section contains a summary of financial information
and describes the reported financial results for 2010/11
as compared with the financial results for 2009/10 for the
Sonova Group and its two business segments – hearing
in struments and hearing implants. Note that the 2009/10
financial results have been restated to reflect the finalization
of the acquisition accounting for Advanced Bionics
(see note 3.7 of the consolidated financial statements).
ANoTHER yEAR oF SAlES GRoWTH
once again, due to an innovative and comprehensive product
portfolio, Sonova remains the market leader in the
hearing industry. Sonova increased its sales in financial
year 2010/11 to CHF 1,616.7 million (2009/10: CHF
1,500.3 million), posting an overall growth rate of 13.3%
in local currencies, or 7.8% in Swiss francs. The introduction
of innovative products, such as the Spice generation
of hearing instruments, contributed to this growth
rate. While sales of the hearing implant segment increased
SoNoVA GRoUP kEy FIGURES
in CHF m unless otherwise specified 2010/11 2009/10 2)
FINANCIAl REVIEW
over last year’s level – simply because last year only
reported three month’s revenue from the Advanced Bionics
acquisition – the results were below plan due to the temporary
product recall in the second half-year.
In financial year 2009/10, Sonova completed two major
acquisitions of United States based companies: Advanced
Bionics, one of the leading manufacturers of cochlear
im plants, and InSound Medical, the producer of the world’s
first invisible, extended-wear hearing instrument, lyric.
By making these acquisitions, Sonova has taken two important
steps towards realizing its vision of becoming the
leading provider of hearing care solutions.
In financial year 2010/11, as in the previous year, Sanova
made a series of small acquisitions of sales and dis tribution
companies in selected countries in the hearing
instrument segment. The external growth based on these
acquisitions and the full-year effect of previous-year
acquisitions during the past financial year was 10.8%.
The strengthening of the Swiss franc, primarily against
the Euro, the United States dollar, and the British pound,
resulted in strong negative currency effects on overall
sales. These effects could not be offset by the appreciation
of the Canadian and Australian dollar, the Brazilian
real, and the Japanese yen, resulting in a negative currency
effect on reported sales of 5.6% or approximately CHF
84 million.
Change in %
Sales 1,616.7 1,500.3 7.8%
EBITA 326.6 420.3 (22.3)%
EBITA margin 20.2% 28.0%
Cash-based basic earnings per share (CHF) 1) 4.27 5.61 (24.0)%
operating free cash flow 1) 221.5 324.8 (31.8)%
RoCE 1) 19.0% 23.0%
RoE 1) 17.7% 18.9%
1) For detailed definitions, please refer to “5 year key Figures.”
2) Restated based on finalization of the acquisition accounting of Advanced Bionics.
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