Demant — Earnings Release 2013

Feb 27, 2014

-- In 2013, consolidated revenue totalled DKK 9,209 million, matching a growth
rate of 10% in local currencies supported by all the Group’s business
activities. Organic growth was more than 3%.
-- In our core business, wholesale of hearing aids, the organic growth rate
exceeded 5%, when adjusting for the impact from the Danish and Dutch
markets. Unadjusted, we realised 3% organic growth in a market estimated to
have seen flat growth in terms of value.
-- In 2013, our operating profit (EBIT) rose by 8% to DKK 1,784 million,
corresponding to a profit margin of 19.4%. Net profit and earnings per
share (EPS) went up by as much as 14% each for the full year 2013 and by
23% for the second half-year 2013.
-- In 2013, the Group once again generated a strong cash flow from operating
activities, totalling DKK 1,320 million and equivalent to a cash conversion
ratio of 74%.
-- In spring 2014, Oticon will join Apple’s Made for iPhone programme and
launch its first Made for iPhone (MFi) connectivity solution for hearing
instruments. Oticon’s MFi solution will be available for all existing and
future users of Oticon’s ConnectLine instruments across the price spectrum,
including an installed base of around two million current users of wireless
Oticon hearing instruments.
-- In 2014, we expect to continue to generate growth in all our business
activities. Following a 14% growth rate in the Group’s net profit and
earnings per share (EPS) in 2013, we expect to see growth in EPS of 5-10%
in 2014. Based on a continued strong cash flow, we expect to be able to buy
back Company shares worth more than DKK 500 million in 2014.