Demant

Earnings Release • Feb 26, 2015

-- In 2014, consolidated revenue totalled DKK 9,346 million, matching a growth
rate of more than 6% in local currencies of which organic growth accounted
for more than half. Exchange rates had a negative impact on revenue of 2%.
-- The Group’s three business activities, Hearing Devices, Diagnostic
Instruments and Hearing Implants, achieved revenue growth rates in local
currencies of 5%, 11% and 36%, respectively.
-- The reported operating profit (EBIT) amounted to DKK 1,761 million,
equivalent to 1% growth. When adjusted for a negative exchange rate effect
of DKK 50 million and a one-off loss on a customer loan of DKK 40 million,
the underlying growth in EBIT was 7% compared with 2013. The underlying
profit margin was 19.6%.
-- The Group delivered 5% EPS growth, which is within the most recently
announced range of 2-7% EPS growth. The underlying EPS growth was 11%.
-- Cash flow from operating activities (CFFO) increased by 17% to DKK 1,495
million, corresponding to a cash conversion ratio of 85% (CFFO/EBIT). Free
cash flow grew by as much as 28%, amounting to DKK 1,044 million.
-- Oticon’s new Inium Sense platform is currently being launched in all
styles, at all price points and in all markets. This marks the biggest and
broadest product launch ever undertaken by Oticon and will support the
recent sales momentum achieved in our core business.
-- In 2015, we expect to continue to generate growth in all of our three
business activities, Hearing Devices, Diagnostic Instruments and Hearing
Implants. We are guiding for an operating profit (EBIT) for 2015 in the
range of DKK 1.7-2.0 billion.