Demant

Earnings Release • Mar 1, 2016

-- Consolidated revenue totalled DKK 10,665 million, matching a growth rate of
14% or 7% in local currencies of which organic growth accounted for more
than half.
-- Driven by the successful launch of Oticon’s Inium Sense platform, the Group
saw an 8% organic growth rate in the wholesale of hearing aids in the
second half-year, thereby exceeding the market growth rate.
-- The reported operating profit (EBIT) increased by 7% to DKK 1,878 million.
The underlying profit increased by 8%, corresponding to an EBIT margin of
19.4% or an increase of 0.5 percentage point.
-- Cash flow from operating activities (CFFO) increased by 6% to DKK 1,592
million, corresponding to a continued high cash conversion ratio of 85%
(CFFO/EBIT). Free cash flow grew by 8%, amounting to DKK 1,129 million.
-- At the end of the second quarter of 2016, Oticon will reach a landmark with
the introduction of the first-ever dual-radio hearing aid, combining the
audiological advantages of our new near field magnetic induction system for
fast and ultra-low-power ear-to-ear communication and a 2.4 GHz system for
streamer-free connectivity and programming. The completely new audiological
platform delivers new groundbreaking technology and unmatched end-user
benefits. The global launch will impact sales in the second half of the
year.
-- In 2016, we expect to generate growth in all our business activities. We
are guiding for an operating profit (EBIT) in the range of DKK 2.0-2.3
billion.