IR Presentation February - SonovaInvestor Presentation February 2015 Disclaimer This presentation contains forward-looking statements, which offer no guarantee with regard to future

Investor PresentationFebruary 2015

Disclaimer

This presentation contains forward-looking statements, which offer no guarantee withregard to future performance. These statements are made on the basis of management’sviews and assumptions regarding future events and business performance at the time thestatements are made. They are subject to risks and uncertainties including, but notconfined to, future global economic conditions, exchange rates, legal provisions, marketconditions, activities by competitors and other factors outside Sonova’s control. Should oneor more of these risks or uncertainties materialize or should underlying assumptions proveincorrect, actual outcomes may vary materially from those forecasted or expected. Eachforward-looking statement speaks only as of the date of the particular statement, andSonova undertakes no obligation to publicly update or revise any forward-lookingstatements, except as required by law.

This presentation constitutes neither an offer to sell nor a solicitation to buy any securities.This presentation does not constitute an offering prospectus within the meaning of Article652a of the Swiss Code of Obligations nor a listing prospectus within the meaning of thelisting rules of SIX Swiss Exchange.

Page 2February 2015

At Sonova, we envision …

… “Hear the world”

Vision

A WORLD WHERE EVERYONE

ENJOYS THE DELIGHT OF HEARING AND

THEREFORE LIVES A LIFE WITHOUT LIMITATIONS

Page 3February 2015

Broadest offering – Hearing Instruments, Cochlear Im plants …

… and professional audiological services

Sonova Group

Page 4February 2015

HI Hearing Instruments � Behind-The-Ear hearing instruments (BTE)� Wireless systems

� Custom In-The-Ear hearing instruments (ITE)

� Hearing protection� Wireless communication systems

� Invisible extended-wear hearing instruments

� Cochlear implants

CI Cochlear Implants

Key to our success - Our customers and our employees

Broadest product and service offering / portfolio - Hearing instruments (Phonak, Unitron)

- Cochlear implants (Advanced Bionics)

- Professional services (Connect Hearing Group)

Strong competitive positions - Leading position in hearing instruments

- Strong contender on cochlear implants

- Strong position in selected key retail markets

Significant market share gain potential - High R&D spend – fast product introduction

- Differentiated multi-brand strategy

- Optimized multi-channel approach

Strong product pipelines - High innovation rate and rapid new product introduction

Productivity / efficiency gains - Leverage existing global infrastructure to expand margins

Mid-term financial targets (excluding FX impact) - EBITA margin: expand to mid-twenties at constant FX

- ROCE: expand to low-thirties

Clear and focused strategy – Customer driven innovat ion

Sonova Group

Page 5February 2015

Contents

1 Market Page 7

2 Business Page 10

3 Corporate Strategy Page 19

4 Business Strategies Page 26

5 Financial Information Page 45

6 Outlook Page 59

Page 6February 2015

1. Market

Around 15% of adults have some degree of hearing im pairment

Low penetration rate – Around 20% in developed count ries

Market

MILD

MODERATE

PROFOUND

With hearing system Without hearing system

END-USER MARKET – PENETRATION*

- Profound loss- Moderate loss- Mild loss

70%50%10%

�� HI

�� HI

�� CI

�� HI

15%

* Source: Several industry statistics, Sonova estimates

Page 8February 2015

Hearing solutions – Instruments, implants and servic es

Service channels: Key to access end-users

Market

TOTAL HEARING CARE MARKET

- Market Size- Market CAGR- HI Size (units)- CI Size (units)

~ CHF 15-16 billion~ + 3-5%

~ 12 million~ 50 thousand

COCHLEAR IMPLANTS CI

- Market Size- Market CAGR- CI Size (units)

~ CHF 1 billion~ +10%

~ 50 thousand

HEARING INSTRUMENTS HI

- Market Size- Market CAGR- HI Size (units)

~ CHF 4.5 billion~ + 2-4%

~ 12 millionIndependents

Large Retail

Buying

Groups

Governments &

Hospitals

CI

HI

Page 9February 2015

Note: Unit split

2. Business

Strong financial track record

Sonova Group

1H

SALESin CHF million

EBITAin CHF million

EBITAmargin in %

Notes: FY 2009/10 Restated based on finalization of the acquisition accounting of Advanced BionicsFY 2012/13 Excluding one-off cost for AB Vendor B provision increase, AB Rixheim restructuring and settlement with a group of investors

2H

FY 2009/10 FY 2010/11 FY 2011/12 FY 2012/13 FY 2013/14 CAGR 5-y 1H 2014/15

Sales growth reported +20.1% +7.8% +0.2% +10.8% +8.7% +9.3% +4.5%

Sales growth in LC +23.8% +13.3% +11.6% +7.4% +11.7% +13.4% +7.7%

Organic sales growth in LC +18.4% +5.8% +6.7% +5.2% +11.0% +9.3% +6.9%

EBITA margin +28.0% +20.2% +19.5% +21.5% +22.0% n/a +21.8%

Basic EPS 3.32 3.50 3.71 4.60 5.08 +3.2% 2.52

0

400

800

1'200

1'600

2'000

2'400

09/10 10/11 11/12 12/13 13/14 14/150%5%10%15%20%25%30%35%40%45%

0

100

200

300

400

500

09/10 10/11 11/12 12/13 13/14 14/15

Page 11February 2015

Well established global infrastructure and network

Strong local presence – Supporting customers worldwi de

Sonova Group

Sonova & Phonak & Connect Hearing HQ & Operation Center Stäfa

AB HQ, Operation Centers

DistributorsWHS Group Companies

Operation CentersPhonak Communications HQ

Unitron HQ

Murten (CH)

Kitchener (CAN)

Ho Chi Minh City (VN)

Suzhou (CN)

Valencia (USA)

Stäfa (CH)


Europe and Americas – Main contributors to group sal es

Sonova Group

SALESin CHF million

SALESin CHF million

2009/10 2010/11 2011/12 2012/13 2013/14 CAGR 5-y 1H 2014/15

EU - Sales growth in LC +23.0% +11.3% +13.9% +5.3% +12.4% +13.0% +19.1%

AM - Sales growth in LC +26.0% +16.9% +7.8% +7.1% +10.7% +13.5% -1.2%

AP - Sales growth in LC +15.3% +2.7% +24.0% +17.7% +14.0% +14.5% +9.4%%

0

400

800

1'200

1'600

2'000

2'400

09/10 10/11 11/12 12/13 13/14 14/15

EU AM AP

0

400

800

1'200

1'600

2'000

2'400

09/10 10/11 11/12 12/13 13/14 14/15


Expanding strong HI position into larger hearing ca re market

Market position



~ CHF 15-16 billion~ + 3-5%





~ 50 thousand




~ 12 million


Note: Unit split

Channel mix – Balanced approach to all service provi ders

Market position



~ CHF 15-16 billion~ + 3-5%





~ 50 thousand




~ 12 million

Independents

Large Retail

Buying

Groups

Governments &

Hospitals

SOONSales Split


Note: Unit split

Balanced portfolio of profitable growth businesses

Sonova Group

SONOVA Group

HEARING INSTRUMENT (HI)Segment

IMPLANT (CI)Segment

CIADVANCED

BIONICS

Business

HIPHONAK

Business

HIUNITRON

Business

HIRETAIL

Business


Performance history

Hearing instruments

SALESin CHF million

EBITAin CHF million

EBITAmargin in %

1H 2H


Sales growth reported +18.1% +4.8% -1.4% +8.2% +6.5% +7.1% +3.0%

Sales growth in LC +21.7% +10.1% +9.7% +4.9% +9.5% +11.0% +6.2%

Organic sales growth in LC +18.4% +5.8% +4.5% +2.6% +8.8% +7.9% +5.3%

EBITA margin +29.0% +24.1% +22.3% +23.3% +23.8% n/a +23.3%

0

400

800

1'200

1'600

2'000

09/10 10/11 11/12 12/13 13/14 14/150%5%10%15%20%25%30%35%40%45%

0

100

200

300

400

500

09/10 10/11 11/12 12/13 13/14 14/15


Performance history

Cochlear implants

SALESin CHF million

EBITAin CHF million

1H 2H

* FY 2012/13 Excluding one-off cost for AB Vendor B provision increase, AB Rixheim restructuring and settlement with a group of investors

0

50

100

150

200

250

09/10 10/11 11/12 12/13 13/14 14/15-80%

-60%

-40%

-20%

0%

20%

-80

-60

-40

-20

0

20

09/10 10/11 11/12 12/13 13/14 14/15


Sales growth reported -- +180.5% +36.0% +52.3% +33.1% +66.8% +19.6%

Sales growth in LC -- +202.1% +53.5% +47.1% +36.0% +74.5% +23.0%

EBITA margin -31.0% -63.4% -25.0% +1.2% +6.6% n/a +7.9%


EBITAmargin in %

3. Corporate Strategy

Focus on developing and offering hearing care solut ions and services

Leverage connectivity solutions and consumer e-tech nology/services

Strategic choice


� Behind-The-Ear hearing instruments (BTE)� Wireless systems

� Custom In-The-Ear hearing instruments (ITE)

� Hearing protection� Wireless communication systems

� Invisible extended-wear hearing instruments

� Cochlear implants

1 – FOCUS ON 2 – LEVERAGE

� HEARING CARE SOLUTIONS

� HEARING CARE SERVICES

� MEDICAL TECHNOLOGIES

� CONNECTIVITY SOLUTIONS

� CONSUMER E-SERVICES

� CONSUMER ELECTRONICS

On course for mid term financial targets

Financial targets

Notes: FY 2007/08 Excluding one-off cost for the prohibited acquisition of the GN ReSound GroupFY 2009/10 Restated based on finalization of the acquisition accounting of Advanced BionicsFY 2012/13 Excluding one-off cost for AB Vendor B provision at AB, AB Rixheim restructuring and settlement with a group of investors

10%

20%

30%

40%

0

1'000

2'000

3'000

09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17

EB

ITA

Mar

gin

/ RO

CE

(%

)

Sal

es (

in C

HF

mill

ion)

Sales EBITA Margin (%) ROCE (%)


Focus on continuous innovation to grow sales and ea rnings

Core: Drive strong new product pipeline – Gross R&D 7-8% of sales

Innovation strategy

NEW PRODUCTS

SALES & DISTRIBUTION

Q1 16 Q2 16Q1 15 Q2 15 Q3 15 Q4 15Q1 14 Q2 14 Q3 14 Q4 14

MARKETING

PRODUCTIVITY & EFFICIENCY

RESOURCES & PROCESSES


Grow market position along 4 main growth vectors

Increase demand generation – Develop consumer base

Market strategy

1

2

3

4

Penetrate existing markets– WHS account development– Dual-brand strategy– Continuous product innovation

Expand accessible markets– BRIC markets– New product formats

Integrate service channels– Retail network expansion– Integration & productivity

Develop consumer base– Direct marketing– Demand generation processes

Page 23

1

2

3

4

February 2015

Provide complete customer solutions – Hardware, soft ware and services

Platform concept approach to solution development f or HI & CI

Product strategy


Invest to leverage existing channels and products

Targets – Strict criteria for strategic and financia l fit

Acquisition strategy

HI

CI

Channels

,0

3,000

09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18

ISM

AB


CA

4. Business Strategies

Business strategy – Drive innovation leadership to e xpand market position

Phonak

Markets - Cover broadest global (whole)sale, distribution & support network

Product pipeline - Drive high innovation rate and rapid new product introduction

Products - Offer complete range across all form factors and performance levels

Productivity / efficiency - Leverage global sales & production infrastructure to expand margins

Selected initiatives 2014/15 - Consumer base development: Web based marketing B2B and B2C

- Increased Web-Store penetration

- New product launch 2014/15

- Roll-out Lyric 3

- Wireless communication/connectivity standards based on 2.4 GHz: e.g. Roger

- Asia market growth and expansion (lead)


Product pipeline – Drive high innovation rate & rapi d new product introduction

Leverage platform approach to offer complete range of products

Phonak


T 2.0T 1.1

F 2

F 2

F 5

F 5

1H 11 2H 11

HI – Premium

HI – Advanced

HI – Standard

HI – Essential/Basic

HI – Platform

HI – New EW Format

Fitting Software(TARGET)

TIMELINE / CY

PH-SPICE PH-QUEST PH-VENTURE

BT

E –

Bo

lero

Q

ITE

–V

irto

Q

RIC

–A

ud

éo Q

PO

WE

R –

Naí

da

Q

PE

D –

Sky

Q

RIC

–A

ud

éo V

F 2

F 3

Lyric2 Lyric3

T 2.1 T 3.3T 3.0 T 4.0T 3.1 T 3.2 T 4.1 T 4.2

F1 / 4

1H 14 2H 141H 12 2H 12 1H 15 2H 151H 13 2H 13

BT

E

ITE

F 1

F 1

F 4

F 1

F 3

Note: Subject to change

BTE Custom RIC Power Pediatric

Premium Bolero Q90 Virto Q90 Audéo V90 Naída Q90 Sky Q90

Advanced Bolero Q70 Virto Q70 Audéo V70 Naída Q70 Sky Q70

Standard Bolero Q50 Virto Q50 Audéo V50 Naída Q50 Sky Q50

Essential Bolero Q30 Virto Q30 Audéo V30 Naída Q30

Basic Baseo Q Tao Q

Venture platform successfully launched – Early indic ations very promising

Building on the success of our rigorous platform ap proach

Phonak


Phonak Venture chip

Our response to life’s complexity and need for perf ormance

Phonak


Double the processing capability

30% less power consumption

Double the number of transistors

Audéo V – Featuring AutoSense OS – Mastering the comp lexity of everyday sounds

Combined with a full range of wireless solutions fo r every need

Phonak


Phonak

February 2015 Page 32

Large Retail – Costco (shop-in-shop)

Phonak entering Costco to participate in high growt h channel

Key initiatives

− Global Phonak contract as of April 2014 – maturing supplier relationship

− Channel-specific products Phonak Brio – Focus on premium and RIC products

− Transaction efficiency through EDI

− Streamlined and efficient training approach

– Shop-in-shop concept

– Products: branded (incl. Phonak) and private label (Kirkland)

– By far strongest growing channel in US commercial/private market

Business strategy – Drive leadership in customer exp erience

Unitron

Markets - Deeper penetration in core markets in Europe and NA

Product pipeline - Drive focused innovation and rapid new product introduction

Products - Offer flexible range across many form factors and all performance levels

Productivity / efficiency - Leverage Sonova technology & production platform to expand margins

Selected initiatives 2014/15 - B2B Marketing campaign “favorite sound”

- B2B and B2C customer experience – Flex solution roll-out

- Roll-out of premium products on Era 2 platform

- UT customer experience initiatives – “The Unitron Way”

- New product launches 2014/15

- Europe and Asia market growth and expansion


Product pipeline – Drive focused innovation and rapi d new product introduction

Leverage platform approach to offer flexible range across 3 formats

Unitron


Fitting Software(TRUEFIT)

Note: Subject to change

HI – Premium

HI – Advanced

HI – Standard

HI – Essential/Basic

HI – Platform

TIMELINE / CY

NEXT PLATFORM

FL

EX

Tri

al &

Up

gra

de

PO

WE

R –

Max

RIC

–M

oxi

Kis

s

FL

EX

Up

gra

de

Ph

ase

2

F 1

F3

TF 1.1 TF 2.3TF 2.0 TF 2.4TF 2.1 TF 2.2 TF 3.0 TF 3.1

Q P

RO

MP

RO

RIC

–M

oxi

2

Q2

PR

O

M2

PR

O

1H 14 2H 141H 12 2H 12 1H 15 2H 151H 13 2H 13

Shine Rev

BTE

–Q

uant

um2

TF 1.0

BTE

-Qua

ntum

RIC

-Mo

xi

1H 11 2H 11

UT-ERA

F 2

BTE Custom RIC Power Flex Trial & Upgrade

Premium Quantum² Pro Quantum² Pro Moxi² Pro

Any Performance LevelAdvanced

Quantum² 20 Quantum² 20 Moxi² 20 Max 20

Quantum² 16 Quantum² 16 Moxi² 16

Standard Quantum² 10 Quantum² 10 Moxi² 10 Max 6

Essential Quantum² E Quantum² E Moxi² E Max E

Basic Shine Rev Shine Rev

Next generation of products on the Era platform

Building on the success of the Flex concept

Unitron


Business strategy – Secure market access and grow pr ofessional services

Connect Hearing

Markets - Build strong service positions / networks in key focus markets

Business models / products - Support new business concepts to increase store traffic and service

Profitability / productivity - Standardize business systems and processes

Brand equity - Apply consistent store branding within key markets

Selected initiatives 2014/15 - Selected acquisitions and store openings

- Shop-in-shop concept (Boots/UK)

- Web based lead and demand generation

- Roll-out of customized proprietary IT retail application

- Integration of branding and operations in the US


Connect Hearing US being positioned for profitable growth

Connect Hearing

Key initiatives

− Harmonized branding and positive customer experience

− Focus on lead generation and consumer evaluations

− Develop leading practices in sales training, business process and information systems

− Harmonization of processes and introduction of advanced IT system

− Systems and processes suited for increasing insurance based business

– Undergoing phase of increased integration efforts to consolidate bolt on acquisitions

– Positioned for efficient lead generation and service delivery


Connect Hearing US

Boots Hearingcare shop-in-shop concept – Continued s trong development

Premium market access by partnership with leading p harmacy chain

Connect Hearing

Page 38

Key initiatives

− Expansion into Boots Pharmacy format – Beyond Boots Optical

− Developing efficient patient care processes using on-line tools

− Creating awareness of hearing loss and solutions: The Great Big Hearing Check – International Longevity Centre

− Leveraging of Boots customer data base and loyalty program/Card

− Continuously increase efficiency by best in class appointment scheduling and staff rostering

– Growth from 391 shops since the end of FY 2012/13 to 451 in October 2014

– Success founded on Sonova hearingcare operations competence and Boots brand value

– High utilization and efficiency – Many shops fully booked for rolling next 7+ days

February 2015

Business strategy – Strive for performance leadershi p, leverage AB and PH

Advanced Bionics

Markets - Build global direct sales & support network - grow from strong US base

Products - Expand innovative range of processors, implants and electrodes

Product pipeline - Accelerate innovation rate – leverage Phonak pipeline and platforms

Productivity / efficiency - Leverage PH technology & process platform to expand margins

Selected initiatives 2014/15 - AB/Phonak - continued joint platform and product development

- New product launches 2014/15

- Focused emerging markets approach

- Expansion of waterproof technology

- AB Partner Program for retail: «Think beyond Hearing Aids»


How a cochlear implant works

Advanced Bionics

SoundprocessorSound is captured and converted into detailed digital information

Magnetic headpieceTransmits digital signal wirelessly to the implant

ImplantConverts digital information into electrical signal

ElectrodeDelivers signal as electrical stimulation to the auditory nerve


Product pipeline – Accelerate innovation rate and le verage Phonak technology

Leverage platform approach to offer innovative proc essors, implants, electrodes

Advanced Bionics

Note: Subject to change, timing dependent upon regulatory approvals


CI – Electrodes

CI – Implants

CI – Processors

CI – Platform

Fitting Software(SOUNDWAVE)

TIMELINE / CY

FDACE .

1H 14 2H 141H 12 2H 12 1H 15 2H 151H 13 2H 13

Naída CI

Q70

HiFocus

Mid-Scala

HiRes 90k

Advantage

AB-WOLVERINE AB-QUEST

Naída CI

AquaCaseNeptune

1H 11 2H 11

FDACE

FDACE

Competitive portfolio of sound processors, implants , electrodes and accessories

Building on the combined R&D strength of Advanced B ionics and Phonak

Advanced Bionics

Page 42

Implants Electrodes Sound Processors

HiRes 90K Advantage HiFocus Mid-Scala Naída CI

HiRes 90K HiFocus 1j Neptune

HiFocus Helix Harmony BTE

February 2015

AquaCase – Leadership in waterproof hearing technolo gy continues

Featuring the AquaMic – Enabling uncompromised heari ng in and out of the water

Advanced Bionics


Naída CI sound processor – The best of both worlds

Advanced Bionics

T-Mic 2Natural microphone placement

ClearVoiceUnique speechenhancement

UltraZoomThe adaptive

beamformer

ZoomControlDual-microphonewith VoiceStream

HiRes Fidelity 120120 spectral bands

AutoSoundWidestdynamic range

DuoPhonePhone call streaming

to both ears

ComPilotWireless streaming

with bimodal

RemoteMicWireless solution

for noisy places

TVLink Wireless

solution for TV

HiRes OptimaOptimized battery life

Rechargeable Zinc-Air

HiFocus Mid-ScalaPerimodiolar electrode

AquaMicWaterproofheadpiece

RogerDesign-integrated

receiver


5. Financial Information

– Strong sales increase, driven by both segments– Sales of CHF 990.2 million – up 4.5% in Swiss francs and 7.7% in LC– Organic sales growth of 6.9% – driving market share expansion in both segments

– Solid underlying margin development– EBITA of CHF 215.9 million – up 4.7% in Swiss francs and 12.1% in LC– EBITA margin of 21.8% – underlying improvement of 90 bps in LC offset by FX

– Both segments contributing to solid financial resul ts– Hearing instruments: solid growth of 6.2% in LC – EBITA margin +50 bps in LC– Cochlear implants: continued progress with sales up 23.0% in LC – EBITA margin reaching 7.9%

– High rate of innovation continues in both segments– Hearing instruments: continued success of Quest driving growth, successful launch of Venture– Cochlear implants: growth driven by new system and upgrade sales

– Solid balance sheet – acceleration of cash distribut ion to shareholders– Net cash position of CHF 301.5 million up from CHF 180.2 million a year ago – all financial debt repaid– Dividend payout ratio to increase in steps to a range of around 40% in the coming years– Initiating three year share buy back program amounting to CHF 500 million

Summary of financial results

Half-Year 2014/15


Sonova Group – Key financials

Double-digit EBITA growth in LC – Leverage driven by gross profit margin

Half-Year 2014/15


in CHF million 1H 2013/14 1H 2014/15 ∆ % ∆ % in LC

Sales 947.8 990.2 4.5% 7.7%

Gross profit 649.2 680.9 4.9% 8.9%

- Gross profit margin 68.5% 68.8%

OPEX -443.0 -465.0 5.0% 7.4%

EBITA 206.2 215.9 4.7% 12.1%

- EBITA margin 21.8% 21.8%

Operating free cash flow 138.7 141.6 2.1%

EPS (in CHF) 2.39 2.52 5.6%

ROCE* 11.3% 27.4%

* EBIT (last twelve months) in % of capital employed (average), 1H 13/14 figure significantly affected by one-off costs in FY 2012/13

Sonova Group – Sales by regions

Strong performance in Europe – Driven by UK, DE and Scandinavia

Half-Year 2014/15

1H 2013/14 1H 2014/15

in CHF million Sales In % Sales in % ∆ % in LC

EMEA 361.7 38.1% 427.3 43.1% 19.3%

USA 368.2 38.9% 348.7 35.2% -1.7%

Americas (excl. USA) 116.9 12.3% 108.3 10.9% 0.3%

Asia / Pacific 101.0 10.7% 105.9 10.7% 9.4%

Total SONOVA 947.8 100.0% 990.2 100.0% 7.7%


Hearing instruments – Sales by product groups

Well balanced growth – Premium category with strong contribution

Half-Year 2014/15

in CHF million 1H 2013/14 % Group sales 1H 2014/15 % Group sales ∆ % in LC

HI Premium 220.6 23.3% 226.7 22.9% 5.6%

HI Advanced 215.9 22.8% 204.4 20.6% -2.3%

HI Standard 268.6 28.3% 286.8 29.1% 9.8%

Wireless communication 30.9 3.3% 38.8 3.9% 30.3%

Miscellaneous 129.9 13.7% 135.8 13.7% 7.9%

Total HI Segment 865.8 892.2 6.2%


Sonova Group – Growth components

Underlying EBITA margin improvement of 90 bps offse t by currency headwind

Half-Year 2014/15

in CHF million 1H 2013/14as reported

Growth contribution 1H 2014/15 @ const. FX

FX impact 1H 2014/15 as reported

Organic Acquisitions

Sales 947.8 64.9 7.7 1,020.4 -30.2 990.2

- ∆ % to prior year n/a +6.9% +0.8% +7.7% -3.2% +4.5%

EBITA 206.2 +24.9 231.1 -15.2 215.9

- EBITA margin 21.8% +90 bps 22.7% -90 bps 21.8%


Sonova Group – EBITA development

EBITA performance driven by organic growth – Substan tial negative FX effect

Half-Year 2014/15

EBITA1H 2013/14

Organic Growth

EBITA1H 2014/15

FX effect

EBITA1H 2014/15const. FX

215.9-15.2

206.2 +24.1

Margin:21.8%

Margin:21.8%

+0.8

Acquisitions

231.1

Margin:22.7%

+9.7m+4.7%

+24.9m+12.1%

Avg FX Rates

1H 2013/14

1H 2014/15

USD 0.94 0.90EUR 1.23 1.22

GBP 1.45 1.51JPY (100) 0.95 0.88BRL 0.43 0.40AUD 0.89 0.84CAD 0.91 0.83


Sonova Group – Operating expenses

Half-Year 2014/15

in CHF million 1H 2013/14 1H 2014/15 ∆ % in CHF ∆ % in LC Comments

Research & Development -59.4 -65.3 9.9% 11.2%Reflects new Palio 3 platform launch

in % of sales 6.3% 6.6%

Sales & Marketing -290.0 -301.6 4.0% 6.7%Growing slower than sales–operating leverage

in % of sales 30.6% 30.5%

General & Administration -93.6 -98.4 5.0% 6.9%Growing slower than sales–operating leverage

in % of sales 9.9% 9.9%

Other income / (expenses), net 0.1 0.2

Total OPEX -443.0 -465.0 5.0% 7.4%

in % of sales 46.7% 47.0%


Sonova Group – R&D spending

Continued high R&D investment

Half-Year 2014/15

in CHF million 1H 2013/14 1H 2014/15 ∆ % in CHF ∆ % in LC Comments

R&D charged to the P&L 59.4 65.3 9.9% 11.2%Increase driven by both segments

in % of sales 6.3% 6.6%

Capitalized development costs 14.0 11.3 -19.4% -19.2%Fluctuation capitalized vs. expensed projects

in % of sales 1.5% 1.1%

Amortization of development costs 3.0 3.7 22.4% 22.4%

in % of sales 0.3% 0.4%

Total R&D spending 70.4 72.9 3.5% 4.7%

in % of sales 7.4% 7.4%


Sonova Group – Reported results and income taxes

Half-Year 2014/15

in CHF million 1H 2013/14 1H 2014/15 ∆ % in CHF Comments

EBITA 206.2 215.9 4.7%Adverse FX impact of CHF15.2m, LC variance +12.1%

Acquisition related amortization -12.9 -12.7 -1.4%

Operating profit (EBIT)in % of sales

193.320.4%

203.120.5%

5.1%

Financial result -5.1 -3.1 -38.2%Lower interest payments following debt repayment and higher associate income

Income before taxes 188.2 200.0 6.3%

Income taxes -24.6 -26.4 7.4%

- Income tax rate 13.0% 13.2%

Income after taxesin % of sales

163.717.3%

173.617.5%

6.1%

Thereof attributable to non-controlling interests

3.2 4.1 +26.7%Change attributable to continued success of Boots partnership

Basic EPS (in CHF) 2.39 2.52 5.6%


Significant free cash flow

Half-Year 2014/15

in CHF million 1H 2013/14 1H 2014/15 ∆ % in CHF Comments

Cash flow before changes in NWC (incl. taxes paid)

221.3 237.6 7.4%

Changes in net working capital -29.7 -52.9 78.6%Driven by higher inventories for Venture

Cash flow from operating activitiesin % of sales

191.620.2%

184.718.7%

-3.6%

Cash flow from investing activities (excl. acquisitions)

-52.9 -43.1 -18.6%Less loans granted to associates

Operating free cash flowin % of sales

138.714.6%

141.614.3

2.1%

Cash consideration for acquisitions -13.1 -7.9 -39.7%Less retail acquisitions closed

Free cash flow 125.6 133.8 6.4%

Cash flow from financing activities -132.2 -233.9 76.9%Higher dividend and repayment of financial debt

Changes in cash and cash equivalents -10.6 -96.0 >100%


Sonova Group – Balance sheet

Half-Year 2014/15

in CHF million 31 Mar 2014 30 Sep 2014 ∆ % in CHF Comments

Net working capital 190.6 238.5 25.1%Venture launch; includes CHF10m FX effect on inventory

Days sales outstanding (DSO) 69 69 0.0%

Days inventory outstanding (DIO) 140 162 15.6% Effect of Venture launch and FX

Capital employed 1,462.9 1,569.6 7.3%FX effect on intangible assets, higher inventory

Net cash 311.5 301.5 -3.2%

Equity 1,774.4 1,871.2 5.5%

Equity in % of total assets 68.4% 71.3%


Cash deployment strategy

Secure funding of business growth – Return excess ca sh to shareholders

Total shareholder return


Total shareholder return strategy

4. Share buyback

− Introduce buy back program

− CHF 500 million 2014-2017

3. Solid cash position

− Maintain cash balance of CHF 250 million

2. Dividend

− Further gradually increase pay-out-ratio

1. Acquisitions

− Bolt-on − CHF 50- 70

million p.a.

Cash deployment strategy

Total shareholder return

Page 58

Dividend increase

– Dividend paid for FY 2013/14: payout ratio of 37%

– Dividend to further increase in steps

– Target range of around 40 % pay-out-ratio within 3 years

TSR strategy footed on confidence in continued stro ng earnings & cash conversion

2. Dividend

4. Share buyback

February 2015

Share buy-back program

– Value of CHF 500 million

– Term: 3 years from December 2014

6. Outlook

FY 2014/15 guidance

Outlook FY 2014/15

Actual1H 2014/15

GuidanceFY 2014/15*

SalesSales growth in local currencies

thereof acquisition related growth

FX-impact

Total sales growth in CHF

7.7%

0.8%

-3.2%

4.5%

7%-9%

approx. 1%

EBITAEBITA growth in local currencies

FX-impact

Total EBITA growth in CHF

12.1%

-7.4%

4.7%

11%-15%

Page 60

*Unchanged compared to guidance issued in May 2014

February 2015

FX impact on sales and margins

USD and EUR account for roughly two thirds of the o verall FX exposure

Outlook FY 2014/15

USD/CHF EUR/CHF

Rate Sales EBITA

USD/CHF +/- 5% +/- CHF 38 million +/- CHF 12 million

EUR/CHF +/- 5% +/- CHF 26 million +/- CHF 14 million


FX rates – Main currencies accounted for around 90% of Group sales

Re-balance global OPEX base to create natural hedge

Outlook FY 2014/15

Avg 1H 2013/14 Avg 1H 2014/15 Effect Avg FY 2013/14 Spo t 13-Nov-14

USD 0.94 0.90 – 0.92 0.96

EUR 1.23 1.22 – 1.23 1.20

GBP 1.45 1.51 � 1.46 1.52

CAD 0.91 0.83 – 0.87 0.85

AUD 0.89 0.84 – 0.86 0.84

BRL 0.43 0.40 – 0.41 0.38

JPY 100 0.95 0.88 – 0.92 0.83


Thank You

Documents

IR Presentation February - SonovaInvestor Presentation February 2015 Disclaimer This presentation contains forward-looking statements, which offer no guarantee with regard to future