Half-Year Results 2010/11

Sonova generated a new sales record of CHF 832 million in the first half of 2010/11, an increase of 17.2% in Swiss francs compared to the previous year. The Group consolidated its leading position due to organic sales growth of 8.2% in local currencies and 11.8% growth through acquisitions. EBITA rose to CHF 204.0 million. Income after taxes, taking acquisition-related expenses into account, increased to CHF 170.5 million.

• The Sonova Group increased sales in the first six months of financial year 2010/11 by 17.2% in Swiss francs to CHF 832 million, with a negative currency effect of 2.8%. Sales growth in local currencies was 20.0%.

• Organic sales growth of 8.2% in local currencies exceeded the market growth of the hearing instrument industry, estimated at 4-5%.

• Sonova generated an additional 11.8% sales growth from acquisitions. The integration of the newly acquired companies Advanced Bionics and InSound Medical is on track.

• Group EBITA increased by 5.3% to CHF 204 million, corresponding to an EBITA margin of 24.5%. This includes the planned investments for the strategic acquisitions and projects and a negative currency effect of around 70 basis points.

• Cash-based basic earnings per share increased to CHF 2.676.

• 81% of total sales were achieved with products which were launched within the past two years. This highlights the success of the entire Phonak portfolio based on the CORE platform.

• EUHA October 2010: Sonova expands its technology leadership by launching a host of new, innovative products based on the new Spice platform.

• The Sonova Group expects organic sales growth of 8-10% in local currencies and an EBITA margin of around 26% for financial year 2010/11.