Aspirations and strategy

Strengthen our leadership

Offering an innovative customer experience, growing across core markets worldwide, and building an even more efficient and talented organization: these are the foundations of our strategy, which sets ambitious financial targets.

To strengthen our global leadership, positioning our company at the forefront of innovation in the industry: this is our main aim.

2020 strategic plan

customer experience

leadership

Organization

customer experience

customer experience

Innovative and distinctive

Our growth strategy is built around the customer, to whom we offer a distinctive and highly innovative customer experience, also by means of our new Amplifon product line and multichannel ecosystem.

By leveraging on unique and distinctive assets such as the data we own, the strength of our brands and the close relationship with our customers, we aim to transform the retail hearing care market thereby opening up new business and value creation opportunities.

leadership

leadership

in core markets

Our growth strategy is differentiated according to the countries in which we operate and focuses on the core global markets: Italy, Spain, France, Germany, the US, Canada, Australia, New Zealand and China. These markets together make up around 80% of the retail hearing care market.

We intend to continue to grow on mature markets, through organic growth and through targeted acquisitions in France, Germany and Canada. 

Organization

Organization

Effective and talented

In order to support the implementation of our strategy, we will continue to invest in our people and in a distinctive corporate culture, as well as in attracting the best talents, sharing best practices within the group, always leveraging on our globally integrated IT infrastructure, thus creating a more effective organization.

Our strategic plan was first presented to the financial community in March 2018, and later updated in March 2019 to reflect the additional drive to our growth made by the acquisition of the Spanish group GAES, finalized at the end of 2018. 2019 was, in turn, the first year of its integration and we completed its initial and most complex phase faster and with better results than initially expected.

In addition, in 2018 we also announced the joint venture with the main retailer in Beijing - which represents the first step towards building a local presence in China, a key market for supporting our growth in the medium-long term. Finally, we launched the Amplifon Product Experience in six countries: Italy, France, Germany, the Netherlands, the US and Australia.

In the coming years, we expect to continue the roll-out of the Amplifon Product Experience in our core countries, to grow at a faster pace than the market, both organically thanks to our marketing initiatives, and through bolt-on acquisitions mainly in Germany and France,  and, finally, to continue to become an increasingly efficient organization thanks to continuous investments in our people, IT systems and unique protocols.

Focus: GAES acquisition and integration

Announced in July 2018 and closed in December 2018, the acquisition of GAES, the largest ever undertaken by Amplifon, enabled us to strengthen our global leadership, which now makes up 11% of the retail hearing care market worldwide. With a value of around 530 million euros, this deal allowed us to become the undisputed leader in the attractive Spanish market, to consolidate our presence in Portugal and to enter the Latin American market. 

2019 was the first year of the GAES integration and we completed its initial and most complex phase faster and with better results than initially expected. Indeed, GAES’s growth in 2019, both in terms revenues and profitability, was above initial expectations also due to the synergies achieved in the top end of the range previously disclosed.

Focus: Amplifon product experience

The Amplifon Product Experience, consisting of the Amplifon product line and our multichannel ecosystem, redefines the experience throughout the entire customer journey. Launched with great success in Italy in May 2018, it made up 90% of our total sales on the private and paid-up market at the end of 2018, while the App attained 15% of penetration on compatible Amplifon devices.

In light of the excellent results in Italy, we anticipated the roll-out in France, Germany, the Netherlands, the US and Australia to 2019. Technological innovation and hearing aid usage data collection will allow us to provide even more personalized services with high added value, with the aim of offering tailored experiences for every single customer.

innovation and technology

The new Amplifon Product Experience allows us to provide even more personalized, high added value services.

2020 outlook & guidance

While the risks associated to future developments of the Covid-19 outbreak call for caution, the Company is confident that the most difficult phase of the pandemic is now behind. The impressive speed of recovery since the easing of restrictive measures and the positive signals from July performance, with revenues growing vs. prior year, clearly demonstrate the resilience of the business, the unchanged solid fundamentals of the market in which the Group operates and the unaltered consumers’ behaviors.

Therefore, although the situation remains uncertain, given the Group’s recent performance and assuming no further significant re-tightening of lockdown restrictions in the near future, the Group expects a favorable trend in the second half of 2020 and estimates third quarter of 2020 at a similar revenue level to previous year.

The Company also looks positively to FY 2021 both in terms of sales and profitability. The strong measures implemented to reduce the cost base and improve productivity shall, in fact, allow the Company to be even more efficient going forward. 

Reaching the targets set for 2018

Sales growth in local currencies

Profitability increase

Network expansion

Target 2018

Sales growth in local currencies

Mid-to-high single digit CAGR 2015-2018

Profitability increase

EBITDA margin >150bps 2018 vs 2015

Network expansion

+600 stores 2018 vs 2015

2016 results

Sales growth in local currencies

+10.4%

Profitability increase

+50 bps

Network expansion

+ 230 stores

2017 results

Sales growth in local currencies

+12.5%

Profitability increase

+50 bps

Network expansion

+ 345 stores

2018 results

Sales growth in local currencies

+10.6%

Profitability increase

+40 bps

Network expansion

+ 270 stores

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