14.6.2022 07:30:05 CEST | Demant A/S |
Intern viden
Selskabsmeddelelse nr. 2022-11 14. juni 2022
Demant fuldfører akkvisition af ShengWang
Demant annoncerer i dag købet af de resterende 80 % af aktierne i ShengWang, således at Demant nu får fuldt ejerskab af det førende netværk af høreapparatklinikker i Kina. Akkvisitionen sker efter den minoritetsinvestering på 20 % i ShengWang, der blev annonceret den 4. marts 2022, og udgør en betydelig strategisk transaktion i Demants fortsatte rejse på høresundhedsområdet. Inklusive købesummen for den første minoritetsinvestering på 20 %, betaler Demant i alt RMB 1.750 mio. (DKK 1.855 mio.[1]) på kontant- og gældsfri basis for 100 % ejerskab, hvoraf RMB 1.450 mio. (DKK 1.537 mio.1) vil påvirke Demants pengestrømme i H2 2022. Det resterende beløb på RMB 300 mio. (DKK 318 mio.1) forfalder til betaling hen over de næste tre år. Akkvisitionen vil blive finansieret ved brug af eksisterende likvide reserver og allerede etablerede kreditfaciliteter.
Førende position på et hastigt voksende marked
Med en andel af det kinesiske detailmarked for høreapparater på ca. 5 % i 2021 er ShengWang med sine ca. 500 klinikker landets førende netværk af høreapparatklinikker. Det samlede marked for høreapparater i Kina var ca. 1 mio. styk i 2021, og vi skønner, at markedet vil opleve lave tocifrede årlige vækstrater i løbet af det næste årti som følge af en aldrende befolkning og af en øget penetrationsrate for høresundhedsløsninger. Det er Demants hensigt at bruge ShengWang som platform for betydelig vækst og til at styrke Demants markedsandel i Kina over de kommende år – både organisk ved at etablere nye klinikker og gennem akkvisitioner.
“Jeg er meget glad for at kunne byde mere end 1.300 nye medarbejdere velkommen til Demant-koncernen efter akkvisitionen af ShengWang. Kina er godt på vej til at blive et af de to største markeder for høreapparater i verden i dette årti, og ShengWang er allerede en stærk og betroet forretningspartner for Demant og har været det i adskillige år. Jeg ser frem til at fortsætte vores stærke samarbejde med henblik på at levere endnu bedre høresundhed til flere kinesiske brugere i fremtiden,” siger Søren Nielsen, koncernchef og administrerende direktør for Demant.
Finansiel effekt
For det seneste regnskabsår, der sluttede den 31. december 2021, rapporterede ShengWang en omsætning på RMB 309 mio. (DKK 295 mio.[2]) og en svagt positiv EBIT-margin[3]. Både omsætning og EBIT var imidlertid betydeligt påvirket af pandemien i 2021 og af etableringen af mange nye klinikker i de seneste år, som typisk er mindre lønsomme end mere modne klinikker. Som følge af coronavirus og lokale nedlukninger, der fortsat i væsentlig grad har påvirket det kinesiske marked for høreapparater i H1 2022, har ShengWang realiseret betydelig negativ vækst samt et negativt EBIT i H1, men de langsigtede vækstmuligheder for forretningen er fortsat meget gode.
Baseret på den nylige lempelse af restriktionerne og ud fra en antagelse om, at vi ikke vil se væsentlige nedlukninger resten af året, forventes væksten at blive positiv igen i H2 2022. Betinget af opfyldelsen af sædvanlige vilkår forventes transaktionen gennemført i begyndelsen af H2 2022, og den forventes at bidrage med lidt under 1 procentpoint til koncernens omsætningsvækst i 2022. Effekten på koncernens EBIT for 2022 forventes at blive stort set neutral, og vi forventer stadig at tilbagekøbe aktier for mere end DKK 2,5 mia. Som et resultat af transaktionen forventer vi, at koncernens gearing (NIBD/EBITDA) ved udgangen af 2022 vil være en anelse højere end vores mellem- til langsigtede mål på 2,0-2,5.
I et helt normaliseret marked forventer vi, at ShengWangs runrate for omsætningen vil ligge i omegnen af RMB 400 mio. I løbet af de kommende år forventes ShengWang at levere vækstrater over markedsvækstraten og gradvist at øge sin EBIT-margin, i takt med at netværket ekspanderer og modnes.
Om Demant
Demant er førende i verden inden for høresundhed og -teknologi og har siden 1904 været bygget på omsorg, sundhed og innovation. Koncernen leverer innovative teknologier, løsninger og know-how, der bidrager til at forbedre menneskers sundhed og hørelse. Koncernen, som har sit hovedkvarter i Danmark, beskæftiger ca. 18.100 medarbejdere globalt og leverer produkter til 130 lande, hvor vi skaber livsforandrende høresundhed. William Demant Fonden er hovedaktionær i Demant A/S, som er noteret på Nasdaq Copenhagen som en del af OMX C25-indekset.
Om ShengWang
ShengWang blev grundlagt i 1998 og har i adskillige år – og i særdeleshed efter introduktionen af Philips Hearing Solutions – været en værdsat partner for Demant-koncernen takket være et stærkt forhold til vores Hearing Aids-forretningsområde. I dag har ShengWang mere end 1.300 medarbejdere og driver dette ledende netværk af høreapparatklinikker i Kina.
Yderligere information:
Søren Nielsen, koncernchef og adm. direktør
Telefon +45 3917 7300
www.demant.com
Øvrige kontaktpersoner:
René Schneider, CFO
Mathias Holten Møller, Head of Investor Relations
Peter Pudselykke, Investor Relations Officer
Trine Kromann-Mikkelsen, VP Corporate Communication and Relations
[1] Baseret på en RMB/DKK-kurs på 1,06.
[2] Baseret på en RMB/DKK-kurs på 0,97.
[3] Ikkereviderede finansielle data.
Om Demant A/S
Demant is a world-leading hearing healthcare group that offers solutions and services to help people with hearing loss connect with the world around them. In every aspect, from hearing devices, hearing implants, diagnostics to audio and video solutions and hearing care all over the world, Demant is active and engaged. Our innovative technologies and know-how help improve people’s health and hear-ing. We create life-changing differences through hearing health.
Vedhæftninger
2022-11 Demant fuldfører akkvisition af ShengWang.pdf
14.6.2022 07:30:05 CEST | Demant A/S |
Inside information
Company announcement no 2022-11 14 June 2022
Demant completes full acquisition of ShengWang
Today, Demant announces the acquisition of the remaining 80% of the shares in ShengWang, thereby taking full ownership of the leading network of hearing aid clinics in China. This follows the 20% minority investment announced on 4 March 2022 and represents a significant strategic transaction in Demant’s continuous journey within hearing healthcare. Including the consideration paid for the initial 20% minority investment, Demant will pay RMB 1,750 million (DKK 1,855 million[1]) on a cash- and debt-free basis for 100% ownership of which RMB 1,450 million (DKK 1,537 million1) will have cash flow effect in H2 2022, and the remaining RMB 300 million (DKK 318 million1) will be payable over the coming three years. The acquisition will be financed through existing cash reserves and already established credit facilities.
Leading position in a fast-growing market
With its retail market share in China of around 5% in 2021, ShengWang is the leading hearing care network with around 500 hearing aid clinics in the country. The total market for hearing aids in China was approx. 1 million units in 2021, and we estimate that the market will see low double-digit annual growth rates over the next decade driven by an ageing population and by an increased penetration rate for hearing care solutions. Demant intends to leverage ShengWang as a platform for significant growth and market share gains in China over the coming years, both organically by establishing new clinics and through acquisitions.
“I am very excited to welcome more than 1,300 new employees to the Demant Group with the acquisition of ShengWang. China is on a clear path to becoming one of the two biggest hearing aid markets in the world in this decade, and ShengWang is already a strong and trusted business partner for Demant and has been so for several years. I look forward to continuing our strong collaboration to provide even better hearing healthcare to more Chinese users in the future,” says Søren Nielsen, President & CEO of Demant.
Financial impact
In its latest financial year ending 31 December 2021, ShengWang reported revenue of RMB 309 million (DKK 295 million[2]) and a slightly positive EBIT margin[3]. Revenue and EBIT were, however, significantly impacted by the coronavirus pandemic and also by the establishment of many new clinics in recent years, which are typically less profitable than more mature clinics. Due to coronavirus and local lockdowns that have continued to significantly impact the Chinese hearing aid market in H1 2022, ShengWang has seen material negative growth in H1 and EBIT has been negative, but the long-term growth prospects for the business remain very strong.
Based on the recent easing of restrictions and assuming that we will see no material lockdowns in the remainder of the year, growth is expected to return to positive territory in H2 2022. Subject to customary closing conditions, the transaction is expected to close at the beginning of H2 2022 and to add slightly less than 1 percentage point to the Group’s revenue growth in 2022. The impact on the Group’s EBIT in 2022 is expected to be roughly neutral, and we still expect to buy back shares worth more than DKK 2.5 billion. As a result of the transaction, we expect the Group’s gearing (NIBD/EBITDA) at the end of 2022 to slightly exceed our medium- to long-term target of 2.0 to 2.5.
In a fully normalised market, we expect ShengWang’s revenue runrate to be in the region of RMB 400 million. Over the coming years, ShengWang is expected to deliver above-market growth rates and to gradually increase its EBIT margin as the network expands and matures.
About Demant
Demant is a world-leading hearing healthcare and technology Group built on a heritage of care, health and innovation since 1904. The Group offers innovative technologies, solutions and know-how to help improve people’s health and hearing. Headquartered in Denmark, the Group employs approx. 18,100 people globally and is present with solutions in 130 countries where we create life-changing hearing health. William Demant Foundation is the majority shareholder in Demant A/S, which is listed on Nasdaq Copenhagen as a blue-chip stock.
About ShengWang
ShengWang was founded in 1998 and has for several years – and particularly following the introduction of Philips Hearing Solutions – been a valued partner of the Demant Group thanks to a strong relationship with our Hearing Aids business area. Today, ShengWang has more than 1,300 employees and runs the leading network of hearing aid clinics in China.
Further information:
Søren Nielsen, President & CEO
Phone +45 3917 7300
www.demant.com
Other contacts:
René Schneider, CFO
Mathias Holten Møller, Head of Investor Relations
Peter Pudselykke, Investor Relations Officer
Trine Kromann-Mikkelsen, VP Corporate Communication and Relations
[1] Based on RMB/DKK exchange rate of 1.06.
[2] Based on RMB/DKK exchange rate of 0.97.
[3] Unaudited financial data.
About Demant A/S
Demant is a world-leading hearing healthcare group that offers solutions and services to help people with hearing loss connect with the world around them. In every aspect, from hearing devices, hearing implants, diagnostics to audio and video solutions and hearing care all over the world, Demant is active and engaged. Our innovative technologies and know-how help improve people’s health and hear-ing. We create life-changing differences through hearing health.
Attachments
2022-11 Demant completes full acquisition of ShengWang.pdf
