Profitability was maintained at a high level, with an EBITA margin of 26.6%. Income after taxes amounted to CHF284 million.

Organic sales growth of 7.8% significantly exceeded hearing instrument market growth

3.0% growth by acquisitions – distribution network further strengthened through acquisitions and foundation of new Group companies

EBITA margin of 26.6% maintained at a high level despite negative currency effects

62% of sales achieved with products launched less than two years ago – most innovative and comprehensive product portfolio in the industry

New product releases: the hearing systems Versata, Certena, Audeo YES, Next and 360 set new benchmarks in hearing system technology

Board of Directors proposes the election of three new members to the Annual General Shareholders’ Meeting

Positive outlook for the financial year 2009/10: based on current market conditions, the Sonova Group expects an organic growth of 6–8% in local currencies and an EBITA margin around the previous year’s level

High level of profitability

During the reporting period Sonova was able to increase its gross profit from CHF841.6 million to CHF867.2 million despite the challenging market conditions. The gross profit margin of 69.4% lowered somewhat from last year’s figure of 69.9%.

During the financial year 2008/09 Sonova achieved an operating profit (EBITA) of CHF331.8 million, compared with CHF339.8 million in the previous year. The EBITA margin slipped from 28.2% to 26.6% mainly due to the negative currency effects mentioned above. The adverse effects were partly offset by savings in materials procurement, economies of scale in production and the early launch of a cost-saving program across the entire Group. The proportion of added value from Asia increased, while production facilities in Vietnam and China were expanded further, thus improving the efficient cost structure of Sonova’s production network. During the reporting period spending on sales, marketing and administration increased to 36.7% of total sales, compared with 35.2% in the prior year. Sales and marketing was expanded, mainly through a number of acquisitions to strengthen existing sales channels.

Because of the lower operating profit, the slight decline in the financial result and the modest increase in tax expenses.

In view of the group’s positive result, the board of directors will be submitting a proposal to the annual general shareholders’ Meeting on June 10, 2009 to pay out a dividend of CHF1 per share, the same as last year.

Proposal for the election of new members to the board of directors

The board of directors will propose the election of three new members to the Annual General Shareholders’ Meeting on June 10, 2009. Anssi Vanjoki, Ronald van der Vis, and Dr. Valentin Chapero are nominated for election to the board of directors. Anssi Vanjoki (born in 1956, Finnish citizen) is executive vice president and general manager of Nokia’s “Markets” unit since 2008 and a member of the Nokia Group executive board since 1998. In addition, he is chairman of the board of directors of Amer Group Plc. Ronald van der Vis (born in 1967, Dutch citizen) was chief executive officer of Pearle Europe B.V. until May 2009. In June 2009, he will be appointed executive director of Esprit Holdings Limited. Following a transition period, he will also be appointed Group chief executive officer. In addition, he is a member of the supervisory board of Grand Vision S.A. Valentin Chapero (born in 1956, Spanish citizen) is chief executive officer of the Sonova Group since October 2002. He is also chairman of the industry body European Hearing Instrument Manufacturers’ Association (EHIMA).