Industry

Health Care

Sector

Health Care Technology

Country

Denmark

Company description

William Demant Holding is the worlds second largest manufacturer of hearing aids after the swiss competitor Sonova. William Demant was listed on the stock exchange in Copenhagen in 1995. In 2003 a joint-venture in personal communication equipment was established with the German partner Sennheiser. In 2009 the activities were expanded to also include manufacturing and selling of bone anchored hearing systems. Activities were further expanded within Cochlear implants with the acquisition of the company Neurelec in 2013.

Market cap.

DKKm 44,931

Share price

DKK 174

Earnings per share (EPS)

DKK 7

Dividend per share (DPS)

DKK 0

Price / earnings

25.6x

Price / sales

3.4x

Price / book value

6.1x

Enterprise value / EBITDA

18.7x

CEO

Soeren Nielsen

Chairman of the Board of Directors

Niels Christiansen

CFO

Rene Schneider

Investor relations

Soeren Andersson

Ticker symbol

WDH

Stock exchange

Nasdaq OMX Copenhagen

ISIN code

DK0060738599

Phone

0045 3917 7300

Website

demant.com

Address

Kongebakken 9, 2765 Smoerum

Income statements

DKKm 200020012002200320042005200620072008200920102011201220132014201520162017
Sales 2,9603,5063,9243,8704,3034,5235,0855,4885,3745,7016,8928,0418,5558,9599,34610,66512,00213,189
Other income 000000000000000000
Total income 2,9603,5063,9243,8704,3034,5235,0855,4885,3745,7016,8928,0418,5558,9599,34610,66512,00213,189
Total expenses -2,310-2,743-3,025-2,916-3,183-3,295-3,673-4,074-4,174-4,384-5,271-6,136-6,676-7,007-7,380-8,536-9,763-10,531
EBITDA 6507638989531,1191,2281,4121,4151,2001,3171,6211,9051,8791,9521,9662,1292,2392,658
Depreciation tangible assets -65-80-89-99-111-120-136-144-153-159-181-187-218-232-248-271-296-289
Write-downs tangible assets 0000000000000-1000-230
EBITA 5856838108551,0091,1081,2771,2711,0471,1581,4401,7181,6611,7101,7181,8581,9202,369
Amortisation intangible assets 000-1-9-8-9-4-5-8-16-15-20-23-22-28-59-84
Income from associated companies 000244300066124965488153
Earnings before interest and taxes (EBIT) 5856838098561,0041,1031,2711,2681,0421,1491,4301,7091,6531,7361,7611,8781,9422,338
Financial income 111515191215202929293240444539444249
Financial expenses -33-58-46-48-50-52-81-126-169-123-147-143-176-117-109-113-143-160
Income from associated companies -201000000000000000
Earnings before taxes (EBT) 5616407798279661,0661,2091,1719031,0551,3141,6061,5211,6641,6911,8091,8412,227
Taxes -133-158-201-209-249-257-308-276-221-260-326-407-370-378-364-370-377-468
Profit from continuing operations 4284825796187168099018956827959881,1991,1511,2861,3271,4391,4641,759
Discontinued operations 000000000000000000
Minorities -2-1000000000-12-1-1-3-5-5
Net profit or loss 4264815796187168099018956827959881,1981,1531,2851,3261,4361,4591,754

Cash flow statements

DKKm 200020012002200320042005200620072008200920102011201220132014201520162017
EBITDA 6507638989531,1191,2281,4121,4151,2001,3171,6211,9051,8791,9521,9662,1292,2392,658
Net interest paid -26-44-30-28-39-37-61-108-131-106-100-88-133-82-72-69-106-118
Taxes paid -109-175-223-208-268-301-331-299-237-208-273-423-380-366-351-325-426-488
Investments in working capital -226-2382814-1025-69-188-20-72-426-66-23-255-148-296-107-340
Other operating cash items 2711-42225-313291518453-713310015379160
Cash flow from operations (CFFO) 3163176697547358929648488289508261,3811,2721,2821,4951,5921,6791,872
Capital expenditures (capex) -116-184-121-138-366-424-303-215-240-294-332-491-490-469-451-463-456-485
Acquisitions -773-477-70-30-12-28-80-216-287-806-330-682-1,176-231-1,633-363-656
Disposals 000000012200050000270
Other investing cash items 000000000000000000
Cash flow from investing activities -889-661-127-138-396-436-331-173-457-581-1,138-816-1,172-1,645-682-2,096-792-1,141
Free cash flow to equity holders (FCFE) -573-343542616339456633676371369-312565100-363813-504887731
Dividends paid -44000000000000000-3-3
Share buy-backs -21-27-423-541-611-695-993-993-42800-301-497-101-887-605-1,050-1,031
New share issues 16501501502400000000000
Increase/(decrease) in debt 151556-48-114-57261-49-1733160495-131-106141-2531,654424-24
Other financing cash flows -205-9031332-1438650616-419-94-85522344442-314-222314
Cash flow from financing activities (CFFF) 250324-546-624-321-447-633-660-381-359401-517-81384-698735-851-744
Discontinued activities and other 00000000000000000
Net cash flow / Change in cash position -19-4-8188016-10108948192111523136-13

Balance sheets

DKKm 200020012002200320042005200620072008200920102011201220132014201520162017
Goodwill 00974354872234007861,6611,9762,5683,5453,8315,6606,2766,339
Other intangible assets 24036161091821699379807065317492553
Total intangible assets 24011145964962414218551,7542,0552,6483,6153,8965,9776,7686,892
Fixed tangible assets 3034204274396218569109789509771,1101,2761,3721,4881,6641,7681,7421,718
Shares and associated companies 011244322148396278459527525583933
Other financial assets 9722246716106912111212811
Deferred tax assets 2742486269101113135161146266278268266238376396372
Other non-current assets 1419273368144163223251330505570747717833924922956
Total fixed assets 3764885165518231,1731,2901,5851,8012,3323,7254,2845,3256,5567,1709,58210,41910,882
Inventories 4996736145736036326217477507979931,0821,0141,1421,2031,3241,3001,351
Trade receivables 4786426196447578639021,1071,0721,1961,6091,7111,7541,8621,9942,2032,4402,573
Other current assets 568412613913191186136161151219281377430409607679719
Cash and cash equivalents 139120116108126135135151142152240288307328443674710697
Total current assets 1,1731,5181,4761,4641,6171,7211,8442,1412,1252,2953,0613,3623,4523,7624,0494,8085,1295,340
Total assets 1,5492,0061,9922,0152,4392,8933,1353,7263,9264,6266,7867,6468,77710,31811,21914,39015,54816,222
Equity 2121634285226517566714265411,3022,4433,3004,0615,0575,5866,4996,9617,427
Non-controlling interests (minorities) 300000090004-2-1-2156
Shareholders equity 2151634285226517566714355411,3022,4433,3044,0595,0565,5846,5006,9667,433
Pension liabilities 000000000000000000
Deferred tax liabilities 19273150270044565886113148146134125152159
Long-term provisions 1141108615142532126137135171385121132154273295215
Convertible debt 000000000000000000
Long-term debt 2988697115414586845955155183851,0451,011768192,0801,9602,307
Other long-term liabilities 00000365200421730137254156283341405
Total long-term liabilities 4311,0058286064997456796857116201,4751,5094826134532,7612,7483,086
Short-term debt 4452732483096736771,0611,6231,7501,6181,4541,3012,6373,1123,5033,0503,5473,258
Trade payables 131164125145165219181232219222342405351350342486513516
Other current liabilities 3274013634334514965447507068651,0721,1271,2481,1871,3371,5931,7741,929
Total current liabilities 9038387368871,2891,3921,7852,6062,6752,7052,8682,8334,2364,6495,1825,1295,8345,703
Total equity and liabilities 1,5492,0061,9922,0152,4392,8933,1353,7263,9264,6266,7867,6468,77710,31811,21914,39015,54816,222

Growth rates

[%] 200020012002200320042005200620072008200920102011201220132014201520162017
Sales growth 0.0%18.0%12.0%-1.0%11.0%5.0%12.0%8.0%-2.0%6.0%21.0%17.0%6.0%5.0%4.0%14.0%13.0%10.0%
EBITDA growth 0.0%17.0%18.0%6.0%17.0%10.0%15.0%0.0%-15.0%10.0%23.0%18.0%-1.0%4.0%1.0%8.0%5.0%19.0%
EBITA growth 0.0%17.0%18.0%6.0%18.0%10.0%15.0%0.0%-18.0%11.0%24.0%19.0%-3.0%3.0%0.0%8.0%3.0%23.0%
EBIT growth 0.0%17.0%18.0%6.0%17.0%10.0%15.0%0.0%-18.0%10.0%24.0%20.0%-3.0%5.0%1.0%7.0%3.0%20.0%
EBT growth 0.0%14.0%22.0%6.0%17.0%10.0%13.0%-3.0%-23.0%17.0%25.0%22.0%-5.0%9.0%2.0%7.0%2.0%21.0%
Earnings growth 0.0%13.0%20.0%7.0%16.0%13.0%11.0%-1.0%-24.0%16.0%24.0%21.0%-4.0%11.0%3.0%8.0%2.0%20.0%

Margins

[%] 200020012002200320042005200620072008200920102011201220132014201520162017
EBITDA-margin 22.0%22.0%23.0%25.0%26.0%27.0%28.0%26.0%22.0%23.0%24.0%24.0%22.0%22.0%21.0%20.0%19.0%20.0%
EBITA-margin 20.0%19.0%21.0%22.0%23.0%24.0%25.0%23.0%19.0%20.0%21.0%21.0%19.0%19.0%18.0%17.0%16.0%18.0%
EBIT-margin 20.0%19.0%21.0%22.0%23.0%24.0%25.0%23.0%19.0%20.0%21.0%21.0%19.0%19.0%19.0%18.0%16.0%18.0%
EBT-margin 19.0%18.0%20.0%21.0%22.0%24.0%24.0%21.0%17.0%19.0%19.0%20.0%18.0%19.0%18.0%17.0%15.0%17.0%
Earnings-margin 14.0%14.0%15.0%16.0%17.0%18.0%18.0%16.0%13.0%14.0%14.0%15.0%13.0%14.0%14.0%13.0%12.0%13.0%

Other key figures

DKKm 200020012002200320042005200620072008200920102011201220132014201520162017
Tax rate 24.0%25.0%26.0%25.0%26.0%24.0%26.0%24.0%24.0%25.0%25.0%25.0%24.0%23.0%22.0%20.0%20.0%21.0%
Net working capital balance (NWC) 5758338727788748719851,0071,0581,0561,4071,5421,5461,8971,9272,0552,1322,198
Net interest bearing debt (NIBD) 6041,0228437421,0041,2261,5211,9872,1261,8502,2582,0242,4062,8653,0694,4564,7974,868
Invested capital (including goodwill) 8191,1851,2711,2641,6551,9832,1922,4222,6663,1534,7015,3286,4657,9218,65310,95611,76312,301
Invested capital (excluding goodwill) 8191,1851,2621,2571,6131,9282,1052,1992,2662,3673,0413,3523,8974,3764,8225,2965,4875,962
Enterprise value (EV) 27,50417,12312,14015,52120,04324,26430,73631,12614,56424,73926,29829,62330,29832,72629,50440,21337,47249,799

Share data

200020012002200320042005200620072008200920102011201220132014201520162017
Shares outstanding, millions (excl. treasury) 369371370370370331319308285292292289288283282272266259
Market capitalisation (DKKm) 26,90116,10111,29714,77919,03923,03829,21429,13912,43822,88924,04027,59927,89229,86126,43535,75732,67544,931
Market capitalisation (DKKm) 26,90116,10111,29714,77919,03923,03829,21429,13912,43822,88924,04027,59927,89229,86126,43535,75732,67544,931
Share price (DKK) 73.043.430.539.951.469.791.694.643.778.582.495.596.8105.493.6131.4122.8173.5
Earnings per share (EPS), (DKK) 1.21.31.61.82.12.42.93.02.32.73.44.14.04.54.85.35.56.8
Dividend per share (DPS), (DKK) 0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0

Price multiples

200020012002200320042005200620072008200920102011201220132014201520162017
Price/Earnings (P/E) 63.2x33.5x19.5x23.9x26.6x28.5x32.4x32.6x18.2x28.8x24.3x23.0x24.2x23.2x19.9x24.9x22.4x25.6x
Price/Sales (P/S) 9.1x4.6x2.9x3.8x4.4x5.1x5.8x5.3x2.3x4.0x3.5x3.4x3.3x3.3x2.8x3.4x2.7x3.4x
Price/Book value (P/B) 126.6x98.9x26.4x28.3x29.2x30.5x43.6x68.4x23.0x17.6x9.8x8.4x6.9x5.9x4.7x5.5x4.7x6.1x

Enterprise value (EV) multiples

200020012002200320042005200620072008200920102011201220132014201520162017
Enterprise value/Sales (EV/Sales) 9.3x4.9x3.1x4.0x4.7x5.4x6.0x5.7x2.7x4.3x3.8x3.7x3.5x3.7x3.2x3.8x3.1x3.8x
Enterprise value/EBITDA (EV/EBITDA) 42.3x22.4x13.5x16.3x17.9x19.8x21.8x22.0x12.1x18.8x16.2x15.6x16.1x16.8x15.0x18.9x16.7x18.7x
Enterprise value/EBITA (EV/EBITA) 47.0x25.1x15.0x18.2x19.9x21.9x24.1x24.5x13.9x21.4x18.3x17.2x18.2x19.1x17.2x21.6x19.5x21.0x
Enterprise value/EBIT (EV/EBIT) 47.0x25.1x15.0x18.1x20.0x22.0x24.2x24.6x14.0x21.5x18.4x17.3x18.3x18.9x16.8x21.4x19.3x21.3x