Notes to the financial statements of Sonova Holding AG as of March 31, 2022

1. General information

The financial statements of Sonova Holding AG, with registered office in Stäfa, comply with the requirements of Swiss Law on Accounting and Financial Reporting (32nd title of the Swiss Code of Obligations, ’SCO’). The company does not have any employees.

2. Accounting principles

2.1 Financial income/expenses

Financial income/expenses consists of gains and losses from sale/transfer of shares in relation to long-term incentive plans, realized/unrealized foreign exchange gains and losses as well as interest income/expenses.

2.2 Financial assets

Financial assets contain loans to third parties as well as to Group companies and are recognized at cost less adjustments for foreign currency losses and impairment of value. Loans granted in foreign currency are translated at balance sheet date.

2.3 Investments

Investments consist mainly of participations in fully consolidated Group companies. They are subject to individual valuation.

2.4 Bonds

Bonds are valued at nominal value. Any bond premium/discount is accrued/capitalized and released/amortized linearly over the term.

2.5 Treasury shares

Treasury shares are recognized at cost and deducted from shareholdersʼ equity. The gain or loss from sale is recognized in the income statement as financial gain or financial loss.

3. Information on income statement and balance sheet items

3.1 Bonds

As of March 31, 2022, the Group has the following bonds/US Private Placement outstanding:

3.2 Treasury shares

On May 18, 2021, Sonova Holding AG announced that its Board of Directors approved a share buyback program of up to CHF 700 million. The program started in June 2021 and ended in March 2022. In total, 2,012,438 treasury shares were bought under the share buyback program and are intended to be cancelled (proposal to the Annual Shareholders’ Meeting June 15, 2022). On March 29, 2022 the Board of Directors approved a new share buyback program of up to CHF 1.5 billion which is expected to run over a period of up to 36 months.

3.3 Contingent liabilities

The Swiss Sonova entities form a VAT group and, hence, every company participating in the group is jointly and severally liable for VAT debt of other group participants. Further Sonova Group companies participating in the cash pool are jointly and severally liable for any debit position or outstanding overdraft in connection with them.

3.4 List of investments

3.5 Significant shareholders

The following overview shows the significant shareholders as of March 31, 2022 based on shareholdings recorded in the share register and notifications on the SIX Swiss Exchange online reporting platform. Significant shareholders may also hold non-registered shares.

3.6 Shareholdings and participations of the Board of Directors and the Management Board

For further details to shareholdings in the company by members of the Board of Directors and by members of the Management Board, in accordance with Swiss Code of Obligation article 663c, refer to the compensation report of Sonova Holding AG.

3.7 Events after the balance sheet date

On April 6, 2022, the Sonova Holding AG repaid a CHF 330 million fixed-rate bond.

On May 2, 2022, Sonova Holding AG issued a CHF 200 million fixed-rate bond with interest rate of 1.05% and maturity on February 19, 2029 and a CHF 250 million fixed-rate bond with interest rate of 1.40% and maturity on February 19, 2032.

Besides the above mentioned transaction there have been no material events after the balance sheet date.