The financial year 2002/03 was a transition and turnaround year for the Phonak Group. In a changing and overall flat market environment that was characterized by increased competitiveness, consolidated sales reached CHF 550 million. Compared to the previous year, this represents an overall decline of 4%. However, this decline is exclusively due to the negative currency effect (–7%), meaning that the Group experienced organic growth of +3%. Sales in the second half year were 10% (excluding exchange impact) above the first half, a direct result of four new product launches during the year.