GN Store Nord A/S · OMXCOP:GN
GN Store Nord A/S — Q1 2003 Earnings Presentation
16 slides from GN Store Nord A/S's earnings presentation, May 7, 2003
Slide 1: GN - global innovator in personal communications
Mobility and Life Quality GN - global innovator in personal communications Q1 Release, May 7 2003, CEO Jørn Kildegaard CFO Jens Due Olsen
Slide 2: Safe harbor statement
Mobility and Life Quality Safe harbor statement The forward-looking statements in this interim report reflect management's current expectations for certain future events and financial results. Statements regarding 2003 are, of course, subject to risks and uncertainties which may result in material d
Slide 3: Following up on The GN agenda 2003-2005
Mobility and Life Quality Following up on The GN agenda 2003-2005 Close the margin gap in GN ReSound end 2004 – 8% EBITA margin in Q1 2002 up to 12% in Q1 2003 Stay ahead in the Bluetooth race and leveraging JABRA in Europe – Bluetooth revenue of DKK 76m - DKK 0 in Q1 2002 – 38% of mobile sales in E
Slide 4: Contact Center & Office
Mobility and Life Quality Contact Center & Office Q1 Q2 Q3 Q4 2001 Q1 Q2 Q3 Q4 2002 Q1 DKKm 468 407 358 367 1,600 373 373 335 338 1,419 317 DKKm North America Europe Asia/Pacific/Row GN 9120 2001 921 605 74 2002 779 559 81 Q1 163 136 18 Market Q1 soft demand in most markets – GN Q1 in line with mark
Slide 5: Mobile
Mobility and Life Quality Mobile Q1 Q2 Q3 Q4 2001 Q1 Q2 Q3 Q4 2002 Q1 DKKm 38 49 113 130 330 33 60 99 143 335 102 DKKm North America Europe Asia/Pacific/Row and OEM reach 2001 312 18 0 289 46 0 500.000 units 2002 Q1 63 39 0 April-March Market Q1 low season - Europe is held less seasonal - GN Q1 reve
Slide 6: Mobile
Mobility and Life Quality Mobile Q1: 700,000 headsets - 175,000 BT units - in 50,000 store fronts world wide Mobile Sales BT is 75% of Q1 revenue 160 2nd OEM contract with Motorola 140 120 100 European expansion on track: DKKm 80 60 - T-Mobil 40 - 20 - Carrefour Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2000 20
Slide 7: Hearing instruments
Mobility and Life Quality Hearing instruments Q1 Q2 Q3 Q4 2001 Q1 Q2 Q3 Q4 2002 Q1 DKKm 641 647 647 684 2,619 657 659 613 664 2,593 635 DKKm North America Europe Asia/Pacific/Row 2001 1,189 1,061 369 2002 1,137 1,134 322 Q1 270 313 52 Market Q1 overall flat demand EU offsetting US - GN Q1 outperform
Slide 8: New products to increase penetration
Mobility and Life Quality New products to increase penetration Canta7/ Canta7/Open Open Q2/03 Benefit Category==II Category Category Category==II II Category = III ReSoundAir Canta7 Q2/03Triano Q2/01 Oria Diva Adapto Canta4 Q3/02 Q2/01 Prisma Claro Canta2 Aero Signia Canta2 Q2/02 Senso+ Natura 2 Mus
Slide 9: Audiologic Diagnostics Equipment
Mobility and Life Quality Audiologic Diagnostics Equipment Q1 Q2 Q3 Q4 2001 Q1 Q2 Q3 Q4 2002 Q1 DKKm 60 78 77 72 287 82 71 67 90 310 87 DKKm North America EMEA Asia/Pacific/Row AccuScreen 2001 121 135 31 2002 112 161 37 Q1 21 59 7 Market Q1 demand is subdued in US and Germany - GN Q1 NHS shipment -
Slide 10: GN Store Nord - P&L
Mobility and Life Quality GN Store Nord - P&L DKKm 2001 Q1/02 2002 Q1/03 Revenue decline due to NetTest Revenue 7,319 1,368 5,512 1,141 divestment, lower USD and softer demand in CC&O Gross profit 3,544 682 2,067 634 Gross margin,% 48 50 38 56 Gross margin reflects ”Closing the Margin Gap” on track,
Slide 11: New GN - P&L
Mobility and Life Quality New GN - P&L DKKm 2001 Q1/02 2002 Q1/03 Revenue intact despite lower Revenue 4,992 1,151 4,682 1,141 USD – 10% organic growth Gross margin reflects ”Closing Gross profit 2,540 607 2,458 634 Gross margin,% 51 53 52 56 the Margin Gap” on track and lower margin in mobile and O
Slide 12: New GN - Balance sheet and Cash Flow
Mobility and Life Quality New GN - Balance sheet and Cash Flow DKKm 2001 2002 Q1/03 DKKm 2001 Q1/02 2002 Q1/03 Goodwill 4,480 3,578 3,396 CFFO before 314 135 760 175 Fin, restruc,tax Development projects 235 339 348 CFFO 350 85 557 132 Inventory 854 630 606 Free cash flow (154) 135 288 32 Trade rece
Slide 13: GN Netcom Q1 2003
Mobility and Life Quality GN Netcom Q1 2003 Gross profit up 10%, Y-o-Y - margin 55% vs. average 50% in 2002 - margin pressure from mobile DKKm Q1/01 Q2/01 Q3/01 Q4/01 Q1/02 Q2/02 Q3/02 Q4/02 Q1/03 Revenue 506 456 471 497 406 433 434 481 419 Gross profit 265 231 247 249 210 223 214 238 232 Margin,% 5
Slide 14: GN ReSound Q1 2003
Mobility and Life Quality GN ReSound Q1 2003 Gross profit down 1% from Q4 - margin 56% vs. average 53% in 2002 - impact from: DKKm Q1/01 Q2/01 Q3/01 Q4/01 Q1/02 Q2/02 Q3/02 Q4/02 Q1/03 - fewer sites Revenue 701 725 724 756 739 730 680 754 722 - pruned product portfolio Gross profit 355 361 346 371 3
Slide 15: GN maintains EBITA forecast of app. DKK 550m for 2003
Mobility and Life Quality GN maintains EBITA forecast of app. DKK 550m for 2003 GN adjusts revenue forecast from app. DKK 4.8bn to app. DKK 4.65bn at USD 6.75 GN Netcom forecasts: EBITA margin 11-13% adjusting CC&O revenue DKK 1.4bn and Mobile revenue DKK 0.5bn down 3% Market outlook Soft CC&O deman
Slide 16: The GN agenda 2003-2005
Mobility and Life Quality The GN agenda 2003-2005 Close the margin gap end 2004 – bring profitability at par with tech position in hearing instruments Stay ahead in the Bluetooth race and consolidate JABRA in Europe – expand European platform in 2003 Increase cash flow from operations and free cash