Gn Store Nord A/s · OMXCOP:GN
Gn Store Nord A/s — Q4 2024 Earnings Presentation
33 slides from Gn Store Nord A/s's earnings presentation, Feb 6, 2025
Slide 1: GN Annual Report 2024 Conference call presentation
GN Annual Report 2024 Conference call presentation February 6, 2025
Slide 2: Safe Harbor Statement
Safe Harbor Statement The forward-looking statements in this report reflect the management's current expectations of certain future events and financial results. Statements regarding the future are, naturally, subject to risks and uncertainties, which may result in considerable deviations from the o
Slide 3: Agenda
Agenda Group highlights Divisional highlights Financial guidance 3
Slide 4: Group highlights
Group highlights Strong profitable growth in the first year of the company transformation. On track to deliver on long-term targets Hearing Enterprise Gaming & Consumer Solid market development Market stabilization throughout the Strong finish to the year, leading to year another year with market sh
Slide 5: Delivering on promises
Delivering on promises 1% Organic growth (4% excl. wind-down) 12% 1.1bn • 10% in Hearing Free cash flow excl. EBITA margin • -3% in Enterprise M&A (DKK) • 7% in Gaming • -31% in Consumer 5
Slide 6: Strong execution and one-GN transformation driving margins
GN Store Nord: Strong execution and Revenue (DKKm) one-GN transformation driving margins -1% 18,120 17,985 +4% -3% 0% -2% • Organic revenue growth of 4% excluding the discontinued Elite and Talk product lines (4% in Q4 2024). Reported organic revenue growth was 1%. Total revenue growth was -1%, refl
Slide 7: DKK 1.1 billion generated in free cash flow excl. M&A in 2024
DKK 1.1 billion generated in free cash flow excl. M&A in 2024 Free cash flow excl. M&A (DKKm) • Strong free cash flow excl. M&A of DKK 1,081 million driven by solid operating cash 3,126 flow 1,081 • Positive impact from change in working 176 capital -235 -342 • Focused and prudent management of cash
Slide 8: Agenda
Agenda Group highlights Divisional highlights Financial guidance 8
Slide 9: Hearing: Significant market share gains and strong margin improvement
Hearing: Significant market share gains and strong margin improvement • ReSound Nexia driving continued market share gains across DKK million Q4 2024 FY 2024 FY 2023 Growth regions and channels leading to 10% organic revenue growth (7% organic revenue growth in Q4 2024). Total revenue growth was 4%,
Slide 10: ReSound Vivia
1 World’s best for hearing in noise ReSound Sound is more vivid Spotlight speech, eliminate distraction without cutting the user off from the world using dedicated DNN Vivia than ever with chip, developed on decades of shared AI research and development across the Group Intelligence Augmented 2 – a
Slide 11: Hearing: Good growth momentum driven by innovation and execution
Hearing: Good growth momentum driven by innovation and execution Healthy growing wholesale hearing aid market (DKKbn)1 Strong current momentum to be fulled by ReSound Vivia 16% 15% 17% 16% Growing 14% 14% +4% CAGR global volume share ’19 ’20 ’21 ’22 ’23 ’24 Broad based Europe North America success R
Slide 12: Enterprise: Strong execution in a gradually improving market
Enterprise: Strong execution in a gradually improving market • Successfully maintaining our global market leading position, DKK million Q4 2024 FY 2024 FY 2023 Growth leading to -3% organic revenue growth (-2% in Q4 2024) in a gradually improving market. Total revenue growth was -3% as there was min
Slide 13: Enterprise: Flat organic revenue growth in 2024 excluding speakerphone category
Enterprise: Flat organic revenue growth in 2024 excluding speakerphone category Product group 2023 Share of revenue 2024 growth Key drivers Market stabilization ~85% Central Europe macro headwinds Market penetration ~5% Market share gains Demanding comps ~10% Meeting room design change 13
Slide 14: Enterprise: Market recovery and innovations boding well for 2025
Enterprise: Market recovery and innovations boding well for 2025 Stabilizing enterprise headset market (DKKbn)1 2025 to be a year of innovation • Announced in February • Built on GN’s group-wide unique sound and +5% CAGR video processing capabilities • First 180° Android-powered video bar Panacast 4
Slide 15: Gaming & Consumer: Continued market share gains in Gaming, wind-down finalized
Gaming & Consumer: Continued market share gains in Gaming, while the wind-down is now finalized • Organic revenue growth of -5% as a direct consequence of DKK million Q4 2024 FY 2024 FY 2023 Growth the successful execution of the wind-down. Total revenue growth was -5% as there was minimal impact fr
Slide 16: Gaming: Continuing to win in an attractive market
Gaming: Continuing to win in an attractive market Global core gaming gear market (DKKbn)1 Driving further market shares and profit improvements • Best-in class products, pioneering the premium +6% CAGR segment Customer- • Dedication to being the best, with long history centric of industry first inno
Slide 17: Agenda
Agenda Group highlights Divisional highlights Financial guidance 17
Slide 18: 2025 financial guidance
2025 financial guidance Organic revenue growth EBITA margin FCF excl. M&A (DKKm) excl. wind-down1) GN Store Nord 3% to 7% 12% to 14% ~800 Note 1: The negative impact from the wind-down on group organic revenue growth in 2025 will be 3-4 percentage points, while the negative impact specifically in th
Slide 19: Divisional assumptions for the financial guidance 2025
Divisional assumptions for the financial guidance 2025 Division Hearing Enterprise Gaming • Favorable demographic trends • Continued stability and expected • Continued growth in gaming, time • Increased adoption increase in IT budgets spent and players Underlying market • Increased wealth among midd
Slide 20: On track for long-term value creation – further margin expansion in 2025
On track for the long-term value creation – further margin expansion in 2025 despite investments and external headwinds EBITA margin bridge 2024 – 2028e (illustrative) 16-17% ~0-2%p 12-14% 12% Margin expansion to be Temporary cost or investments that will create fairly evenly distributed margin bene
Slide 21: Q&A
Q&A www.gn.com E-mail: investor@gn.com Rune Sandager, Head of Investor Relations, Tel.: +45 4575 9257 21
Slide 22: Appendix
Appendix "s GN
Slide 23: One-GN: Group synergies of DKK ~430 million realized in 2024
One-GN: Group synergies of DKK ~430 million realized in 2024 • Deliver shareholder value by the creation of a simpler and more powerful company • DKK ~600 million in cost synergies to be realized by 2026 of which roughly two- thirds was expected to be realized during 2024 • GN delivered DKK ~430 mil
Slide 24: GN Store Nord – five-year performance
GN Store Nord – five-year performance DKK million 2020 2021 2022 2023 2024 GN Store Nord Revenue 13,449 15,775 18,687 18,120 17,985 Organic growth 9% 20% -3% -1% 1% Gross margin 54.3% 55.0% 48.9% 49.4% 53.2% EBITA 1,866 2,619 1,560 1,200 2,153 EBITA margin 13.9% 16.6% 8.3% 6.6% 12.0% Operating profi
Slide 25: Gaming & Consumer revenue distribution: 2022 – 2024
Gaming & Consumer revenue distribution: 2022 – 2024 Actual 2022 Actuals 2023 Actuals 2024 DKKm Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2024 Gaming & Consumer BlueParrott 91 95 80 107 373 71 55 66 77 269 60 88 60 62 269 Elite
Slide 26: Gaming & Consumer – reconciliation table
Gaming & Consumer – reconciliation table DKK million Q1 2024 Q2 2024 Q3 2024 Q4 2024 Revenue 815 922 759 1,180 - Gaming 551 611 595 1,053 - Consumer 264 311 164 127 Organic revenue growth 0% 12% -20% -8% - Gaming 3% 12% -4% 16% - Consumer -7% 14% -50% -66% Gross profit (excl. wind-down costs) 223 28
Slide 27: Reconciliation of extraordinary costs Q4 2024
Reconciliation of extraordinary costs Q4 2024 Hearing Enterprise Gaming & Consumer GN Store Nord Extraordinary Extraordinary Extraordinary Extraordinary DKKm Reported costs Underlying Reported costs Underlying Reported costs Underlying Reported costs Underlying Revenue 1,850 - 1,850 1,989 - 1,989 1,
Slide 28: Reconciliation of extraordinary costs 2024
Reconciliation of extraordinary costs 2024 Hearing Enterprise Gaming & Consumer GN Store Nord Extraordinary Extraordinary Extraordinary Extraordinary DKKm Reported costs Underlying Reported costs Underlying Reported costs Underlying Reported costs Underlying Revenue 7,104 - 7,104 7,205 - 7,205 3,676
Slide 29: One-GN synergy program – Operations
One-GN synergy program - Operations initiatives will lead to synergies of around DKK 200 million Synergy target Degree of Lever Main levers (EBITA) implementation Core product • Chipsets • Hybrids DKK ~70 million components • Plastics • Batteries Commodities • Cables DKK ~100 million • Electronics •
Slide 30: One-GN synergy program – Organization
One-GN synergy program - Organization initiatives will lead to synergies of around DKK 200 million Synergy target Degree of Lever Main levers (EBITA) implementation • 300 positions terminated by the end of November 2023 Re-organization • Mainly focused on over-lapping functions DKK ~150 million • Di
Slide 31: One-GN synergy program – Efficiencies and processes
One-GN synergy program - Efficiencies and processes initiatives will lead to synergies of around DKK 200 million Synergy target Degree of Lever Main levers (EBITA) implementation • IT software Indirect • Marketing procurement • External consultancy DKK ~75 million procurement • Travel • 3 regional s
Slide 32: All material debt maturities until Q3 2026 fully funded
All material debt maturities until Q3 2026 fully funded Maturity profile – Q4 2024 DKKm 5,952 3,869 1,082 460 722 500 244 268 369 369 369 319 37 -980 Q4 24 Q1 2025 Q2 2025 H2 2025 2026 2027 2028 2029 2036 2037 Cash at hand Commercial paper and MM Loan EMTN bond Undrawn RCF Drawn Term Loan R&D Loan H
Slide 33: GN Store Nord share overview
GN Store Nord share overview Share price development • GN has a share capital of DKK 603,650,860, which is consisting of 130 150,912,715 shares, each carrying four votes. GN has one share class, 110 and there are no restrictions on ownership or voting rights 90 70 • GN is, among other indices, inclu