Gn Store Nord A/s · OMXCOP:GN
Gn Store Nord A/s — Q1 2019 Earnings Presentation
29 slides from Gn Store Nord A/s's earnings presentation, May 1, 2019
Slide 1: Interim Report Q1 2019 – Conference call presentation, May 1, 2019
Interim Report Q1 2019 – Conference call presentation, May 1, 2019
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 Q1 2019 GN Hearing update GN Audio update Financial outlook 3
Slide 4: Group financial highlights Q1 2019
Group financial highlights Q1 2019 Continued strong momentum with 19% organic growth and 25% EPS increase DKK million Q1 2019 Q1 2018 Growth • Organic growth was 19%. Revenue growth was 24% including an impact of around 3% from FX and around 1% from M&A Revenue 2,840 2,296 +24% Organic growth 19% 10
Slide 5: Cash flow impacted by seasonality and current growth momentum
Cash flow impacted by seasonality and current growth momentum • Strong development in operating cash flow DKKm based on the strong top-line growth GN Hearing 400 300 • Change in working capital negatively impacted 200 100 by strong growth momentum across GN Hearing 0 -100 and GN Audio -200 Operating
Slide 6: Creating shareholder value through efficient capital structure
Creating shareholder value through efficient capital structure • End Q1 2019, the net interest-bearing debt was 2.3x NIBD / EBITDA development EBITDA DKKm • DKK 641 million cash outflow related to the Altia 6,000 5,162 7x 5,000 6x acquisition 5x 4,000 3,377 3,035 3,234 4x • DKK 197 million dividend
Slide 7: Agenda
Agenda Group highlights Q1 2019 GN Hearing update GN Audio update Financial outlook 7
Slide 8: GN Hearing financial highlights Q1 2019
GN Hearing financial highlights Q1 2019 Strong performance across regions: • Organic growth of 8% driven by strong performance of DKK million Q1 2019 Q1 2018 Growth ReSound LiNX Quattro and ReSound LiNX 3D. Revenue growth of 10%, including impact of around 2% from FX and an insignificant impact from
Slide 9: The strong organic growth of 8% was driven across regions and countries
The strong organic growth of 8% was driven across regions and countries Leading technology and commercial excellence driving growth in 2019 North America Europe Continued strong growth within Rest of World Strong momentum from Q4 2018 independents – partly off-set by Continued strong growth with con
Slide 10: GN Hearing now #1 in VA
GN Hearing now #1 in VA GN Hearing is now the preferred supplier in VA marked share development (value) VA for the first time ever • In Q1 2019, VA accounted for roughly 20% of 50% the total US market in volumes 45% 40% • Since the introduction of ReSound LiNX 35% Quattro in VA in November 2018, GN
Slide 11: ReSound LiNX Quattro roll-out practically completed
ReSound LiNX Quattro roll-out practically completed • ReSound LiNX Quattro, and corresponding Beltone Amaze, first shipped in August 2018 • Global roll-out practically completed • Available in slightly more than 50 countries world-wide (incl. US, UK, Germany, France, Spain, Italy, Japan and Australi
Slide 12: Leader in Connectivity: Apple Cooperation/Google Partnership
Leader in Connectivity: Apple Cooperation/Google Partnership 12
Slide 13: Deliver with purpose
Deliver with purpose —f Resqund | }—_ —= coed nose \ ¥ y 4 y Vv) v N ee wf q wy
Slide 14: Agenda
Agenda Group highlights Q1 2019 GN Hearing update GN Audio update Financial outlook 14
Slide 15: GN Audio financial highlights Q1 2019
GN Audio financial highlights Q1 2019 GN Audio delivered 36% organic growth in Q1 2019, driven by exceptionally strong performance in both the DKK million Q1 2019 Q1 2018 Growth CC&O business and the consumer business • Organic growth of 36%. Revenue growth of 43%, Revenue 1,333 931 +43% Organic gro
Slide 16: Strong and broad-based organic growth in CC&O continues
Strong and broad-based organic growth in CC&O continues Leading technology and commercial excellence drives growth across geographies in Q1 2019 Europe North America Strong organic growth across Rest of World Solid organic growth driven by GN countries, but with particular strong Strong organic grow
Slide 17: Integration of Altia Systems well underway
Integration of Altia Systems well underway • On February 19, GN Audio announced the acquisition of Altia Systems to expand into integrated audio and video UC communication, offering solutions that increase companies’ productivity and allow companies to work smarter • On March 11, 2019 all necessary
Slide 18: GN Audio is strongly positioned in a very attractive portfolio of markets
GN Audio is strongly positioned in a very attractive portfolio of markets Enterprise Consumer Segment Call-centric Task-based BT stereo* (incl. sports) Characteristics “Calls for a living“ Office-based Preference for great calls, music (e.g., contact centers, customer knowledge workers and an active
Slide 19: Launch of Jabra Elite 85h
Powered by Sound+ Launch of Jabra Elite 85h Engineered for the best wireless calls, and music experience with SmartSound SmartSound. Audio that adapts automatically to surroundings based on Artificial Intelligence 100% Hands-free Voice Assistant Control Calls & Music like never before including Acti
Slide 20: Agenda
Agenda Group highlights Q1 2019 GN Hearing update GN Audio update Financial outlook 20
Slide 21: Financial guidance for 2019
Financial guidance for 2019* GN Hearing GN Hearing revenue (DKKm) GN Hearing EBITA margin • Organic growth is expected to be around 7% Organic growth 6% 7% ~7% (0.1)%p 0.0%p • The EBITA margin is expected to be more than 20%. GN 20.6% 20.5% 20.5% >20% Hearing will continue to invest in future growth
Slide 22: Q&A
Q&A www.gn.com E-mail: investor@gn.com Peter Justesen, VP, IR & Treasury, Tel.: +45 4575 8716 Rune Sandager, Senior IR Manager, Tel.: +45 4575 9257 22
Slide 23: Appendix
GN Making Life Sound Better Appendix GN
Slide 24: GN Hearing’s strategic focus areas 2017 – 2019
GN Hearing’s strategic focus areas 2017 – 2019 Hear more, Do more, Be more Innovation excellence focusing on user needs, core technology and time to market optimization Commercial excellence through expansion in the open market, continuation of successful partnerships and engaging users digitally In
Slide 25: GN Audio’s strategic focus areas 2017 – 2019
GN Audio’s strategic focus areas 2017 – 2019 Hear More, Do More, Be More Innovation excellence • Accelerate the call-centric category • Expand Unified Communication (UC) strength for office Commercial excellence • Grow share in focus markets • Cloud & digital first People • Grow consumer profitably
Slide 26: GN Store Nord – five-year performance
GN Store Nord – five-year performance DKK million 2014 2015 2016 2017 2018 201 GN Store Nord Revenue 6,763 7,755 8,651 9,585 10,607 2,84 Organic growth 9% 6% 6% 8% 13% 19% Gross margin 62.4% 61.2% 62.4% 62.7% 62.0% 61.8% EBITA 1,196 1,383 1,583 1,744 1,956 43 EBITA margin 17.7% 17.8% 18.3% 18.2% 18.
Slide 27: GN Hearing – five-year performance
GN Hearing – five-year performance DKK million 2014 2015 2016 2017 2018 GN Hearing Revenue 3,892 4,526 5,156 5,615 5,833 Organic growth 8% 9% 6% 6% 7% Gross margin 68.8% 67.4% 69.0% 69.4% 69.2% EBITA 833 921 1,062 1,153 1,194 EBITA margin 21.4% 20.3% 20.6% 20.5% 20.5% ROIC (EBITA/Invested capital) 1
Slide 28: GN Audio – five-year performance
GN Audio – five-year performance DKK million 2014 2015 2016 2017 2018 GN Audio Revenue 2,871 3,229 3,495 3,970 4,774 Organic growth 11% 2% 7% 10% 21% Gross margin 53.6% 52.6% 52.7% 53.2% 53.2% EBITA 521 540 597 721 905 EBITA margin 18.1% 16.7% 17.1% 18.2% 19.0% ROIC (EBITA/Invested capital) 57% 47%
Slide 29: GN Store Nord share overview
GN Store Nord share overview Share information • GN has a share capital of DKK 569,072,400, which consist of Share price development (5 years) 142,268,100 shares, each carrying four votes. GN has one share class, and there are no restrictions on ownership or GN C25 CAP Stoxx 600 230 voting rights •