GN Store Nord A/S · OMXCOP:GN
GN Store Nord A/S — Q3 2009 Earnings Presentation
27 slides from GN Store Nord A/S's earnings presentation, Nov 11, 2009
Slide 1: GN Q3 Interim Report 2009
GN Q3 Interim Report 2009 CEO GN ReSound Mike van der Wallen CEO GN Netcom Mogens Elsberg CFO GN Store Nord Anders Boyer Director IR GN Store Nord Mikkel Danvold Copenhagen, November 11, 2009
Slide 2: Safe Harbour Statement
Safe Harbour Statement The forward-looking statements in this interim report reflect management's current expectations of certain future events and financial results. Statements regarding 2009 are, of course, subject to risks and uncertainties which may result in material deviations from the outlook
Slide 3: Q3 Summary
Q3 Summary • GN’s 2009 focus has primarily been on generating cash flow and improving earnings through implementing comprehensive restructuring programs in both GN Netcom and GN ReSound. • The free cash flow guidance which was previously “Significant, positive” has been increased to “Around DKK 0.5
Slide 4: Profit and Loss
Profit and Loss Q3 YTD Q3 YTD (DKK million) 2008 2008 2009 2009 Revenue 1,386 4,160 1,108 3,502 Gross Profit 681 2,144 598 1,869 SG&A, R&D etc. (708) (2,106) (553) (1,887) EBITA (27) 38 45 (18) Amort., finance, associates etc. (35) (112) 83 16 EBT (62) (74) 128 (2) • Revenue was DKK 1,108 million co
Slide 5: Balance Sheet & Cash Flow
Balance Sheet & Cash Flow End FY End End End (DKK million) Q3/2008 2008 Q1/2009 Q2/2009 Q3/2009 Goodwill 2,629 2,655 2,794 2,651 2,563 Other intangible assets 1,150 1,163 1,182 1,169 1,158 Tangible & other non- current assets 1,564 1,592 1,614 1,414 1,389 Current assets 2,811 2,468 2,269 2,265 2,034
Slide 6: GN Store Nord Update
GN Store Nord Update Arbitration Case against TPSA • On August 28, the post-hearing briefs was handed in to the Arbitration Tribunal. • DPTG has submitted a claim of DKK 5.0 billion for the period from 1994 to mid-2004, including accrued interest. • The decision by the Arbitration Tribunal is expect
Slide 7: GN Netcom
GN Netcom 7 November 12, 2009 Slide 7
Slide 8: GN Netcom Income Statement
GN Netcom Income Statement (DKK million) Q1 Q2 Q3 Q4 2008 Q1 Q2 Q3 Revenue 636 584 595 615 2,430 421 435 412 Organic growth (8)% 3% (6)% (23)% (9)% (36)% (30)% (32)% Gross margin 41% 43% 38% 37% 40% 35% 42% 43% SG&A, R&D etc. (260) (277) (254) (248) (1,039) (229) (224) (187) EBITA 3 (28) (28) (18) (
Slide 9: GN Netcom Balance Sheet and Cash Flow
GN Netcom Balance Sheet and Cash Flow Balance sheet selected items Q3 FY Q1 Q2 Q3 (DKK million) 2008 2008 2009 2009 2009 Inventories 291 271 179 128 101 Trade receivables 462 362 279 275 270 Trade payables 260 208 97 118 102 Cash flow (DKK million) Cash flow before working capital 60 213 14 34 36 Ch
Slide 10: Unified Communications
CC&O Unified Communications PC telephony – having conversations right from Cases Instant messaging – your PC, saving costs instant request - Intel:* response for faster exchange than email E-mail – integrating - 86,000 employee integrated circuits email program with developer and manufacturer, uses
Slide 11: Unified Communications and Strategic Relevance of Headsets
CC&O Unified Communications and Strategic Relevance of Headsets UC is not a single product, but a collection of multiple products and technologies which are integrated together to provide a seamless user experience. Audio is considered one of the killer applications – for which headsets are necessar
Slide 12: CC&O Market and Prospect
CC&O CC&O Market and Prospect CC&O world market projections mUSD 2000 1600 Strong market growth potential 1200 from Unified Communications: Market potentially tripling by 2014 800 400 0 2009 2010 2011 2012 2013 2014 CC&O Market incl. UC 12 Source: Frost & Sullivan, Nov 2008. November 12, 2009 Slide
Slide 13: Strong Product Portfolio in All Segments
CC&O Strong Product Portfolio in All Segments Headsets for contact centers Comfort, sound quality, acoustic Growth primarily driven by shock protection and durability are replacement and offshoring of overall criteria for a contact center contact centers. High margins headset. Jabra BIZ 2400, High e
Slide 14: Mobile Market and Prospect
Mobile Mobile Market and Prospect • Economic crisis meant a sharp decline in consumer mUSD Global Mobile Handsfree Revenue discretionary spending, severely affecting global 1.600 headset sales. • General: However, the market for Bluetooth® headsets is still very underdeveloped globally with 1.200 an
Slide 15: Strong Product Portfolio in All Segments
Mobile Strong Product Portfolio in All Segments Jabra STONE A shape like no other headset. Sleek Demand driven by legislation wireless charger and carrying case. supporting use of hands-free while Jabra STONE features noise cancelling driving. Largest category in the technology and discreetly placed
Slide 16: The Outlook for GN Netcom
The Outlook for GN Netcom Key value drivers Challenges • Prospect of significant long term Mobile market growth • Build a long-term sustainable • Attractive margins in particularly business model the CC&O industry • Gain market share in North • Company transformation on America track to harvest prof
Slide 17: GN ReSound
GN ReSound 17 November 12, 2009 Slide 17
Slide 18: GN ReSound Income Statement
GN ReSound Income Statement (DKK million) Q1 Q2 Q3 Q4 2008 Q1 Q2 Q3 Revenue 772 776 787 843 3,178 774 757 693 Organic growth 1% (1)% 9% 10% 5% (4)% (7)% (13)% Gross margin 60% 62% 57% 62% 60% 62% 61% 60% SG&A, R&D etc. (432) (410) (447) (465) (1,754) (448) (405) (364) EBITA 31 72 4 56 163 29 54 55 E
Slide 19: GN ReSound Balance Sheet & Cash Flow
GN ReSound Balance Sheet & Cash Flow Balance sheet selected items Q3 FY Q1 Q2 Q3 (DKK million) 2008 2008 2009 2009 2009 Inventories 421 391 373 332 310 Trade receivables 823 744 741 687 658 Trade payables 197 206 155 126 135 Cash flow (DKK million) Cash flow before working capital 107 462 100 113 11
Slide 20: Restructuring Program Initiated Q1 2009
Restructuring Program Initiated Q1 2009 Target Status Re-align organization Positions reduced by Optimize for 1 to new economy and app. 500 vs. Q3 2008 current business save cash Review of current Consolidation and focus business procedures throughout value chain Explore and exploit 2 with regar
Slide 21: Transformation of Organization on Track
Transformation of Organization on Track R&D Operations Marketing Sales • New platform- • New SVP and • New organization • Transfer and based R&D global organization with new brand VPs consolidation of organization • Consolidation of • Focus on life cycle local manufacturing • Utilize platforms to op
Slide 22: Tenders and Launch Update
Tenders and Launch Update Key content of new contract with Veterans Affairs • GN ReSound has been awarded the right to compete with the ReSound brand in this increasingly important segment of the US market. • ReSound branded products will be made available as a result of the contract • Includes the
Slide 23: Two Families Based on the Same Platform
Two Families Based on the Same Platform For users that primarily values For users who primarily value invisibility options, flexibility and control – the and complete automization – the wear solution that covers all hearing needs and forget solution and losses 23 November 12, 2009 Slide 23
Slide 24: Comprehensive Renewal of the ReSound Portfolio
Comprehensive Renewal of the ReSound Portfolio 24 November 12, 2009 Slide 24
Slide 25: The Outlook for GN ReSound
The Outlook for GN ReSound Key value drivers Challenges • Solid long term market growth • Short term down trading in • Company transformation on track to ongoing economic downturn harvest profitability upside • Short term negative volume • Reduced headcount, working capital growth in some markets an
Slide 26: GN's Outlook for 2009
GN’s Outlook for 2009 GN Store Nord GN Netcom GN ReSound Contact Center & Hearing Instruments Office Headsets, and Audiologic • Listed company Mobile Headsets Diagnostics Equip. • Supervisory Board • Equally ranked CEO’s GN Netcom and GN ReSound Outlook 2009: Outlook 2009: Outlook 2009: Revenue arou
Slide 27: GN Q3 Interim Report 2009 Q&A
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