GN Store Nord A/S · OMXCOP:GN
GN Store Nord A/S — Q3 2010 Earnings Presentation
33 slides from GN Store Nord A/S's earnings presentation, Nov 10, 2010
Slide 1: Q3 Interim Report 2010
Q3 Interim Report 2010 CEO, GN ReSound Lars Viksmoen CEO, GN Netcom Mogens Elsberg CFO, GN Store Nord Anders Boyer Director IR & Communications, GN Store Nord Mikkel Danvold Copenhagen, November 10, 2010
Slide 2: Financial Highlights Q3 2010
Financial Highlights Q3 2010 - EBITA guidance for 2010 raised • Organic growth of 4% fuelled by launch Revenue: of ReSound Alera™ and continued DKK 1,248m Q3 2009 DKK 1,108m growth in GN Netcom driven by UC. • EBITA in the two operating businesses more than doubled from DKK 44 million EBITA: in Q3 2
Slide 3: GN Store Nord - Financial Targets
GN Store Nord - Financial Targets Preliminary 2011 guidance: EBITA margin • More than 6% organic growth • EBITA: DKK 675-775 million 2013 targets: Doubling EBITA margin from 2010 • Group revenue: More than DKK 6.3 billion • Group EBITA margin: Around 19% EBITA margin Long-term targets: • Organic rev
Slide 4: GN Netcom - Financial Targets
GN Netcom - Financial Targets Preliminary 2011 guidance: DKK 3.0 billion GN Netcom revenue More than 0 2.6 • More than 8% organic growth 2.5 • EBITA: DKK 250-300 million 2.0 1.5 1.0 2013 targets: 0.5 • Revenue: More than DKK 2.6 billion 0.0 • EBITA margin: Around 18% 2009 2010 2011 2013 Key assumpti
Slide 5: GN ReSound - Financial Targets
GN ReSound - Financial Targets Preliminary 2011 guidance: DKK GN ReSound revenue Around 3.7 4.0 • More than 4% organic growth billion • EBITA: DKK 450-500 million 3.0 2.0 2013 targets: • Revenue: Around DKK 3.7 billion 1.0 • EBITA margin: Around 20% 0.0 • Key assumptions: 2009 2010 2011 2013 • Reven
Slide 6: GN Store Nord - Doubling EBITA Margin by 2013
GN Store Nord - Financial Targets DOUBLING EBITA MARGIN BY 2013 GN Store Nord revenue GN Store Nord EBITA margin* DKK Around billion 7.0 More than 19% 6.3 20% 6.0 16% 5.0 4.0 12% 3.0 8% 2.0 4% 1.0 0.0 0% 2009 2010 2011 2013 2009 2010 2011 2013 6 * Excl. TPSA November 10, 2010 Slide 6
Slide 7: Additional Highlights
Additional Highlights Arbitration Case against TPSA: • On September 3, 2010, GN was awarded approximately DKK 2.2 billion (including accrued interest) for phase 1 of the DPTG/TPSA arbitration proceedings. • Despite the fact that the award is final and legally binding, TPSA did not pay within the est
Slide 8: GN Netcom
GN Netcom 8 November 10, 2010 Slide 8
Slide 9: GN Netcom – Financial Highlights
GN Netcom – Financial Highlights - Solid 13% organic growth in the core business Q3 Q4 FY Q1 Q2 Q3 (DKK million) 2009 2009 2009 2010 2010 2010 Revenue 412 468 1,736 446 495 452 Organic growth (32)% (19)% (30)% 9% 8% 3% Gross margin 43% 50% 43% 52% 53% 55% SG&A, R&D etc. (187) (284) (924) (205) (211)
Slide 10: GN Netcom Balance Sheet and Cash Flow
GN Netcom Balance Sheet and Cash Flow - Historical low net working capital Balance sheet selected items Q3 Q4 FY Q1 Q2 Q3 (DKK million) 2009 2009 2009 2010 2010 2010 Inventories 101 - 87 74 91 107 Trade receivables 270 - 289 265 288 251 Trade payables 102 - 140 127 168 133 Cash flow (DKK million) Ca
Slide 11: The UC Market Opportunity
The UC Market Opportunity Based on GN Netcom’s current 30% share of the CC&O market, UC translates into a significant CC&O revenue opportunity. • Full benefit of UC requires a headset GN Netcom CC&O revenue opportunity solution – headsets become part of the core infrastructure. • UC will drive signi
Slide 12: The UC Market Opportunity - II
The UC Market Opportunity - II Microsoft Lync delivers on • Microsoft is currently launching the Critical Voice Features successor for Microsoft Office Communication Server 2007 (OCS) – Microsoft Lync. • Worldwide launch event on November 17, 2010. Jabra will have seven products Telephony and Voice
Slide 13: Wide Range of Jabra UC Solutions
Wide Range of Jabra UC Solutions Jabra has a wide range of UC ready audio end-points for all major UC platforms. Solutions in four categories: Wireless headsets Speakerphones Corded headsets Jabra PC Suite (software) 13 November 10, 2010
Slide 14: GN Netcom’s UC Strategy
GN Netcom’s UC Strategy • Win early adopters in the UC market. • Stay in the front and benefit from Jabra’s state-of-the-art product portfolio. • Continued focus on developing user friendly products compatible with all major UC applications. • Maintain and develop successful partnering with UC vendo
Slide 15: New Products from CC&O Headsets
New Products from CC&O Headsets Jabra BIZ™ 300 series. A corded entry-level family of headsets that enables a cost effective introduction to UC and integration with the leading UC providers. Jabra BIZ™ 330 and Jabra BIZ™ 340 to be launched in Q1 and Q2 2011. Jabra BIZ™ 360 to be launched in late 201
Slide 16: New Products from Mobile Headsets
New Products from Mobile Headsets Jabra CHILL Jabra CRUISER2 Jabra EXTREME FOR PC Jabra WAVE Jabra ACTIVE 16 November 10, 2010 Jabra RHYTM Slide 16
Slide 17: Drivers and Challenges for GN Netcom
Drivers and Challenges for GN Netcom Key Value Drivers Challenges • Prospect of significant mid/long- • Build a long-term sustainable term market growth from UC. business model for Mobile • No additional investments are Headsets. required to participate in the • UC drives significant structural attr
Slide 18: GN ReSound
GN ReSound 18 November 10, 2010 Slide 18
Slide 19: GN ReSound - Financial Highlights
GN ReSound - Financial Highlights - Organic growth of 5% - the highest since Q4 2008 Q3 Q4 FY Q1 Q2 Q3 (DKK million) 2009 2009 2009 2010 2010 2010 Revenue 693 757 2,981 726 789 794 Organic growth (13)% (3)% (6)% (2)% 0% 5% Gross margin 60% 60% 61% 59% 59% 60% SG&A, R&D etc. (364) (367) (1,584) (359)
Slide 20: GN ReSound Balance Sheet & Cash Flow
GN ReSound Balance Sheet & Cash Flow - Free cash flow temporarily affected by inventory increases Balance sheet selected items Q3 Q4 FY Q1 Q2 Q3 (DKK million) 2009 2009 2009 2010 2010 2010 Inventories 310 - 288 312 337 358 Trade receivables 658 - 705 721 738 747 Trade payables 135 - 190 172 202 175
Slide 21: Said about ReSound Alera™
Said about ReSound Alera™ What dispensers tell us: “Fantastic! I have had several patients switch from a different manufacturer and have noticed a better sound quality and found they heard better.” Stephanie L, AuD, Cincinnati, OH “My experience has been fantastic, Selling Alera has been fairly easy
Slide 22: ReSound Alera™ - Success criteria
ReSound Alera™ - Success criteria Appreciation of innovative technology Customer base Top-end expansion penetration Volume increase ASP growth 22 November 10, 2010
Slide 23: ReSound Alera™ – Market Update
ReSound Alera™ – Market Update - wireless dominates the sales Wireless dominates the sales US ReSound Q3 2010 Wireless Non-wireless • Solid increase in sales in the 100% 4 3 1 top end. 90% • An overwhelming preference 80% 70% for the wireless model of 60% 96 ReSound Alera™. 50% 96 97 99 • Minimal ca
Slide 24: ReSound Alera™ – Selected Preferences
ReSound Alera™ – Selected Preferences US – Launch July Schwitzerland – Launch July 24% 38% 38% 44% 32% 24% Japan – Launch August 10% ReSound Alera™ 9 57% 33% ReSound Alera™ 7 ReSound Alera™ 5 24 November 10, 2010
Slide 25: Two new ReSound Alera™ Family Members
Two new ReSound Alera™ Family Members ReSound Alera™ custom remote mic: • Significant benefits due to the placement of the external microphone • Natural localization • Improved speech clarity • Elimination of wind noise • Smaller than comparable custom models • Options for truly open fitting ReSound
Slide 26: Fit 90% of Hearing Losses
Fit 90% of Hearing Losses - with three ReSound Alera™ models Custom remote Fusion BTE Receiver in microphone ear 26 November 10, 2010
Slide 27: ReSound Alera™ Approved by VA
ReSound Alera™ Approved by VA Veterans Affairs has approved ReSound Alera™ and as such ReSound Alera™ was made commercially available in the VA from November 1st. 27 November 10, 2010 Slide 27
Slide 28: Drivers and Challenges for GN ReSound
Drivers and Challenges for GN ReSound Key Value Drivers Challenges • Solid long-term market growth • Win top end share. in an industry with attractive margins. • Shorter product life cycles, • Continued innovation resulting in demanding more effective R&D. new and groundbreaking products. • Pressure
Slide 29: Guidance for 2010
Guidance for 2010 GN increases EBITA guidance provided in Q1 Interim Report 2010 Revenue (DKK/USD 5.5) EBITA DKK million GN Netcom’s organic revenue growth for 2010 is expected to be at least 5%. 2,500 GN ReSound’s revenue is expected to show positive organic growth for 2010. 2,000 GN’s total revenu
Slide 30: 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 the future are, of course, subject to risks and uncertainties which may result in material deviations from the o
Slide 31: Q3 Interim Report 2010
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Slide 32: Profit and Loss
Profit and Loss Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 (DKK million) 2009 2009 2009 2009 2009 2010 2010 2010 Revenue 1,198 1,196 1,108 1,227 4,729 1,174 1,286 1,248 Gross Profit 627 644 598 692 2,561 662 727 726 SG&A, R&D etc. (692) (642) (553) (666) (2,553) (576) (614) 1,462 EBITA (65) 2 45 26 8 86 113 2,188 Amor
Slide 33: Balance Sheet & Cash Flow
Balance Sheet & Cash Flow End End End End End (DKK million) Q3/2009 Q4/2009 Q1/2010 Q2/2010 Q3/2010 Goodwill 2,563 2,605 2,754 2,991 2,738 Other intangible assets 1,158 1,157 1,158 1,184 1,170 Tangible & other non- current assets 1,389 1,344 1,349 1,402 1,328 Current assets 2,034 2,029 2,099 2,250 4