Gn Store Nord A/s · OMXCOP:GN
Gn Store Nord A/s — Q2 2019 Earnings Presentation
30 slides from Gn Store Nord A/s's earnings presentation, Aug 22, 2019
Slide 1: Interim Report Q2 2019 – Conference call presentation, August 22, 2019
Interim Report Q2 2019 – Conference call presentation, August 22, 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 Q2 2019 GN Hearing update GN Audio update Financial outlook 3
Slide 4: Group financial highlights Q2 2019
Group financial highlights Q2 2019 Strong group performance with 16% organic growth DKK million Q2 2019 Q2 2018 Growth • Organic growth was 16%. Revenue growth was 19% including an impact of around 3% from FX and insignificant impact from M&A Revenue 3,051 2,564 +19% • Continued solid gross profit i
Slide 5: Strong cash flow generation
Strong cash flow generation • Continued strong development in operating DKKm cash flow based on the strong top-line growth GN Hearing 379 427 290 • Strong development in net working capital in GN 23 106 Hearing, whereas GN Audio is negatively -22 -27 -51 impacted by strong growth momentum -224 -109
Slide 6: Exploiting attractive market conditions and de-risking the balance sheet
Exploiting attractive market conditions and de-risking the balance sheet Maturity profile (DKKm) • Refinancing of Convertible Bond ~7,300* resulted in extended debt profile, locked 955 in zero coupons, raised strike price to 250 112 112 112 559 DKK 474 and reduced equity dilution 745 with roughly 1
Slide 7: Agenda
Agenda Group highlights Q2 2019 GN Hearing update GN Audio update Financial outlook 7
Slide 8: GN Hearing financial highlights Q2 2019
GN Hearing financial highlights Q2 2019 Strong performance across regions DKK million Q2 2019 Q2 2018 Growth • Organic growth of 8% driven by continued strong performance of ReSound LiNX Quattro across regions. Revenue growth of 11%, including impact of around Revenue 1,585 1,433 +11% 2% from FX and
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 Europe North America Strong performance across the Rest of World Strong performance across region with particular strong Continued strong growth with channels,
Slide 10: Case study – Japan
Case study – Japan (日本) Market characteristics* World’s 3rd largest High ASP market Market growth in GN market share ~ 600k annual units units (CAGR) of ~20% ~ 4% of global units ~1% 2015-2018 ~ 7% of global value ~3% H1 2019 Share gains driven by structured commercial execution • Organization drivi
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 more than 50 countries world-wide (incl. Australia, France, Germany, Italy, Japan, UK, US, Spain) • Strong
Slide 12: Customer testimonial on ReSound LiNX Quattro
”This is better than anything I’ve heard in a long time. What I’ve got is a more complete auditory environment. This is pretty impressive.” Andrew Hugill on ReSound LiNX Quattro Composer and musicologist 12
Slide 13: Leader in Connectivity: Google continues to push the importance of connectivity
Leader in Connectivity: Google continues to push the importance of connectivity 13
Slide 14: Agenda
Agenda Group highlights Q2 2019 GN Hearing update GN Audio update Financial outlook 14
Slide 15: GN Audio financial highlights Q2 2019
GN Audio financial highlights Q2 2019 GN Audio delivered 26% organic growth in Q2 2019, DKK million Q2 2019 Q2 2018 Growth driven by exceptionally strong performance in both the CC&O business and the consumer business Revenue 1,466 1,131 +30% • Organic growth of 26%. Revenue growth of 30%, Organic g
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 Q2 2019 North America Europe Rest of World Solid organic growth driven by GN Continued strong organic growth Strong organic growth across Audio’s strong profession
Slide 17: GN Audio is strongly positioned in a very attractive portfolio of markets
GN Audio is strongly positioned in a very attractive portfolio of markets CC&O 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 service, traders) knowledge workers a
Slide 18: Jabra PanaCast – first step to position GN Audio in huddle room video conferencing
Jabra PanaCast – first step to position GN Audio in the fast-growing huddle room video conferencing market • In August 2019, Jabra started shipment of Jabra PanaCast, engineered to be the world’s first smart Panoramic-4k Plug- and-Play video solution • Jabra PanaCast’s leading-edge cameras and micro
Slide 19: Encouraging initial feedback from Jabra Elite 85h
Encouraging initial feedback from Jabra Elite 85h • During Q2 2019, GN Audio started shipment of the Jabra Elite 85h headphones - engineered with Jabra SmartSound, based on audEERING context intelligence technology and include Jabra’s Active Noise Cancellation (ANC) • The Jabra Elite 85h headphones
Slide 20: Agenda
Agenda Group highlights Q2 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: Save the date – EUHA 2019
Save the date – EUHA 2019 Investor and analyst meeting 64nd International Congress of Hearing Aid Acousticians Nürnberg 9.00 am, October 17, 2019 22
Slide 23: Q&A
Q&A www.gn.com E-mail: investor@gn.com Morten P. Toft, VP - IR & Treasury, Tel.: +45 4575 4607 Rune Sandager, Senior Manager - IR, Tel.: +45 4575 9257 23
Slide 24: Appendix
GN Making Life Sound Better Appendix GN
Slide 25: 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 26: 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 27: GN Store Nord – five-year performance
GN Store Nord – five-year performance DKK million 2014 2015 2016 2017 2018 GN Store Nord Revenue 6,763 7,755 8,651 9,585 10,607 Organic growth 9% 6% 6% 8% 13% Gross margin 62.4% 61.2% 62.4% 62.7% 62.0% EBITA 1,196 1,383 1,583 1,744 1,956 EBITA margin 17.7% 17.8% 18.3% 18.2% 18.4% Operating profit 1,
Slide 28: 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 29: 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 30: 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 •