GN Store Nord A/S · OMXCOP:GN
GN Store Nord A/S — Q2 2008 Earnings Presentation
21 slides from GN Store Nord A/S's earnings presentation, Aug 14, 2008
Slide 1: GN Q2 Interim Report 2008
GN Q2 Interim Report 2008 CEO GN Netcom Toon Bouten, CEO GN ReSound Mike van der Wallen, VP Finance, IR & Communications Jens Bille Bergholdt Copenhagen, August 14, 2008
Slide 2: Safe Harbour Statement
Safe Harbour Statement The Theforward-looking forward-lookingstatements statementsin inthis thisinterim interimreport reportreflect reflect management's management's current expectations of certain future eventsand current expectations of certain future events and financial results. Statements regar
Slide 3: Q2 Summary
Q2 Summary •• The TheQ2 Q2financial financialresults resultswere werein inline linewith withexpectations. expectations. •• Revenue RevenuewaswasDKK DKK1,363 1,363million. million.Exchange Exchangerate ratefluctuations fluctuationsimpacted impacted revenue revenue by (8)% compared to Q2 2007 and orga
Slide 4: Profit and Loss
Profit and Loss (DKK million) Q2/2007 2007 Q2/2008 Revenue 1,463 5,981 1,363 EBITA 93 294 38 Amort., finance, associates etc. (21) (98) (43) Depreciation and costs related to the 32 (296) 0 abandoned sales process (GN ReSound) EBT 104 (100) (5) • EBITA was DKK 63 million excl. non-recurring costs of
Slide 5: Balance & Cash Flow
Balance & Cash Flow (DKK million) *End End End End Q2/2007 2007 Q1/2008 Q2/2008 Goodwill 2,707 2,525 2,408 2,424 Other intangible assets 1,161 1,127 1,126 1,141 Tangible & other 1,656 1,513 1,469 1,488 non-current assets Current assets 2,682 2,670 2,547 2,481 Equity 5,063 4,482 4,213 4,252 Liabiliti
Slide 6: GN Netcom
GN Netcom Jabra SP700 Jabra BT4010 Jabra BT2050 Jabra M5390 and A335w dongle 6 August 14, 2008 Slide 6
Slide 7: GN Netcom
GN Netcom (DKK million) Q1 Q2 Q3 Q4 2007 Q1 Q2 Revenue 749 617 670 775 2,811 636 584 Growth (14)% (33)% (2)% (2)% (14)% (8)% 3% Gross margin 37% 40% 42% 38% 39% 41% 43% EBITA before non-recurring costs 16 11 10 67 104 8 (3) EBITA margin before non- 2.1% 1.8% 1.5% 8.6% 3.7% 1.3% (0.5)% recurring cost
Slide 8: GN Netcom Balance Sheet and Cash Flow
GN Netcom Balance Sheet and Cash Flow Balance sheet selected items Q2 FY Q1 Q2 (DKK million) 2007 2007 2008 2008 Inventories 282 343 265 228 Trade receivables 458 573 542 424 Trade payables 153 181 124 163 Cash flow (DKK million) Cash flow before working capital 21 239 42 34 Change in working capita
Slide 9: FAST Restructuring Program
FAST Restructuring Program FAST = Focused And Simplifying Turnaround Goals: • Improve Mobile earnings significantly to run rate breakeven by the end of 2009 • Increase profitability in CC&O (from an unsatisfactory level) Extend: Add New Activities Accelerate: Accelerate the Headset Businesses Reengi
Slide 10: FAST Program
FAST Program FROM: TO: Diverse and Complex Focused and Simplified R&D • Development mainly done in-house • High-end products and competitive • Large pipeline of products which partially advantage parts developed in-house cannibalize each other • Focused roadmap – platform-based Production & Distribu
Slide 11: The Headset Market
The Headset Market Contact Contact Premier Premier Mainstream Mainstream Office Office Center Center Market Market Market Market Market Market Market Market growth growth growth growth growth growth growth growth CAGR CAGR CAGR CAGR CAGR CAGR CAGR CAGR ~5% ~5% ~15% ~15% 10-20% 10-20% 2-4% 2-4% EBITA
Slide 12: GN ReSound
GN ReSound 12 August 14, 2008 Slide 12
Slide 13: GN ReSound
GN ReSound* (DKK million) Q1 Q2 Q3 Q4 2007 Q1 Q2 Revenue 811 842 755 747 3,155 772 776 Growth 2% 9% (2)% (13)% (2)% 1% (1)% Gross Margin 62% 63% 61% 59% 61% 60% 62% EBITA before non-recurring costs 121 129 55 35 340 31 72 EBITA margin before non- 14.9% 15.3% 7.3% 4.7% 10.8% 4.0% 9.3% recurring costs
Slide 14: GN ReSound Balance Sheet & Cash Flow
GN ReSound Balance Sheet & Cash Flow Balance selected items Q2 FY Q1 Q2 (DKK million) 2007 2007 2008 2008 Inventories 378 374 375 390 Trade receivables 717 665 687 758 Trade payables 165 211 162 161 Cash flow (DKK million) Cash flow before working capital 194 535 114 104 Change in working capital &
Slide 15: GN ReSound Strategy
GN ReSound Strategy Accelerate the business Regain innovative Preferred leadership partner Fixing the foundation Three-stringed Commercial Execution Brand strategy excellence excellence Performance-driven culture 15 August 14, 2008 Slide 15
Slide 16: Very attractive industry
Very attractive industry Estimated actual Ageing population market 2007: Higher prevalence Long-term growth Units expectations ~ 8.5 m Improving adoption rates unchanged even though current market DKK Improving binaural conditions outside the 15-20 bn fitting rates public sector, in particular in th
Slide 17: be by ReSound – New Category (IOT)
be by ReSound™ – New Category (IOT) • Revolutionary design which opens an entirely new category in the industry • Combines the main benefits of traditional ITE’s and BTE’s: - Invisible solution placed deep inside the ear canal - Open & occlusion free - Instant fit (non-customized) - No hassle – one
Slide 18: ReSound X-plore and Beltone Reach
ReSound X-plore™ and Beltone Reach ReSound X-plore™ – a new complete family of hearing instruments in the plus segment. ReSound X-plore™ is small, discreet and, above all, highly comfortable. Available in the new Silhouette BTE housing • Launched on most key markets by the end of Q2 Beltone Reach –
Slide 19: New Management Members in GN ReSound
New Management Members in GN ReSound • Peter U. Scheel (49) • Head of Global R&D • Previously President & CEO in hearing instrument component supplier Sonion • Mads Bjerre Andersen (46) • Head of Sales Europe • Previously CEO of the German hearing instruments retailer GEERS Hörakustik AG & Co. KG 19
Slide 20: Outlook 2008
Outlook 2008 Revenue (DKK/USD 4.75) (DKK million) GN Netcom ~2,700 GN ReSound >3,000 GN Total* ~5,700 EBITA (excl. non-recurring costs) GN Netcom 125-175 GN ReSound 250-300 Other ~(30) GN Total* ~ 350-450 Non-recurring costs in GN Netcom ~(150) Amortization, finance etc. ~(150) EBT* ~50-150 * Uncert
Slide 21: GN Q2 Interim Report 2008 Q&A
GN Q2 Interim Report 2008 Q&A