GN Store Nord A/S · OMXCOP:GN
GN Store Nord A/S — Q1 2008 Earnings Presentation
19 slides from GN Store Nord A/S's earnings presentation, May 8, 2008
Slide 1: GN Q1 Interim Report 2008
GN Q1 Interim Report 2008 CEO GN Netcom Toon Bouten, CEO GN ReSound Mike van der Wallen, VP Finance, IR & Communications Jens Bille Bergholdt Copenhagen, May 8, 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: Q1 Summary
Q1 Summary •• The TheQ1 Q1financial financialresults resultswere werein inline linewith withexpectations. expectations. •• Revenue Revenuewas wasDKK DKK1,411 1,411million. million.Exchange Exchangerate ratefluctuations fluctuationsimpacted impacted revenue by (6)% compared to Q1 2007. revenue by (6)
Slide 4: Profit and Loss
Profit and Loss (DKK million) Q1/2007 2007 Q1/2008 Revenue 1,564 5,981 1,411 EBITA 129 294 27 Amort., finance, associates etc. (34) (98) (34) Depreciation and costs related to the 31 (296) 0 abandoned sales process (GN ReSound) EBT 126 (100) (7) • First quarter revenue 6% impacted by drops in key cu
Slide 5: Balance & Cash Flow
Balance & Cash Flow (DKK million) *End End End Q1/2007 2007 Q1/2008 Goodwill 2,740 2,525 2,408 Other intangible assets 1,135 1,127 1,126 Tangible & other non-current assets 1,630 1,513 1,469 Current assets 2,589 2,670 2,547 Equity 4,955 4,482 4,213 Liabilities 3,139 3,353 3,337 Total assets/liabilit
Slide 6: GN Netcom
GN Netcom 6 May 15, 2008 Slide 6
Slide 7: GN Netcom
GN Netcom (DKK million) Q1 Q2 Q3 Q4 2007 Q1 Revenue 749 617 670 775 2,811 636 Growth (14)% (33)% (2)% (2)% (14)% (8)% Gross margin 37% 40% 42% 38% 39% 41% EBITA before non-recurring costs 16 11 10 67 104 8 EBITA margin before non- 2.1% 1.8% 1.5% 8.6% 3.7% 1.3% recurring costs EBITA 16 (17) 6 30 35 3
Slide 8: GN Netcom Balance Sheet and Cash Flow
GN Netcom Balance Sheet and Cash Flow Balance sheet selected items Q1 FY Q4 Q1 (DKK million) 2007 2007 2007 2008 Inventories 222 343 343 265 Trade receivables 553 573 573 542 Trade payables 106 181 181 124 Cash flow (DKK million) Cash flow before working capital 80 239 97 42 Change in working capita
Slide 9: Overall Strategy Plan
Overall Strategy Plan Extend: Add New Activities Accelerate: Accelerate the Headset Businesses Reengineer: Build Scalable Business 2007 2008 2009 2010 • A market-oriented Business Stream organization • Less employees • Cost cuttings • New product platforms and less stand-alone products • New supply
Slide 10: 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 currently currently currently currently currently currently currently currently ~5% ~5%
Slide 11: GN ReSound
GN ReSound 11 May 15, 2008 Slide 11
Slide 12: GN ReSound
GN ReSound* (DKK million) Q1 Q2 Q3 Q4 2007 Q1 Revenue 811 842 755 747 3,155 772 Growth 2% 9% (2)% (13)% (2)% 1% Gross Margin 62% 63% 61% 59% 61% 60% EBITA before non-recurring costs 121 129 55 35 340 31 EBITA margin before non- 14.9% 15.3% 7.3% 4.7% 10.8% 4.0% recurring costs EBITA 121 129 55 (5) 30
Slide 13: GN ReSound Balance Sheet & Cash Flow
GN ReSound Balance Sheet & Cash Flow Balance selected items Q1 FY Q4 Q1 (DKK million) 2007 2007 2007 2008 Inventories 376 374 374 375 Trade receivables 713 665 665 687 Trade payables 167 211 211 162 Cash flow (DKK million) Cash flow before working capital 159 535 74 114 Change in working capital & r
Slide 14: Turnaround Program Initiated late 2007
Turnaround Program Initiated late 2007 The aim of the program is to accelerate profitable growth and increase cost efficiency AccelerateProfitable Accelerate ProfitableGrowth Growth •• New Newflatter flatterregional regionalsales salesorganization organizationimplemented implemented •• Further Furth
Slide 15: Very attractive industry
Very attractive industry Demographic trends in main markets: Ageing population ageing population » increasing demand for hearing aids Estimated Estimated World hearing loss prevalence expected to actual actual Higher prevalence increase market market 2007: 2007: Improving Adoption rates to be booste
Slide 16: be by ReSound – New Category (IOT)
be by ReSound™ – New Category (IOT) Stylish appearance • Unique design • Unique form factor • Preferred by new users Very invisible solution Great wearing comfort • Open & occlusion free High convenience • Instant fit (non-customized) • No hassle – one hand operation • No fumbling with eye g
Slide 17: ReSound Ziga and New BTE-housing
ReSound Ziga™ and New BTE-housing • ReSound Ziga™ new product family for mid-price segment • Adaptive directionality and soft switching • Warp sound processing • Efficient noise reduction • Open fitting with the best feedback system • BTE housing – slim and functional Scandinavian design • To be use
Slide 18: Outlook 2008
Outlook 2008 Revenue (DKK/USD 4.75) (DKK million – ~ figures) 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 ~(75) Amortization, finance etc. ~(125) EBT* ~150-
Slide 19: GN Q1 Interim Report 2008 Q&A
GN Q1 Interim Report 2008 Q&A