Gn Store Nord A/s · OMXCOP:GN
Gn Store Nord A/s — Investor Presentation (May 2023)
49 slides from Gn Store Nord A/s's investor presentation, May 2023
Slide 1: GN Investor Presentation
GN Investor Presentation May 2023
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: Our purpose is Bringing People Closer
Our purpose is Bringing People Closer GN brings people closer to one another and what matters most to them
Slide 4: Agenda
Agenda GN at a glance GN Hearing GN Audio Financials 4
Slide 5: GN Store Nord: An integrated technology powerhouse
GN Store Nord: An integrated technology powerhouse Focused innovation Focused growth model Focused innovation within sound and Focused growth model, dedicated video processing in selected market developer, manufacturer and segments distributor, refraining from vertical integration Asset-light busine
Slide 6: GN commands world leading hearing, audio, and video expertise
GN commands world leading hearing, audio, and video expertise – all under one roof Medical hearing Professional Gaming, calls, technology collaboration and media 6
Slide 7: GN at a glance
GN at a glance Global leader in intelligent audio solutions Global reach, local presence • Founded in 1869 and listed on Nasdaq Copenhagen • Technology-driven company primarily developing and manufacturing hearing aids (GN Hearing) and headsets, speakers and video (GN Audio) • Innovation leader with
Slide 8: GN builds on innovation and ecosystem leadership
GN builds on innovation and ecosystem leadership GN’s engineering capabilities in hardware and software for audio and video deliver unique and individualzied customer experiences. To enhance our impact, we partner with leading channels, ecosystems, scientists, and other industry leaders to leverage
Slide 9: Group synergies are stronger than ever
Group synergies are stronger than ever Utilizing technology sharing and synergies from diversified R&D and go-to-market organizations to drive innovation leadership across multiple user segments Purpose-led Deep R&D expertise product brands and technology and diversified go- benefit all transfer to-
Slide 10: Agenda
Agenda GN at a glance GN Hearing GN Audio Financials 10
Slide 11: GN Hearing at a glance
GN Hearing at a glance Strategic Focus Brands, products and partnerships Individualized customer experience: We will obsess about customer experience for users of hearing aids and business support for hearing care professionals Innovation leadership: We will continue to lead in innovation – in indiv
Slide 12: Living with untreated hearing loss increases the risk of health problems
Living with untreated hearing loss increases the risk of health problems ➢ The incidence of dementia is greater in people with hearing loss1, and early studies show that wearing hearing aids may have a positive effect on cognitive function2 ➢ People with mild hearing loss were nearly three times mor
Slide 13: The hearing aid market remains very attractive and robust in the mid to long term
The hearing aid market remains very attractive and robust in the mid to long term 01 ~4-6% expected unit CAGR in coming years1 03 Multiple attractive megatrends driving market growth Global hearing aids market growth1 (unit growth) ~4-6% • 65+ population expected to grow significantly in the years t
Slide 14: Worldwide: 80% of people with a hearing loss currently live without hearing aids
Worldwide: 80% of people with a hearing loss currently live without hearing aids “What prevents you from buying a hearing aid?” Not 35% of respondents 22% of respondents 20% of respondents penetrated 80% 15% of respondents 9% of respondents Source: Internal GN Hearing study analyzing the reasons for
Slide 15: GN Hearing's growth is supported by strong and attractive megatrends
GN Hearing’s growth is supported by strong and attractive megatrends Aging populations with Consumerization Changing competitive landscape low adoption rates Regulatory shifts Sustainability drives design and Digitalization and data expanding the market manufacturing decisons 15
Slide 16: The hearing aid market is expanding with new opportunities emerging
The hearing aid market is expanding with new opportunities emerging Medical Touch Experience High Touch Experience Light Touch Experience No Touch Experience Business verticals Advanced hearing health and Relationship-based service and Self-controlled, hearing Value-based, hearing service medical ex
Slide 17: Simplify to grow - Unlocking the potential of the hearing solutions market
Simplify to grow - Unlocking the potential of the hearing solutions market Core business Emerging business • Deliver customer-centric products and experiences with organic • Participate in new channels and hearing solution adjacencies hearing including multiple new product launches in 2022 • Build o
Slide 18: On top of leading innovation, we focus on being the preferred partner
On top of leading innovation, we focus on being the preferred partner The choice of the Hearing Care Professional Preferred brand Develop me & my business • Partner with the customer by going the extra mile, proactively reach out and support, deliver services far above expectations Ease of doing bus
Slide 19: Introducing ReSound OMNIA
Introducing ReSound OMNIA Sounds natural • 150% improvement in speech understanding in noisy environments Feels natural • Best wearing comfort all day long and ease of use Connects you naturally • Crystal clear hands-free calls to iPhone and iPad 19
Slide 20: Completing the ReSound OMNIA family – Five new form factors
Completing the ReSound OMNIA family – Five new form factors to be launched by the end of February 2023 Custom made RIE BTE NEW NEW NEW NEW NEW CIC ITE/ITC miniRIE BTE PBTE 10A battery Rechargeable Rechargeable 312 & 13 battery Rechargeable 20
Slide 21: We are catering solutions to key needs for people with hearing difficulties
We are catering solutions to key needs for people with hearing difficulties Wants Wants Wants Wants Wants uncompromised reliable and earbud discreet occasional use 1 2 3 4 5 hearing robust experience above all ▪ Aged 18-75 (median: 60) ▪ Aged 70+ (median: 78) ▪ Aged 50-75 (median: 65) ▪ Aged 50-75
Slide 22: Lively is now JabraEnhance.com – an online destination for better hearing
Lively is now JabraEnhance.com – an online destination for better hearing Rebranding Lively to JabraEnhance.com JabraEnhance.com will be a leading online hearing care platform, enabling consumers to explore, purchase and receive hearing care in the U.S. from home Offering OTC products and hearing ca
Slide 23: The most focused hearing instruments manufacturer in the world
The most focused hearing instruments manufacturer in the world Focus on core capabilities within hearing instruments… …and strategic partnerships in the distribution channel • Maintain high margins Wholesale USD • Ensure channel access hearing instruments ~5bn 15% Component Distributors / Manufactur
Slide 24: GN uniquely positioned for future growth with its distribution approach
GN uniquely positioned for future growth with its distribution approach GN refrains from vertical integration No Focus on Innovation competition Strategic Strategic Efficient use core excellence with partnerships agility of capital competencies customers The vast majority of the retail market is not
Slide 25: Driving growth through strategic collaboration
Driving growth through strategic collaboration Partnering up with Exposure to fast-growing Refraining from tech giants cochlear market vertical integration 25
Slide 26: Agenda
Agenda GN at a glance GN Hearing GN Audio Financials 26
Slide 27: GN Audio at a glance
GN Audio at a glance Strategic Focus Brands, products and partnerships Individualized customer experience: We will offer customers best-in-class experiences as we transform from strict product focus to a more segment- and experience driven approach Ecosystem-led innovation: We will lead in innovatio
Slide 28: SteelSeries 2022 – Strong execution and market share gains in a challenging year
SteelSeries 2022 – Strong execution and market share gains in a challenging year SteelSeries revenue development Key achievements during 2022 Integration (Revenue, DKK million) • Supply chain and back-office functions integrated successfully -19%1 • Sales function of GN Audio Consumer and SteelSerie
Slide 29: Strong demand and market growth across business segments
Strong demand and market growth across business segments Segment Target users Market characteristics Market share Office-based From desk-phone telephony in private offices to Professionals knowledge workers UC&C in open offices From desk-phones using on-premise infrastructure Contact center “Calls f
Slide 30: GN Audio's growth is supported by strong and attractive megatrends
GN Audio’s growth is supported by strong and attractive megatrends Audio, video and data replaces Products and channels become Work-life becomes hybrid audio-only more consumerized Sustainability drives design and UC moves beyond the office Gaming goes mainstream manufacturing decisons 30
Slide 31: March 2020: fundamental change…work, learn, live, play…
March 2020: fundamental change…work, learn, live, play… Strong and sustained growth in modern collaboration Webex Zoom Teams Meet Workplace 650M 350M 270M 100M 7M Monthly Daily meeting Monthly active Daily active Paid users Today* participants participants users participants 163M 10M 20M 33M 1M Mont
Slide 32: Long term drivers intact but challenged markets expected for 2023
Long term drivers intact but challenged markets expected for 2023 Long term drivers Short term uncertainties in 2023 Work life becomes UC moves beyond Macroeconomic outlook uncertain hybrid the office Challenged consumer sentiment Audio, video and data Gaming goes Downward revisions of enterprise sp
Slide 33: GN Audio focuses on six growth opportunities
GN Audio focuses on six growth opportunities Take share in maturing market; Win high-growth markets Enable through M&A Explore adjacent opportunities Professionals Collaboration Gaming Contact Center Consumer Industry solutions* Continue to take market share Scale existing business and Lead the mark
Slide 34: Key industry barriers: Innovation, partnerships and channel access
Key industry barriers: Innovation, partnerships and channel access is key to defend and grow Increasing entry barriers to the Enterprise market Integration Technology Distribution • Extensive collaboration and • Product complexity, open-offices, • Exclusive distribution through integration with soft
Slide 35: Partnerships with leading technology players – Microsoft example
Partnerships with leading technology players to create the future experiences together – Microsoft example Together with our partners, we’re equipping frontline workers with tools that allow them to stay connected with their team and company leadership while concentrating on the customer or job at h
Slide 36: New ways of working calls for superior technology
New ways of working calls for superior technology In the office Jabra Evolve2 85 Soft memory headband: New ergonomic headband designed from hundred of head scans, for comfortable all-day wear Use case: • Background noise • Different UC platforms • Interruptions Superior • Need for collaboration batt
Slide 37: PanaCast 50 Video Bar System to facilitate next-level hybrid meeting experiences
PanaCast 50 Video Bar System to facilitate next-level hybrid meeting experiences • The Jabra PanaCast 50 Video Bar System is an Android collaboration bar which completes Jabra’s solution portfolio for small-medium sized meeting rooms • Offers full suite of flexible, scalable deployment options with
Slide 38: Several industry leading products launched in 2022 and beginning of 2023
Several industry leading products launched in 2022 and beginning of 2023 further strengthening industry leading portfolio Enterprise SteelSeries Consumer Panacast 50 Jabra Elite 4 Active Engage 55 Evolve2 Buds Apex 9 keyboard Arena speakers Video Bar System Jabra Speak 2 Jabra Elite 5 Engage AI Conn
Slide 39: Broad product portfolio, two-tier distribution model and long-term relationships
Broad product portfolio, two-tier distribution model and long-term relationships driving commercial excellence Go-to-market strategy drives the commercial execution GN Audio sales organization Distribution sales B2B channel sales Enterprise high-touch sales Reseller Medium/ large enterprise Distribu
Slide 40: Driving scalability with very efficient outsourced supply chain setup
Driving scalability with very efficient outsourced supply chain setup In-house process Outsourced but fully controlled process with GN driving sourcing North America distributors and customers R&D and Component Contract Regional product suppliers manufacturers distribution Europe development centers
Slide 41: Agenda
Agenda GN at a glance GN Hearing GN Audio Financials 41
Slide 42: GN - 10 years of relentless growth...
GN - 10 years of relentless growth... Revenue development (DKKbn) Adj. EBITA* EBITA* development development (DKKbn) (DKKbn) Adj. EPS development (DKK) 18.7 CAGR: 11% 2.7 CAGR: 15% 15.3 15.8 2.4 CAGR: 12% 2.2 13.2 13.4 12.6 2.0 1.7 1.8 10.2 10.5 10.5 10.6 1.6 9.6 8.9 8.7 1.4 7.9 1.3 7.8 1.2 6.8 5.8
Slide 43: The financial guidance 2023 is upgraded
The financial guidance 2023 is upgraded Non-recurring items Organic revenue growth Adj. EBITA margin2) (DKKm) GN Hearing 5% to 10% - Core business 14% to 16% ~ -150 - Emerging business1) (DKKm) ~ -150 GN Audio -10% to +5% 10% to 15% ~ -150 Other (DKK million) ~ -200 GN Store Nord -5% to +7% ~ -300 N
Slide 44: Ambitious mid-term targets
Ambitious mid-term targets Organic revenue growth EBITA margin Growth in EPS GN Hearing >market growth1 >20% (Excl. Emerging business) GN Audio >market growth2 >20% (Incl. SteelSeries) GN Store Nord >10% >10% 1) In the mid-term, GN Hearing expects the global hearing aid market to continue to grow at
Slide 45: | ie “A
“ee og | ie “A ‘6000 HEALTH cumare AND WELL-BEING $ Protecting our planet Truly sustainable products Ach health and'wellbeing and packaging throughour products We MSCI ESG RATINGS
Slide 46: Appendix
Appendix "s GN
Slide 47: ESG efforts continues to be acknowledged by external agencies
ESG efforts continues to be acknowledged by external agencies Climate Transparency Score: B- Committed to setting science-based targets and becoming net zero 47
Slide 48: 2025 Sustainability Goals
2025 Sustainability Goals Protecting our planet Truly sustainable products Improving health and and packaging wellbeing ➢ Climate neutral in company activities (scope ➢ 50% sustainable material in new products ➢ Help 10 million+ people with hearing loss to 1+2) Hear More, Do More and Be More ➢ 100%
Slide 49: GN commits to Science Based Targets initiative
GN commits to Science Based Targets initiative GN commits to Science Based Targets initiative to limit global warming to 1.5C and being net-zero by 2050 ▪ Climate goals will be independently certified to be aligned with the scientific consensus ▪ GN joins the Business Ambition for 1.5 C coalition ▪