Gn Store Nord A/s · OMXCOP:GN
Gn Store Nord A/s — Q1 2024 Earnings Presentation
31 slides from Gn Store Nord A/s's earnings presentation, May 2, 2024
Slide 1: GN Interim Report Q1 2024 Conference call presentation
GN Interim Report Q1 2024 Conference call presentation May 2, 2024
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
Group highlights Agenda Hearing division Enterprise division Gaming & Consumer division Group financials and guidance 3
Slide 4: Group highlights: 5% organic revenue growth and 12.5% EBITA margin
Group highlights: 5% organic revenue growth and 12.5% EBITA margin 12.5% 46m 5% EBITA margin Free cash flow excl. Organic growth M&A (DKK) +6.5%p1 +624m1 Note 1: Compared to adj. Q1 2023 4
Slide 5: Agenda
Group highlights Agenda Hearing division Enterprise division Gaming & Consumer division Group financials and guidance 5
Slide 6: Hearing: Continued market share gains leading to 14% organic growth
Hearing: Continued market share gains leading to 14% organic growth ReSound Nexia driving continued market share gains DKK million Q1 2024 Q1 2023 Growth leading to 14% organic revenue growth and 8.2%p improvement in divisional profit margin Revenue 1,737 1,622 +7% • Revenue growth of 7%, reflecting
Slide 7: ReSound Nexia: Very strong launch supporting the 14% organic revenue growth
ReSound Nexia: Very strong launch supporting the 14% organic revenue growth Case study: US Commercial 1 2 3 Reach Depth Value >5% >5% Increase Growth in PoS1 Growth in units/PoS1 in ASP1 despite negative channel mix Note 1: Compared to Q3 2023 (pre-launch) 7
Slide 8: Agenda
Group highlights Agenda Hearing division Enterprise division Gaming & Consumer division Group financials and guidance 8
Slide 9: Enterprise: Continued market stabilization and margin expansion
Enterprise: Continued market stabilization and margin expansion Focused execution led to 0% organic revenue growth. Gross DKK million Q1 2024 Q1 2023 Growth margin improvement led to improved divisional profit margin by 5.7%p Revenue 1,751 1,767 -1% • Revenue growth of -1%, reflecting an impact from
Slide 10: Enterprise market: Growth still expected to come back during 2024
Enterprise market: Growth still expected to come back during 2024 Stabilizing enterprise market... ... with supporting trends in adjacent categories* Overall market continues to stabilize during Q1 2024: PC shipments Flat market growth in knowledge worker +1% growth in Q1 2024 headset Continued decl
Slide 11: Agenda
Group highlights Agenda Hearing division Enterprise division Gaming & Consumer division Group financials and guidance 11
Slide 12: Gaming & Consumer: Focused execution leading to margin expansion
Gaming & Consumer: Focused execution leading to margin expansion 0% organic revenue growth due to a demanding comparison DKK million Q1 2024 Q1 2023 Growth base from Q1 2023. Gross margin improvements led to 3.8%p improvement in the divisional profit margin Revenue 815 825 -1% • Revenue growth of -1
Slide 13: Gaming & Consumer: Healthy growth in core product categories
Gaming & Consumer: Healthy growth in core product categories The importance of software Expanding retail footprint Encouraging development in True wireless GG continues to see momentum and together with the New distributions added the across multiple hardware supports a leading gaming experience cou
Slide 14: Agenda
Group highlights Agenda Hearing division Enterprise division Gaming & Consumer division Group financials and guidance 14
Slide 15: GN Store Nord: Strong execution leading to significant margin expansion
GN Store Nord: Strong execution leading to significant margin expansion DKK million Q1 2024 Q1 2023 Growth GN delivered organic revenue growth of 5% leading to EBITA margin expansion of 6.5%p supported by the gross margin improvement and One-GN synergies Revenue 4,303 4,214 +2% • Revenue growth of 2
Slide 16: Positive free cash flow despite traditional seasonality
Positive free cash flow despite traditional seasonality Free cash flow excl. M&A (DKKm) • Free cash flow excl. M&A of DKK 46 million in Q1 2023 Q1 2024 Q1 2024 (DKK -578 million in Q1 2023) 783 driven by: ‒ Significant increase in operating cash flow 446 ‒ Significant improvement in working capital
Slide 17: One-GN: Group synergies of DKK ~90 million realized in the quarter
One-GN: Group synergies of DKK ~90 million realized in the quarter • Deliver shareholder value by the creation of a simpler and more powerful company Glo al Strategy perations Transformation • DKK ~600 million in cost synergies to be realized by 2026 of which roughly two-thirds will be achieved alre
Slide 18: 2024 financial guidance: Confirmed across all parameters
2024 financial guidance: Confirmed across all parameters Financial guidance 2024 Organic revenue growth EBITA margin FCF excl. M&A (DKKm) GN Store Nord 2% to 8% 12% to 14% >700 Note: Divisional assumptions confirmed 18
Slide 19: Capital Markets Day 2024
Capital Markets Day 2024 Tuesday, May 7, 2024 from 11.00 CET 19
Slide 20: Q&A
Q&A www.gn.com E-mail: investor@gn.com Rune Sandager, Head of Investor Relations, Tel.: +45 4575 9257 20
Slide 21: Appendix
Appendix "s GN
Slide 22: Hearing division: 2022 - 2023
Hearing division: 2022 - 2023 Actual 2022 Actuals 2023 DKKm Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 Hearing division excl. non-recurring Revenue 1,337 1,529 1,554 1,807 6,227 1,622 1,719 1,653 1,808 6,802 Organic growth 2% 4% 0% 14% 5% 15% 15% 15% 7% 13% Gross
Slide 23: Enterprise division: 2022 - 2023
Enterprise division: 2022 - 2023 Actual 2022 Actuals 2023 DKKm Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 Enterprise division excl. non-recurring Revenue 1,814 2,450 2,174 2,237 8,675 1,767 1,861 1,838 1,997 7,463 Organic growth -26% 18% 7% 9% 0% -3% -23% -13% -9
Slide 24: Gaming & Consumer division: 2022 - 2023
Gaming & Consumer division: 2022 - 2023 Actual 2022 Actuals 2023 DKKm Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 Gaming & Consumer division excl. non-recurring Revenue 708 878 973 1,226 3,784 825 814 952 1,264 3,855 Organic growth -41% -28% -22% -21% -27% 17% -4%
Slide 25: GN Store Nord: 2022 - 2023
GN Store Nord: 2022 - 2023 Actual 2022 Actuals 2023 DKKm Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 GN Store Nord excl. non-recurring Revenue 3,859 4,857 4,701 5,270 18,686 4,214 4,394 4,443 5,069 18,120 Organic growth -21% 8% -1% 3% -3% 7% -8% 0% 0% -1% Gross pr
Slide 26: GN Store Nord – five-year performance
GN Store Nord – five-year performance DKK million 2019 2020 2021 2022 2023 GN Store Nord Revenue 12,574 13,449 15,775 18,687 18,120 Organic growth 15% 9% 20% -3% -1% Gross margin 60.3% 54.3% 55.0% 48.9% 49.4% EBITA 2,321 1,866 2,619 1,560 1,200 EBITA margin 18.5% 13.9% 16.6% 8.3% 6.6% Operating prof
Slide 27: One-GN synergy program: Operations
One-GN synergy program - Operations initiatives will lead to synergies of around DKK 200 million Synergy target Degree of Lever Main levers (EBITA) implementation Core product • Chipsets • Hybrids DKK ~70 million components • Plastics • Batteries Commodities • Cables DKK ~100 million • Electronics •
Slide 28: One-GN synergy program: Organization
One-GN synergy program - Organization initiatives will lead to synergies of around DKK 200 million Synergy target Degree of Lever Main levers (EBITA) implementation • 300 positions terminated by the end of November 2023 Re-organization • Mainly focused on over-lapping functions DKK ~150 million • Di
Slide 29: One-GN synergy program: Efficiencies and processes
One-GN synergy program - Efficiencies and processes initiatives will lead to synergies of around DKK 200 million Synergy target Degree of Lever Main levers (EBITA) implementation • IT software Indirect • Marketing procurement • External consultancy DKK ~75 million procurement • Travel • 3 regional s
Slide 30: All material debt maturities until Q3 2026 fully funded
All material debt maturities until Q3 2026 fully funded Maturity profile – Q1 2024 2024 maturities* funding DKKm DKK 7bn DKK7.2bn Cash at hand 1,224 67 Convertible bond 2,455 1,807 5,952 Remaining 88 R&D Loan 4,464 3,869 Undrawn 5,952 Term Loan Nov-24 bond 4,464 2,455 741 722 500 88 369 369 369 319
Slide 31: GN Store Nord share overview
GN Store Nord share overview • GN has a share capital of DKK 603,650,860, which is consisting of Share price development 150,912,715 shares, each carrying four votes. GN has one share class, GN OMX C25 Stoxx 600 130 and there are no restrictions on ownership or voting rights 120 110 • GN is, among o