GN Store Nord A/S · OMXCOP:GN
GN Store Nord A/S — Q1 2012 Earnings Presentation
27 slides from GN Store Nord A/S's earnings presentation, May 3, 2012
Slide 1: Interim Report Q1 2012
INTERIM REPORT Q1 2012 Copenhagen, May 3, 2012
Slide 2: Agenda
AGENDA Group highlights GN ReSound business update GN ReSound SMART update GN Netcom business update Financial outlook Slide 2
Slide 3: Group Highlights – Q1 2012
GROUP HIGHLIGHTS – Q1 2012 - CONTINUED SOLID TOPLINE GROWTH Quarterly financial performance • Solid topline growth driven by both businesses Group financials Q1 2012 Q1 2011 • Excluding non-recurring costs, EBITA improved by 35% (DKK million) • The free cash flow was DKK 2,961 million, positively Re
Slide 4: Agenda
AGENDA Group highlights GN ReSound business update GN ReSound SMART update GN Netcom business update Financial outlook Slide 4
Slide 5: GN ReSound – Q1 Key Financials
GN RESOUND – Q1 KEY FINANCIALS - MARKET SHARE GAINS AND PROFITABILITY AS PER PLAN DKK million Q1 2011 Q2 2011 Q3 2011 Q4 2011 FY 2011 Q1 2012 Revenue 820 827 841 962 3,450 914 Organic growth 9% 9% 9% 8% 9% 6% Gross margin 60.2% 59.4% 61.3% 62.3% 60.8% 61.5% SG&A, R&D etc. (442) (417) (408) (406) (1,
Slide 6: Revenue Split per Business Area
REVENUE SPLIT PER BUSINESS AREA - HEALTHY GROWTH IN BOTH OTOMETRICS AND HEARING INSTRUMENTS Revenue Q1 2012 New Otometrics product launches Revenue (MDKK) Hearing Instruments 805 Otometrics 109 Aurical HIT GN ReSound 914 ONE POSITION Fitting and testing Organic growth Hearing Instruments 5% Otometri
Slide 7: Product Portfolio Enhancement
PRODUCT PORTFOLIO ENHANCEMENT - NEW PRODUCT LAUNCHES ANNOUNCED AT AUDIOLOGYNOW! 2012* ReSound Vea – basic and budget segment Further enhancement of 2.4 GHz technology extension Sound quality • Further developing and expanding our leading wireless technology Simplicity • Ability to integrate in small
Slide 8: Product Portfolio Update
PRODUCT PORTFOLIO UPDATE - EXCITING PRODUCTS ON ITS WAY IN SECOND HALF OF 2012 Life style/ Performance Design Tinnitus Super Power Pediatrics Top Alera 9 Alera 9 TS Plus Alera 7 Alera 7 TS Premium Basic Alera 5 & Alera 4 ReSound Unite – premium connectivity Basic ReSound Vea 3 Essence Essentials Spa
Slide 9: Agenda
AGENDA Group highlights GN ReSound business update GN ReSound SMART update GN Netcom business update Financial outlook Slide 9
Slide 10: Update on the SMART Restructuring Program
UPDATE ON THE SMART RESTRUCTURING PROGRAM - THE SMART PROGRAM IS ON TRACK TO DELIVER ON TARGETS • Significant progress across all levers since last update in late February • Restructuring costs amounted to DKK 15 million in Q1 2012. Estimated restructuring costs for the year is unchanged “up to DKK
Slide 11: SMART Restructuring Program – Complexity Reduction
UPDATE ON THE SMART RESTRUCTURING PROGRAM - COMPLEXITY REDUCTION Lever Status comments EBITA target (DKK) Project status SKU reduction • Analysis phase completed - simplification of • SKU reduction potential confirmed 20 product portfolio Million Packaging • New packaging concept almost ready - stan
Slide 12: SMART Restructuring Program – Globalize Operations
UPDATE ON THE SMART RESTRUCTURING PROGRAM - GLOBALIZE OPERATIONS Lever Status comments EBITA target (DKK) Project status Further offshoring • Offshoring slowly ramping up from Q2 onwards - leverage on Chinese • Local production in remaining 4 European 50 20% manufacturing site countries to close dow
Slide 13: SMART Restructuring Program – Streamlined Go-to-Market
UPDATE ON THE SMART RESTRUCTURING PROGRAM - STREAMLINED GO-TO-MARKET Lever Status comments EBITA target (DKK) Project status Go-to-market • Successful deep dives in 5 countries so far - blueprint for structure • Online services – programming of new site 20 20% of sales sub initiated Million 30% Pric
Slide 14: Agenda
AGENDA Group highlights GN ReSound business update GN ReSound SMART update GN Netcom business update Financial outlook Slide 14
Slide 15: GN Netcom – Q1 Key Financials
GN NETCOM – Q1 KEY FINANCIALS - STRONG GROWTH AND BEST Q1 EBITA MARGIN IN 11 YEARS DKK million Q1 2011 Q2 2011 Q3 2011 Q4 2011 FY 2011 Q1 2012 Revenue 476 503 516 611 2,106 564 Organic growth 5% 8% 19% 5% 9% 16% Gross margin 58.4% 56.7% 55.2% 55.6% 56.4% 55.3% SG&A, R&D etc. (222) (215) (211) (230)
Slide 16: Revenue Split by Business Areas
REVENUE SPLIT BY BUSINESS AREAS - STRONG GROWTH IN BOTH CC&O AND MOBILE Revenue Q1 2012 Revenue split Q1 2012 Revenue (MDKK) CC&O 377 Mobile 187 33% GN Netcom 564 Organic growth CC&O 8% 67% Mobile 36% GN Netcom 16% CC&O Mobile Slide 16
Slide 17: Significant UC Progress in Q1
SIGNIFICANT UC PROGRESS IN Q1 - IMPORTANT DEAL WINS, PRODUCT LAUNCHES AND RECOGNITION Product UC deals Recognition launches British Recognized Telecom Jabra Supreme UC for Ericsson exceptional UC Multiuse UC innovation Oracle Slide 17
Slide 18: CC&O Market Development
CC&O MARKET DEVELOPMENT - ATTRACTIVE LONG TERM MARKET GROWTH Market comments CC&O market projections • Unified Communications continues to BDKK drive CC&O growth. Microsoft reported 14 11-12 accelerated growth of now ”more than Billion 12 35%” for Microsoft Lync in the first quarter of calender year
Slide 19: Mobile Performance in Q1
MOBILE PERFORMANCE IN Q1 - FUNDAMENTAL BUSINESS IMPROVEMENTS Key comments Mobile organic growth Reported organic growth • 36% organic growth in Q1 2012 driven Average growth by significant growth in all three regions 50% • 59% organic growth excl. OEM 40% 30% • The fundamentals of the Mobile 20% bus
Slide 20: Agenda
AGENDA Group highlights GN ReSound business update GN ReSound SMART update GN Netcom business update Financial outlook Slide 20
Slide 21: Outlook
OUTLOOK - GUIDANCE FOR 2012 IS CONFIRMED ACROSS BUSINESSES Revenue DKK million EBITA GN ReSound: 3-5% organic growth GN Netcom: More than 9% organic growth 1.000 GN Store Nord: More than 5% organic growth EBITA 800 GN ReSound DKK 525-575 million excl. restructuring costs GN Netcom DKK 350-375 millio
Slide 22: Q&A
Q&A Financial update Slide 22
Slide 23: Appendix
APPENDIX Financial update Slide 23
Slide 24: GN ReSound – Balance Sheet & Cash Flow
GN RESOUND – BALANCE SHEET & CASH FLOW Balance sheet (DKK million) Q1 2011 Q2 2011 Q3 2011 Q4 2011 FY 2011 Q1 2012 Inventories 404 399 451 454 454 448 Trade receivables 788 781 807 904 904 857 Trade payables 197 181 191 253 253 197 Cash flow (DKK million) Cash flow before working 113 135 170 292 710
Slide 25: GN Netcom – Balance Sheet & Cash Flow
GN NETCOM – BALANCE SHEET & CASH FLOW F Y Balance sheet (DKK million) Q1 2011 Q2 2011 Q3 2011 Q4 2011 FY 2011 2Q1 2012 Inventories 105 90 79 95 95 87 Trade receivables 263 285 321 351 351 339 Trade payables 128 129 149 183 183 171 Cash flow (DKK million) Cash flow before working 73 88 102 139 402 11
Slide 26: GN Store Nord – Income Statement
GN STORE NORD – INCOME STATEMENT DKK million Q1 2011 Q2 2011 Q3 2011 Q4 2011 FY 2011 Q1 2012 Revenue 1,298 1,334 1,359 1,573 5,564 1,478 Gross margin 59.6% 58.5% 59.0% 59.7% 59.2% 59.1% SG&A, R&D etc. (677) (644) (629) (61) (2,011) (724) EBITA 97 136 173 878 1,284 150 Amortisation, (21) 39 (11) (66)
Slide 27: GN Store Nord – Balance Sheet
GN STORE NORD – BALANCE SHEET Balance sheet (DKK million) Q1 2011 Q2 2011 Q3 2011 FY 2011 Q1 2012 Goodwill 2,697 2,660 2,847 3,048 2,970 Other intangible assets 1,160 1,145 1,156 1,200 1,194 Tangible & other non-current 1,218 1,209 1,260 1,024 1,002 assets Current assets 4,499 4,618 4,689 5,755 3,56