GN Store Nord A/S · OMXCOP:GN
GN Store Nord A/S — Q3 2008 Earnings Presentation
20 slides from GN Store Nord A/S's earnings presentation, Nov 6, 2008
Slide 1: GN Q3 Interim Report 2008
GN Q3 Interim Report 2008 CEO GN Netcom Toon Bouten, CEO GN ReSound Mike van der Wallen, VP Finance, IR & Communications Jens Bille Bergholdt Copenhagen, November 6, 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: Q3 Summary
Q3 Summary • GN generated positive organic revenue growth, but the result was negatively impacted by extraordinary write-downs on inventory. Full- year guidance is also revised being impacted by the global financial crisis. • Revenue was DKK 1,386 million corresponding to positive organic growth of
Slide 4: Profit and Loss
Profit and Loss (DKK million) Q3/2007 2007 Q3/2008 Revenue 1,428 5,981 1,386 EBITA 67 294 (27) Amort., finance, associates etc. (20) (98) (35) Depreciation and costs related to the (18) (296) 0 abandoned sales process (GN ReSound) EBT 29 (100) (62) • EBITA was DKK 56 million excluding non-recurring
Slide 5: Balance & Cash Flow
Balance & Cash Flow (DKK million) *End End End End Q3/2007 2007 Q2/2008 Q3/2008 Goodwill 2,603 2,525 2,424 2,629 Other intangible assets 1,176 1,127 1,141 1,150 Tangible & other 1,643 1,513 1,488 1,564 non-current assets Current assets 2,755 2,670 2,481 2,811 Equity 4,875 4,482 4,252 4,505 Liabiliti
Slide 6: GN Netcom
GNI GN Netcom Pi troy Unw, sound with/Noise B | ee njoy Grystal Clarity and all-day comfort Slide 6
Slide 7: GN Netcom
GN Netcom (DKK million) Q2 Q3 Q4 2007 Q1 Q2 Q3 Revenue 617 670 775 2,811 636 584 595 Growth (33)% (2)% (2)% (14)% (8)% 3% (6)% Gross margin 40% 42% 38% 39% 41% 43% 38% EBITA before non-recurring costs 11 10 67 104 8 (3) 0 EBITA margin before non- 1.8% 1.5% 8.6% 3.7% 1.3% (0.5)% 0.0% recurring costs
Slide 8: GN Netcom Balance Sheet and Cash Flow
GN Netcom Balance Sheet and Cash Flow Balance sheet selected items Q3 FY Q2 Q3 (DKK million) 2007 2007 2008 2008 Inventories 381 343 228 291 Trade receivables 531 573 424 462 Trade payables 208 181 163 260 Cash flow (DKK million) Cash flow before working capital 41 239 34 60 Change in working capita
Slide 9: Jabra BT530 –Noise Blackout TM
Jabra BT530 –Noise BlackoutTM 9 Slide 9
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: FAST Status
FAST Status FAST Status on November 6, 2008: CC&O Early October 2008: New supply chain organization launched. Short listing of distribution and manufacturing partners. New supply chain set-up will be fully operational by the end of Q2 2009 CC&O Implement an indirect channel model with direct touch t
Slide 12: GN ReSound
GN ReSound 12 Slide 12
Slide 13: GN ReSound
GN ReSound (DKK million) Q2 Q3 Q4 2007 Q1 Q2 Q3 Revenue 842 755 747 3,155 772 776 787 Growth 9% (2)% (13)% (2)% 1% (1)% 9% Gross Margin 63% 61% 59% 61% 60% 62% 57% EBITA before non-recurring costs 129 55 35 340 31 72 4 EBITA margin before non- 15.3% 7.3% 4.7% 10.8% 4.0% 9.3% 0.5% recurring costs EBI
Slide 14: GN ReSound Balance Sheet & Cash Flow
GN ReSound Balance Sheet & Cash Flow Balance selected items Q3 FY Q2 Q3 (DKK million) 2007 2007 2008 2008 Inventories 367 374 390 421 Trade receivables 706 665 758 823 Trade payables 131 211 161 197 Cash flow (DKK million) Cash flow before working capital 108 535 104 107 Change in working capital &
Slide 15: GN ReSound Strategy
GN ReSound Strategy Accelerate the business Regain innovative leadership Preferred partner Fixing the foundation Three-stringed Commercial Execution Brand strategy excellence excellence Performance-driven culture Strategy unchanged but more focus on cost-cutting initiatives 15 Slide 15
Slide 16: Execution Excellence
Execution Excellence Consolidation Custom Manufacturing • Objective: reduce complexity, decrease overcapacity, secure cost efficiency & build centers of excellence. • Nordic lab transfer to Oxford • Progress according to plan • To be finalized Q1 2009 Centralize inventory management • Objective: to
Slide 17: be by ReSound™ – New Category (IOT)
be by ReSound™ – New Category (IOT) • Is being rolled out worldwide • First reports from the market indicate that sales is developing as expected • Feedback very positive from end-users as well as dispensers and audiologists • be by ReSound™ also drives the sales of other GN ReSound products be by R
Slide 18: GN Resound New Products in all Market Segments
GN Resound New Products in all Market Segments Price Lifestyle Conventional ReSound AZURE INTERTON Top Relay Update 17 2008 Plus INTERTON Slim Basic Update 9 2008 INTERTON Budget Stage Products 18 Slide 18
Slide 19: Outlook 2008
Outlook 2008 Revenue (DKK/USD 5.50) (DKK million) GN Netcom ~2,500 GN ReSound >3,000 GN Total* ~5,500 EBITA (excl. non-recurring costs) GN Netcom ~50 GN ReSound 125-175 Other ~(25) GN Total* 150-200 Non-recurring costs in GN Netcom ~(100) Amortization, finance etc. ~(150) EBT* (100)-(50) * Uncertain
Slide 20: GN Q3 Interim Report 2008
GN Q3 Interim Report 2008 Q&A