GN Store Nord A/S · OMXCOP:GN
GN Store Nord A/S — Q1 2010 Earnings Presentation
26 slides from GN Store Nord A/S's earnings presentation, May 7, 2010
Slide 1: Q1 Interim Report 2010
Q1 Interim Report 2010 CEO, GN ReSound Lars Viksmoen GN ReSound Mike van der Wallen CEO, GN Netcom Mogens Elsberg CFO, GN Store Nord Anders Boyer Director IR & Communications, GN Store Nord Mikkel Danvold Copenhagen, May 7, 2010
Slide 2: Financial Highlights
Financial Highlights Q1 2010 • Organic growth turned positive – up 2% Revenue: compared to Q1 2009. DKK 1,174m Q1 2009 • Deployment of UC is accelerating DKK 1,198m • Q1 showed strong improvement in EBITA – up DKK 151 million compared to EBITA: Q1 2009. DKK 86m Q1 2009 DKK (65)m • GN ReSound’s EBITA
Slide 3: Prohibition of GN ReSound Sale to Sonova Was an Error
Prohibition of GN ReSound Sale to Sonova Was an Error • GN has now received the complete wording of the ruling by the German Federal Supreme Court stating that the decision made by the German Federal Cartel Office (Bundeskartellamt) on April 11, 2007 prohibiting the sale of GN ReSound to the Swiss h
Slide 4: Additional Highlights
Additional Highlights • GN is awaiting a decision from the Arbitration Tribunal on DPTG’s claim for phase 1 (1994 to mid-2004). The Arbitration Tribunal has informed us that it is still conducting intense deliberations on the award for phase 1. A further deliberation among the arbitrators is schedul
Slide 5: GN Netcom
GN Netcom 5 May 7, 2010 Slide 5
Slide 6: GN Netcom – Financial Highlights
GN Netcom – Financial Highlights FY Q1 Q2 Q3 Q4 FY Q1 (DKK million) 2008 2009 2009 2009 2009 2009 2010 Revenue 2,430 421 435 412 468 1,736 446 Organic growth (9)% (36)% (30)% (32)% (19)% (30)% 9% Gross margin 40% 35% 42% 43% 50% 43% 52% SG&A, R&D etc. (1,039) (229) (224) (187) (284) (924) (205) EBIT
Slide 7: GN Netcom Balance Sheet and Cash Flow
GN Netcom Balance Sheet and Cash Flow Balance sheet selected items FY Q1 Q2 Q3 Q4 FY Q1 (DKK million) 2008 2009 2009 2009 2009 2009 2010 Inventories 271 179 128 101 - 87 74 Trade receivables 362 279 275 270 - 289 265 Trade payables 208 97 118 102 - 140 127 Cash flow (DKK million) Cash flow before wo
Slide 8: 9% Organic Growth in GN Netcom in Q1
9% Organic Growth in GN Netcom in Q1 2009 2010 Growth Products • Targeted sales and marketing initiatives Business model • Capture the accelerating Unified Communications market FAST • Continue to launch new and innovative products • Capture growth in the speakerphone and stereo headset categories 8
Slide 9: CC&O Market Potentially Tripling by 2014
CC&O Market Potentially Tripling by 2014 CC&O World Market Projections mUSD 2000 1600 According to Frost & Sullivan – the CC&O Market will potentially 1200 triple by 2014 – mainly driven by Unified Communications (UC) 800 400 0 2009 2010 2011 2012 2013 2014 CC&O Market incl. UC 9 Source: Frost & Sul
Slide 10: GN Netcom Selected as Avaya Gold Partner
GN Netcom Selected as Avaya Gold Partner • In January 2010, GN Netcom was selected for gold membership in Avaya’s DevConnect program • In April 2010, GN Netcom became “Avaya compliant” – a portfolio of Jabra wireless headsets are now compatible with key Avaya IP Telephony solutions Hewlett Packard,
Slide 11: Mobile Market and Prospect
Mobile Market and Prospect mUSD Global Mobile Handsfree Market Attachment rate (2009): 1600 Attachment ratevs. Mobile handsets (2009): headsets Mobile handsets vs. headsets 100% 1200 80% 800 60% 6-7% 40% 400 20% 0 0% 2009 2010 2011 2012 2013 2014 Mobile Handsets Bluetooth Speakerphones Corded units
Slide 12: Drivers and Challenges for GN Netcom
Drivers and Challenges for GN Netcom Key Value Drivers Challenges • Prospect of significant long-term • Build a long-term sustainable market growth – especially from business model for Mobile. UC. • No additional investments are • Leverage on GN Netcom’s strong required to participate in the UC base
Slide 13: GN ReSound
GN ReSound ReSound AleraTM 13 May 7, 2010 Slide 13
Slide 14: Lars Viksmoen New CEO in GN ReSound as of April 1, 2010
Lars Viksmoen New CEO in GN ReSound as of April 1, 2010 Resume – Dr. Lars Viksmoen Professional experience: Biotec Pharmacon ASA October 2006 – March 2010: Chief Executive Officer. Based in Norway. Merck & Co. Inc. 2003 - September 2006: Regional Director Mid-Europe Region & VP Europe, Middle East &
Slide 15: GN ReSound - Financial Highlights
GN ReSound - Financial Highlights FY Q1 Q2 Q3 Q4 FY Q1 (DKK million) 2008 2009 2009 2009 2009 2009 2010 Revenue 3,178 774 757 693 757 2,981 726 Organic growth 5% (4)% (7)% (13)% (3)% (6)% (2)% Gross margin 60% 62% 61% 60% 60% 61% 59% SG&A, R&D etc. (1,754) (448) (405) (364) (367) (1,584) (359) EBITA
Slide 16: GN ReSound Balance Sheet & Cash Flow
GN ReSound Balance Sheet & Cash Flow Balance sheet selected items FY Q1 Q2 Q3 Q4 FY Q1 (DKK million) 2008 2009 2009 2009 2009 2009 2010 Inventories 391 373 332 310 - 288 312 Trade receivables 744 741 687 658 - 705 721 Trade payables 206 155 126 135 - 190 172 Cash flow (DKK million) Cash flow before
Slide 17: Solid Long-term Market Growth
Solid Long-term Market Growth Market Volume Drivers World HI market • Ageing population Million units • Higher prevalence 11 • Improving adoption rates 10 • Improving binaural fitting rates 9 • Additional replacement cycles • Developing countries’ potential 8 7 6 Solid long-term market growth 5 rate
Slide 18: Groundbreaking Advance in Wireless
Groundbreaking Advance in Wireless ReSound Alera™ • Improved Surround Sound by ReSoundTM • Breakthrough technology - first truly wireless connectivity - nothing to wear around your neck! • Slim, small with award-winning design With ReSound Unite™ wireless accessories 18 May 7, 2010 Slide 18
Slide 19: iSolate Nanotech Introduction
iSolate™ Nanotech Introduction. ReSound Live™ and dot2™by ReSound recently introduced with iSolate™ nano-coating at AudiologyNOW! 2010 The technology provides the best protection in the industry, with every component – internally and externally – coated. iSolate™ technology will gradually be introdu
Slide 20: Supply Chain Transformation
Supply Chain Transformation • End-to-end transformation is progressing better than planned • By the end of 2011, the transformation is expected to reduce costs by up to DKK 200 million as an annual run rate compared to 2009 actual costs. • The expected cost reductions are equivalent to a further imp
Slide 21: Continued Focus on Fundamentals
Continued Focus on Fundamentals 2010 Focus • Competitive new launches based on innovative technology • Further develop and leverage collaborations with key accounts • Expand position in Emerging markets • Continued cost containment except selected growth initiatives • Accelerate end-to-end supply ch
Slide 22: 2010 Focus per Area
2010 Focus per Area North America Europe • Win top end share • Refocus Germany and France • Grow share in Veterans Affairs • Grow Strategic Accounts • Expand distribution • EuroShape - focus on sales & marketing • Grow and protect market share in Canada APAC/Emerging markets GN Otometrics • China an
Slide 23: Drivers and Challenges for GN ReSound
Drivers and Challenges for GN ReSound Key Value Drivers Challenges • Solid long-term market growth • Outgrow competition with no in an industry with attractive growth in spending margins • Leverage attractive partner • Win top end share strategy • Strong position in Emerging markets • Shorter produc
Slide 24: Outlook for 2010
Outlook for 2010 Revenue (DKK/USD 5.5) EBITA DKK million GN Netcom’s organic revenue growth for 2010 500 is expected to be at least 5%. GN ReSound’s revenue is expected to show 400 positive organic growth for 2010. 300 GN’s total revenue is expected to show positive organic growth of 3-5%. 200 EBITA
Slide 25: Safe Harbour Statement
Safe Harbour Statement The forward-looking statements in this interim report reflect management's current expectations of certain future events and financial results. Statements regarding 2010 are, of course, subject to risks and uncertainties which may result in material deviations from the outlook
Slide 26: Q1 Interim Report 2010 – Q&A
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