XCSE:GN ESEF Annual Report
GN STORE NORD A/S (XCSE:GN)
ESEF Annual Report
2021-10-07
For: 2021-06-30
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Added on
September 23, 2026
GN Store Nord A /S Lautrupbjerg 7 2750 Ballerup Denmark 
3,778 2,659 7,888 5,626 13,449 2,096 1,341 4,345 3,009 7,298 1 8 8 103 635 25 1,388 325 1,866 - 584 1,296 223 1,627 49 552 15 1,164 154 1,612 434 13 916 119 1,269 7 5 15 10 17 427 8 901 109 1,252 3.29 0.06 6.96 0.85 9.72 3.25 0.06 6.87 0.84 9.63 434 13 916 119 1,269 - - - 8 18 26 167 14 181 369 1,097 75 668 7 5 15 10 17 362 1,082 65 651 
7,210 7,214 7,007 7,175 1,224 1,243 1,057 1,107 506 537 523 522 402 405 392 403 1,333 1,289 1,187 1,185 10,675 10,688 10,166 10,392 1,724 1,616 1,722 1,415 2,743 2,657 2,676 2,885 21 27 63 36 462 429 398 340 1,715 1,898 1,657 1,456 6,665 6,627 6,516 6,132 17,340 17,315 16,682 16,524 5,874 5,905 5,178 4,874 5,460 5,445 5,069 5,184 287 320 324 356 34 35 36 33 227 237 203 90 364 364 362 550 519 498 482 477 6,891 6,899 6,476 6,690 257 352 341 892 119 115 121 129 1,148 1,018 1,238 1,076 284 199 253 31 374 391 333 474 2,393 2,436 2,742 2,358 4,575 4,511 5,028 4,960 17,340 17,315 16,682 16,524 
584 1,296 223 1,627 282 263 556 536 1,167 164 67 157 346 818 399 1,919 916 3,140 61 398 157 368 879 797 1,549 1,073 3,508 26 18 876 808 1,314 894 3,206 7 3 - - - 1 1 509 507 449 318 1,719 - 4 2 133 170 194 - - - 363 - - 382 50 1,898 589 1,657 1,728 1,728 8 1,715 967 1,715 967 1,657 
569 206 8,419 4,849 - 4,849 - - - - - 109 109 10 119 - - - - - - - - 26 - - - 26 - 26 - - - - - - - - - - - - 20 - - - - 20 - - 101 65 10 75 - - - - - 34 34 - 34 - - - 195 - 170 - 170 - - - - - 29 29 - 29 - - - - - - - - - - - - - - - - - - - - 19 - - - 569 9 - 8,570 4,500 - 4,500 569 206 9,564 5,178 - 5,178 - - - - - 901 901 15 916 - - 18 - - - 18 - 18 - 167 - - - - 167 - 167 - - - - - - - 167 14 - - - 181 - 181 - 167 14 - - 901 1,082 15 1,097 - - 873 - - - - - - - - - 25 25 - 25 - - - 186 - 133 - 133 - - - - - 46 46 - 46 - - - - - - - - - - 6 6 - - - - - - - - - - 18 - - - 553 - 9,650 5,874 - 5,874 
June 30, 2021, and of the results of the group's operations and cash flows for the period January 1 – June 30, 2021. Further, in our opinion the executive management's review gives a true and fair view of the development in the group's operations and financial matters, the results of the group for the period and the group's financial position as a whole, and describes the significant risks and uncertainties pertaining to the group. Today, the board of directors and the executive management have reviewed and approved the interim report for GN Store Nord A/S for the period January 1 – June 30, 2021. The interim report, which has not been audited or reviewed by the company’s auditors, has been prepared in accordance with IAS 34 "Interim Financial Reporting" as adopted by the EU and Danish disclosure requirements for listed companies. In our opinion, the interim report gives a true and fair view of the group's assets, liabilities and financial position at Ballerup , August 19 , 2021 René Svendsen -T une CEO, GN Store No rd & G N Audio Gitte A abo CE O , G N Hearing P eter la C our Gormsen CFO, GN S tore N ord & G N Audio Per Wold -O lsen Chairman Jukka Pe kka Pe rtola Deputy C hairman Wolfgang Reim Hélène Barneko w Ronica Wang Montserrat M aresch Pascual Anette Weber Leo Larsen Morten Andersen Marcus St uhr Perathoner 
GN S tore Nord A /S Lautrupbjerg 7 2750 Ballerup Denmark +45 45 75 00 00 gn.com
Interim Report Q2 2021
GN Store Nord
delivers
49% organic revenue growth driven
by strong growth in
both GN Hearing and GN Audio
GN Store Nord
49%
organic growth
• GN delivered 49% organic revenue growth in Q2 2021
• EBITA reached DKK 635 million corresponding to an EBITA margin of 16.8%
compared to 0.9% in Q2 2020, reflecting strong execution across the company
• Free cash flow excl. M&A was DKK 510 million in Q2 2021, primarily reflecting th
e
gr
owth in earnings
• Leverage of 1.3x net interest-bearing debt to EBITDA, compared to 1.6x by the
end of Q1 2021
• GN to launch new innovative lifestyle product extending the Jabra Enhance line of
hearing enhancement solutions
• The financial guidance is confirmed
GN Hearing
95%
organic growth
• GN Hearing delivered organic revenue growth of 95% in Q2 2021 in a market
continuously impacted by the ongoing COVID-19 pandemic. The market recovery
continues to vary significantly across regions and countries
• EBITA improved to DKK 153 million in Q2 2021 compared to DKK -336 million in
Q2 2020 driven by the revenue growth and supported by prudent cost
management, while continuing to invest in R&D and IT infrastructure
• Free cash flow excl. M&A was DKK 123 million in Q2 2021 compared to DKK -117
million in Q2 2020, mainly driven by the recovery in revenue and earnings
GN Audio
32%
organic growth
• GN Audio continued the strong performance and delivered 32% organic revenue
growth in Q2 2021, driven by double-digit growth in both the enterprise and the
consumer segment
• EBITA increased by 30% to DKK 532 million in Q2 2021 corresponding to a
n
E
BITA margin of 21.7%. The EBITA margin development primarily reflects the
strong topline development on top of continued investments in future growt
h
opportunities
• Free cash flow excl. M&A was DKK 371 million in Q2 2021 compared to DKK
579
mi
llion in Q2 2020 driven by the growth in earnings, but offset by a strong
development in net working capital in Q2 2020
• GN Audio continues to work closely with suppliers of components to address
demand
Financial overview Q
2 2021
GN Hearing
GN Audio
Group total*
DKK million
Q2 2021
Q2 2020
Growth
Q2 2021
Q2 2020
Growth
Q2 2021
Q2 2020
Growth
Revenue
1,322
715
85%
2,456
1,944
26%
3,778
2,659
42%
Organic growth
95%
-54%
32%
32%
49%
-13%
Gross profit
832
332
151%
1,264
1,009
25%
2,096
1,341
56%
Gross profit margin
62.9%
46.4%
+16.5%p
51.5%
51.9%
-0.4%p
55.5%
50.4%
+5.1%p
EBITA
153
-336
NA
532
408
30%
635
25
EBITA margin
11.6%
-47.0%
+58.6%p
21.7%
21.0%
+0.7%p
16.8%
0.9%
+15.9%p
Earnings per share (EPS)
3.29
0.06
Free cash flow excl. M&A
123
-117
+240
371
579
-208
510
517
-7
Cash conversion
80%
NA
NA
70%
142%
-72%p
80%
2,068%
* Including "Other"
2
Q2
Q2
YTD
YTD
Full year
2021
2020
2021
2020
2020
DKK million
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(aud.)
GN Hearing
Revenue
1,322
715
2,556
2,029
4,725
Revenue growth
85%
-55%
26%
-34%
-26%
Organic growth
95%
-54%
34%
-35%
-24%
Gross profit margin
62.9%
46.4%
62.6%
57.8%
61.5%
EBITA*
153
-336
251
-281
41
EBITA margin*
11.6%
-47.0%
9.8%
-13.8%
0.9%
ROIC (EBITA*/Average invested capital)
9%
6%
9%
6%
1%
Free cash flow excl. M&A
123
-117
-81
-183
127
Cash conversion (Free cash flow excl. M&A/EBITA*)
80%
NA
-32%
NA
310%
GN Audio
Revenue
2,456
1,944
5,332
3,597
8,724
Revenue growth
26%
33%
48%
29%
40%
Organic growth
32%
32%
55%
27%
42%
Gross profit margin
51.5%
51.9%
51.5%
51.0%
50.4%
EBITA*
532
408
1,246
696
2,002
EBITA margin*
21.7%
21.0%
23.4%
19.3%
22.9%
ROIC (EBITA*/Average invested capital)
94%
54%
94%
54%
81%
Free cash flow excl. M&A
371
579
809
512
1,729
Cash conversion (Free cash flow excl. M&A/EBITA*)
70%
142%
65%
74%
86%
GN Store Nord
Revenue
3,778
2,659
7,888
5,626
13,449
Revenue growth
42%
-13%
40%
-4%
7%
Organic growth
49%
-13%
47%
-5%
9%
Gross profit margin
55.5%
50.4%
55.1%
53.5%
54.3%
EBITA*
635
25
1,388
325
1,866
EBITA margin*
16.8%
0.9%
17.6%
5.8%
13.9%
Profit (loss) before tax
552
15
1,164
154
1,612
Effective tax rate
21.4%
13.3%
21.3%
22.7%
21.3%
ROIC (EBITA*/Average invested capital)
29%
17%
29%
17%
19%
Earnings per share, basic (EPS)
3.29
0.06
6.96
0.85
9.72
Earnings per share, fully diluted (EPS diluted)
3.25
0.06
6.87
0.84
9.63
Free cash flow excl. M&A
510
517
488
357
1,865
Cash conversion (Free cash flow excl. M&A/EBITA*)
80%
2,068%
35%
110%
100%
Equity ratio
33.9%
28.8%
33.9%
28.8%
31.0%
Net interest-bearing debt
4,408
5,571
4,408
5,571
4,198
Net interest-bearing debt (period-end)/EBITDA
1.3
2.7
1.3
2.7
1.8
Share buybacks**
408
-
408
453
453
Outstanding shares, end of period (thousand)
129,113
128,768
129,113
128,768
128,975
Average number of outstanding shares (thousand)
129,612
128,754
129,519
128,767
128,805
Average number of outstanding shares, fully diluted (thousand)
131,255
129,584
131,233
129,840
130,032
Treasury shares, end of period (thousand)
9,063
13,500
9,063
13,500
13,293
Share price at the end of the period
547.8
353.4
547.8
353.4
487.2
Market capitalization
70,728
45,507
70,728
45,507
62,837
ROIC and NIBD/EBITDA are calculated based on EBITA and EBITDA for the latest four quarters
* Excluding gain (loss) on divestments of operations etc. and amortization of acquired intangible assets but including amorti
zation of development projects and software
developed in-house.
** Incl. buybacks as part of share based incentive programs
Financial highlights
3
Highlights Q2 2021
• GN Hearing delivered organic revenue growth of 95% in
Q2 2021 in a market continuously impacted by the
ongoing COVID-19 pandemic. The market recovery
continues to vary significantly across regions and countries
• EBITA improved to DKK 153 million in Q2 2021 compared
to DKK -336 million in Q2 2020 driven by the revenue
growth and supported by prudent cost management, while
continuing to invest in R&D and IT infrastructure
• Free cash flow excl. M&A was DKK 123 million in Q2 2021
compared to DKK -117 million in Q2 2020, mainly driven
by the recovery in revenue and earnings
Revenue
GN Hearing delivered organic revenue growth of 95% in
Q2 2021. Revenue growth was 85% including around -10%
impact from the development in foreign exchange rates. In
H1 2021, GN Hearing delivered an organic revenue growth
of 34%.
As for the hearing aid industry overall, COVID-19
continued to have significant impact on GN Hearing in Q2
2021 due to the impact from mutations of the virus and
related tightening of local restrictions. The hearing aid
markets continued to recover during the quarter but with
significant variations across countries.
North America
In North America, the hearing aid market in Q2 2021
continued the strong recovery seen at the end of Q1 2021,
with hearing aid volumes being above 2019 levels, but with
significant differences across states and channels. GN
Hearing’s organic revenue growth in North America was
121% driven by solid performance in the independent
market due to the full and updated ReSound portfolio. The
revenue growth was 102% including around -19% impact
from the development in foreign exchange rates. In H1
2021, GN Hearing delivered an organic revenue growth of
35% in North America.
Europe
In Europe, the recovery of the hearing aid market varied
greatly with some markets severely impacted by the
pandemic and others performing in line with or above pre-
COVID-19 levels. GN Hearing experienced recovery across
countries leading to an organic revenue growth of 84%
especially driven by the Southern European countries with
an insignificant impact from the development in foreign
exchange rates. In H1 2021, GN Hearing delivered an
organic revenue growth of 24% in Europe.
Rest of World
The Rest of World region continued to be impacted by
COVID-19 in different ways across countries, dependent on
the level of local restrictions. GN Hearing saw strong
performance in among other ANZ and China while Japan
continued to struggle with local restrictions. In the Rest of
World region organic revenue growth was 61%. Revenue
growth was 58% including around -3% impact from the
development in foreign exchange rates. In H1 2021, GN
Hearing delivered an organic revenue growth of 42% in
Rest of World.
Earnings and other financial highlights
Gross profit reached DKK 832 million in Q2 2021
corresponding to a gross margin of 62.9% compared to
46.4% in Q2 2020 (62.3% in Q1 2021), mainly related to
the ongoing revenue recovery. The gross margin continued
to be impacted by the fixed production costs, with volumes
still being below normalized levels as well as mix effects. In
H1 2021, the gross profit increased by 36% to DKK 1,601
million compared to H1 2020, equal to a gross margin of
62.6%.
GN Hearing’s OPEX continued to be prudently managed
during Q2 2021, with OPEX in line with Q1 2021 and Q2 2020
levels. Sales, distribution, and administrative expenses
decreased by 4% in Q2 2021 compared to Q2 2020, mainly
driven by tight OPEX control while continuing to invest in an
expected market normalization and IT infrastructure. GN
Hearing continued to invest significantly in R&D, in line with
the strategy. In H1 2021, OPEX has decreased by 7% driven
by tight OPEX control.
GN Hearing
GN Hearing delivered 95% organic revenue growth in Q2 2021, with a strong
improvement in EBITA and EBITA margin
compared to Q1 2021
715
1,318
1,378
1,234
1,322
-16%
Q2 2020
Q2 2021
Q4 2020
-54%
-11%
1%
Q3 2020 Q1 2021
95%
Organic growth Revenue (DKKm)
4
GN Hearing’s EBITA improved significantly to DKK 153
million in Q2 2021 compared to DKK -336 million in Q2 2020.
As a result, the EBITA margin was 11.6% in Q2 2021. In H1
2021, EBITA increased to DKK 251 million equal to an EBITA
margin of 9.8%.
The return on invested capital (ROIC) was 9% in Q2 2021,
compared to 6% in Q2 2020, due to the strong revenue
growth. ROIC is still below historical levels due to the impact
from COVID-19 as ROIC is calculated based on a 12-months
rolling EBITA.
Free cash flow excl. M&A was DKK 123 million in Q2 2021
compared to DKK -117 million in Q2 2020, mainly driven by
the recovery in revenue and earnings. In H1 2021, free cash
flow excl. M&A was DKK -81 million compared to DKK -183
million in H1 2020.
Business highlights
ReSound ONE
During Q2 2021, GN Hearing continued to execute on the
global roll-out of the revolutionary new class of hearings aids,
ReSound ONE. GN Hearing experiences a continued strong
uptake in the independent market, while the uptake in VA
channel has been impacted by challenging conditions
following the ongoing pandemic. As of July 2021, physical
visits were temporarily allowed in VA after more than a year
of tight restrictions. However, mid-August 2021 the
restrictions were again reinforced, which means that the sales
reps are not expected to be allowed to visit the VA clinics for
the remainder of the year.
Merging the power of GN Audio and GN Hearing
The development of the Jabra Enhance line-up is the
culmination of years of GN Group research into consumer
behavior, hearing challenges and preferences. In launching the
Jabra Enhance line-up, GN Audio’s brand Jabra couples its
expertise in consumer electronics and its brand recognition
with the hearing aid heritage and competencies of GN Hearing
to bring new solutions to users.
Jabra Enhance Pro
In June 2021, GN launched Jabra Enhance Pro, a new
premium hearing aid line-up, in more than 700 Costco Hearing
Aid Centers around the world. With Jabra Enhance Pro,
consumers can now choose high-quality, FDA-approved
hearing solutions from a widely known audio brand trusted by
consumers. Users benefit from GN's latest hearing innovation,
the unique Microphone and Receiver in Ear (M&RIE), to hear
the world around them in the most intuitive and natural way.
Initial feedback and sales from the first weeks are very
encouraging and bodes well for GN Hearing’s competitive
position.
Jabra Enhance Plus
Building on years of research, innovation and engineering in
sound and hearing, GN extends its Jabra Enhance line of
hearing enhancement solutions with Jabra Enhance Plus. In a
first-of-its-kind innovation, GN brings together the
convenience of true wireless earbuds with advanced hearing
technology to alleviate unaddressed user needs and enable
millions to take a first step on their hearing health journey.
This innovation combines a discreet, comfortable design and
Jabra’s legacy of industry-leading earbud capability with GN
Hearing‘s expertise and advanced hearing-enhancing
technology. The Jabra Enhance Plus will provide users with a
medical device, which, once approved, is expected to be
available through licensed Hearing Care Professionals. The
Jabra Enhance Plus brings great true wireless call and music
quality in a miniaturized true wireless form factor, 50%
smaller than Jabra Elite 75t.
Market development
The global hearing aid market in H1 2021 was heavily
impacted by COVID-19 and the consequential volatile regional
and local restrictions. As hearing care professionals and end-
users in our main markets had access to the vaccine
throughout H1 2021, the expectation earlier in the year was
that the market would reset and normalize in H2 2021. Due to
the Delta variant and consequential reinforced local
restrictions the normalization has not yet materialized in all
markets.
We continue to believe that the fundamentals of the hearing
aid market are intact and in the mid-term, GN Hearing still
estimates the annual market growth to be around 4 - 6% in
volumes with annual ASP decline of around 1 - 2%. GN
Hearing’s mid-term target of growing faster than the market
is fully intact.
169
153
98
153
12.8%
-47.0%
Q2 2020 Q3 2020
11.1%
Q4 2020
7.9%
Q1 2021
-336
Q2 2021
11.6%
EBITA margin
EBITA (DKKm)
-117
47
263
-204
123
-208%
28%
Q3 2020Q2 2020
172%
Q4 2020
80%
Q1 2021
Q2 2021
Cash conversion Free cash flow excl. M&A
5
Management quote
”I’m pleased to see the strong execution across GN Hearing
delivering 95% organic growth in an all-in-all recovering global
hearing aid market. We have during the quarter and
throughout the pandemic invested relentlessly in R&D, and
with the launch of our new Jabra Enhance line of products
being the latest landmark in reaching entirely new types of
customers with discreet hearing enhancement, we are
positioned strongly to capture growth.”
Gitte Aabo, CEO of GN Hearing
6
Highlights Q2 2021
• GN Audio continued the strong performance and delivered
32% organic revenue growth in Q2 2021, driven by double-
digit growth in both the enterprise and the consumer
segment
• EBITA increased by 30% to DKK 532 million in Q2 2021
corresponding to an EBITA margin of 21.7%. The EBITA
margin development primarily reflects the strong topline
development on top of continued investments in future
growth opportunities
• Free cash flow excl. M&A was DKK 371 million in Q2 2021
compared to DKK 579 million in Q2 2020 driven by the
growth in earnings, but offset by a strong development in
net working capital in Q2 2020
• GN Audio continues to work closely with suppliers of
components to address demand
Revenue
GN Audio continued the strong performance and delivered
32% organic revenue growth in Q2 2021. The enterprise
segment delivered double-digit organic revenue growth in the
quarter, driven by investments across organizations in hybrid
and flexible working solutions. The consumer segment
experienced continued strong demand and delivered high
double-digit organic revenue growth in Q2 2021. Revenue
growth was 26%, including around -6% impact from the
development in foreign exchange rates. In H1 2021, GN Audio
delivered an organic revenue growth of 55% on top of the
27% delivered in H1 2020.
North America
GN Audio saw strong performance in Q2 2021 in North
America, with both the consumer and enterprise segment
delivering strong growth leading to 55% organic revenue
growth for the region. Revenue growth was 40% including
around -15% impact from the development in foreign
exchange rates. In H1 2021, GN Audio delivered an organic
revenue growth of 57% in North America.
Europe
In Europe, GN Audio continued to execute strongly on its
commercial initiatives across the enterprise and consumer
segment leading to an organic revenue growth of 20%
with particularly strong performance in France and Italy.
Revenue growth was 19% including around -1% impact
from the development in foreign exchange rates. In H1
2021, GN Audio delivered an organic revenue growth of
61% in Europe.
Rest of World
In the Rest of World region, GN Audio saw strong
performance across the region with particularly strong
organic revenue growth in among other ANZ and Brazil
across the enterprise and consumer segment. Organic
revenue growth for the Rest of World region was 32%.
Revenue growth was 27% including around -5% impact
from the development in foreign exchange rates. In H1
2021, GN Audio delivered organic revenue growth of 36%
in Rest of World.
Earnings and other financial highlights
GN Audio’s gross profit reached DKK 1,264 million in Q2
2021 compared to DKK 1,009 million in Q2 2020,
corresponding to an increase of 25%. The gross margin
was 51.5% in Q2 2021 compared to 51.9% in Q2 2020
driven by a positive contribution from the development in
foreign exchange rates, but also reflecting a significant
negative impact from increased freight and production
costs due to COVID-19 and mix effects. GN Audio
continues to be impacted by tariffs. In H1 2021, the gross
profit increased by 49% to DKK 2,744 million compared to
H1 2020, equal to a gross margin of 51.5%, slightly higher
than H1 2020 of 51.0%.
GN Audio’s OPEX was DKK 732 million in Q2 2021, an
increase of 22% compared to Q2 2020. Investments in
R&D increased by 42% driven by focused product
development across audio and video, while selling,
distribution and administrative costs increased by 18%,
mainly driven by continued investments in future growth
opportunities. In H1 2021, GN Audio has significantly
increased OPEX investments leading to a growth of 31%
compared to H1 2020.
GN Audio
GN Audio delivered 32% organic revenue growth and 30% growth in EBITA in Q2
2021
, reflecting another strong quarter
1,944
2,421
2,706
2,876
2,456
72%
43%
32%
Q3 2020Q2 2020 Q4 2020
82%
Q1 2021 Q2 2021
32%
Organic growth Revenue (DKKm)
7
GN Audio’s EBITA increased by 30% to DKK 532 million in Q2
2021 reflecting the revenue growth on top of continued
investments. Going forward, GN Audio will continue to invest
significantly across OPEX lines to drive future growth
opportunities in line with the strategy and financial guidance.
The EBITA margin was 21.7% in Q2 2021 compared to 21.0%
in Q2 2020. In H1 2021, EBITA increased by impressive 79%
and the EBITA margin increased to 23.4% compared to 19.3%
in H1 2020.
* Excluding gain of DKK 114m from legal settlements and litigation
The return on invested capital (ROIC) was 94% in Q2 2021
compared to 54% in Q2 2020 driven by growth in EBITA.
Free cash flow excl. M&A was DKK 371 million in Q2 2021
compared to DKK 579 million in Q2 2020. The decrease in
cash flow was mainly driven by a strong development in net
working capital in Q2 2020. Cash conversion was 70%
compared to 142% in the same period last year. In H1 2021,
free cash flow excl. M&A was DKK 809 million compared to
DKK 512 million in H1 2020. In H1 2021, cash conversion was
65% compared to 74% in H1 2020.
Business highlights
New Jabra PanaCast camera line-up
On April 27, 2021, GN Audio announced the new Jabra
PanaCast camera line-up that has been engineered to help
businesses navigate the flexible hybrid way of working. The
line-up combines immersive vision and video, world-leading
audio technologies and cutting-edge Artificial Intelligence to
completely reinvent meetings and collaboration.
Jabra PanaCast 50 is engineered to be the world’s first new-
normal intelligent video bar. The new solution utilizes a multi-
camera array creating a 180° field of view covering the full
room. Coming with several intelligent processors, the system
enables real-time integration of audio, video and data. The
video bar also incorporates Safety Capacity and Room Usage
enabling timely decisions. On top of the immersive vision and
video, it includes Jabra’s well-known sound and microphone
capabilities using precise voice detection and intelligent
algorithms that remove disruptive noise. GN Audio started
shipment of PanaCast 50 in June, and the initial feedback is
very encouraging.
Jabra PanaCast 20 is an intelligent personal camera allowing
high-quality, secure video collaboration, no matter where you
are. All the experiences are powered on the device itself,
significantly minimizing the risk of security breaches and
maximizing speed, accuracy, and the overall quality of the
experience. The PanaCast 20 delivers 4K Ultra HD Video as
well as personalized Intelligent Zoom. GN Audio began
shipment of PanaCast 20 in August.
Market development
In Q2 2021, the demand in GN Audio’s core addressable
market continued to be strong, partly driven by the continued
need for flexible working solutions. GN Audio expects to
deliver growth in the remaining quarters of the year, on top of
the significant growth rates delivered in Q3-Q4 2020. For the
coming years, GN Audio expects that the favorable global
enterprise market trend will continue and that the market will
grow at around 10% in value when assuming a stable macro
environment. GN Audio’s mid-term target of growing faster
than the market is fully intact.
Management quote
“GN Audio continued to take significant market share in Q2
2021 in the enterprise segment with our innovative world
leading office products. Our new Jabra PanaCast camera line-
up, announced in April, started shipment during the summer
and will support GN Audio’s continued growth as companies
reinvent meetings and collaboration. We expect high demand
for our products to continue as organizations invest in hybrid
and flexible working solutions to prepare for the new normal
following the pandemic.”
René Svendsen-Tune, CEO of GN Audio
408
550
642
714
532
Q2 2020
21.0%
Q4 2020 Q2 2021
22.7%
Q3 2020*
23.7%
21.7%
24.8%
Q1 2021
EBITA margin EBITA (DKKm)
579
592
625
438
371
Q3 2020
142%
Q2 2020
89%
97%
Q4 2020
61%
Q1 2021 Q2 2021
70%
Cash conversion Free cash flow excl. M&A
8
Highlights Q2 2021
• GN delivered 49% organic revenue growth in Q2 2021
• EBITA reached DKK 635 million corresponding to an EBITA
margin of 16.8% compared to 0.9% in Q2 2020, reflecting
strong execution across the company
• Free cash flow excl. M&A was DKK 510 million in Q2 2021
• Leverage of 1.3x net interest-bearing debt to EBITDA,
compared to 1.6x by the end of Q1 2021
• GN to launch new innovative lifestyle products extending
the Jabra Enhance line of hearing enhancement solutions
• The financial guidance is confirmed
We believe that the fundamentals of the company
are strong and that the business will “return to normality”
when the impact of the pandemic is safely behind us. The
impact of COVID-19 obviously influences GN Hearing in a
completely different way than GN Audio. We see having the
two businesses under one roof as a position of strength for
the company, as reflected in the launch of Jabra Enhance
line-up.
Revenue
GN delivered 49% organic revenue growth in Q2 2021.
Revenue growth was 42% including around -7% impact from
the development in foreign exchange rates. In H1 2021, GN
delivered an organic revenue growth of 47%.
Earnings and other financial highlights
EBITA in Other amounted to DKK -50 million in Q2 2021,
compared to DKK -47 million in Q2 2020. GN Store Nord’s
EBITA reached DKK 635 million in Q2 2021 compared to DKK
25 million in Q2 2020, driven by strong execution across the
company and consequently, the EBITA margin was 16.8% in
Q2 2021 compared to 0.9% in Q2 2020. In H1 2021, EBITA
grew from DKK 325 million to DKK 1,388 million equal to an
EBITA margin of 17.6% compared to 5.8% in H1 2020.
In Q2 2021, amortization of acquired intangible assets
amounted to DKK -42 million compared to DKK -52 million in
Q2 2020, while gain (loss) on divestments of operations was
DKK -9 million in Q2 2021 compared to DKK -1 million in Q2
2020, both explained by a reduction of the asset base due to
the ongoing optimization of the Beltone Corporate Retail
portfolio.
Financial items were DKK -12 million in Q2 2021 compared to
DKK 49 million in Q2 2020, driven by a positive non-cash
contribution from foreign exchange revaluation of certain
balance sheet items from the depreciating USD in Q2 2020. In
Q2 2021, share of profit (loss) in associates was DKK -20
million compared to DKK -6 million in Q2 2020.
* Excluding gain of DKK 114m from legal settlements and litigation
The profit before tax was DKK 552 million in Q2 2021
compared to DKK 15 million in Q2 2020. The effective tax rate
was 21.4%, translating into a net profit of DKK 434 million in
Q2 2021 compared to DKK 13 million in Q2 2020. In H1 2021,
net profit has increased by 670% compared to H1 2020.
Free cash flow excl. M&A was DKK 510 million in Q2 2021
compared to DKK 517 million in Q2 2020, driven by strong
growth in earnings but offset by strong net working capital
development in Q2 2020 following the outbreak of the
COVID-19 pandemic. This equals a cash conversion of 80% in
Q2 2021. In H1 2021, free cash flow excl. M&A was DKK 488
million compared to DKK 357 million in H1 2020. In H1 2021,
cash conversion was 35% compared to 110% in H1 2020.
Earnings per share (EPS) was DKK 3.29 in Q2 2021 compared
to DKK 0.06 in Q2 2020, while in H1 2021, EPS was DKK 6.96
compared to DKK 0.85 in H1 2020.
GN Store Nord
2,659
3,739
4,084
4,110
3,778
15%
-13%
Q4 2020Q2 2020
29%
Q2 2021
Q3 2020
46%
Q1 2021
49%
Organic growth Revenue (DKKm)
25
795
746
753
635
0.9%
18.3%
Q2 2020
21.3%
18.3%
Q3 2020* Q1 2021
Q4 2020
16.8%
Q2 2021
EBITA margin EBITA (DKKm)
0.06
4.78
4.09
3.66
3.29
Q1 2021Q2 2020 Q3 2020 Q4 2020 Q2 2021
EPS (DKK)
9
By the end of Q2 2021, equity in GN Store Nord amounted to
DKK 5,874 million compared to DKK 4,500 million in Q2 2020,
corresponding to an increase of 31%. The increase was driven
by the net profits generated during the period, on top of the
execution of the ordinary annual dividend payment and the
ongoing share buyback program.
Capital structure
Net interest-bearing debt was DKK 4,408 million in Q2 2021
compared to DKK 4,334 million in Q1 2021, which was driven
by the strong cash flow generation but offset by the ongoing
share buyback program. Net interest-bearing debt to EBITDA
leverage ratio decreased to 1.3x compared to 1.6x by the end
of Q1 2021. The balance sheet remains very sound with ample
sources of liquidity. GN had cash and cash equivalents of DKK
1,715 million at the end of Q2 2021.
As previously communicated, GN has a long-term capital
structure target of a net interest-bearing debt between one-
and two-times EBITDA.
In H1 2021, GN has in total distributed DKK 614 million to
shareholders through share buybacks and dividend. In March
2021, GN paid out DKK 206 million in dividend (DKK 1.45 per
share) in respect of the fiscal year 2020 as approved at the
Annual General Meeting in 2021.
In line with the last couple of years, GN continues to
proactively secure a diversified funding profile. The different
sources of financing now available to GN include the
convertible bond market (via the listed convertible bond),
traditional bonds (via the Euro Medium-Term Note program),
the Euro Commercial Paper Program, bilateral loan facilities
provided by EIB as well as uncommitted bank facilities
including overdraft lines. GN has immediate access to a new,
undrawn revolving credit facility of EUR 350 million with a
tenor of five years, available by a group of GN’s relationship
banks, which concludes the refinancing of the former
revolving credit facilities. GN considers this debt funding
flexibility, in addition to the equity market access as a listed
company, important for navigating the current uncertain
capital markets.
Foreign exchange exposure
GN has hedged a substantial part of the expected net cash-
flow in foreign currencies to secure the EBITA contribution of
the material trading currencies for the next 12 months across
both GN Hearing and GN Audio.
10
COVID-19 risks
Due to the ongoing COVID-19 pandemic – which impacts GN in many ways – it must be stressed that the basic assumptions
behind the guidance remain significantly more uncertain than normal. The COVID-19 situation has and will not only strongly
impact GN’s operational performance in 2021, but is also impacting predictability and visibility across GN’s markets, channels
and supply chain. Certain components remain in global shortage impacting many different industries. GN has commitment
from component suppliers to deliver on the guidance. This is based on an assumption that the GN suppliers will not face
unexpected reductions in access to raw materials. The financial guidance is contingent on a gradual reopening of society and
no major disruptions in the supply chain.
GN Hearing
The fundamental assumptions behind the financial guidance for GN Hearing are that the global hearing aid market in H1 2021
was heavily impacted by COVID-19 and the consequential volatile regional and local restrictions. As hearing care professionals
and end-users in our main markets had access to the vaccine throughout H1 2021, the expectation earlier in the year was that
the market would reset and normalize in H2 2021. Due to the Delta variant and consequential reinforced local restrictions the
normalization has not yet materialized in all markets. GN Hearing will continuously aim to outgrow the market and invest in
maintaining its innovation leadership and improving the IT infrastructure.
For full year 2021, GN Hearing expects an organic revenue growth of more than 25% and an EBITA margin of more than 16%.
It is expected that the EBITA margin in a more normalized market in H2 2021 is recovering to our mid-term targets of more
than 20%.
GN Audio
The fundamental assumption behind the financial guidance for GN Audio is that the demand for collaboration solutions from
enterprises and organizations will continue in 2021 and beyond. It is expected that the GN Audio organic revenue growth will
be significantly higher in H1 2021 than in H2 2021, mainly due to difference in comparison base. GN Audio will continuously
aim to outgrow the market and invest in future growth opportunities.
For full year 2021, GN Audio expects organic revenue growth to be more than 25% and an EBITA margin of more than 21%.
GN Audio expects to deliver growth in the remaining quarters of 2021, on top of the significant growth rates delivered in Q3-
Q4 2020.
Other activities and EPS
For full year 2021, EBITA in “Other” is expected to be around DKK -185 million.
GN Store Nord expects a growth in EPS of more than 60% for full year 2021.
Financial guidance
2021
The financial guidance for 2021 is confirmed
Forward-looking statements
The forward-looking statements in this interim 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 outlook set forth. Furthermore, some of these expectations are based on
assumptions regarding future events, which may prove incorrect.
Factors that may cause actual results to deviate materially from expectations include – but are not limited to – general
economic developments and developments in the financial markets, technological developments, changes and
amendments to legislation and regulations governing GN’s markets, changes in the demand for GN's products,
competition, fluctuations in sub-contractor supplies and developments in ongoing litigation (including but not limited to
class action and patent infringement litigation in the United States).
Due to the COVID-19 situation – which impacts the company in many different ways – it must be stressed that the basic
assumptions behind the guidance remain significantly more uncertain than normal.
11
Teleconference
GN will host a teleconference at 11.00 am CEST on August
19, 2021. Please visit www.gn.com to access the
teleconference. Presentation material will be available on the
website approximately one hour prior to the start of the
teleconference.
Financial calendar 2021
Interim Report Q3 2021: October 29, 2021
Forward-looking statements
The forward-looking statements in this interim 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 outlook set forth.
Furthermore, some of these expectations are based on
assumptions regarding future events, which may prove
incorrect.
Factors that may cause actual results to deviate materially
from expectations include – but are not limited to – general
economic developments and developments in the financial
markets, technological developments, changes and
amendments to legislation and regulations governing GN’s
markets, changes in the demand for GN's products,
competition, fluctuations in sub-contractor supplies and
developments in ongoing litigation (including but not limited
to class action and patent infringement litigation in the
United States).
For further information please contact:
Henriette Wennicke
VP, Investor Relations & Treasury
GN Store Nord A/S
Email: [email protected]
Tel: +45 45 75 03 33
Rune Sandager
Director, Investor Relations & Treasury
GN Store Nord A/S
Email: [email protected]
Tel: +45 45 75 92 57
Company reg. no. 24257843
Additional information
12
Utilizing the synergies derived from GN’s hearing and audio
technologies and expertise, the Group is now able to
significantly improve and personalize customers’ hearing and
listening experiences. Enabling a whole new level of
individualization, GN will continue to deliver industry-leading
innovation that addresses real life challenges for people with
hearing loss, for businesses seeking productivity gains and for
audio consumers looking for experiences beyond what can be
delivered today.
GN’s strategy for 2020 and beyond is to take individualized
customer experience to a whole new level, and:
• further broaden the reach and appeal of GN’s hearing and
audio product portfolios, where management sees ample
opportunities for continued growth
• as new market segments open, leverage GN’s
technological expertise and commercial platform, where
these provide a particular competitive advantage.
Our focus going forward
GN’s core technology capabilities have successfully taken the
company to where it is today. Going forward, the company
will stay true to our technology foundation and pursue to
take our innovation and technology excellence to the next
level.
We will do this via a much deeper understanding of our
customers’ true needs. We will aspire to develop much
improved individualized products that will serve individual
customers even better. Furthermore, we aim to take our
commercial and operational execution to the next level.
We see great opportunities to leverage the skill-sets in our
two operating companies to drive further synergies and to
become even more relevant to our customers.
And we will add adjacent acquisitions where we see
opportunities and synergies.
GN Store Nord
In the mid-term, GN will continue to invest in growth through
innovation to deliver double-digit organic growth rates. We
expect to continue delivering a strong EBITA margin in line
with existing levels and competition, and to deliver double-
digit growth in earnings per share.
GN expects to maintain a conservative capital structure policy
of net interest-bearing debt to EBITDA of 1.0 - 2.0x, where
excess liquidity will be distributed to shareholders through
share buybacks and dividends.
GN strategy 2020 and beyond
GN will continue enabling people to Hear More, Do More and Be More, driven by
innovation leadership and commercial & eco
-system excellence. Specifically, in
the years ahead
, GN will increasingly leverage synergies between both divisions
and drive growth by delivering unique and increasingly individualized customer
experiences in products and solutions
Mid
-term guidance
DKK million
Organic revenue growth
EBITA margin
Growth in EPS
GN Hearing
>market growth
1
>20%
GN Audio
>market growth
2
>20%
GN Store Nord
>10%
>10%
1)
In the mid-term, GN Hearing expects the global hearing aid market to continue to grow at around 4-6% in units with an ASP decline of around 1-2% annually
2) In the mid
-term, GN Audio expects its markets to continue to grow at around 10% annually
13
Note 1 – Accounting policies 20
Note 2 – Segment disclosures Q2 2021 21
Note 3 – Incentive plans 24
Note 4 – Shareholdings 24
Content
Financial statements
Financial statements
Quarterly reporting by segment
14
Regional growth composition
15
Consolidated income statement
16
Consolidated statement of comprehensive income
16
Consolidated balance sheet
17
Consolidated statement of cash flow
18
Consolidated statement of equity
19
Notes
14
Quarterly reporting by segment
Q1 2020
Q2 2020
Q3 2020
Q4 2020
Q1 2021
Q2 2021
YTD 2020
YTD 2021
Full year
2020
DKK million
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(aud.)
Income statement
Revenue
GN Hearing
1,314
715
1,318
1,378
1,234
1,322
2,029
2,556
4,725
GN Audio
1,653
1,944
2,421
2,706
2,876
2,456
3,597
5,332
8,724
Total
2,967
2,659
3,739
4,084
4,110
3,778
5,626
7,888
13,449
Organic growth
GN Hearing
-14%
-54%
-11%
-16%
1%
95%
-35%
34%
-24%
GN Audio
22%
32%
72%
43%
82%
32%
27%
55%
42%
Total
3%
-13%
29%
15%
46%
49%
-5%
47%
9%
Gross profit
GN Hearing
841
332
859
873
769
832
1,173
1,601
2,905
GN Audio
827
1,009
1,239
1,318
1,480
1,264
1,836
2,744
4,393
Total
1,668
1,341
2,098
2,191
2,249
2,096
3,009
4,345
7,298
Gross profit margin
GN Hearing
64.0%
46.4%
65.2%
63.4%
62.3%
62.9%
57.8%
62.6%
61.5%
GN Audio
50.0%
51.9%
51.2%
48.7%
51.5%
51.5%
51.0%
51.5%
50.4%
Total
56.2%
50.4%
56.1%
53.6%
54.7%
55.5%
53.5%
55.1%
54.3%
Development costs
GN Hearing
-149
-124
-120
-118
-139
-154
-273
-293
-511
GN Audio
-110
-118
-181
-145
-199
-168
-228
-367
-554
Other *
-22
-20
-19
-23
-34
-27
-42
-61
-84
Total
-281
-262
-320
-286
-372
-349
-543
-721
-1,149
Selling and distribution costs and administrative expenses etc.
GN Hearing
-637
-544
-570
-602
-532
-525
-1,181
-1,057
-2,353
GN Audio
-429
-483
-394
-531
-567
-564
-912
-1,131
-1,837
Other *
-21
-27
-19
-26
-25
-23
-48
-48
-93
Total
-1,087
-1,054
-983
-1,159
-1,124
-1,112
-2,141
-2,236
-4,283
EBITA
GN Hearing
55
-336
169
153
98
153
-281
251
41
GN Audio
288
408
664
642
714
532
696
1,246
2,002
Other *
-43
-47
-38
-49
-59
-50
-90
-109
-177
Total
300
25
795
746
753
635
325
1,388
1,866
EBITA margin
GN Hearing
4.2%
-47.0%
12.8%
11.1%
7.9%
11.6%
-13.8%
9.8%
0.9%
GN Audio
17.4%
21.0%
27.4%
23.7%
24.8%
21.7%
19.3%
23.4%
22.9%
Total
10.1%
0.9%
21.3%
18.3%
18.3%
16.8%
5.8%
17.6%
13.9%
Depreciation and software amortization
GN Hearing
-47
-45
-54
-35
-42
-41
-92
-83
-181
GN Audio
-28
-29
-31
-34
-33
-31
-57
-64
-122
Other *
-29
-32
-30
-24
-30
-33
-61
-63
-115
Total
-104
-106
-115
-93
-105
-105
-210
-210
-418
EBITDA
GN Hearing
102
-291
223
188
140
194
-189
334
222
GN Audio
316
437
695
676
747
563
753
1,310
2,124
Other *
-14
-15
-8
-25
-29
-17
-29
-46
-62
Total
404
131
910
839
858
740
535
1,598
2,284
EBITA
300
25
795
746
753
635
325
1,388
1,866
Amortization and impairment of acquired intangible assets
-50
-52
-82
-51
-41
-42
-102
-83
-235
Gain (loss) on divestment of operations etc.
1
-1
-1
-3
-
-9
-
-9
-4
Operating profit (loss)
251
-28
712
692
712
584
223
1,296
1,627
Share of profit (loss) in associates
-1
-6
-2
-
-1
-20
-7
-21
-9
Financial items
-111
49
91
-35
-99
-12
-62
-111
-6
Profit (loss) before tax
139
15
801
657
612
552
154
1,164
1,612
Tax on profit (loss)
-33
-2
-178
-130
-130
-118
-35
-248
-343
Profit (loss)
106
13
623
527
482
434
119
916
1,269
Balance sheet
Development projects
GN Hearing
1,058
1,069
1,080
1,084
1,019
1,001
1,069
1,001
1,084
GN Audio
377
399
369
426
508
585
399
585
426
Other *
-19
-18
-16
-15
-13
-12
-18
-12
-15
Total
1,416
1,450
1,433
1,495
1,514
1,574
1,450
1,574
1,495
Inventories
GN Hearing
580
603
610
650
677
675
603
675
650
GN Audio
585
711
805
1,072
939
1,049
711
1,049
1,072
Total
1,165
1,314
1,415
1,722
1,616
1,724
1,314
1,724
1,722
Trade receivables
GN Hearing
1,095
835
1,025
972
987
1,020
835
1,020
972
GN Audio
1,477
1,593
1,860
1,704
1,670
1,721
1,593
1,721
1,704
Other *
-
-
-
-
-
2
-
2
-
Total
2,572
2,428
2,885
2,676
2,657
2,743
2,428
2,743
2,676
Net working capital
GN Hearing
927
649
581
552
785
862
649
862
552
GN Audio
765
512
764
357
652
662
512
662
357
Other *
-142
-121
-139
-93
-189
-136
-121
-136
-93
Total
1,550
1,040
1,206
816
1,248
1,388
1,040
1,388
816
Free cash flow excl. M&A
GN Hearing
-66
-117
47
263
-204
123
-183
-81
127
GN Audio
-67
579
592
625
438
371
512
809
1,729
Other *
-27
55
-27
8
-256
16
28
-240
9
Total
-160
517
612
896
-22
510
357
488
1,865
Acquisitions and divestments of companies
-29
-10
-107
-
-38
-1
-39
-39
-146
Free cash flow
-189
507
505
896
-60
509
318
449
1,719
* "Other" comprises Group Functions, GN Ejendomme and eliminations.
15
Regional growth composition Q2 2021
GN Hearing
GN Audio
Consolidated total
Q2
Q2
Q2
Q2
Q2
Q2
2021
2020
2021
2020
2021
2020
(DKK million)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
Europe - revenue
346
188
1,201
1,010
1,547
1,198
Organic growth
84%
20%
30%
FX growth
0%
-1%
-1%
M&A growth
0%
0%
0%
Revenue growth
84%
-53%
19%
60%
29%
16%
North America - revenue
658
326
761
545
1,419
871
Organic growth
121%
55%
80%
FX growth
-19%
-15%
-17%
M&A growth
0%
0%
0%
Revenue growth
102%
-62%
40%
-8%
63%
-40%
Rest of World - revenue
318
201
494
389
812
590
Organic growth
61%
32%
42%
FX growth
-3%
-5%
-4%
M&A growth
0%
0%
0%
Revenue growth
58%
-40%
27%
60%
38%
2%
Total revenue
1,322
715
2,456
1,944
3,778
2,659
Organic growth
95%
-54%
32%
32%
49%
-13%
FX growth
-10%
1%
-6%
1%
-7%
1%
M&A growth
0%
-2%
0%
0%
0%
-1%
Revenue growth
85%
-55%
26%
33%
42%
-13%
Regional growth composition YTD 2021
GN Hearing
GN Audio
Consolidated total
YTD
YTD
YTD
YTD
YTD
YTD
2021
2020
2021
2020
2021
2020
(DKK million)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
Europe - revenue
700
569
2,895
1,811
3,595
2,380
Organic growth
24%
61%
52%
FX growth
-1%
-1%
-1%
M&A growth
0%
0%
0%
Revenue growth
23%
-27%
60%
39%
51%
15%
North America - revenue
1,229
1,004
1,496
1,060
2,725
2,064
Organic growth
35%
57%
46%
FX growth
-12%
-16%
-14%
M&A growth
-1%
0%
-0%
Revenue growth
22%
-39%
41%
6%
32%
-22%
Rest of World - revenue
627
456
941
726
1,568
1,182
Organic growth
42%
36%
38%
FX growth
-4%
-6%
-5%
M&A growth
0%
0%
0%
Revenue growth
38%
-31%
30%
45%
33%
2%
Total revenue
2,556
2,029
5,332
3,597
7,888
5,626
Organic growth
34%
55%
47%
FX growth
-7%
-7%
-7%
M&A growth
-1%
0%
-0%
Revenue growth
26%
-34%
48%
29%
40%
-4%
16
Consolidated income statement
Q2 2021
Q2 2020
YTD 2021
YTD 2020
Full Year
2020
(DKK million)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(aud.)
Revenue
Production costs
-1,682
-1,318
-3,543
-2,617
-6,151
Gross profit
Development costs
-349
-262
-721
-543
-1,149
Selling and distribution costs
-815
-782
-1,663
-1,619
-3,349
Management and administrative expenses
-298
-271
-581
-530
-1,037
Other operating income and costs, net
-1
EBITA*
Amortization and impairment of acquired intangible assets
-42
-52
-83
-102
-235
Gain (loss) on divestment of operations etc.
-9
-1
-9
-4
Operating profit (loss)
-28
Share of profit (loss) in associates
-20
-6
-21
-7
-9
Financial items
-12
-111
-62
-6
Profit (loss) before tax
Tax on profit (loss)
-118
-2
-248
-35
-343
Profit (loss) for the period
Attributable to:
Non-controlling interests
Shareholders in GN Store Nord A/S
Earnings per share (EPS):
Earnings per share (EPS)
Earnings per share, fully diluted (EPS diluted)
* Excluding gain (loss) on divestments of operations etc. and amortization of acquired intangible assets but including amortization of development projects and software developed in-house.
Consolidated statement of comprehensive income
Q2 2021
Q2 2020
YTD 2021
YTD 2020
Full Year
2020
(DKK million)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(aud.)
Profit (loss) for the period
Other comprehensive income
Items that will not be reclassified to profit or loss
Actuarial gains (losses)
-8
-1
Items that may be reclassified subsequently to profit or loss
Adjustment of cash flow hedges
-15
-13
Foreign exchange adjustments, etc.
-71
-131
-53
-601
Tax relating to other comprehensive income
-2
-9
-4
-9
Other comprehensive income for the period
-65
-155
-44
-601
Total comprehensive income for the period
-142
Attributable to:
Non-controlling interests
Shareholders in GN Store Nord A/S
-147
17
Consolidated balance sheet
Jun. 30 2021
Mar. 31 2021
Dec. 31 2020
Sep. 30 2020
(DKK million)
(unaud.)
(unaud.)
(aud.)
(unaud.)
Assets
Intangible assets
Property, plant and equipment
Investments in associates
Deferred tax assets
Other non-current assets
Total non-current assets
Inventories
Trade receivables
Tax receivables
Other receivables
Cash and cash equivalents
Total current assets
Total assets
Equity and liabilities
Equity
Bank loans and issued bonds
Lease liabilities, non-current
Pension obligations
Provisions, non-current
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities
Bank loans
Lease liabilities, current
Trade payables
Tax payables
Provisions, current
Other current liabilities
Total current liabilities
Total equity and liabilities
18
Consolidated statement of cash flow
Q2 2021
Q2 2020
YTD 2021
YTD 2020
Full Year
2020
(DKK million)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(aud.)
Operating activities
Operating profit (loss)
-28
Depreciation, amortization and impairment
Other non-cash adjustments
-48
Cash flow from operating activities before changes in working capital
Changes in working capital
-370
Cash flow from operating activities before financial items and tax
Financial items, net
-104
-60
-13
Tax paid, net
-29
-7
-131
-119
-289
Cash flow from operating activities
Investing activities
Development projects
-196
-140
-343
-304
-638
Investments in other intangible assets, net
-74
-112
-132
-137
-234
Investments in property, plant and equipment, net
-58
-46
-300
-99
-219
Investments in other non-current assets, net
-38
-51
-250
Company acquisitions
-1
-10
-39
-40
-147
Company divestments
Cash flow from investing activities
-367
-301
-865
-576
-1,487
Cash flow from operating and investing activities (free cash flow)
Financing activities
Paid dividends
-41
-188
-187
-187
Share-based payment (exercised)
Purchase/sale of treasury shares and other equity instruments
-408
-408
-453
-453
Net proceeds from issue of Eurobonds
Increase/decrease in bank loans and other adjustments
-245
-127
-299
-598
-1,325
Cash flow from financing activities
-690
-125
-399
-1,068
-1,771
Net cash flow
-181
-750
-52
Cash and cash equivalents beginning of period
Adjustment foreign currency, cash and cash equivalents
-2
-4
-11
-19
Cash and cash equivalents, end of period
19
Consolidated statement of equity
Other reserves
Q2 2020 (DKK million)
Share
capital*
Foreign
exchange
adjustments
Hedging
reserve
Treasury
shares
Proposed
dividends
for the year
Retained
earnings
Equity,
shareholders
in GN Store
Nord A/S
Non-
controlling
interests
Total
equity
Balance at December 31, 2019
-910
-11
-3,424
Profit (loss) for the period
Actuarial gains (losses)
-8
-8
-8
Adjustment of cash flow hedges
Foreign exchange adjustments, etc.
-53
-53
-53
Tax relating to other comprehensive
income
-3
-6
-9
-9
Other comprehensive income for the
period
-56
-8
-44
-44
Total comprehensive income for the
period
-56
Share-based payment (granted)
Share based payment (exercised)
-25
Tax related to share-based incentive
plans
Purchase/sale of treasury shares
-453
-453
-453
Reclassification of non-controlling
interests by recognizing a put option
liability
-7
-7
-4
-11
Paid dividends
-187
-187
-6
-193
Dividends, treasury shares
-19
Balance at June 30, 2020
-966
-3,682
Q2 2021 (DKK million)
Balance at December 31, 2020
-1,500
-21
-3,640
Profit (loss) for the period
Adjustment of cash flow hedges
Foreign exchange adjustments, etc.
Tax relating to other comprehensive
income
-4
-4
-4
Other comprehensive income for the
period
Total comprehensive income for the
period
Reduction of the share capital
-16
-857
Share-based payment (granted)
Share-based payment (exercised)
-53
Tax related to share-based incentive
plans
Purchase/sale of treasury shares
-408
-408
-408
Reclassification of non-controlling
interests by
recognizing a put option
liability
-
-15
-9
Paid dividends
-188
-188
-188
Dividends, treasury shares
-18
Balance at June 30, 2021
-1,333
-7
-2,989
* shares of DKK 4 each
20
Note 1 – Accounting policies
This interim report has been prepared in accordance with IAS 34 “Interim Financial Reporting” as adopted by the EU and
Danish interim financial reporting requirements for listed companies.
New standards, interpretations and amendments adopted by GN Store Nord
As of January 1, 2021, GN Store Nord adopted all relevant new or revised International Financial Reporting Standards and
IFRIC Interpretations with effective date January 1, 2021, or earlier. The new or revised Standards and Interpretations did not
affect recognition and measurement or result in any material changes to disclosures. Apart from this, the accounting policies
applied are unchanged from those applied in the Annual Report 2020.
21
Note 2 – Segment disclosures Q2 2021
Income statement
GN Hearing
GN Audio
Other**
Consolidated total
Q2 2021
Q2 2020
Q2 2021
Q2 2020
Q2 2021
Q2 2020
Q2 2021
Q2 2020
(DKK million)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
Revenue
1,322
715
2,456
1,944
-
-
3,778
2,659
Production costs
-490
-383
-1,192
-935
-
-
-1,682
-1,318
Gross profit
832
332
1,264
1,009
-
-
2,096
1,341
Development costs
-154
-124
-168
-118
-27
-20
-349
-262
Selling and distribution costs
-356
-406
-459
-376
-
-
-815
-782
Management and administrative expenses
-167
-141
-107
-103
-24
-27
-298
-271
Other operating income and costs, net
-2
3
2
-4
1
-
1
-1
EBITA*
153
-336
532
408
-50
-47
635
25
Amortization and impairment of acquired intangible assets
-24
-32
-18
-20
-
-
-42
-52
Gain (loss) on divestment of operations etc.
-9
-1
-
-
-
-
-9
-1
Operating profit (loss)
120
-369
514
388
-50
-47
584
-28
Share of profit (loss) in associates
-20
-6
-
-
-
-
-20
-6
Financial items
-22
43
8
21
2
-15
-12
49
Profit (loss) before tax
78
-332
522
409
-48
-62
552
15
Tax on profit (loss)
-17
78
-111
-96
10
16
-118
-2
Profit (loss) for the period
61
-254
411
313
-38
-46
434
13
Cash flow statement
GN Hearing
GN Audio
Other**
Consolidated total
Q2 2021
Q2 2020
Q2 2021
Q2 2020
Q2 2021
Q2 2020
Q2 2021
Q2 2020
(DKK million)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
Operating activities before changes in working capital
258
-108
578
522
-18
-15
818
399
Cash flow from changes in working capital
16
162
36
253
9
-17
61
398
Cash flow from operating activities excluding financial
items and tax
274
54
614
775
-9
-32
879
797
Cash flow from investing activities:
Development projects
-76
-71
-120
-69
-
-
-196
-140
Other
-51
-89
-44
-31
-76
-41
-171
-161
Cash flow from operating and investing activities before
financial items and tax
147
-106
450
675
-85
-73
512
496
Tax and financial items
-24
-21
-80
-96
101
128
-3
11
Cash flow from operating and investing activities (free
cash flow)
123
-127
370
579
16
55
509
507
Cash flow from M&A activities
-
-10
-1
-
-
-
-1
-10
Free cash flow excl. M&A
123
-117
371
579
16
55
510
517
Additional information
GN Hearing
GN Audio
Other**
Consolidated total
Q2 2021
Q2 2020
Q2 2021
Q2 2020
Q2 2021
Q2 2020
Q2 2021
Q2 2020
(DKK million)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
Revenue distributed geographically
Denmark
18
15
62
31
-
-
80
46
Europe
328
173
1,139
979
-
-
1,467
1,152
North America
658
326
761
545
-
-
1,419
871
Rest of World
318
201
494
389
-
-
812
590
Revenue
1,322
715
2,456
1,944
-
-
3,778
2,659
Incurred development costs
-133
-132
-243
-140
-29
-22
-405
-294
Capitalized development costs
76
71
120
69
-
-
196
140
Amortization, impairment and depreciation of development
projects***
-97
-63
-45
-47
2
2
-140
-108
Expensed development costs
-154
-124
-168
-118
-27
-20
-349
-262
EBITDA
194
-291
563
437
-17
-15
740
131
Depreciation and software amortization
-41
-45
-31
-29
-33
-32
-105
-106
EBITA*
153
-336
532
408
-50
-47
635
25
EBITA margin
11.6%
-47.0%
21.7%
21.0%
N/A
N/A
16.8%
0.9%
Number of employees, end of period
4,483
4,255
2,163
1,726
290
224
6,936
6,205
* Excluding gain (loss) on divestments of operations etc. and amortization of acquired intangible assets but including amortization of development projects and software developed in-house.
** "Other" comprises Group Shared Services, GN Ejendomme and eliminations
*** Does not include amortization of acquired intangible assets, cf. definition of EBITA
22
Note 2 – Segment disclosures Q2 2021 (Continued)
Balance sheet
GN Hearing
GN Audio
Other*
Consolidated total
Jun. 30
Jun. 30
Jun. 30
Jun. 30
Jun. 30
Jun. 30
Jun. 30
Jun. 30
2021
2020
2021
2020
2021
2020
2021
2020
(DKK million)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
ASSETS
Goodwill
3,348
3,520
1,138
1,200
-
-
4,486
4,720
Development projects
1,001
1,069
585
399
-12
-18
1,574
1,450
Other intangible assets
346
541
357
422
447
314
1,150
1,277
Property, plant and equipment
483
524
333
296
408
254
1,224
1,074
Investments in associates
482
216
-
-
24
27
506
243
Deferred tax assets
358
313
146
161
-102
-57
402
417
Loans to dispensers and ownership interests
794
886
-
-
-
-
794
886
Other financial assets
539
385
-
-
-
-
539
385
Total non-current assets
7,351
7,454
2,559
2,478
765
520
10,675
10,452
Inventories
675
603
1,049
711
-
-
1,724
1,314
Trade receivables
1,020
835
1,721
1,593
2
-
2,743
2,428
Receivables from group companies**
-
-
2,028
299
-2,028
-299
-
-
Tax receivables
37
188
74
45
-90
-72
21
161
Other receivables
257
163
124
81
81
65
462
309
Cash and cash equivalents
207
192
159
135
1,349
640
1,715
967
Total current assets
2,196
1,981
5,155
2,864
-686
334
6,665
5,179
Total assets
9,547
9,435
7,714
5,342
79
854
17,340
15,631
EQUITY AND LIABILITIES
Equity
5,254
5,050
4,623
2,767
-4,003
-3,317
5,874
4,500
Bank loans and issued bonds
-
-
-
-
5,460
4,802
5,460
4,802
Lease liabilities, non-current
196
212
73
96
18
40
287
348
Pension obligations
28
28
6
5
-
-
34
33
Provisions, non-current
117
74
110
14
-
-
227
88
Deferred tax liabilities
260
239
156
184
-52
128
364
551
Other non-current liabilities
357
314
160
137
2
-
519
451
Total non-current liabilities
958
867
505
436
5,428
4,970
6,891
6,273
Bank loans
23
-
9
-
225
1,259
257
1,259
Lease liabilities, current
79
84
32
34
8
11
119
129
Trade payables
226
144
847
774
75
35
1,148
953
Amounts owed to group companies**
1,945
2,210
-
-
-1,945
-2,210
-
-
Tax payables
20
30
117
81
147
-45
284
66
Provisions, current
178
242
196
151
-
-
374
393
Other current liabilities
864
808
1,385
1,099
144
151
2,393
2,058
Total current liabilities
3,335
3,518
2,586
2,139
-1,346
-799
4,575
4,858
Total equity and liabilities
9,547
9,435
7,714
5,342
79
854
17,340
15,631
Invested capital***
6,539
6,873
2,769
2,664
707
429
10,015
9,966
Average invested capital
6,706
7,030
2,717
2,622
568
383
9,991
10,035
* "Other" comprises Group Shared Services, GN Ejendomme and eliminations
** Net amount
*** Includes Net working capital (Inventories, Trade receivables, Other receivables, Trade payables and Other current liabili
ties), Goodwill, Development projects, Other intangible assets,
Property, plant and equipment, Loans to dispensers and ownership interests and Provisions
23
Note 2 – Segment disclosures YTD 2021
Income statement
GN Hearing
GN Audio
Other**
Consolidated total
YTD
2021
YTD
2020
YTD
2021
YTD
2020
YTD
2021
YTD
2020
YTD
2021
YTD
2020
(DKK million)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
Revenue
2,556
2,029
5,332
3,597
-
-
7,888
5,626
Production costs
-955
-856
-2,588
-1,761
-
-
-3,543
-2,617
Gross profit
1,601
1,173
2,744
1,836
-
-
4,345
3,009
Development costs
-293
-273
-367
-228
-61
-42
-721
-543
Selling and distribution costs
-736
-896
-927
-723
-
-
-1,663
-1,619
Management and administrative expenses
-325
-287
-207
-195
-49
-48
-581
-530
Other operating income and costs, net
4
2
3
6
1
-
8
8
EBITA*
251
-281
1,246
696
-109
-90
1,388
325
Amortization and impairment of acquired intangible assets
-48
-62
-35
-40
-
-
-83
-102
Gain (loss) on divestment of operations etc.
-9
-1
-
1
-
-
-9
-
Operating profit (loss)
194
-344
1,211
657
-109
-90
1,296
223
Share of profit (loss) in associates
-21
-7
-
-
-
-
-21
-7
Financial items
-90
-46
-37
8
16
-24
-111
-62
Profit (loss) before tax
83
-397
1,174
665
-93
-114
1,164
154
Tax on profit (loss)
-18
93
-250
-156
20
28
-248
-35
Profit (loss) for the period
65
-304
924
509
-73
-86
916
119
Cash flow statement
GN Hearing
GN Audio
Other**
Consolidated total
YTD
2021
YTD
2020
YTD
2021
YTD
2020
YTD
2021
YTD
2020
YTD
2021
YTD
2020
(DKK million)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
Operating activities before changes in working capital
490
68
1,475
878
-46
-30
1,919
916
Cash flow from changes in working capital
-214
135
-215
-29
59
51
-370
157
Cash flow from operating activities excluding financial
items and tax
276
203
1,260
849
13
21
1,549
1,073
Cash flow from investing activities:
Development projects, investment
-137
-173
-206
-131
-
-
-343
-304
Other investing activities
-109
-142
-86
-47
-327
-83
-522
-272
Cash flow from operating and investing activities before
financial items and tax
30
-112
968
671
-314
-62
684
497
Tax and financial items
-146
-110
-163
-159
74
90
-235
-179
Cash flow from operating and investing activities (free
cash flow)
-116
-222
805
512
-240
28
449
318
Cash flow from M&A activities
-35
-39
-4
-
-
-
-39
-39
Free cash flow excl. M&A
-81
-183
809
512
-240
28
488
357
Additional information
GN Hearing
GN Audio
Other**
Consolidated total
YTD
2021
YTD
2020
YTD
2021
YTD
2020
YTD
2021
YTD
2020
YTD
2021
YTD
2020
(DKK million)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
Revenue distributed geographically
Denmark
40
47
143
84
-
-
183
131
Europe
660
522
2,752
1,727
-
-
3,412
2,249
North America
1,229
1,004
1,496
1,060
-
-
2,725
2,064
Rest of World
627
456
941
726
-
-
1,568
1,182
Revenue
2,556
2,029
5,332
3,597
-
-
7,888
5,626
Incurred development costs
-243
-308
-484
-264
-64
-45
-791
-617
Capitalized development costs
137
173
206
131
-
-
343
304
Amortization, impairment and depreciation of development
projects***
-187
-138
-89
-95
3
3
-273
-230
Expensed development costs
-293
-273
-367
-228
-61
-42
-721
-543
EBITDA
334
-189
1,310
753
-46
-29
1,598
535
Depreciation and software amortization
-83
-92
-64
-57
-63
-61
-210
-210
EBITA*
251
-281
1,246
696
-109
-90
1,388
325
EBITA margin
9.8%
-13.8%
23.4%
19.3%
N/A
N/A
17.6%
5.8%
Number of employees, end of period
4,483
4,255
2,163
1,726
290
224
6,936
6,205
* Excluding gain (loss) on divestments of operations etc. and amortization of acquired intangible assets but including amortization of development projects and software developed in-house.
** "Other" comprises Group Shared Services, GN Ejendomme and eliminations
*** Does not include amortization of acquired intangible assets, cf. definition of EBITA
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Note 3 – Incentive plans
As of June 30, 2021, the total number of outstanding warrants in GN Hearing was 1,671 (0.3% of the shares issued in GN
Hearing). The total number of outstanding warrants in GN Audio was 1,681 (0.5% of the shares issued in GN Audio). The total
number of outstanding options in GN Store Nord is 1,923,559 (1.4% of the shares issued in GN Store Nord)
Note 4 – Shareholdings
On June 30, 2021, members of the board of directors and the executive management, respectively, own 49,155 and 131,739
shares in GN Store Nord.
On June 30, 2021, GN owns 9,062,988 treasury shares, equivalent to 6.6% of the 138,175,982 shares issued.
The GN stock is 100% free float, and the company has no dominant shareholders. APG Asset Management N.V. has reported
an ownership interest in excess of 5% of GN’s share capital. Foreign ownership of GN is estimated to be around 70%.
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Statement by the Executive
Management and the Board of
Directors
Executive Management
Board of Directors
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Co.reg. no 24257843