GN Store Nord
Annual Report 2022
Content
Building the technology of the future,
sustainably
Over the past several years, sustainability has become increasingly
integrated into GN’s fundamental business strategy.
For the financial year 2022, GN therefore combines our reporting on
financial and ESG (environmental, social, governance) performance in a
single publication. This provides our investors and other stakeholders
with a holistic view of GN’s business, value drivers, strategy, govern-
ance, financial, and non-financial performance.
GN’s sustainability strategy is driven by a desire to create real and last-
ing value for all our stakeholders. Therefore, sustainability is integrated
into how we run our company, as a consideration in every decision we
make. Accordingly, we have not set up a separate sustainability gov-
ernance structure but use our existing business processes to drive this
agenda, like sustainability is part of Executive Management’s perfor-
mance targets – and now also present this in one integrated annual re-
port along with our business and financial performance.
At GN, we are proud of the positive difference our products make to
society and people’s lives. Our hearing instruments help our users lead
better lives, while our audio and video solutions help our customers
choose remote collaboration over carbon-emitting travel.
We continously work on all environmental, social, and governance top-
ics that are material to our business and processes, whether it is mov-
ing towards recycled material in products, nurturing a diverse and in-
clusive workforce, supporting children with hearing loss in low-income
countries, or working with our suppliers on safeguarding human rights
for everyone working in our value chain.
As the effects of the climate crisis are felt across the world, 2022
marked an important milestone in GN’s ambition to reduce its carbon
emissions in line with the scientific consensus on what is needed to
keep global warming well below 2°C. Following our commitment to set
science based targets in 2021, in November 2022, the Science Based
Targets initiative formally approved our targets and plans to reach
these.
This report covers our financial, environmental, social, and governance
performance as well as our goals and strategies.
Integrated financial and ESG reporting
Reporting framework
This integrated Annual Report 2022 for GN Store Nord A/S
has been prepared in accordance with International Finan-
cial Reporting Standards as adopted by the EU and further
requirements in the Danish Financial Statements Act and
covers the period January 1, 2022, to December 31, 2022.
The integrated Annual Report 2022 constitutes GN’s corpo-
rate responsibility report according to Section 99a, 99b, 99d,
and 107d in the Danish Financial Statements Act as well as
the Communication on Progress to the UN Global Compact.
Further to this report, GN’s annual reporting consists of two
additional reports:
GN’s Remuneration Report 2022 prepared in accordance
with section 139 (b) of the Danish Companies Act:
www.gn.com/remuneration2022.
GN’s statutory report on corporate governance, cf. section
107b of the Danish Financial Statements Act:
www.gn.com/corporategovernance2022.
GN has been a member of UN Global Compact since January 14, 2010.
GN Store Nord
Annual Report 2022
Content
Introduction
2022 performance highlights 4
2022 key events 5
Chairman’s foreword 6
Five year overview 8
The helicopter view
Bringing people closer 10
Vision and strategy 11
Our business model 13
Innovation and ecosystem leadership 14
Global reach, local presence 15
Key business areas and product brands 16
Serving attractive markets 17
Financial guidance 2023 18
Financial performance
Group performance 2022 21
GN Hearing performance 2022 24
The strongest hearing aid portfolio ever 27
Changing the rules of the hearing game 28
GN Audio performance 2022 29
GN Audio’s strongest product portfolio ever 32
Inclusive meetings in the hybrid workplace 33
Improve customer experiences with AI 34
Growing demand for FalCom’s systems 35
Environmental performance
Decarbonization 37
Circularity 38
Responsible manufacturing 39
Designing for sustainability 40
Social performance
Diversity, equity, and inclusion 44
Supporting communities 46
Governance performance
Ethics and human rights 48
Risk management 51
Corporate governance 55
Shareholder information 57
59
62
64
65
66
68
70
71
72
73
74
76
78
81
83
Board of Directors
Executive Management
Consolidated ESG data
Progress towards our 2025 ESG goals
ESG data
ESG data – climate related
ESG data – other
Frameworks, certifications, and ratings
Materiality matrix
Stakeholder engagement
Policy overview and governance
EU Taxonomy Regulation disclosure
TCFD index
Additional financial information 2022
(unaudited)
Q4 financial highlights
Quarterly reporting by segment
Regional growth composition
Q4 segment disclosures
84
Consolidated Financial statements
Income statement 86
Statement of comprehensive income 86
Balance sheet at December 31 87
Statement of cash flow 88
Statement of equity 89
Consolidated notes 90
Parent company Financial statements
Statements 147
Parent Company notes 151
Statements
Statements by the Executive Management
and the Board of Directors 162
Independent Auditor’s Reports 163
Independent limited assurance report on
Selected ESG data 167
Table of contents
Management’s report
Statements
The
helicopter
view
Page 9
GN Hearing
performance 2022
Page 24
GN Audio
performance 2022
Page 29
Other 2022 reports
www.gn.com/remuneration2022
www.gn.com/corporategovernance2022
GN Store Nord A/S
Lautrupbjerg 7
2750 Ballerup
Denmark
+45 45 75 00 00
www.gn.com
Co.reg. no 24257843
Remuneration
Report 2022
Corporate Governance
Report 2022
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Annual Report 2022
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2022 performance highlights
4/169
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Annual Report 2022
Content
Adj. EBITA (DKK)
-
19% vs 2021
2.2 bn
Financial highlights
ESG highlights
Revenue (DKK)
-
3% organic revenue growth vs 2021
18.7 bn
Free cash flow excl. M&A (DKK)
-1.3 bn
Adj. Earnings per share (DKK)
-
31% vs 2021
10.54
Social
Number of people
with hearing loss helped (million)
Supplier
ESG audits
9.8
31
Governance
Women in senior management (%)
AGM elected women on GN’s Board
(%)
23%
66
%
ESG ratings
MSCI
Sustainalytics
CDP
AA
13.2 (low risk)
B
Environmental
Scope 1 and 2 emissions (tons CO
2
e)
Scope
3 emissions (tons CO
2
e)
8.475
530,1
90
Guidance 202
3
See more details on performance
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2022 key events
Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan
Lauching the
SteelSeries Apex
Pro TKL series
keyboards – even
faster and more
adjustable
Introducing the
newest addition to
Jabra’s true wire-
less range, the
Jabra Elite 5
Launching Jabra
Engage 55, porta-
ble professional
headset, designed
for ultimate call se-
curity and quality
Launching ReSound
OMNIA; hearing
aids with 150% im-
provement in
speech under-
standing in noise
Lauching
Custom made by
ReSound; ad-
vanced, recharge-
able hearing aids
for all day use
First company-
wide inclusion sur-
vey, where all em-
ployees could con-
tribute to improve-
ments in this area
Introducing Jabra
Evolve2 Buds;
professional,
pocketable true
wireless earbuds
for hybrid and re-
mote work
Changing of the
guard in GN Audio –
Peter Karlstromer
takes over as CEO
from René Svend-
sen-Tune
GN stops all busi-
ness activities and
abandons Russia
and Belarus due
to Russia’s war
against Ukraine
New ReSound
ONE Behind-the-
Ear hearing aids
deliver world
-
class
technology to
people with mod-
erate to severe
hearing loss
Launching Jabra
Engage AI, unique
software for im-
proving
customer
and agent experi-
ence in contact
centers as a SaaS
solution
The Science Based
Targets initiative
validates and ap-
proves GN’s new
reduction targets
for 2030 in line
with the Paris
Agreement
In the U.S., Jabra
Enhance Plus are
now available over
the counter (OTC),
as new hearing aid
regulation comes
into effect
GN hosts Meet-
the-
Management
event giving in-
vestors and ana-
lysts a deeper in-
sight into the busi-
ness
SteelSeries pro-
duces a new level
of excellence with
the Arctis Nova
Pro series
Introducing a new
SteelSeries fran-
chise – premium
line of gaming
speakers; the
Arena 3, Arena 7,
and Arena 9
Introducing Jabra
Enhance Plus; ear-
buds for hearing
enhancement and
clearer conversa-
tions, music, and
calls
Launching next
generation
FalCom soldier
system with audio
and data enabled
headsets and
control units
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Content
Enterprise, gaming, and now hearing
products gain market share despite
headwinds; targeted cost reduction pro-
grams initiated to counter
challenging macro-environment
Multiple external factors presented GN with significant headwinds
throughout 2022: War in Ukraine, soaring inflation, declining consumer
confidence, looming recession. This came on top of continued COVID-
19 market disturbances, supply chain challenges, foreign exchange
headwinds, and very high freight costs – not to forget the global cli-
mate crisis, which we also need to address with responsible sustainabil-
ity initiatives.
Still, GN delivered revenue of DKK 18.7 billion and adj. EBITA of DKK
2.2 billion. Organic growth was -3%, impacted by the macro-economic
headwinds. That said, we managed to gain market share in this tough
environment.
The acquisitions of Lively – now rebranded JabraEnhance.com – and
SteelSeries are strategically important to GN Hearing and GN Audio,
both doing very well in their market segments and present significant
growth opportunities. The decision on how to fund the SteelSeries ac-
quisition was taken in October 2021 under different macro-economic
assumptions of growth and earnings from what we are now realizing
with the war in Ukraine and its consequences on global markets and fi-
nancing conditions.
In light of the current macroeconomic environment and GN’s leverage,
GN intends to raise gross proceeds of DKK 7 billion in the first half of
2023 through the issuance of new shares with pre-emptive rights for
GN’s shareholders. Proceeds from the Rights Offering will be used to
strengthen GN’s balance sheet and provide appropriate financial flexi-
bility.
Also, facing the above-mentioned headwinds, GN, during 2022, took ac-
tion across the Group to reduce our cost base, so we can come out of
the current economic climate in a stronger financial position. This in-
cluded reduction of inventory, targeted budget cuts, reduction of head-
count, and every other relevant item in the expense base.
Multiple growth opportunities and strong market positions
When taking these decisions – including difficult ones such as having to
let go of loyal employees – our guiding principles are to focus on GN’s
continued ability to innovate and to prioritize commercial excellence to
capture the growth opportunities ahead. We continue to be uniquely
well positioned for growth in very attractive markets when the world
has normalized again.
GN Hearing - strongest product portfolio ever
The global hearing aid markets are now recovering post-pandemic,
except in China. GN Hearing has successfully transformed its R&D
organization and increased quality, predictability, and efficiency. The
company has the strongest product portfolio ever, addressing all
relevant segments with some of the best products in the industry – and
a very strong roadmap for 2023. A testament to the strength of the
portfolio is the recent meaningful increase in market share in the U.S.
Veterans Affairs channel.
At the same time, a paradigm shift is underway in the world’s largest
hearing aid market, the U.S., with sales of hearing aids over-the-coun-
ter without medical prescription. While this new market will take some
time to mature, we expect this to expand the hearing care market
reaching people at a younger age – and GN Hearing is strongly
Chairman’s foreword
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Hearing market share gains in 2022
GN Hearing flagship product ReSound
OMNIA rolled out globally during autumn
2022. Based on a new technology
platform, these hearing aids address the
No.1 challenge – hearing speech in noise –
and delivers an outstanding 150%
improvement in speech understanding.
Customer reception and market share
gains have been very strong.
Enterprise market share gains in 2022
Jabra Engage 55 is a portable
professional headset, designed for
ultimate call security with advanced
technology and microphone performance
that enables more employees to have
meetings in the same space without
interference. Jabra Engage 55 is one of
the strongest performers in GN Audio’s
professional portfolio driving market
share gains in the Enterprise segment.
Gaming market share gains in 2022
Arctis 7P+ is a SteelSeries bestseller,
awarded best gaming headset, best
wireless gaming headset and several
other accolades important to the
enthusiast gamer. This versatile quality
gaming headset was one of the reasons
SteelSeries continued to gain market
share during 2022, despite the general
downturn in consumer markets.
GN Hearing
GN Audio
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positioned with the JabraEnhance.com channel and the Jabra Enhance
portfolio.
Additionally, GN Hearing is well positioned to capture growth and mar-
ket share in the strategically important Managed Care Organizations in
the U.S., which include major insurance carriers, Medicaid programs,
healthcare benefit programs, and more. In Europe, GN Hearing deliv-
ered strong growth. Asia continued to be slowed by COVID-19, while
we won an important tender as main supplier to the biggest single cus-
tomer in Australia with over 100,000 hearing aids distributed per year
commencing in early 2023.
These positive developments will allow GN Hearing to capture market
share in the prescription-based hearing aid markets, which we already
saw happening in late 2022, and in the emerging markets, where e.g.
JabraEnhance.com delivered 73% organic growth.
GN Audio - strong market positions and growing markets
For GN Audio and its enterprise business, we also see lots of growth op-
portunities and very strong market positions. All the underlying trends
driving our business are there, suffering a temporary setback, espe-
cially in markets directly impacted by consumer sentiments. We are
taking share in professionals, contact center, and gaming, and still have
a major opportunity ahead of us in video collaboration, which is one of
the new sustained investment and growth areas.
Also, we are ready to further expand with our FalCom business, which
provides integrated hearing protection and communications solutions
for special operations, military, law enforcement, and security person-
nel who all depend on optimal perception in extreme environments.
And we aspire to address frontline workers as unified communication
and collaboration is moving beyond the office with an estimated two
billion workers potentially needing professional communication tools.
GN Audio right now offers the most comprehensive and competitive
product portfolio ever. And we now see the supply chain issues around
the world improving, so our growth will be supported by better product
availability.
With the macro-environment continuing to be a challenge short term,
we focus on our organizational readiness, transform our setup, and
strengthen our portfolio in order to capture market share.
Changes to Executive Management and Board of Directors
As of January 2 this year, Peter Karlstromer joined as new CEO of GN
Audio, following the retirement of René Svendsen-Tune. Together with
GN Audio’s strong leadership team, talented employees, and agile or-
ganization, the Board is convinced that Peter Karlstromer with his
strong international leadership track record is well suited to take GN
Audio further and take advantage of the great opportunities in front of
us. The Board sincerely thanks René for his services to the company,
among other, taking GN Audio from a marginal DKK 3.2 billion audio-
only company to a world-leading DKK 12.5 billion market leading inno-
vative technology company.
Further, GN in December 2022 announced Søren Jelert as new CFO for
the GN Group, replacing Peter la Cour Gormsen when he leaves GN in
Q2 of 2023. Peter has throughout seven years actively supported GN
Audio’s remarkable growth journey, for which the Board sincerely
thanks him. We are very pleased to have attracted such an experienced
and strong financial leader as Søren Jelert to take over as our new CFO.
Finally, at the Annual General Meeting in March, Jukka Pekka Pertola
will be recommended to replace me as Chair of the Board. It has been
my pleasure to serve this great company for the past 15 of its 150-year
legacy – taking it from a loss-making DKK 6 billion revenue company in
2008 to a highly profitable DKK 18.7 billion company. I’m also pleased
that Klaus Holse has offered to stand for election as he will further
strengthen the Board upon my departure.
Strategic direction confirmed
This Annual Report is our first to integrate reporting on our financial,
environmental, social, and governance performance, documenting that
we in 2022 also made significant progress on sustainability and diver-
sity. As we confirm GN’s strategic direction, focus, and priorities, the
Board is confident that GN is well-equipped and positioned to weather
the immediate storm and get back as a growth company as soon as the
world has stabilized again. In difficult times, we will double down on
our purpose of bringing people closer, working for the benefit of our
customers, investors, and other stakeholders. GN has endured multiple
world crises throughout its 153-year history, reinvented itself many
times before, and today is more relevant than ever.
On behalf of the Board of Directors, I would like to thank our outgoing
management for their dedicated service to the company over many
years, and to bid welcome to our new management team that will take
GN through the next chapters of the company’s history. As I’m step-
ping down I would like to also
express my sincere gratitude to
my current and past colleagues
on the Board, and to the thou-
sands of engaged and talented
GN managers and employees
across the world who tirelessly
– despite many challenges –
work to benefit our customers
with world-class products and
services.
Per Wold-Olsen,
Chairman of the Board
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DKK million
2018
2019
2020
2021
2022
GN Store Nord
Revenue
10,607
12,574
13,449
15,775
18,687
Revenue growth
11%
19%
7%
17%
18%
Organic growth
13%
15%
9%
20%
-3%
Gross profit margin
62.0%
60.3%
54.3%
55.0%
48.9%
EBITA*
1,956
2,321
1,866
2,619
1,560
EBITA margin*
18.4%
18.5%
13.9%
16.6%
8.3%
Operating profit (loss)
1,796
2,002
1,627
2,397
1,111
Financial items, net
-203
-92
-6
-90
-405
Profit (loss) before tax
1,606
1,913
1,612
2,271
725
Effective tax rate
22.4%
23.3%
21.3%
21.2%
21.4%
Profit (loss) for the year
1,247
1,468
1,269
1,790
570
Total assets
13,017
16,683
16,682
23,552
30,589
Total equity
5,096
4,849
5,178
6,229
6,800
ROIC (EBITA*/Average invested capital)
24%
25%
19%
25%
9%
Earnings per share, basic (EPS)
9.25
11.12
9.72
13.63
4.00
Earnings per share, fully diluted (EPS diluted)
9.13
10.98
9.63
13.49
3.99
Investments in property, plant and equipment
-160
-232
-221
-457
-209
Free cash flow excl. company acquisitions and divestments
1,110
1,296
1,865
702
-1,291
Cash conversion (free cash flow excl. company acquisitions and
divest-
ments/EBITA*)
57%
56%
100%
27%
-83%
Equity ratio
39.1%
29.1%
31.0%
26.4%
22.2%
Net interest-bearing debt**
2,699
4,805
3,755
4,829
14,561
Net interest-bearing debt (period-end)/EBITDA
1.3
1.8
1.6
1.6
7.1
Payout ratio
16%
14%
16%
12%
-
Share buybacks***
1,061
1,626
453
1,166
-
Outstanding shares, end of period (thousand)
132,576
128,952
128,975
127,718
127,973
Average number of outstanding shares (thousand)
134,114
130,762
128,805
128,816
127,823
Average number of outstanding shares, fully diluted (thousand)
135,864
132,367
130,032
130,194
128,126
Treasury shares, end of period (thousand)
13,108
13,316
13,293
10,458
9,220
Share price at the end of the period
243.3
313.3
487.2
411.3
159.8
Market capitalization
32,256
40,401
62,837
52,530
20,444
* Please refer to Key Ratio Definitions on page
145 for definition of EBITA ** Please refer to Key Ratio Definitions on page 145
for definition
of Net interest
-bearing debt. NIBD figures have been adjusted to include Loans to dispensers as these are interest bearing
*** Including buybacks as part of the sh
are-based incentive programs
Note: 2018 is not adjusted for changes related to IFRS 16
DKK million
2018
2019
2020
2021
2022
GN Hearing
Revenue
5,833
6,351
4,725
5,332
6,227
Revenue growth
4%
9%
-26%
13%
17%
Organic growth
7%
7%
-24%
16%
5%
Gross profit margin
69.2%
69.0%
61.5%
63.8%
62.7%
EBITA*
1,194
1,284
41
643
453
EBITA margin*
20.5%
20.2%
0.9%
12.1%
7.3%
ROIC (EBITA*/Average invested capital)
19%
19%
1%
9%
5%
Free cash flow excl. company acquisitions and divestments
574
672
127
198
-377
Cash conversion (free cash flow excl. company acquisitions and divest-
ments/EBITA*)
48%
52%
310%
31%
-83%
GN Audio
Revenue
4,774
6,223
8,724
10,443
12,460
Revenue growth
20%
30%
40%
20%
19%
Organic growth
21%
26%
42%
22%
-7%
Gross profit margin
53.2%
51.5%
50.4%
50.6%
41.9%
EBITA*
905
1,192
2,002
2,164
1,299
EBITA margin*
19.0%
19.2%
22.9%
20.7%
10.4%
ROIC (EBITA*/Average invested capital)
59%
57%
81%
79%
17%
Free cash flow excl. company acquisitions and divestments
798
849
1,729
1,288
-91
Cash conversion (free cash flow excl. company acquisitions and divest-
ments/EBITA*)
88%
71%
86%
60%
-7%
ESG summary
2018
2019
2020
2021
2022
Environmental
Scope 1 and 2 emissions (tons CO2e)
-
-
10,092
10,507
8,475
Scope 3 emissions (tons CO2e)
-
-
353,605
513,727
530,190
Social
Number of people with hearing loss helped (m)
-
9.0
9.1
9.4
9.8
Supplier ESG audits
39
49
39
40
31
Governance
Women in senior management (%)
20%
20%
21%
21%
23%
AGM elected women on GN's Board (%)
50%
40%
57%
57%
66%
Five year overview
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Bringing people closer 10
Vision and strategy 11
Our business model 13
Innovation and ecosystem leadership 14
Global reach, local presence 15
Key business areas and product brands 16
Serving attractive markets 17
Financial guidance 2023 18
The
helicopter
view
9/169
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GN's purpose guides the Group's
business activities and how we work
For more than 150 years, GN has leveraged technology to bring people
closer. From the company’s inauguration and into the 20
th
century,
people across the world connected through GN’s telegraph technology.
Later, radio and mobile communication technology took over – still
with GN as innovation leader. In the 1940s, audio and hearing aid tech-
nology came into play. Recently, audio and video collaboration tools
have become crucial in how we connect, communicate, and play.
All along, GN’s focus has been on technology innovation with the pur-
pose of bringing people closer.
Upholding our Great Nordic spirit
GN’s founder, C.F. Tietgen, was inspired by creativity, innovation, and
new ways of thinking – a Nordic spirit rooted in respect and compassion
which meant he believed everyone had something to offer. Tietgen and
his team started by connecting Europe and China via the telegraph, en-
abling communication and thus, also fostering understanding, empa-
thy, and trust between people.
This trust led to further success, and inspired by its Nordic heritage, GN
set out to help even more people connect, communicate, and collabo-
rate. Today, GN touches more lives than ever, with the broadest portfo-
lio of products and services in our history – all bringing people closer,
fostering a sense of community, openness, and understanding.
This is what GN stands for – a spirit which we believe can make a world
of difference, at a time when the world needs it most. It’s Great Nordic.
Sustainable and inclusive mindset
As a globally operating company, a sustainable approach to business
means an inclusive approach – welcoming and benefitting from the
knowledge, skill, and wisdom from people of all ages, genders, national-
ities, cultures, and creeds.
To the people of GN, this is not just a moral requirement, it is a business
imperative. Our values are a critical enabler for us to achieve our pur-
pose - listening to what everyone has to say, challenging the status
quo, and striving to transform the world.
As the climate crisis intensifies, ensuring our children’s future requires
that we innovate and adapt. Business as usual is no longer good
enough, as we must address the environmental, social, and governance
challenges.
Our products help people lead healthier and happier lives, and collabo-
rate in climate-friendly ways, while our business provides decent em-
ployment to thousands of people across our value chain.
To be fit for a future in which the needs of business are balanced with
the needs of society, we will also reduce our carbon footprint. We will
move towards a circular business model, protect human rights across
our full value chain, govern our company in a responsible way, while di-
versity and inclusion are ingrained in everything we do.
We will only become fit for the future by bringing people closer,
whether it’s our customers, our business partners, our suppliers, or our
employees. We need to work together, now more than ever.
Bringing people closer … that is GN’s reason for being
Bringing people closer
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Throughout 2022, a number of employees were interviewed about their
views on working at GN. These testimonials were shared on social media
under the banner of
We are GN – some of these are reflected through-
out this Annual Report 2022. Click on the photo to see the full interview.
“Our innovations
touch people
all over the world.
Our solutions
embrace all
people no matter
where they are.
That’s something
I’m really proud of.”
Salsabile Bouhaya
Creative Development Manager
GN Audio
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GN’s core legacy built through generations is technology-driven en-
hancement of vital human senses – such as the senses of hearing and
sight – with the underlying philosophy of bringing people closer.
With Bringing People Closer as our uniting purpose, GN today helps
people with hearing loss overcome real life challenges, improves com-
munication and collaboration for businesses, and provides great experi-
ences for audio and gaming enthusiasts – all based on innovative tech-
nology-based enhancement solutions.
Strategic focus for the Group
GN’s “Strategy for 2020 and beyond” – with updates announced in the
Annual Report 2021 – defines the Group’s direction for taking individu-
alized customer experience to a whole new level, and:
• further broaden the reach and appeal of GN’s hearing, audio, video,
and gaming product portfolios, where management sees ample fu-
ture opportunities for growth, and
• as new market segments open, leverage GN’s technological exper-
tise and commercial platform, where these provide a particular
competitive advantage
Over the past several years, GN has been redefined from a hardware to
a software-enabled company; repositioned from mainly being perceived
as a hearing aid company to being a fully integrated sound processing
company operating in the traditional hearing aid and headset spaces;
and now further leveraging its technology platform in increasingly con-
verging product categories to also being:
• an innovation leader in enterprise video collaboration
• a global leader in the high-end gaming gear space
• an innovation leader and uniquely positioned to become one of the
leaders in the emerging OTC hearing aid market
• well-positioned to lead the emerging market addressing frontline
workers’ need for professional communication tools
• a strong player in integrated communication and hearing protection
systems for the military space
GN maintains its proven growth model, focusing resources on being a
dedicated developer, manufacturer, and distributor, refraining from
vertical integration. An integral part of this asset-light business model
is a collaborative approach to important eco-systems and strategic
partnerships, allowing GN to focus resources on what we do best and
leverage partners where they are the best.
Utilizing its ability to transfer deep and complex technology between
its diversified R&D organizations and drive synergies between its diversi-
fied go-to-market models, GN’s commercial success builds on driving
innovation leadership across multiple user segments in select attractive
markets characterized by high growth and high entry barriers. This is
further fueled by GN’s continuous ability to spot the next market and
develop relevant products to benefit from technology shifts and key
megatrends.
Right now, we are well underway to realize the benefits of a fully inte-
grated GN Group:
• Our R&D efforts and investments benefit all operating units
• Group procurement benefits all operating units
• Common logistical setup reducing cost and time-to-market
• Common IT infrastructure and security benefits all units
Vision and strategy
GN Store Nord
Annual Report 2022
Key megatrends and strategic drivers
The growth of GN’s hearing, audio, collaboration, and
gaming business areas are supported by several strong and
attractive megatrends that have accelerated in recent years
as well as the emergence of new ones.
Aging populations with
low adoption rate
Consumerization of
products and channels
Changing
competitive landscape
Regulatory shifts
expanding the market
Work -life becomes
hybrid
Unified communication
moves beyond the office
Digitalization and data
Audio, video
, and data
communication
replaces audio only
Gaming goes mainstream Sustainability drives
design and manu-
facturing decisions
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• Common back office functions support all operating units
• Common human resource management, tools, and processes for all
Upon this foundation the strategic focus areas for the operating units
continues to center on how best to pursue profitable growth opportuni-
ties in the specific markets that they address:
Current strategic focus areas in the hearing space
• Modernize hearing care by building new ways of connecting hearing
care professionals, consumers, and partners
• Digitize, simplify, and automate the supply chain
• Simplify the way we work and reduce complexity
• Accelerate through M&A and partnerships
Current strategic focus areas in audio, collaboration, and gaming
• Transform from an audio-only business to an audio, video, and gam-
ing business
• Prioritize resources in Office, Collaboration, and Gaming – taking
share in Consumer and Contact Center
• Broaden scope of the Office business unit beyond office headsets
• Accelerate through M&A and drive simpler ways of working
Integrated sustainability strategy with ambitious goals
GN’s sustainability strategy is integrated into the business strategy to
create real and lasting value. We continuously work on all material en-
vironmental, social, and governance topics. In the areas of climate,
products and packaging, and health, our sustainability goals for 2025
provide a clear and ambitious direction.
Additionally, GN in 2022 set science-based targets to further reduce its
own operational emissions (scope 1 and 2) by 80%, and its value chain
emissions (scope 3) by 25% by 2030. These targets and our plans to
reach them have been validated and approved by the Science Based
Targets initiative.
Significant growth opportunities ahead
In the mid-term, GN will continue to invest in growth through innova-
tion and harvest further synergies to deliver double-digit organic reve-
nue growth rates. Driven by the top-line growth, we will return to our
strong EBITA margin levels of more than 20% and double-digit growth
in earnings per share.
GN pursues 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.
Mid-term targets
DKK million
Organic revenue
growth
EBITA margin Growth in EPS
GN Hearing
(Excl. Emerging Business)
>market growth
1
>20%
GN Audio
(Incl. SteelSeries)
>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
GN synergies stronger than ever
Utilizing technology transfer and synergies from diversified
R&D and go-to-market organizations to drive innovation
leadership across multiple user segments.
Innovation and technology
driven enhancement
of vital senses
Deep R&D expertise
and technology
benefit all transfer
operating units
Common procure-
ment increasing
bargaining power
for all operating
units
Common IT
infra
-
structure and
security benefit
all units
Common back office
functions support all
operating units
Common human re-
source management
,
tools, and processes
for all
Common logis-
tical set-up re
-
ducing cost and
improving time-
to-market
Purpose-led
product brands
and diversified go-
to-market models
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HCP
Impact across our value chain
Our business model
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Investors
Deliver consistent high return
on investment to shareholders
via share price increase, dividend
payment, and share buyback
programs
Key resources
Engaged and focused people
Innovation and ecosystem leadership
Global reach, local presence
Customers
Individualized customer
experiences – enabling people
with hearing loss, consumers,
and workers to hear more, do
more, and be more
Employees
A great, safe, and rewarding place to
work, providing a level playing field
with equal opportunity for all and
ensuring people and talent
development at all levels
Community and environment
Pursuing responsible and inclusive business
practices. Designing products, services, and
operations in an environmentally conscious way.
Sustaining thousands of jobs and paying signifi-
cant corporate tax in countries where we operate
Maximize positive impact
Minimize negative impact
Value chain
Value created
Key business areas
Gaming, consumer
calls, and media
Gaming audio and
other gaming
peripherals, consumer
headsets and earbuds
for calls and media
consumption
Advanced
hearing technology
Innovative medical grade
hearing aids and care solutions
for all types of hearing loss;
over-the-counter hearing
enhancement for mild to
moderate hearing loss
Professional
collaboration
Audio, video,
communication, and
collaboration solutions for
enterprises and
organizations – in and
beyond the office
Maximize
energy
efficiency,
switch to
renewable
energy
Reduce
emissions
from
operations,
production, and
distribution
Provide
good jobs;
safeguard
human rights
across our
value chain
Promote gender
equality, diversity,
and inclusivity
Enable
millions of people
to hear well again
Innovate
for effective
remote collaboration:
reduce business travel
Traffic safety and
wellbeing for drivers
Increase circularity: take-
back schemes, recycling,
and reuse
Expand repair and
refurbish programs:
extend product lifespan
Reduce consumption of raw
materials; ensure responsible
sourcing of minerals
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1
st
Bluetooth
®
headset
1
st
digital
amplifier
with DSP
1
st
Bluetooth
headset with
ANC
1
st
BT Stereo
headphones
with Dolby
1
st
wireless
earbuds with
built-in heart
rate monitor
1
st
smart
panoramic -4k-
pixel plug-and-
play video
solution
1
st
all-in-one
earbuds with
advanced hearing
technology
,
Jabra Enhance
Plus
SteelSeries
launches new
Arctis Nova
line-up
Hearing aid
platform to
address hearing
in noise, and CIC
hearing aids
1
st
to introduce
All Access
Directionality &
M&RIE
1
st
to
introduce direct
streaming from
Android devices
using Bluetooth
Low Energy
Smart Hearing
Alliance with
Cochlear
1
st
made-for-
iPhone hearing
aids
1
st
to introduce
asymmetric
directionality
1
st
to introduce
2.4 GHz e2e
technology
1
st
to introduce
an open mini
BTE
2.4 GHz
2000
2004
2011
2013
2014
2003
2008
2012
2014
2015
2019
2018
2020
2021
2022
2022
Innovation and ecosystem leadership
GN’s engineering capabilities in hardware and software for audio and video deliver unique and individualized customer
experiences, enhancing vital human senses. To add to our own impact, we partner with leading channels, ecosystems,
scientists, and other industry leaders to leverage technology and market access
Definitions: DSP: Digital Signal Processing; e2e: Ear to Ear; CIC: Completely-in-Canal.
In 2022, the R&D spend was DKK 1.8 bn, corresponding to an R&D revenue ratio of 9.5%
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Countries with own presence
Countries with GN distributors
GN offices
GN develops and manufactures innova-
tive and intelligent audio and video com-
munications solutions that are sold in
around 100 countries across the world
Global reach, local presence
Research & Development
GN has R&D centers in Denmark, the United States, the Netherlands,
Poland,
France, and China.
The Group commands a unique blend of leading expertise of the
human ear, audio, video
, speech, gaming, wireless technologies,
software, and miniaturization.
In
2022, GN invested DKK 1.8 bn in research and development.
Manufacturing
GN has its global manufacturing sites for hearing aids in Denmark,
China, and Malaysia. Regional manufacturing centers are
located in the United States and
Spain.
GN’s audio
, video, and gaming
products are mainly produced by carefully
selected manufacturers in China and Southeast Asia, and most compo-
nents are sourced from suppliers in Asia. GN Audio works with a small
number of tier
-one manufacturers supported by more than 100 sub-sup-
pliers.
Sales and distribution
GN’s hearing aids are sold in around 100 countries across the world.
GN has its own organization in 30+ countries and operates via partners
and distributors in another 70 countries.
GN’s audio
, video, and gaming products are sold via distributors and re-
tailers in around 80+ countries across the world. Partners are responsible
for logistics, local customization, and final packaging to optimize lead
-
time to the final customer, delivering from four regional centers in Mex-
ico, Poland, China, and Hong Kong.
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Cutting-edge headsets, speakerphones, and video
collaboration solutions to help people work in the
way that suits them best, from the office to the
home office and everywhere in between
Highly advanced and innovative medical grade
individualized hearing solutions sold globally via
hearing care professionals
Leading hearing brand based on individual care and
technically optimal hearing solutions – sold via
1,500 Beltone branded hearing care stores in the
U.S. and via hearing care professional in select other
markets
Value
-based
, affordable hearing solutions based on
core GN technology sold via hearing care
professionals in select markets
Communication headsets for professional drivers
and enterprise workers, providing superior call
quality in high-noise environments, all -day comfort
,
and durability
Integrated hearing protection and communication
solutions for special operations, military, law
enforcement, and security personnel who all depend
on optimal perception in extreme environments
A complete medical grade hearing solution offering
based on proven GN technology for hearing care
professionals in specific markets only, often with
geographic, partner, or channel exclusivity
High-tech, all -in-one hearing enhancement earbuds
to help users hear conversation, music, and calls in
select situations and professional high -tech hearing
aids that offer more choice and convenience for
select direct-to-consumer channels
GN builds on its core
technology and engineering expertise to deliver innovative and
relevant products and solutions that enhance business and personal productivity
and well-being across multiple user segments with differentiating brands
Medical grade hearing technology
Professional collaboration
Wireless earbuds and headphones for rich sound
and crystal-clear calls, keeping people seamlessly
connected to the people and content they love
Innovative pioneer in premium software -enabled
and system-integrated gaming gear
Gaming
Consumer calls and media
Key business areas and product brands
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Content
Target users Market characteristics Market share
Hearing aids*
Hearing aids for hearing
impaired
Aging population and low penetration
with hearing impaired
Hearing protection
Tactical hearing protection
for defense and security
Hearing protection systems
is a growing political need
Office
Office -based
knowledge workers
From desk-phone telephony in private offices
to UC&C in open offices
Contact center “Calls for a living“
From desk-phones using on-premise
infrastructure to laptop -based cloud calling
Collaboration Plug-and-play collaboration
From built-in legacy equipment to UC&C -
enabled plug-and-play solutions
Consumer
Preference for great calls,
music, and an active lifestyle
From corded headbands to true wireless
as the preferred form factor
Gaming
Premium software-enabled
gaming gear
Growing base of gamers and low penetration
of purpose-built gaming gear
Serving attractive markets
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Driven by a unique portfolio of medical, professional, and consumer
technology solutions, GN serves across attractive markets with high barriers of
entry and multiple drivers of sustainable long-term growth
* Wholesale
** The growth in Microsoft Teams Unified Communication numbers is from pre COVID-19 levels (between late 2019 - early 2020) to current levels (beginning of 2022)
Sources: MarkeTrak, EuroTrak, GN estimates, Microsoft, NewZoo, The NPD Group Inc.
Growing elderly and active population
of people with a hearing loss still live without hearing aids
Massive growth
in Unified Communication
**
times more daily active users on
Microsoft Teams – nearly 270
million active users
A growing, affluent, and aging
world
population, new digital
communication trends, and a growing
base of gamers offer opportunities for
intelligent audio and video solutions
CAGR of
numbers of
gamers
across the
world
Growing base
of gamers
80%
~6
~5%
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GN Hearing
In 2023, GN Hearing expects to continue to grow faster than the pro-
jected market growth. Due to the current macroeconomic environ-
ment, GN Hearing is projecting 1-3% market volume growth and -1%
to -2% market ASP decline. It is currently expected that market growth
will be higher in H2 2023 compared to H1 2023. Due to GN Hearing’s
current momentum and competitive product portfolio, an organic rev-
enue growth between 2% to 8% driven by market share gains is ex-
pected for 2023.
Non-recurring items primarily relates to investments in the supply
chain in the magnitude of DKK ~ -150 million expected in 2023 in order
to restore profitability. For the core hearing aid business, the EBITA
margin is expected to be between 13% to 16% for 2023 excluding non-
recurring items. In the Emerging Business (including
JabraEnhance.com (formerly Lively) and further investments into the
digital space), GN Hearing will continue to invest, and with the ex-
pected strong topline growth, the EBITA impact for 2023 is expected
to be DKK ~ -150 million.
The GN Hearing financial guidance is based on the following assump-
tions for Q1 2023:
• Revenue: Q1 2023 organic revenue growth is assumed to be within
the 2-8% guidance
• EBITA: Q1 2023 EBITA margin assumed to be mid-single digit (ex-
cluding non-recurring items) due to seasonality and launch costs.
The EBITA margin is expected to improve in H2 2023 due to operat-
ing leverage
GN Audio
In 2023, GN Audio expects to continue to grow faster than the market.
The uncertainties arising from the current macroeconomic environ-
mentare expected to negatively impact the market growth. GN Audio
is expecting organic revenue growth between -10% to +5%. The EBITA
margin is expected to be 10% to 15% for 2023, excluding non-recurring
items. This reflects an expectation of gaining market share in a chal-
lenging market environment and continued cost prudence.
In order to further reduce the cost base, GN Audio is expecting non-re-
curring items of DKK ~ -150 million in 2023 in relation to cost reduction
measures.
The GN Audio financial guidance is based on the following assumptions
for Q1 2023:
• Revenue: Q1 2023 organic revenue growth is assumed to be nega-
tive due to challenged market conditions
• EBITA: Q1 2023 EBITA margin assumed to be mid-single digit (ex-
cluding non-recurring items) due to the topline development and
investment in launch activities. The EBITA margin is expected to im-
prove in H2 2023 due to improvement in operating leverage
GN Store Nord
For full year 2023, GN Store Nord consequently expects organic reve-
nue growth of -6% to +6% in 2023, while EBITA in “Other” is expected
to be DKK ~ -200 million.
Financial guidance 2023
Forward-looking statements
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 outlook set forth.
Furthermore, some of these expectations are based on
assumptions regarding future events, which may prove
incorrect. Changes to such expectation and assumptions will not
be disclosed on an ongoing basis, unless required pursuant to
general disclosure obligations to which GN is subject.
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).
The securities offered will not be and have not been registered
under the U.S. Securities Act of 1933, as amended, and may not
be offered or sold in the United States absent registration or an
applicable exemption from registration requirements.
For more information, see the "Management's report" and "Risk
management” elsewhere in this Annual Report. This Annual
Report should not be considered an offer to sell securities in GN.
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Primary risk factors in relation to the financial guidance
Due to the COVID-19 pandemic, the global supply situation, worsened
macroeconomic environment, lower consumer sentiment, and general
higher uncertainty – which impact GN in many ways – it must be
stressed that the basic assumptions behind the guidance remain more
uncertain than normal. The situation is impacting GN’s operational per-
formance, predictability, and visibility across markets, channels, and
supply chain.
The basic assumptions behind the guidance remain more uncertain
than normal. Primary risk factors include inflationary pressures, con-
sumer sentiment and general economic uncertainty. GN’s supply
chains, including component sourcing and local and geopolitical insta-
bility and deteriorating trade relations may impact key suppliers and
GN’s operations.
Financial guidance 2023
Organic
revenue growth
Adjusted
EBITA margin
2)
Non-recurring items
(DKK million)
GN Hearing
2% to 8%
-
Core business organic 13% to 16% ~ -150
-
Emerging Business
1)
(DKK million) ~ -150
GN Audio
-10% to +5% 10% to 15% ~ -150
Other (DKK million)
~ -200
GN Store Nord
-6% to +6% ~ -300
Note 1) Emerging Business mainly includes the JabraEnhance.com (formerly Lively)
Note 2) Excluding non
-recurring items
Based on foreign exchange rates as of February 9, 2023
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Group performance 2022 21
GN Hearing performance 2022 24
The strongest hearing aid portfolio ever 27
Changing the rules of the hearing game 28
GN Audio performance 2022 29
GN Audio’s strongest product portfolio ever 32
Inclusive meetings in the hybrid workplace 33
Improve customer experiences with AI 34
Demand increases for FalCom’s systems 35
Financial
p
erformance
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-3%
Organic revenue
growth
11.6%
Adj. EBITA margin
Capital structure
review concluded
-31%
Adj. EPS growth
214
DKK million in
shareholder distribution
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Revenue
In 2022, like in 2021, GN was significantly impacted by external factors
outside of Management’s control: War in Ukraine, soaring inflation, de-
clining consumer confidence, looming recession, supply chain chal-
lenges, foreign exchange headwinds, and continued COVID-19 market
disturbances. Despite this, GN increased revenue by 18% to DKK
18,687 million compared to DKK 15,775 million in 2021. Organic reve-
nue growth was -3%, compared to 20% in 2021.
The impact from M&A was around 16%, primarily reflecting SteelSeries
and JabraEnhance.com (formerly Lively), while the impact of the
development in foreign exchange rates was around 5%.
The revenue growth reflects strong execution and market share gains
across business segments in challenged markets.
Earnings
GN Store Nord’s adj. EBITA was DKK 2,166 million in 2022 compared to
DKK 2,664 million in 2021. The decline was primarily driven by the con-
strained supply situation particularly in the beginning of the year, re-
duced consumer sentiment, the acquisitions of JabraEnhance.com and
SteelSeries, as well as unfavorable development in foreign exchange
rates and increased freight cost.
EBITA in Other amounted to DKK -192 million in 2022, compared to
DKK -188 million in 2021 due to prudent cost management. 2022 earn-
ings correspond to an adj. EBITA margin of 11.6% compared to 16.9%
in 2021.
Reported EBITA was DKK 1,560 million, reflecting non-recurring items
of DKK -606 million due to supply chain initiatives in GN Hearing and
the non-recurring items related to SteelSeries as well as cost reduction
measures.
In 2022, amortization of acquired intangible assets amounted to DKK
-440 million compared to DKK -226 million in 2021 reflecting the con-
solidation of SteelSeries. Financial items were DKK -405 million in 2022
(of which DKK -18 million were non-recurring) compared to DKK -90
million in 2021, primarily driven by financing costs relating to the
SteelSeries acquisition.
In 2022, share of profit (loss) in associates was DKK 19 million com-
pared to DKK -36 million in 2021. Gain (loss) on divestment of opera-
tions etc. was DKK -9 million in 2022 compared to DKK 4 million in
2021. Adj. profit before tax was DKK 1,349 million in 2022 (reported
profit before tax was DKK 725 million) compared to DKK 2,316 million
in 2021. The effective tax rate was 21.4%, translating into an adj. net
profit of DKK 1,060 million in 2022 (reported net profit of DKK 570 mil-
lion) compared to DKK 1,825 million in 2021.
Free cash flow
Free cash flow excl. M&A was DKK -1,291 million in 2022 compared to
DKK 702 million in 2021, mainly driven by significant inventory build-
up, particularly in GN Audio incl. SteelSeries, lower earnings, and in-
vestments in growth through financial support agreements. Inventory
build-up is a consequence of the previously challenging global supply
situation and the current macro-economic challenges.
Other performance indicators
Adj. earnings per share (adj. EPS) was DKK 10.54 in 2022 compared to
DKK 15.29 in 2021, translating into a growth of -31%, in line with the
updated financial guidance. The reported EPS ended at DKK 4.0. The
return on invested capital (ROIC) was 9% in 2022 compared to 25% in
2021.
By the end of 2022, equity in GN Store Nord amounted to DKK 6,800
million, compared to DKK 6,229 million in 2021. The increase was pri-
marily driven by the net profit generated in the year.
Group performance 2022
Revenue (DKKm) and organic revenue growth
GN Store Nord
Adj. EBITA (DKKm) and Adj. EBITA margin
GN Store Nord
*
Excluding non-recurring items in 2019, 2020, 2021, and 2022
1,956
2,373
1,752
2,664
2,166
20212018 202220202019
Adj. EBITA (DKKm)*
18.4% 18.9% 13.0% 16.9% 11.6%
Adj
. EBITA
margin*
10,607
12,574
13,449
15,775
18,687
202220212018 2019 2020
Revenue (DKKm)
Org
.
growth
13% 15% 9% 20% -3%
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Capital structure
Net interest-bearing debt ended at DKK 14,561 million in 2022 com-
pared to DKK 4,829 million by the end of 2021, mainly driven by the
SteelSeries acquisition. As a result, the adj. leverage ended at 5.5x. Re-
ported leverage ratio was 7.1x reflecting the DKK -606 million non-re-
curring items.
In September 2022, GN signed a three-year EUR 520 million term loan
with its commercial banking group to cover its short-term funding re-
quirements, while a new combined EUR 110 million R&D loan from EIB
and KfW was signed in November 2022. By the end of 2022, GN had
cash and cash equivalents of DKK 990 million.
In line with the last couple of years, GN continues to proactively secure
a diversified funding profile. The diverse sources of financing now avail-
able to GN include the convertible bond market (via the listed converti-
ble bond), traditional bonds (via the Euro Medium-Term Note pro-
gram), the short-term Euro Commercial Paper Program, bilateral loan
facilities provided by EIB, KfW and the commercial banking group, as
well as uncommitted bank facilities including overdraft lines.
In accordance with our announcement on November 11, 2022, GN has
conducted a comprehensive review of the appropriate capital struc-
ture.
In light of the current macroeconomic environment and GN’s leverage,
GN has announced that it intends to raise gross proceeds of DKK 7 bil-
lion in the first half of 2023 through the issuance of new shares with
pre-emptive rights for GN’s shareholders (the “Rights Offering”).
Proceeds from the Rights Offering will be used to strengthen GN’s bal-
ance sheet and provide appropriate financial flexibility.
With these actions we are confirming our commitment to the capital
structure policy with a target of 1-2x NIBD/EBITDA, which we plan to
reach in the short term.
GN has entered into a standby underwriting letter and, as such, the
Rights Offering is, subject to certain customary conditions, fully under-
written by a syndicate of banks. In connection with the Annual General
Meeting on March 15, 2023, GN’s Board of Directors plan to seek au-
thorization to increase the share capital with pre-emptive rights for the
existing shareholders.
Free cash flow excl. M&A (DKKm) and cash conversion (%)
GN Store Nord
* Free cash flow excl. M&A / EBITA
Adj.
Earnings per share (EPS)
GN Store Nord
*
Excluding non-recurring items and amortization of acquires intangible assets
1,110
1,296
1,865
702
-1,291
2019
2021
2018
2020 2022
Free cash flow excl. M&A
Cash
conversion
*
57% 56% 100% 27% -83%
10.15
13.17
10.46
15.29
10.54
2021
2018 202220202019
Adj. EPS (DKK)*
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Dividend and share buyback program
In 2022, GN distributed DKK 214 million to shareholders through a divi-
dend payment. In March 2022, GN paid out DKK 1.55 per share in re-
spect of the fiscal year 2021, as approved at the Annual General Meet-
ing in 2022.
Due to the acquisition of SteelSeries as announced in October 2021,
GN Store Nord’s share buyback program has been paused for the time
being.
As a consequence of the concluded capital structure review, GN will
not pay out a dividend in respect to the financial year 2022. As GN’s
capital structure policy is confirmed, GN expects to return making
dividend payments, once the leverage is back within the long-term
target.
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Financial overview 2022
GN Hearing
GN Audio
DKK million - 2022
GN
Hearing
Core
business
Emerging
business
GN
Audio
GN Audio
organic
Steel-
Series
Revenue
6,227
6,022
205
12,460
10,143
2,317
Organic growth
5%
5%
73%
-7%
-7%
-19%
Adj. EBITA**
599
786
-187
1,759
Adj. EBITA margin**
9.6%
13.1%
14.1%
Group total*
GN Hearing
GN Audio
DKK million
2022
2021
Growth
2022
2021
Growth
2022
2021
Growth
Revenue
18,687
15,775
18%
6,227
5,332
17%
12,460
10,443
19%
Organic growth
-3%
20%
5%
16%
-7%
22%
Adj. Gross profit**
9,384
8,682
8%
3,963
3,400
17%
5,421
5,282
3%
Adj. Gross profit margin**
50.2%
55.0%
-4.8%p
63.6%
63.8%
-0.2%p
43.5%
50.6%
-7.1%p
Adj. EBITA**
2,166
2,664
-19%
599
643
-7%
1,759
2,209
-20%
Adj. EBITA margin**
11.6%
16.9%
-5.3%p
9.6%
12.1%
-2.5%p
14.1%
21.2%
-7.1%p
Adj. Earnings per share (EPS)***
10.54
15.29
-31%
Free cash flow excl. M&A
-1,291
702
NA
-377
198
NA
-91
1,288
NA
* Including "Other"
** Excluding non
-recurring items (DKK -196 million in COGS in GN Audio, DKK -264 million in OPEX in GN Audio, DKK -56 million in COGS in GN Hearing and DKK -90 million in OPEX in GN
Hearing)
in 2022. Excluding non-recurring items (DKK -45 million in OPEX in GN Audio) in 2021
*** Excluding non-recurring items (DKK -624 million in 2022 and DKK -45 million in 2021) and amortization of acquired intangible assets
Sarah Egekjær
Mechanical Design Engineer
GN Audio
”We strive to get
the best out of
every product. We
innovate and we
raise the bar.”
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GN Hearing performance 2022
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10%
R&D investment
(percentage of revenue)
5%
organic revenue growth
Revenue of DKK 6.2 bn
13.1%
Adj. EBITA margin
Adj. EBITA of DKK 0.8 bn
in Core business
Launch of
ReSound OMNIA
0%
North America
8%
Rest of World
10%
Europe
Organic revenue growth
by region
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Revenue
GN Hearing delivered 5% organic revenue growth in 2022 which was in
line with the financial guidance. Revenue growth was 17% including
around 7% impact from the development in foreign exchange rates
and around 5% impact from M&A. The Emerging business
(JabraEnhance.com) delivered 73% organic revenue growth. The reve-
nue in 2022 reached DKK 6,227 million, compared to DKK 5,332 million
in 2021.
The hearing aid market continued to be impacted by COVID-19 alt-
hough at different magnitudes across countries, depending on the level
of local restrictions. Most countries also experienced some softness
due to reduced consumer sentiment. The launch of the new flagship
product ReSound OMNIA delivered strong growth in the second half of
the year, particularly in the fourth quarter, and was the main reason for
strong market share gains in 2022.
North America
The hearing aid market in North America was soft in the second half of
2022, with volumes slightly below 2021, although the managed care
segment showed solid growth. GN Hearing’s organic revenue growth
was 0% in 2022 driven by solid performance in the independent market
with ReSound OMNIA. The performance in the U.S. Veterans Affairs
(VA) was in most of the year negatively impacted by challenging condi-
tions in the channel, however, positively affected by good reception of
ReSound OMNIA launched in November. In Costco, new product
launches further strengthened GN Hearing’s position in the branded
segment by the end of the year. Growth in Costco was, however, nega-
tively impacted by the ASP development in the channel. Revenue
growth in North America was 16% including around 13% impact from
the development in foreign exchange rates and around 3% impact
from M&A.
Europe
In Europe, GN Hearing delivered strong organic revenue growth of 10%
primarily driven by Germany, UK, and Southern Europe and further
supported by larger than normal revenue from GN Hearing’s key stra-
tegic partner, Cochlear. The strong growth was achieved despite GN’s
decision to suspend all sales to Russia. Revenue growth was 22% in-
cluding around 1% impact from the development in foreign exchange
rates and around 11% impact from M&A reflecting a retail ownership in
transition.
Rest of World
The Rest of World region continued to be impacted by COVID-19 at
varying degrees depending on the level of local restrictions with espe-
cially China affected during 2022. Despite impact from COVID-19 in
China, organic revenue growth in the Rest of World region was 8%.
Revenue growth was 12% including around 4% impact from the devel-
opment in foreign exchange rates.
Organic
revenue growth
5%
Launch of
ReSound
OMNIA
Adj. EBITA
margin
in Core business
13.1%
Restoring
profitability
Complete
product
portfolio
Revenue
(DKK)
6.2bn
GN Hearing
5,833
6,351
4,725
5,332
6,227
2018 2019 20212020
205
2022
Revenue Emerging business (DKKm)
Revenue Core business (DKKm)
Org.
growth
7% 7% -24
% 16% 5%
6,022
Revenue (DKKm) and organic revenue growth
GN Hearing
Revenue distribution
GN Hearing
North
America
47%
Europe
29%
Rest of
World
24%
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Earnings and other financial highlights
GN Hearing’s adj. gross profit reached DKK 3,963 million in 2022 corre-
sponding to an adj. gross margin of 63.6% compared to 63.8% in 2021.
The adj. gross margin was negatively impacted by elevated freight
costs, increased material costs, and was off-set by pricing initiatives.
In 2022, GN Hearing continued to take prudent OPEX measures to
manage costs. Excluding non-recurring items, OPEX increased 22% to
DKK 3,364 million, compared to DKK 2,757 million in 2021. This was
driven by investments in launch activities, foreign exchange rate im-
pact and consolidation of the JabraEnhance.com (formerly Lively) ac-
quisition as well as a retail-in-transition acquisition in Q2 2022.
Adj. selling and distribution costs increased by 40% reflecting
JabraEnhance.com, retail-in-transition, additional launch costs, and for-
eign exchange rates. Adj. R&D costs decreased by 6% compared to
2021, primarily driven by timing effects. Adj. general and administrative
costs decreased by 4% due to prudent cost management. Other oper-
ating income amounted to DKK -70 million in 2022 compared to DKK -
27 million in 2021 due to foreign exchange hedging.
GN Hearing’s adj. EBITA was DKK 599 million, with the Core business
delivering adj. EBITA of DKK 786 million corresponding to an adj. EBITA
margin of 13.1%, which was in line with the financial guidance. The
Emerging business, primarily JabraEnhance.com, delivered an EBITA of
DKK -187 million. Reported EBITA amounted to DKK 453 million re-
flecting non-recurring items of DKK -146 million in 2022.
The return on invested capital (ROIC) was 5% in 2022 compared to 9%
in 2021, mainly driven by lower reported EBITA as a reflection of
JabraEnhance.com and launch activities.
Free cash flow excl. M&A was DKK -377 million in 2022 compared to
DKK 198 million in 2021. The free cash flow excl. M&A reflects the
earnings level as well as investments into future growth opportunities
and strategic financial support agreements. During 2022, certain pro-
jects have been initiated internally to significantly reduce working capi-
tal in order to return to delivering strong cash flows in the future.
Business highlights
Hearing Australia tender
In October 2022, GN Hearing won a tender to be main supplier for
hearing aids and ear moulds to Hearing Australia for five years with an
extension option for further five years. Hearing Australia is the biggest
single customer in Australia with over 100,000 hearing aid units distrib-
uted per year. The contract is expected to come into force Q1 2023.
Restoring profitability and non-recurring items
As communicated, GN Hearing expects the Core business to restore
profitability to an EBITA margin of more than 20% in 2024, driven by
above-market revenue growth and several operational initiatives,
primarily related to the supply chain. With a focus to digitalize, simplify
and automate the supply chain, GN outsourced GN Hearing’s UK
distribution setup to an external partner operating out of the
Netherlands. To accelerate the initiatives and restore profitability, GN
Hearing incurred DKK ~ -146 million in non-recurring items in 2022.
GN Hearing non-recurring items
(DKK million)
2022
2021
Revenue
-
-
Production costs
-56
-
Gross profit
-56
-
Development costs
-7
-
Selling and distribution costs
-54
-
Management and administrative expenses
-29
-
Other operating income and costs, net
-
-
EBITA
-146
-
Adj. EBITA (DKKm) and Adj. EBITA margin
GN Hearing
*
Excluding non-recurring items in 2022
Free cash flow
excl. M&A (DKKm) and cash conversion (%)
GN Hearing
* Free cash flow excl.
M&A / EBITA
574
672
127
198
-377
2019 20212018 2020 2022
Free cash flow excl. M&A
Cash
conversion*
48
%
52%
310%
31
% -83%
1,194
1,284
41
643
786
20222018 2019 2020 2021
Adj. EBITA
margin Core
*
20.5% 20.2% 0.9% 12.1% 13.1%
Adj. EBITA Emerging business
(DKKm)*
Adj. EBITA Core business (DKKm)*
-187
599
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Completely new line-up of
products addresses key needs for
all with hearing difficulties
Innovation at GN focuses on delivering customer-
centric products and experiences – listening to and
understanding customers’ true needs. In line with
this philosophy, GN Hearing during 2022 and into
2023 launched five new product lines addressing the
specific, yet very diverse requirements in five differ-
ent customer segments.
GN Hearing’s portfolio now offers a completely new
line-up across all form factors and for all users –
whether they want:
• uncompromised hearing
• a reliable and robust hearing aid
• an earbud experience
• discreet above all
• or a solution for occasional use
With this portfolio, GN Hearing both expands the
hearing aid market as well as provides customers in
existing market segments with new and more tech-
nologically advanced hearing solutions.
Advancing in the prescription based market
GN Hearing’s core business is delivering hearing aids
for individuals with mild to profound hearing loss.
Most of them elderly, and in most cases with a hear-
ing care professional as the most important stake-
holder in the decision about which product to
choose, and the fitting experience highly supported
by a physically present hearing care professional.
In 2022, we introduced ReSound OMNIA which sets
a new standard in hearing technology, improving
the way people with hearing loss interact with the
world through better ‘hearing in noise’. 86% of peo-
ple who wear hearing aids describe hearing in noise
as the key challenge. ReSound OMNIA has been en-
gineered to deliver a 150% improvement to speech
understanding in noisy environments
1
.
ReSound OMNIA sounds natural, feels natural, and
helps people connect naturally to the world. The
product also offers the most natural ‘own voice’ per-
ception, so users can join in on conversations with-
out being distracted by the sound of their own voice.
ReSound OMNIA is created for people with mild to
profound hearing loss. Customer and market recep-
tion has been very positive.
For people with moderate to profound hearing loss,
we introduced the ReSound OMNIA Behind-the-Ear
(BTE), aimed at hearing aid users who want im-
proved technology in reliable and robust hearing
aids. For people diagnosed with mild to severe hear-
ing loss who want the earbud experience or very dis-
creet hearing aids, we expanded the portfolio with
two types of custom hearing aids based on the Re-
Sound OMNIA technology – In-the-Ear (ITE) and
Completely-in-Canal (CIC).
Expanding the hearing aid market
For the new over the counter (OTC) hearing aid mar-
ket in the U.S., we launched the Jabra Enhance Plus
earbuds (see more on the next page).
Further, with the acquisition in December 2021 of
JabraEnhance.com (formerly Lively), GN Hearing is
expanding the market with the leading online hear-
ing care platform, enabling consumers to explore,
purchase and receive hearing care in the U.S. from
home. Combining Jabra’s renowned brand for audio
expertise and sound engineering with
JabraEnhance.com’s tradition for innovative tele-
health and a digital-care-first model will accelerate
making hearing care more accessible and affordable
for millions of Americans.
The strongest
hearing aid portfolio ever
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1
compared to previous generations
Wants reliable and robust
Moderate-to-
profound
hearing loss
ReSound OMNIA
Power BTE
Wants uncompromised hearing
Mild-to-profound
hearing loss
ReSound OMNIA RIE
in different styles
Wants earbud experience
Mild-to-severe
hearing loss
ReSound OMNIA
Custom ITE/ITC
Wants discreet above all
Mild-to-severe
hearing loss
ReSound OMNIA CIC
Wants occasional use
Self
-diagnosed
Jabra Enhance Plus
Age 18-75
Age 50-75
Age 18-75
Age 50-75
Age 70+
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In October 2022, the world’s largest hearing aid
market, the U.S., opened for sales of hearing aids
over the counter (OTC). Initial consumer interest,
media coverage, and debate have been intense.
Although OTC marks a paradigm shift which funda-
mentally changes the rules of the game in hearing
care, it is expected to take time for this new OTC
market to mature.
However, several major retailers – Best Buy, Ama-
zon, Walgreens, and more – embrace the new op-
portunity and now offer Americans with mild to
moderate hearing loss new ways to improve their
hearing without having to go through a prescription
process.
Significant market and health opportunity
Only one in five people who could benefit from
hearing improvement wears hearing aids. An esti-
mated 50 million Americans find themselves with
some degree of hearing loss but have not yet sought
or found the right solution.
Untreated hearing loss makes it difficult to com-
municate and socialize, ultimately impacting overall
health and well-being. Despite the fact that 96% of
hearing aid users report improved quality of life
1
,
there is still much stigma on wearing hearing aids.
GN has welcomed this new regulation as it provides
access to help for many more people with a hearing
disability. With our vision to modernize hearing care
through innovation that overcomes the barriers
many have, GN’s first OTC offering was launched
immediately following the market opening in online
and retail stores nation-wide.
Not a typical hearing aid
Launched under the Jabra brand – well-known for
high-quality consumer electronics – Jabra Enhance
Plus are miniaturized true wireless earbuds that de-
liver a 3-in-1 experience of hearing enhancement,
music, and calls. By combining GN’s medical and
consumer audio expertise, Jabra Enhance Plus of-
fers a modern and discreet earbud design for people
with perceived mild-to-moderate hearing loss, ac-
knowledging hearing difficulties, but not yet ready
for traditional hearing aids. The earbuds are unique,
different, and inviting for new target audiences.
Three options provide choice
With the OTC regulation, consumers now have the
option of getting a hearing enhancement product
easier than previously. GN is proud to offer a variety
of options to Americans looking to address their
hearing health:
1. Even without a hearing assessment and pre-
scription, consumers can buy Jabra Enhance
Plus online at Amazon, Jabra.com, or retailers
such as Best Buy in stores across the U.S.
2. For people who would like support by a profes-
sional before purchasing, but prefer it to be easy
and convenient, JabraEnhance.com (formerly
Lively) offers consumers online support by audi-
ologists, ensuring a product that fits their
needs.
3. People who prefer in-person professional sup-
port can visit one of the many ReSound or Bel-
tone Hearing Care Professionals across the U.S.
Here, consumers can get their hearing tested by
a hearing care professional to ensure they have
a reliable and robust hearing solution that fits
their ears.
Changing the rules of the
hearing game
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1
EuroTrak pooled data GER, FRA, UK, 2018: Hearing aid owners
Offering three options to
address hearing health
Buy product online or in-store
without a hearing assessment
Get online support by a professional
before purchasing
Get in-person support by a Hearing
Care Professional before purchasing
1
2
3
Best Buy
Jabra.com
Jabra
Enhance.com
ReSound
and Beltone
clinics
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GN Audio performance 2022
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9%
R&D investment
(percentage of revenue)
-7%
organic revenue growth
Revenue of DKK 12.5 bn
14.1%
Adj. EBITA margin
Adj. EBITA of DKK 1.8 bn
SteelSeries
Successfully
integrated
-19%
North America
-6%
Rest of World
-1%
Europe
Organic revenue growth
by region
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Revenue
GN Audio delivered -7% organic revenue growth in 2022, compared to
organic growth of 22% in 2021, in line with the updated financial guid-
ance. The decline was driven by a -37% organic revenue growth in the
Consumer segment partly offset by 0% organic revenue growth in En-
terprise despite significant constraints from an improving yet challeng-
ing global supply chain situation. GN Audio continues to deliver market
share gains, driven by the world-leading product portfolio and strong
channel execution. The total revenue in GN Audio in 2022 reached DKK
12,460 million, compared to DKK 10,443 million in 2021.
SteelSeries delivered organic revenue growth of -19% while gaining
market share in a significantly declining market, impacted by low
consumer sentiment. Market share gains were driven by the strong and
updated product line-up including category expansion into gaming
speakers. Sell-out growth for SteelSeries was much stronger than
sell-in due to the generally significant channel reduction across
retailers impacting many different product categories. Revenue growth
was 19% including a 22% impact from M&A, reflecting SteelSeries.
The impact from the development in foreign exchange rates was
around 4%.
North America
GN Audio delivered -19% organic revenue growth driven by soft Enter-
prise markets, weak consumer business, and significant supply chal-
lenges particularly in the beginning of the year. Revenue growth was
26% including around 10% impact from the development in foreign ex-
change rates and around 35% impact from M&A, reflecting the
SteelSeries acquisition.
Europe
In Europe, GN Audio delivered organic revenue growth of -1% with
strong performance in, among other, Germany and the UK. The
development also reflects GN’s decision to suspend all sales to Russia.
The organic revenue growth was negatively impacted by the supply
challenges particularly in the beginning of the year as well as a weak
performance in the consumer business. Revenue growth was 12%
including around 13% impact from M&A and no impact from the
development in foreign exchange rates.
Rest of World
In the Rest of World region, GN Audio delivered -6% organic revenue
growth with strong performance in, among other, India, while also be-
ing negatively impacted by the supply challenges. Revenue growth was
27% including around 26% impact from M&A and around 7% impact
from the development in foreign exchange rates.
Earnings and other financial highlights
GN Audio’s adj. gross profit reached DKK 5,421 million in 2022 com-
pared to DKK 5,282 million in 2021 representing a growth of 3%.
GN Audio delivered an adj. gross margin of 43.5% in 2022 compared to
50.6% in 2021, driven by an elevated level of freight costs, increased
-7%
Market
share gains
in soft
markets
Volatility &
shortages
in global
supply
14.1%
SteelSeries
integrated
12.5bn
Organic
revenue growth
Adj. EBITA
margin
Revenue
(DKK)
GN Audio
Revenue (DKKm) and organic revenue growth
GN Audio
Revenue distribution
GN Audio
Europe
48%
Rest of
World
20%
North
America
32%
4,774
6,223
8,724
2,317
10,443
12,460
202220202018 2019 2021
Org.
growth
21% 26% 42% 22% -7%
Revenue SteelSeries
(DKKm)
Revenue GN Audio organic (DKKm)
10,143
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material costs, the consolidation of SteelSeries and a significant nega-
tive impact from the development in foreign exchange rates. In order
to mitigate the impact from increasing input costs, GN Audio initiated
price increases across the Enterprise portfolio in the beginning of 2022.
Further price increases will come into effect in the beginning of 2023 to
further mitigate the high inflation.
GN Audio’s adj. OPEX was DKK -3,662 million in 2022, reflecting an
19% increase compared to 2021, primarily driven by the consolidation
of SteelSeries. Selling and distribution costs increased by 21%, while
adj. general and administrative costs increased by 33%. Investments in
R&D increased by 8% compared to 2021. GN Audio’s adj. EBITA ended
at DKK 1,759 million in 2022, translating into an adj. EBITA margin of
14.1%, compared to 21.2% in 2021 and in line with the updated finan-
cial guidance. The development reflects the gross margin decline due
to increasing freight and production costs, the consolidation of Steel-
Series and the development in foreign exchange rates. Reported EBITA
was DKK 1,299 million, reflecting DKK -460 million in non-recurring
items related to the acquisition of SteelSeries and cost reduction
measures.
The return on invested capital (ROIC) was 17% in 2022 compared to
79% in 2021. Free cash flow excl. M&A was DKK -91 million in 2022
compared to DKK 1,288 million in 2021, reflecting strong operating
cash flows excluding changes in working capital of DKK 899 million,
negatively impacted by significant inventory build-up. During 2022, cer-
tain projects have been initiated internally to significantly reduce work-
ing capital to return to delivering strong cash flows in the future.
Business highlights
Global supply situation
The business was significantly constrained by the global supply situa-
tion primarily in the first half of the year. In the second half of 2022,
the global supply situation saw an improving trend and was close to
fully resolved by the end of the year. As a result, the order backlog at
the end of 2022 was limited.
SteelSeries integration and non-recurring items
The initiated SteelSeries integration of sales, supply chain, finance, and
other back-office functions is progressing according to plan. GN Audio
realized annual operational run-rate synergies of around DKK 150 mil-
lion by the end of 2022. Around half of these synergies impacted 2022
as expected. In addition, future revenue synergies are expected. During
2022, GN incurred booked non-recurring items related to the Steel-Se-
ries acquisition of DKK -357 million, of which DKK -196 million was
booked as COGS (non-cash PPAs) and DKK -161 million was recognized
as general and administrative expenses.
GN Audio non-recurring items
(DKK million)
2022
2021
Revenue
-
-
Production costs
-196
-
Gross profit
-196
-
Development costs
-
-
Selling and distribution costs
-
-
Management and administrative expenses
-264
-45
Other operating income and costs, net
-
-
EBITA
-460
-45
Taking strong actions in an ever-changing macro-environment
Acknowledging the current sentiment related to a potential recession,
GN Audio took proactive and significant actions to reduce the cost base
and defend the agility of the company. For this purpose, GN booked
non-recurring items of DKK -103 million in 2022. The current actions
are expected to drive DKK 200-300 million costs savings for 2023 and
beyond.
Adj. EBITA (DKKm) and Adj. EBITA margin
GN Audio
* Excluding
non-recurring items in 2019, 2020, 2021, and 2022
Free cash flow
excl. M&A (DKKm) and cash conversion (%)
GN Audio
* Free cash flow excl.
M&A / EBITA
905
1,244
1,888
2,209
1,759
20212018 2019 2020 2022
19.0% 20.0% 21.6% 21.2% 14.1%
Adj. EBITA
margin*
Adj. EBITA (DKKm)*
798
849
1,729
1,288
-91
2019 20212018 2020 2022
Free cash flow excl. M&A
Cash
conversion*
88% 71% 86% 60% -7%
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Jabra and SteelSeries launched a
record number of new industry
leading products
In 2022, GN Audio had multiple successful product
launches under the Jabra and SteelSeries brands. All
new product families have received stellar reviews.
With these new innovations, GN Audio now offers
enterprises, consumers, and enthusiast gamers the
strongest product portfolio ever.
New products under the Jabra brand
Jabra Connect 5t
True wireless earbuds engineered for remote work-
ing.
Jabra Evolve2 Buds
Professional, pocketable true wireless earbuds engi-
neered for hybrid and remote working.
Jabra Perform 45
Wireless headset designed to keep frontline workers
connected wherever they are.
Jabra Engage 50 II and Jabra Engage 40
A new generation of contact centre headsets to the
Engage line.
Jabra Engage 55
A portable professional headset, designed for ulti-
mate call security and quality.
Jabra Engage AI
New Software-as-a-Service (SaaS) solution improv-
ing customer and agent experience in contact cen-
tres (also see page 34).
Jabra Elite 4 Active
True wireless earbuds made for an active lifestyle.
Jabra Elite 5
True wireless earbuds designed for calls anywhere
and perfect for enjoying media during leisure.
Jabra PanaCast 50 Video Bar System
Plug-and-play full meeting room system allowing all
participants to be seen, included, and have equal
presence and impact – see page 33 for more details.
New products under the SteelSeries brand
Arctis Nova Pro + Sonar Audio Software Suite
SteelSeries fuses the Arctis Nova Pro series head-
sets with Sonar Audio Software Suite - to create the
ultimate listening experience.
Arctis Nova 7
Heir to one of the best-selling gaming headsets of
all time.
Arena speakers
Premium speakers allowing total immersion within
any game.
Apex 9 keyboards
World’s fastest optical switches.
Apex Pro Mini keyboards
Wireless, compact, fast, and adjustable – and the
first wireless keyboard to win a CS:GO tournament.
Apex Pro TKL keyboards
Even faster and more adjustable.
GN Audio’s strongest product
portfolio ever
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Jabra Elite 4 Active
Jabra Elite 5
Jabra Connect 5t
Jabra Evolve2 Buds
Jabra Engage 50 II
Jabra Engage 55
Jabra Perform 45
Arena speakers
Arctis Nova Pro
Apex 9 keyboard
Apex Pro Mini keyboard
Sonar Audio Software Suite
Apex Pro TKL keyboard
Arctis Nova 7
Jabra Engage AI
Jabra Engage 40
Jabra PanaCast 50 Video Bar System
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Part of Microsoft’s new global
standard for meeting rooms
Defining a new global standard for the hybrid work-
place meeting experience, Microsoft and GN – as
part of their long-standing alliance partnership –
have worked together to make this come to life.
Microsoft set up the Hive – a laboratory within Mi-
crosoft dedicated to transforming how meetings
happen at Microsoft with Microsoft Teams Rooms.
In 2022, the team had a key role in providing feed-
back to GN and the Microsoft Teams Rooms (MTR)
product group, to ensure that the solution fitted the
needs of the hybrid workplace – in Microsoft and for
Microsoft and GN’s Jabra customers.
For its first iteration of internal meeting room stand-
ards, the Hive team selected the Jabra PanaCast 50
to be the first new normal-ready intelligent video
bar to be deployed in Microsoft’s own hybrid confer-
ence rooms. The hybrid workplace meeting experi-
ence is defined as one where some meeting
participants are in the meeting rooms, some are
working from home, and others may be on the go.
The challenges of these kinds of meetings are what
Microsoft and GN address with solutions designed
to create a seamless experience for all meeting par-
ticipants.
Partnering to create better hybrid experiences
Being part of a plug-and-play full room system is a
first for Jabra. Our Microsoft Teams Room (Pana-
Cast 50 Room System), consisting of Jabra PanaCast
50, a PC, an HDMI ingest, and a touch console,
comes certified for Microsoft Teams.
The Jabra PanaCast 50 Room System is a big growth
opportunity for GN. The shift to hybrid work – which
began long before COVID-19 and expanded rapidly
during the pandemic – continues to grow for
productivity and cost reasons. It has led to an in-
creased demand for video-enabled conference
rooms, but also for better hybrid experiences than
most video-enabled conference rooms offered at
the onset of the pandemic.
Today, companies want meeting experiences in
which all participants are seen and included and
have equal presence and impact – whether they are
in the conference room, in their homes, or in transit.
As real as if you all gather in the same space
Imagine giving everyone in and outside of the con-
ference room equal space and impact, a chance to
brainstorm on shared digital canvas, pickup visual
cues in a meeting with remote participants as the
camera zooms in on who is speaking.
These functionalities make up a competitive offer-
ing and require only a minimum of configuration be-
fore use. With Jabra’s PanaCast 50 Room System
powered by Microsoft Teams, artificial intelligence
does the work, brings all participants into play, and
brings people closer across the hybrid workplace.
Our solutions enable new meeting experiences and
allow the hybrid working experience to be as collab-
orative as if meeting participants were all gathered
in the same physical space.
.
Inclusive meetings in
the hybrid workplace
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Join your call...
...from the office
...from home
...on the go
...and feel fully included
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Jabra Engage AI – revolutionary
new contact center software
Jabra Engage AI is the first stand-alone commercial
software solution that GN brought to market in Sep-
tember 2022.
The solution targets contact centers, enabling them
to improve customer and agent experience. The so-
lution is focused on engaging contact center agents
to deliver their best performance and on bringing
them closer to their supervisors.
This new offering has had a promising start with the
first customers secured and a promising pipeline
heading into 2023.
Contact centers are used in many industries to offer
customer support in a cost efficient way – from cus-
tomer support centers at insurance agencies and
cellphone carriers to customer support centers at
large retail chains.
Just a few short years ago, contact center supervi-
sors used to be able to walk among contact center
agents to evaluate their performance, but the land-
scape has changed, and the agents are increasingly
working from home. This calls for different ways of
evaluating and engaging the agents.
The biggest driver of customer experience are the
customer service professionals operating the voice
channel. Their performance depends on their en-
gagement and wellbeing.
In GN Audio, we found that the key to a great cus-
tomer experience lies in the human tone, so analyz-
ing voice by using AI (artificial intelligence) was a
natural next step for us.
Working on the frontier of what is possible
Engage AI gives supervisors the possibility of moni-
toring “angry calls”, “great calls” and other calls
needing feedback and evaluation.
With Engage AI monitoring calls, supervisors can set
up notifications for different tones of voice and for
actions upon which to give the customer service
professionals feedback. In this way, supervisors no
longer need to listen to hours of random calls to
evaluate agent performance.
Investment in innovation pays off
GN’s investment in the technology that made
Engage AI possible started in 2018 by investing in
audEERING, a Munich-based AI company focused on
voice. audEERING is led by Dagmar Schuller and co-
owned by Bjorn Schuller, the world’s most cited
scientist in the space of audio-based affective
computing and who is also a top-25 global AI
scientist.
GN is making Engage AI available on all platforms,
as the solution is agnostic across headsets and com-
mercialized as a service for the entire industry.
Past, present, and future
GN has delivered audio equipment for contact cen-
ters for 40 years. Contact centers, supervisors, and
their managers are key stakeholders for us.
Our knowledge of this industry is extensive and,
through research, market insights, and innovation,
we will continue to help our stakeholders enable the
digital transformation of their industry.
Improve customer experiences with AI
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Integrated communication and
hearing protection for high noise
and critical environments
During 2022, FalCom broadened its global reach
and has established a meaningful presence across
NATO countries.
FalCom was established in 2018 in line with GN’s
strategy to leverage the Group’s technological ex-
pertise where this provides a particular competitive
advantage in new segments and markets.
Utilizing GN’s technology expertise, FalCom pro-
vides integrated hearing protection and communica-
tion solutions for special operations, military, law
enforcement, and security personnel who all depend
on optimal perception in extreme environments.
In particular, FalCom combines capabilities from GN
Audio’s high-tech headsets and GN Hearing’s medi-
cal device size and accuracy to achieve the ultimate
soldier communication system.
Geopolitical factors increase demand
The demand has significantly increased for FalCom’s
solutions that provide the dismounted soldier with
clear communication in high-noise and critical envi-
ronments.
There are ongoing efforts within NATO countries to
modernize military equipment, with one such area
being new tactical radios and hearing protection
systems.
With an increasing number of troops, and larger de-
fense budgets that are projected to increase sub-
stantially in the foreseeable future, the total ad-
dressable market for FalCom products is growing
rapidly.
Providing critical systems to the U.S. Army
For the past two years, FalCom has been the head-
set supplier toward the U.S. Army’s Integrated Tacti-
cal Network which equips soldiers with cutting edge
encrypted radios.
The U.S. Army continues to be one of FalCom’s larg-
est customers and is a stamp of approval for Fal-
Com in NATO countries.
Utilizing knowledge of hearing, safety, and health
FalCom products are designed with an end-user
focus. A soldier operates in dangerous situations
where the ability to hear and communicate clearly
is crucial. Our knowledge of hearing aids, and the
negative effects of hearing loss, impacts everything
FalCom develops.
FalCom in-ear and over-ear headsets allow users to
operate in high-noise environments, to communi-
cate with a team, and to listen to their surroundings
— while providing protection from noise induced
hearing loss.
The best way to protect someone’s hearing is to
provide them with hearing protection that they will
wear for as long as necessary. That is why FalCom
has designed the system to fit with the user’s equip-
ment while providing all-day comfort and
superior audio quality – and why FalCom has a real
competitive edge.
Growing d
emand for
FalCom’s
systems
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Soldiers in the field
wearing the FalCom
OTE2000 headset
and MFC2000
Control Unit
The all-new soldier
system including the
FalCom Pods Pro
headset connected
to the FalCom Hub
control unit
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Our carbon footprint
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Circularity is an integral part of our sustainability strategy. As a manu-
facturing company in the technology space, challenging the prevailing
linear business model within our industry mitigates long-term environ-
mental risks to our company and society as a whole.
Through our circularity efforts, we aim to:
• Address the issue of increasing e-waste from improper end-of-life
treatment outside our control
• Reduce GN’s and our industries’ dependency on virgin materials, es-
pecially where those are increasingly scarce
• Avoid carbon emissions related to raw material sourcing and manu-
facturing by prolonging product lifetime
Pursuing circularity presents profound challenges to many parts of our
business. It starts with design, which is the key enabler for circular use
of products and components.
Beyond that, we focus on building the required logistics, offering
circularity-linked services and entering the market for second-hand
products.
Although we have a long way to go, in 2022, we made progress in
several areas across our value chain.
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Sourcing
Product design
Manufacturing
Distribution
Sales
Product use
End-of-life
1
2
3
4
5
6
1. Circular design
Design is the key enabler for circularity. Design for repair
and disassembly is a key element in our sustainability re-
quirements (see pages 39 and 41).
2. Circular materials
Achieving our target to use at least 50% non-virgin ma-
terials in new products by 2025 requires that we estab-
lish solid supply of recycled and/or bio-based alterna-
tives, which is a priority in our materials sourcing.
3. Low-waste manufacturing
We strive for minimum waste in manufacturing by opti-
mizing for yield and responsible disposal of unusable
waste. In 2022, we further reduced manufacturing waste
by reusing materials.
4. Recycling
In Europe, we finance recycling through our contribu-
tions to e-waste collection and recycling infrastructure
through local recycling partners in accordance with the
EU WEEE directive. In 2022, GN financed the recycling
of 4,302 tons of e-waste.
5. Repair, takeback, and refurbishment
GN offers return and repair for selected products as well
as a ‘screen and clean’ scheme, where unsold or re-
turned products are tested and repacked for resell. In
GN Audio, we are in the process of investigating addi-
tional takeback and refurbishment solutions.
6. Device As A Service
In 2022, we launched a device as a service offering in se-
lected markets in GN Audio with a built-in takeback op-
tion, enabling us to give products a second life at the
end of the contract (in 2024 for 2022 contracts). In 2023,
we will further integrate this service into GN Audio's ser-
vice portfolio.
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Waste
GN facilities use licensed disposal contractors for waste collection and
disposal, including recycling of materials, such as plastic, cardboard,
and wooden pallets. High-value waste, such as electronics, is processed
to allow other companies to reclaim and reuse materials, where possi-
ble.
Energy
We are continually investigating and implementing initiatives to im-
prove energy efficiency across our sites, such as switching to LED light-
ing, optimizing heat settings, and replacing and maintaining vital equip-
ment.
Annual electricity consumption at our second largest hearing aid man-
ufacturing facility in Xiamen (China) has been reduced by 480,000 kWh
(24%) compared to 2021 through adjustments to cooling technology.
Investments in ventilation and lighting at our U.S. production site in
Bloomington have cut annual electricity consumption by as much as
30-35% compared to 2021.
Despite progress in energy efficiency at GN-operated sites, overall en-
ergy consumption at these sites has remained stable due to higher pro-
duction volumes.
Water
Water consumption at GN’s facilities is very limited and primarily used
for heating, cooling, and sanitary purposes. Initiatives to reduce water
consumption include daily monitoring of water use, stormwater collec-
tion, and using auto stop water.
Environmental management
To ensure we continuously improve in minimizing the environmental
impact of our manufacturing processes, comply with all relevant legis-
lation, our manufacturing sites in GN Hearing in China and Malaysia are
ISO14001 certified, alongside GN Audio’s repair center in China. GN Au-
dio’s manufacturing is outsourced. All of GN Audio’s tier 1 manufactur-
ing suppliers are ISO14001 certified, meaning all sites at which GN
products are manufactured comply with this standard.
Occupational health and safety
The main risks associated with occupational health and safety relate to
our manufacturing process. For that reason, rigorous occupational
health and safety processes are in place across our main manufacturing
sites, including training, incident reporting and tracking of key metrics.
In 2022, there have been 11 incidents leading to lost time at our manu-
facturing sites, all as a consequence of minor injuries.
Energy consumption
Total energy use in GN-operated manufacturing sites (MWh)
Responsible manufacturing
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10,805
11,569
11,586
2020 2021 2022
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Sustainability is a key consideration in
how we design, manufacture, and
transport our products
Product safety and compliance
We make no compromises when it comes to the safety of the users of
our products. To ensure our products do not contain hazardous or
harmful materials, we comply with the European Restriction of Hazard-
ous Substances Directive (RoHS) and Registration, Evaluation, Authori-
zation and Restriction of Chemicals (REACH) regulations, as well as
various regional regulations.
In 2022, GN Hearing conducted required biological evaluations of all
new products according to ISO 10993-1:2020. This means the hearing
device is tested to evaluate the interaction with users’ tissue, cells, or
body fluids. We continuously monitor regulatory changes and adjust in-
ternal processes accordingly. GN Hearing’s products are developed un-
der a highly regulated quality system complying with ISO 13485 and
FDA 21CFR 820 CGMP, as well as other national standards including
the latest regulations in Europe (EU MDR 2017/745/EU).
Our approach to sustainable product development
We consider sustainability in every life phase of our products, from
their inception to their end-of-life (see graphic). In product
development, we use non-negotiable hard requirements largely based
on compliance, as well as areas where we seek to maximize the positive
environmental impact by pushing the boundaries. Our approach is
data-driven, using product-level life-cycle assessments (LCAs) of
existing products to optimize for decarbonization in subsequent
products – see page 42.
TCO Certification as a minimum standard for relevant products
To ensure that we follow the highest standards in product sustainabil-
ity, we have assessed the relevance of a wide variety of sustainability
certifications. To ensure legitimacy, we applied two criteria when se-
lecting certifications to strive for: full value chain coverage and based
on a standard developed independently of GN. TCO Certified was the
only certification that matches both criteria.
In 2022, many of our Jabra Evolve2 and Jabra Engage products were
certified by TCO Certified, adding to the products that were already
certified before. As TCO Certified develops standards for additional
product categories such as speakerphones, we will strive to get more
products certified. For a full overview of TCO Certified GN products,
see https://tcocertified.com/product-finder/in-
dex?brand=Jabra&tq=&pp=1.
Sustainable sourcing
The standards we set for all suppliers are described in our supplier
codes of conduct, as well as standard supplier contracts, which are
based on the UN’s principles of responsible business, covering all rele-
vant ESG areas. For further details on our supplier due diligence, see
page 48.
Beyond applying sustainability standards across all suppliers, we also
have sustainability strategies for relevant sourcing categories.
Mechanics: Achieving our 2025 target to use at least 50% non-virgin
materials in new products requires that we establish solid supply of re-
cycled and/or bio-based alternatives, which is a priority in our mechan-
ics sourcing. In early 2023, we will launch our first products containing
significant volumes of recycled plastic.
Acoustics: The production of speakers currently relies heavily on neo-
dymium, a rare element for which demand is expected to exceed
Designing for sustainability
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4
17
29
Number of TCO certified products
2021
2022
Sustainability in the product lifecycle
Execute studies for sustainability areas that cannot
be captured in a single product development process
Set minimum requirements and targets
Implement minimum requirements and targets
Clearly communicate qualities of product without
greenwashing
Assess user demand for additional features that can
be implemented in-market
Contribute to giving product a second life through
WEEE compliance and circularity initiatives
Pre-concepting
Concepting
Product
development
Launch
In-market
End-of-life
2020
TCO certifications
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supply. We engage actively with suppliers providing alternative solu-
tions, such as recycled neodymium.
Batteries: The transition to a low carbon society requires a solution to
potential scarcity of raw materials for batteries. Aside from enabling
battery recycling by designing for repair and disassembly, we also seek
to source recycled batteries where relevant.
Packaging: In support of our ambitious sustainable packaging goals, we
prioritize working with suppliers that are able to provide FSC certified
paper and cardboard. To further decarbonize our packaging, we also
select suppliers capable of providing local sourcing of raw materials
and customization close to the customer.
Indirect procurement: Achieving our target to aggressively reduce our
scope 1 and 2 carbon emissions requires that we engage with suppliers
able to offer renewable energy. In other areas of indirect procurement,
such as building renovation, furniture, and IT, we consider sustainability
as a key consideration in supplier selection.
Rechargeable batteries set the new sustainability standard
For our hearing instruments, a major contributor to the lifecycle envi-
ronmental product impact is the use of batteries. By transitioning to re-
chargeable batteries, we drastically reduce the number of batteries our
users require per hearing aid to one, preventing the environmental im-
pact of the production and end-of-life of a significant number of batter-
ies in the process.
With rechargeable battery options ReSound OMNIA, ReSound ONE,
and ReSound LiNX Quattro hearing aids offer a sustainable charging
solution. As the rechargeable batteries are expected to last the full life-
time of the product, we reduce the number of batteries our users re-
quire per hearing aid to one, preventing the environmental impact of
the production and end-of-life of a significant number of batteries in
the process.
Taking the next step in sustainable packaging
Our 2025 goal is for all our packaging to be FSC certified, as compact
as possible, and only contain plastic when strictly necessary. In 2022,
we continued to make progress towards this goal with 51% of our
newly launched products in 2022 already meeting our 2025 sustainable
packaging target. We expect all other new packaging across our prod-
uct portfolio to meet the same standards ahead of the target date.
In addition to these minimum requirements, we constantly look for
ways to reduce the carbon footprint of our packaging by adopting low
carbon materials and paints, as well as innovative solutions to further
reduce material usage, such as the belly band pouch. This approach is
illustrated by the 84% carbon reduction we achieved in our Jabra
Evolve2 packaging since 2018.
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Packaging evolution
Brown box
2018
2020
2021
2022
FSC box
FSC paper
pouch
FSC belly
band
-43% CO
2
-62% CO
2
-84% CO
2
Share of rechargeable battery
products
Based on internal full lifecycle assessment, assuming 10-18 packs per master carton
box shipped. Carbon savings measured with the 2018 brown box as baseline.
52%
57%
64%
68%
Share of hearing aids sold in product categories that offer a
rechargeable battery option (%)
2019 2022
2020 2021
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Jabra PanaCast 50
Jabra Evolve2 85
Jabra Speak 750
8
9 1
2
3
7
6
5
4
Product
carbon footprint
140
DEKRA verified
kg CO2eq
Product
carbon footprint
8
.4
DEKRA verified
kg CO2eq
Plastics1
4.8%
Metals
2
19.7%
Electronic components3
1.9%
Printed circuit board4
7.2%
Manufacturing energy5
0.8%
Packaging6
0.4%
Transport7
14.
7%
Usage8
49.
6%
Other (foams and EoL)9
0.9%
Plastics1
15.0
%
Metals2
0.6%
Electronic components3
3.2
%
Printed circuit board4
36.8%
Manufacturing energy5
13.8%
Packaging
6
0.6%
Transport7
26.2%
Usage
8
0.9%
Other (foams and EoL)9
2.9%
5
Plastics1
7.8%
Metals2
4.9%
Electronic components3
11.1%
Printed circuit board4
16.0%
Manufacturing energy5
10.2%
Packaging
6
3.9%
Transport7
40
.9%
Usage
8
3
.5%
Other (foams and EoL)9
1.7%
Product
carbon footprint
10.
5
DEKRA verified
kg CO2eq
1
2
3
4
6
7
9
8
9
1
2
3
4
5
6
7
8
In 2022, GN conducted life-cycle assessments (LCAs) on nine products.
The purpose of these LCAs is twofold. First, LCAs improve transparency
about the carbon footprint of products, supporting our customers to
improve their carbon accounting. Second, they reveal how we can best
decarbonize products by identifying ‘climate hotspots’. For example,
based on LCA results, energy efficiency in the use phase is especially
relevant to reduce the footprint of our video products, while using low-
carbon materials is relevant for all product categories.
LCA methodology
Our LCAs were conducted in accordance with the standard ISO
14044:2006 and ISO 14067:2018. Our input data is based on bills of
material, manufacturing and distribution data, use phase energy data,
and end-of-life data from our partners under the WEEE Directive. The
assumed user is based in London, UK.
Our LCAs are externally verified by Bureau Veritas. For a full overview
of LCAs, see www.jabra.com/sustainability. In 2023, we will conduct
further LCAs across our product portfolio, as well as regional alterna-
tives to existing LCAs.
Life-cycle assessment
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Building an inclusive culture is the right
thing to do – and improves company
performance
Diversity, equity, and inclusion are a strategic priority
GN fundamentally believes that diverse leadership teams and a diverse
organization are key to our success as an innovation leader and, thus,
we welcome differences broadly. To stay relevant as a business, we
need access to all employees’ competencies, creativity, engagement,
and loyalty. We need the best talents, and we need diverse talents.
Therefore, diversity, equity, and inclusion (DEI) are a strategic priority
for GN.
In 2022, we continued our journey to become an even more diverse and
inclusive organization. A global inclusion survey was carried out to
gather data about inclusion levels in GN. The survey results revealed
that we experience the culture differently and though the vast majority
of GN employees feel included and valued, some employees do not.
A DEI committee was established with executive leadership participa-
tion to identify the overall purpose and ambition for DEI as well as nec-
essary strategic initiatives to make improvements. Further, a series of
leadership workshops were held, both to educate and to initiate con-
crete actions to continue the journey.
GN also continued to support employee-led Employee Resource
Groups (ERGs) to further underline that we want our company to be a
place that brings out the best in all people and enables them to reach
their potential. Our current ERGs – Black@GN, WomensNetwork@GN,
and Pride@GN – are part of this work.
Our values
An inclusive environment welcoming a variety of backgrounds and per-
spectives are embedded in GN’s core values:
• We LISTEN to ensure that our employees feel heard and valued
• We CHALLENGE each other and welcome perspectives different
from our own to make smarter decisions
• We want to continuously TRANSFORM our company to meet the
needs of our customers and ensure that all employees experience a
sense of purpose and belonging
Equal playing field for all
Creating an equal playing field is a cornerstone to instill fair and just
practices and policies that ensure all employees can thrive, be them-
selves, and exercise their full potential. To become a truly equitable
employer, we embed inclusion and diversity in our people processes.
As a company, we do not tolerate discrimination or harassment of any
kind based on racial or ethnic characteristics, gender, religion, age, sex-
ual orientation, disabilities, or any other classification as stated in GN's
Ethics Guide.
GN’s Ethics Guide is available in 10 languages here:
www.gn.com/responsibilitydocuments
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46%
Percentage of
women in
new hires
35%
Percentage of
women
managers
Age distribution of employees
7,891
employees globally
50+
nationalities in
headquarter alone
40+
countries where GN has
own staff located
47%
Women in
workforce
23%
Women in
senior
management
66
%
AGM elected
women on GN’s
Board
33%
Women in
Executive
Management
1,774
new colleagues
onboarded during
2022
≤ 22 years 22 – 37 years
38 - 53
years 54
+ years
2% 42
%
42% 14%
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Strengthening leadership, employee, and talent development
GN yearly conducts a global Talent Review and Succession planning
process (‘TRS’) to ensure that a bigger part of the organization is cali-
brated to build stronger talent and leadership pipelines at more levels.
In 2022, the TRS-process was completed with 39% more people re-
viewed compared to 2021.
GN’s people strategy calls for a still broader range of leadership com-
petencies and capabilities, why an increased focus aims to ensure that
leadership talents have the right qualifications to efficiently lead a
more complex business.
Consequently, more effort is put into strengthening development plans
for senior leaders, and our biggest lever to support this is “Transform”,
an individual and data-driven Development Centre to drive senior lead-
ership development.
GN’s Graduate Program is an incubator, not only attracting candidates
to current tracks but also screening for talented candidates for other
entry level positions. When recruiting young talent, we strive for a di-
verse talent pool.
In 2022, we had 13 new graduate positions. The Graduate Program has
expanded with new IT and Supply Chain tracks to complement existing
Finance, Engineering, and Marketing tracks.
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Highly engaged people. GN’s employee engagement survey tool,
GN Voice
, provides valuable feedback from employees twice a year.
Leaders listen to their input and comments and take appropriate
action to continuously maintain a highly engaged organization
.
91%
Response rate
In 2022, this was 10%-points above
the healthcare benchmark (81%)
8.2
October 2022
Key action inspired by GN Voice feedback
Workload/well-being. Global program to support employees gain
more time and energy to achieve their top priorities with a work
pattern that reduces uncertainty and complexity. Improving self -
leadership resulting in less stress and greater wellbeing.
Overall engagement score
On a 10-scale engagement score,
this score is 0.5 above the health-
care benchmark and in top
25%
of
the industry
GN Voice
– checking in twice a year
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Utilizing our core technology to help
people lead better lives
One key focus area at GN is helping people with hearing loss live life as
unimpededly as possible. Another is assisting professionals and con-
sumers with state-of-the-art audio and video collaboration tools in a
world where hybrid working is becoming a new norm.
Helping 9.8 million people with hearing loss
In 2022, our hearing solutions helped around 9.8 million people with
hearing loss around the world. People with hearing loss are at the
heart of what we do, and it is GN Hearing’s ambition to break down
barriers to hearing health to resolve the high level of unmet needs.
First, through a diversified portfolio of life-changing hearing solutions
that cater to different needs, types of hearing loss, and individual life-
style.
Second, by breaking down the stigma surrounding hearing loss and cre-
ate awareness of the benefits of early treatment.
Third, by finding new innovative ways to reach the user, such as online
hearing care and developing new types of more accessible products to
be sold without the need for prescription – in markets where possible –
such as Jabra Enhance Plus.
We also support people with hearing loss for which the barriers to
hearing health remain high through charitable foundations. In 2022,
the Beltone Foundation donated 694 hearing aids on an individual ba-
sis. To support children with hearing loss in a country with very mini-
mal audiology infrastructure, GN employees raised funds to support
the Hear to Aid Foundation in Zimbabwe.
Supporting other communities
Given the gravity of the situation, and as an expression of solidarity
with our colleagues locally and people affected by the war, in 2022, GN
made a USD 1 million donation to UNICEF, specifically aimed at allevi-
ating the situation for children in Ukraine.
Across the globe, GN colleagues engaged in a wide range of local initia-
tives to support charitable causes close to their hearts. These include
financial support for the establishment of a new health care center in
the rural village of Tamil Nadu in Southern India and a wide variety of
local volunteering initiatives across the world.
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”That experience
when you’re able to
give sound back to
people and to hear
what this has meant
for them. That’s
truly special.”
Anthea Bott
Manager, R&D Insights and Machine Learning
GN Hearing
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GN’s commitment to responsible
business forms the foundation of the
compliance and sustainability strategy.
Principles and processes are set in GN’s
Code of Conduct
Safeguarding Human Rights
As signatories to the UN Global Compact and its principles of responsi-
ble business, GN is committed to safeguarding human rights across our
full value chain. Within GN operations, employee rights are protected
both contractually and through our internal Code of Conduct, the GN
Ethics Guide. GN’s whistleblower hotline offers an anonymous and in-
dependent process in case of perceived violations.
Safeguarding human rights in our supply chain requires that we contin-
uously monitor supplier compliance with GN’s Codes of Conduct and
local laws, and immediately address any cases of non-compliance. Due
to the nature of our products and industry, and the location of manu-
facturing sites, we assess potential human rights-related risks to lie
mostly in the area of working conditions and occupational health and
safety. All tier 1 suppliers are audited every year and tier 2 suppliers
every second year. Audits are based on the UN Global Compact princi-
ples of responsible business and the SA8000 standard.
In practice, during an audit, workers are randomly selected for an inter-
view and an assessment to ensure their working hours, treatment by
superiors, safety and salary are compliant with our standards and the
local law. We require major audit findings to be addressed through cor-
rective action.
To strengthen our human rights due diligence processes, in 2022, GN
Audio became an affiliate member of the Responsible Business Alliance
(RBA), thereby committing to implement its industry-leading standards
set out in the RBA Code of Conduct across its supply chain. RBA
strengthens GN Audio’s audit process, by providing third-party audit in-
formation, as well as insights into rapidly evolving human rights legisla-
tion relevant to GN across the world.
In 2023, we will update our Codes of Conduct to be fully aligned with
the RBA Code of Conduct and also implement additional supply chain
sustainability screening tools, such as EcoVadis.
Conflict Minerals Due Diligence
If minerals originate from mines controlled by military groups in con-
flict regions, they are known as conflict minerals. As stipulated in our
Conflict Minerals Policy, GN will not use conflict minerals. GN requires
suppliers to exclude conflict minerals from GN products, encourages
suppliers to move to externally certified smelters and refiners, and re-
quires suppliers to comply with our Code of Conduct.
GN uses the five-step due diligence guidance laid out by OECD for es-
tablishing a due diligence process and has put in place an audit pro-
gram where proof of compliance is required with the Responsible Min-
erals Assurance. Supported by a third-party smelter validation service,
a non-conformity escalation process is in place.
In 2022, GN received the requested information from 100% of its rele-
vant suppliers of which 58% exclusively sourced from sub suppliers
who were certified in accordance with RMAP, TI-CMC Category A, RJC,
LBMA , or DMCC. The remaining suppliers partially sourced from sub
suppliers who were certified or from sub suppliers located in countries
not covered by Covered Countries Alert or Conflict-Affected and High-
Risk Areas (CAHRA) Alert. As such, by the end of 2022, all suppliers and
sub-suppliers met our requirements.
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Review GN’s Codes of Conduct and policies:
www.gn.com/responsibilitydocuments
Safeguarding
human rights
All non-compliance cases identified were resolved satisfactorily
100%
In 2022
, GN received the requested
information from all relevant suppliers
Tier 1 and key tier 2 suppliers are actively audited
31
audits conducted among
GN Audio and GN Hearing
’s
suppliers
Major findings were in the areas of
working hours and proportion of dispatched workers
Conflict minerals due diligence
2022 audits and findings
GN products contain tantalum, tin, tungsten, gold, and cobalt
GN will not use conflict minerals
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As cobalt is emerging as an additional potential conflict mineral, GN ex-
panded the scope of its due diligence in 2022 to include cobalt, using
cobalt reporting templates (CRTs). We received the requested infor-
mation from all relevant suppliers. Of these, there has been a single
major issue that is expected to be resolved in early 2023.
Business Ethics Governance
Policy management and compliance training
GN continues its commitment to doing things the right way complying
with relevant international regulations. This work is anchored in our
Code of Conduct, the GN Ethics Guide, our anti-corruption policies, our
Supplier Code of Conduct and other policies and guidelines. These out-
line the fundamental requirements for how GN operates and describe
the responsibilities and ethical standards expected of all employees
and relevant business partners and offers support and guidance for em-
ployees in case they require help in ensuring the high standards that
GN adheres to.
To ensure and document that employees are always familiar with the
GN Ethics Guide and other key policies, employees are annually re-
quired to electronically sign off on complying with GN policy within
specific areas. Likewise, employees annually complete GN’s general e-
learning courses within key topics, such as anti-corruption, information
security, data security, and competition compliance. Every year this is
supplemented with tailored compliance training for selected business
units and employees, live trainings conducted based on risk assessment
and on request. SteelSeries employees have been given live training as
part of their onboarding in the GN Group compliance program.
Anti-corruption compliance reviews
As part of GN’s anti-corruption compliance program, on site compli-
ance reviews of selected GN subsidiaries and business units are con-
ducted to identify and assess relevant risk areas, to review whether ad-
equate controls are in place to ensure compliance, and to assist with
corrective actions where required. The selection of subsidiaries or busi-
ness units for compliance reviews is based on an annual country and
market risk assessment based on a set of defined risk indicators.
In 2022, COVID-19 travel restrictions still limited the ability to physi-
cally visit some countries, leading to a number of desk reviews being
added to the onsite reviews. Nine compliance reviews were conducted.
Third-party due diligence
In 2022, GN continued the granular roll-out of the third party due
diligence screening program for assessing and managing corruption,
sanctions, and supply chain risks associated with third-party business
partners. This involves questionnaires and screenings focusing on the
potential reputational and legal risks and a thorough check of
beneficial owners to ensure GN is at no risk of violating international
sanctions regimes.
Whistleblower system
GN’s whistleblower hotline, the GN Alertline, is independently man-
aged by a third party. The hotline can be used by employees as well as
external parties to report concerns and experienced or perceived mis-
conduct. This is an important tool for ensuring that alleged illegal or
unethical conduct is reported and immediately addressed in GN. All
complaints are treated with the required confidentiality and GN is com-
mitted to dealing with any employee who takes action and/or partici-
pates in an investigation in a fair and respectful manner. This is empha-
sized in GN’s non-retaliation policy. GN ensures that our policies and
systems are fully compliant with all local and international regulatory
requirements on whistleblower systems.
Access to reporting and additional details on GN’s whistle-
blower hotline: www.gn.com/alertline
More details on GN’s compliance efforts and policies at
www.gn.com/documents
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Policy management and
compliance training
GN whistleblower system
33
Reported cases were mainly related to harassment, bullying, inappropriate behavior,
conflicts of interest, fraud, violation of confidentiality, and misappropriation of information.
All cases have been properly investigated, and appropriate actions, including disciplinary
actions, have been taken.
28
countries where GN’s
whistleblower system is
available
24
different languages
that GN’s whistleblower
system accommodates
concerns reported
through GN’s
whistleblower system
11
of the reported cases
were considered
substantial
To support online training, GN continues to emphasize the
value of live training sessions to supplement and add to the
online training
In 2022, a total of 850 GN employees received live training
on top of the online training required by all
Updated Code of Conduct training was delivered in late Q
4
2022 along with a stand-alone anti-sexual harassment/anti -
harassment training module
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Information security, data privacy, and data ethics
Data privacy
GN is committed to protecting the personal data entrusted to us by
customers, partners, users, and employees.
In 2022, we have further refined the processes surrounding our digital
systems in compliance with the principles of EU’s General Data Protec-
tion Regulation (GDPR) and the China Personal Information Protection
Law (PIPL). Further, we are continuously implementing processes and
solutions that meet the increasing global data privacy regulatory de-
mands.
Our internal awareness training facilitates mandatory data privacy e-
learning, and we are implementing additional solutions to ensure con-
tinual employee training and awareness.
In 2023, GN will continue to strengthen our data protection posture to
provide excellent, secure, and trustworthy solutions.
Information security
GN is committed to ensuring a high level of IT Security and adherence
to legislation across the entire organization. IT security management
systems are in place based on ISO 27000. In addition, we have an IT Se-
curity Policy in place with training materials and all training is con-
ducted annually for all employees. The IT Security Policy was last up-
dated in April 2022.
We ensure continuous IT Security monitoring through our Security Op-
erations Center. This enables us to discover and disable threats early
and keep our organization safe.
Data ethics
GN uses data for various purposes, which entail benefits for GN and its
customers. GN is committed to act ethically responsible with data and
comply with ethical principles. By actively considering data ethics, GN
intends to ensure human dignity, equality, fairness, responsible use of
data, transparency, and awareness by minimizing risk of algorithm bias
and discrimination, lack of transparency, lack of control, and lack of re-
sponsibility and accountability.
GN is implementing appropriate organizational and technical security
measures to ensure that any use of data happens in a safe and secure
manner. GN will periodically review the contents of GN Data ethics tak-
ing into consideration input from employees and partners, develop-
ment in trends, technology, legislation, and ethical data values.
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GN’s data privacy policy is available at
www.gn.com/privacy-policy
For a description of GN’s Data Ethics Policy, please re-
fer to www.gn.com/dataethicspolicy
“I feel that
everybody is
welcome at GN and
that they are being
heard and treated
with respect.”
Bolaji James Adesokan
Senior Audio Engineer
GN Audio
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GN manages business, finance, and climate related risks across its busi-
nesses. Its risk management governance structure and processes are
fully aligned with the ISO 31000 standard for enterprise risk manage-
ment.
All value chains, enabling functions and business management teams
participate in the recurring risk process. The main types of risk associ-
ated with GN’s businesses, and the main risk mitigation taken to man-
age these, are outlined on the following pages.
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Risk owners review mitigation
measures effectiveness of Top 25 risks.
Update of risk assessment if required.
Any changes or new risks to consider.
Q1
Q2
Q4
Q3
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Executive Management Team re-
assesses Top
25 risks. Final
validation
of Top 10 risks for review
by Board of Directors.
Board of Directors’ Top 10 risk
review.
Prepare external reporting
(Annual Report, February)
Board Top Risk Review
10
25
10
25
45+ risk workshops with executives
responsible for value chain and
corporate support functions.
200+ risks from risk taxonomy
assessed, prioritized, and
consolidated.
Initial risk assessment process
Global Management Teams for GN
businesses identify Top 25 risks.
Risk likelihood and impact for Top 25
analyzed and evaluated. Individual
risk owners assigned.
Mitigation identified and reviewed
for Top 25 risks.
Executive Management Team
identifies GN Group Top 10 risks.
Audit Committee reviews enterprise
risk management governance and
process.
Board Audit Committee
Risk Governance Review
Executive impact review
200+
Mitigation review
10
25
Risk identification and mitigation process
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Geo and macro environment
Characteristics
Inflationary pressures and general economic uncertainty decrease households’
discretionary spending. Similarly, companies faced with increasing input costs and uncertain
demand patterns tighten operational expenses. This may result in declining demand for
GN’s products, or temporarily lower than expected growth.
GN’s supply chains, including component sourcing, remain heavily dependent on availability
of components and manufacturing capacity in China and Asia. Escalating local and
geopolitical instability and deteriorating trade relations may impact key suppliers and GN’s
operations.
Climate risk
Characteristics
Climate change is projected to increase the frequency, severity, and duration of extreme
weather, impacting communities and economies worldwide. Governments are moving to
mitigate this threat through regulation and investment in innovation. Consumer awareness
of climate issues is also growing rapidly. Consequently, GN faces both climate-related physi-
cal and transitional risks.
Physical risks
Global production of electronic components is concentrated in areas projected to be signifi-
cantly exposed to floods and storms. Climate-related disruption could reduce GN’s produc-
tion capacity, negatively impacting revenues, and possibly incurring costs to cover repair
and contingency plans.
Transitional risks
While GN is not a direct player in carbon-intensive industries, GN Audio’s and GN Hearing’s
supply chains begin with mining activities and requires the transportation of goods globally,
which has a substantial climate impact. If GN’s suppliers do not decarbonize at a sufficient
rate, GN could be adversely affected by regulation and changing consumer preferences.
The shift towards electrification and digitalization is increasing the demand for critical min-
erals used in GN products. This could increase direct costs in the short to medium term.
Product innovation
Characteristics
GN operates on the cutting edge of technological advances to provide new relevant user
experiences and functionalities to its customers. The importance of software in unlocking
the potential of hardware and as standalone services is increasing. Significant amount of in-
tellectual property is embedded in GN’s products. Any failure to gain access to and deploy
the latest technologies and competencies within hardware and software in a timely manner
would impact GN’s future earnings potential.
In addition to maintaining technological leadership, GN must ensure that products and ser-
vices operate without defects or other quality issues from their launch through their lifecy-
cle. Quality deficiencies could cause significant reputational harm.
Mitigating actions
GN’s supply chain teams have undertaken several resilience measures within sourcing
of components, assembly of products and transportation. GN will continue long-term
global sourcing and production diversification efforts in line with the industry in gen-
eral.
GN continues to invest in current product portfolios and future roadmaps where it
sees high revenue certainty, while maintaining operational readiness to accommodate
future demand. Further, GN focuses on operational expenses, reducing inventory, cash
generation, and maintaining access to necessary funding.
Mitigating actions
GN has set science-based targets to reduce absolute scope 1 and 2 emissions by 80% by
2030 from a 2021 base year, and absolute scope 3 emissions by 25% within the same
timeframe. GN is also committed to setting a science-based net-zero target. GN has a
short-term goal to be carbon neutral in its own operations by 2025.
GN is integrating assessment and monitoring of climate-related risks – based on transi-
tion scenarios and climate impact analysis – in existing risk management procedures to
enable proactive mitigation of any potential impact.
GN is establishing production capacity across different geographies, as well as innovat-
ing to increase production efficiency and circularity, to mitigate the risks rooted in sup-
ply chain disruption and lack of raw materials or components.
For an overview of GN’s alignment with the Taskforce for Climate-related Financial Dis-
closure (TCFD) guidance for climate action, see page 76.
Mitigating actions
GN engages in close collaboration with key ecosystem partners to understand future
demands and determine how best to accommodate them. GN continuously updates
product roadmaps to remain competitive in all current categories and assesses new
categories where GN could have a meaningful impact on users’ lives. To that end,
GN’s research and development teams scan the horizon for new technologies that
could be harnessed in future product roadmaps.
The research and development teams are undergoing transformations to adapt to the
future technology landscape. To gain the required competencies, GN sources engi-
neering and software development talent globally, including through acquisitions.
GN spends significant effort in protecting its intellectual property and ensuring free-
dom to operate in its development efforts. A robust in-house team monitors all rele-
vant patent activity within GN’s businesses and underpinning technologies.
GN embeds quality management practices across its value chain, from research and
development over sourcing of components to production and use of its products.
During 2022, it has increased the governance structures and capabilities within the
quality organizations, ensuring closer alignment with product development and prod-
uct making efforts.
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Competition and markets
Characteristics
Highly competitive dynamics characterize the product categories in which GN operates.
Products must provide compelling user experiences to compete. GN experiences market
consolidation, product commoditization, and attempts at conquering market share from in-
cumbents and new competitors from adjacent industries. This could lead to declining mar-
ket share and lower average selling price.
Additionally, the go-to-market models are changing with the growth of direct-to-consumer
models. Over time, this has the potential to challenge the traditional business-to-business
(B2B) channels in GN’s main categories leading to reduced sales through these channels
that may not fully be compensated by GN's increased sales in the direct-to-consumer chan-
nels.
If distributors and retailers were to decrease the volume of GN products either by not
awarding tenders to GN or by favoring other brands or private label products, GN market
share could decline.
As purchase decisions within some GN categories potentially migrate from professional
buyers to the end-user, brand awareness becomes increasingly important in defending and
expanding market share. If GN’s product brands are unable to adequately build brand eq-
uity in major categories, GN may experience declining market shares and inability to grow
its attractive categories.
Compliance
Characteristics
GN is dedicated to responsible and ethical business practices and does its utmost to safe-
guard its businesses and protect the safety and privacy of customers. Authorities and cus-
tomers require compliance with legislative and regulatory regimes and standards. Failure to
explicitly fulfil such requirements could compromise GN’s license to operate and risk irre-
versible loss of customer confidence, effectively giving up large markets to competitors.
IT and data
Characteristics
IT and data are foundational business enablers for GN across all value chain components
from research and development through production to logistics, sales, service, and daily use
of products. GN also provides software-based standalone services. All platforms are re-
quired to be available and provide the functionalities needed. Additionally, systems must
protect data and privacy.
Increasing cyber-attacks threaten the availability of business critical systems and could re-
sult in data breaches. With the increasing amount of software embedded in GN devices or
its services, and the interconnectedness with customer systems, GN devices or services
could become vehicles for “supply chain cyber-attacks” at customer organizations where
malicious code within GN’s software could compromise the customers’ cyber defenses.
Also, the increased global focus on data sovereignty and emergence of local data privacy
regulations stipulate stringent data transfer procedures to avoid inadvertent violations.
Poor availability, consequences of cyber-attacks, lack of functionality in business-critical
systems, or data breaches could impact GN’s operations and reputation and may result in
significant fines and financial loss.
Mitigating actions
GN continues to build relationships and robust interfaces with its B2B channels. Con-
currently, GN remains relevant to dominant ecosystems and end-users through highly
competitive products in all categories. It also invests in sales operations and building
sales and marketing competencies within new categories to better serve customer
needs.
Lively, the leading U.S. online hearing care and digital marketing platform acquired in
December 2021, has been integrated into GN as JabraEnhance.com. It is an online des-
tination for better hearing enabling consumers to explore, purchase, and receive hear-
ing care from home. Similarly, the Jabra Enhance Plus hearing enhancement earbuds
have been launched to compete in the newly opened U.S. over-the-counter market.
Mitigating actions
To ensure robust and accountable ongoing compliance, GN maintains several corporate
functions to monitor current and emerging requirements and map vulnerabilities and
compliance gaps in case of future requirements. Further, they implement and maintain
compliance controls where required, and document current compliance efforts to main-
tain the required certifications for GN to operate.
Mitigating actions
GN pursues a cloud-migration strategy for its business applications to achieve more re-
silience and security. It also invests in core enterprise resource planning and e-com-
merce platforms to serve current business needs and accommodate likely future needs.
GN cyber defenses evolve to accommodate the ever-changing threat profiles and fulfil
the requirements in network information security regulations and other information se-
curity certification frameworks. Also, GN is assessing the vulnerability for “supply chain
attacks” to identify any gaps and devise relevant remedial actions.
Personal data are increasingly covered by data sovereignty, strict national data transfer
requirements, and data privacy regulations. GN applies similar organizational, govern-
ance, and technological measures in the affected jurisdictions globally as under the EU
General Data Protection Regulation (EU GDPR), including the assignment of Data Pri-
vacy Officer responsibilities where relevant.
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Financial risk
Characteristics
Due to the nature of its operations, investments, and financing activities, GN is exposed to a
number of financial risks. GN has centralized the handling of these financial risks in Group
Treasury except for commercial risks, which are managed by the Group’s operating busi-
nesses (divisions).
The financial risks are managed in accordance with the overall financial risk management
guidelines set out in GN’s Group Treasury Policy, which is reviewed on an ongoing basis.
GN’s net interest-bearing debt increased during 2022 to DKK 14,561 million. As a result, the
adjusted leverage ratio ended at 5.5x, reported leverage ratio was 7.1x driven by the acqui-
sition of SteelSeries.
GN’s loans and bonds are primarily long-term with maturities extended until 2036 with
mostly fixed interest rates.
Annual EBITA impact from a 5% increase in currency before hedging
(DKK million)
Currency
GN Hearing
GN Audio
GN Store Nord
USD
45
-99
-54
GBP
3
32
35
JPY
1
17
18
AUD
6
6
12
Mitigating actions
GN has hedged a substantial part of the expected net EBITA in foreign currencies to se-
cure the EBITA contribution of the material trading currencies for the next 12 months
across both GN Hearing and GN Audio. GN is also monitoring the combined impact of
minor trading currencies and hedges those on a case-by-case basis.
On September 29, GN has entered into a three-year EUR 520 million term loan with its
commercial banking group to refinance its short-term funding requirements including
EUR 300 million M&A bridge facility and EUR 220 million EMTN bond, both due in 2023.
Moreover, GN has entered into two bilateral loans (R&D loans) worth around EUR 110
million in December 2022 for the purpose of refinancing a maturing loan with EIB worth
EUR 100 million.
GN has short-term, uncommitted Money Market lines and Overdraft facilities in place to
diversify its borrowing instruments and manage working capital. The total size is EUR
404 million, with a utilization of EUR 251 million on December 31, 2022.
GN also has a short-term, uncommitted Euro Commercial Paper program (“ECP”) in
place to diversify its borrowing instruments. The program size is up to EUR 250 million,
with a utilization of EUR 35 million on December 31, 2022.
In total, GN has outstanding senior unsecured bonds and Private Placements of around
EUR 915 million in aggregate under the EMTN program in December 2022, with maturi-
ties from 2023 to 2036. Moreover, GN currently has R&D loans outstanding of EUR 310
million with maturities from 1 to 7 years with fixed interest rates.
To mitigate potential liquidity or refinancing risks, GN has access to a Revolving Credit
Facility of EUR 350 million, which was undrawn as of December 31, 2022.
Please refer to note 4.2 in the financial statements for further information about finan-
cial risks.
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Management structure
GN is governed by a two-tier management structure. The Board of Di-
rectors is responsible for the overall governance of the company, and
the Executive Management handles the daily management of the com-
pany’s affairs under the guidelines and supervision of the Board. The
ultimate authority rests with the shareholders in General Meeting.
Board of Directors
Composition and responsibilities
GN's Board currently comprises nine members, of which six members
have been elected by the shareholders at the Annual General Meeting
for an annual term, and three by the employees in accordance with the
Danish Companies Act for terms of four years.
Competencies of the Board
GN’s Board strives to recruit members with diverse and complemen-
tary competencies. The current Board is a diverse group in terms of
global experience, functional competencies, and industry background.
The composition is a mix of members with executive positions and pro-
fessional board members, providing a good balance between knowledge,
competencies, experience, and availability for a substantial workload.
GN’s board members possess global expertise within med-tech &
healthcare, innovation, product development, digital transformation,
online marketing, commercialization, technology & professional ser-
vices, financial, change management, and human resources. Of the cur-
rent members elected by the general meeting, four are women, two
are men, and the Board comprises six different nationalities. See pages
59-61 for a description of the Directors’ competencies and experience.
The Board of Directors’ annual self-evaluation
Each year the Board conducts an annual self-evaluation of its work.
This self-evaluation tracks the Board’s work, efficiency, composition,
and organization together with its strengths and development areas. In
2022, the Board involved external assistance for its annual self-evalua-
tion to add a fresh perspective and potentially identify issues, which
the Board might not otherwise be able to see.
The overall conclusions of the 2022 evaluation did not result in any sig-
nificant remarks and the appropriateness of the current Board compo-
sition was confirmed. The Chair of the Board will account for the pro-
cess and the general conclusions in his statement at the Annual Gen-
eral Meeting.
Additional information on the evaluation process and the gen-
eral conclusions of the 2022 evaluation may be found on the
company’s website: http://www.gn.com/boardevaluation2022
Board committees
As part of the overall governance of the company, the Board has es-
tablished Audit, Nomination, Remuneration, and Strategy committees
to assist with monitoring and preparatory work relating to key areas of
the Board’s responsibilities. The committees’ main duties in general
and the specific tasks performed in 2022 are summarized below:
• The Audit Committee continued to provide oversight of the finan-
cial reporting process, the audit process, GN’s system of internal
controls, and compliance with laws and regulations. The committee
reviewed the whistleblower reporting system, material legal cases,
main accounting principles, tax strategy and compliance, and risk
management processes covering key risks. Further, the committee
considered the need for an internal audit function which was not
deemed necessary at this time. In 2022, the Audit Committee was
also given a responsibility for monitoring of ESG targets and report-
ing thereon.
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GN’s framework
for corporate governance
GN’s management structure is built to support its two main divi-
sions, GN Audio and GN Hearing. The board members of GN Store
Nord are elected at GN’s Annual General Meeting. GN’s Executive
Management comprises the CFO of the Group’s parent company,
GN Store Nord, the CEO of GN Hearing, and the CEO of GN Audio.
Annual General Meeting
Board of Directors
Board Committees
Executive Management
Group functions
Division management – Global Management Teams
GN Hearing and GN Audio organization
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• The Remuneration Committee supervised and reviewed the remu-
neration policy, salary, bonus, long-term incentive process and re-
sults, and assisted with the preparation of the Remuneration Re-
port. The Remuneration Committee also considered grants under
GN’s long term incentive program, talent development and succes-
sion planning process and results. Finally, the Remuneration Com-
mittee reviewed the Management Incentive Plan for
JabraEnhance.com (formerly Lively) to be used after closing.
• The Nomination Committee’s work focused on the evaluation of
the current and future Board competencies to ensure that the
Board’s composition will continue to cover and support GN’s busi-
nesses sufficiently. The Committee has concluded that the Board
currently possesses the necessary competencies and the Commit-
tee has been monitoring both Board performance and competen-
cies on an ongoing basis. The Nomination Committee also has a
structure in place for potential adjustments, as this may be needed
in the future. The current structure, size, and diversity of the Board
have been reviewed and found to meet all governance require-
ments. Finally, performance and succession planning for the Execu-
tive Management positions have also been a focus area and succes-
sors have been identified.
• The Strategy Committee oversaw a series of existing projects and
acquisitions as well as new projects to explore technological inno-
vations within the broader technology space.
See charters and composition of the four committees at:
www.gn.com/boardcommittees
Chairmanship
The Chair and the Deputy Chair form the Chairmanship of the Board,
which prepares and organizes the work of the Board and performs pre-
paratory tasks for and advise the Board in relation to strategy, imple-
mentation of strategy, business development, budget, and projects,
and performs in-depth business reviews of selected areas.
Remuneration
GN pursues a policy of offering the Board of Directors and Executive
Management remuneration that is competitive with industry peers and
other global companies to retain and attract competent professional
leaders of the business and members of the Board of Directors.
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Meeting attendance 2022
Chairmanship
Audit
Committee
Nomination
Committee
Remuneration
Committee
Strategy
Committee
GN Store Nord
A/S Board
GN Hearing A/S
Board
GN Audio A/S
Board
Per Wold-Olsen
(C) 21/21
1/1
(C) 11/11
7/7
(C) 16/16
(C) 7/7
(C) 7/7
Jukka Pekka Pertola
(DC) 21/21
(C) 1/1
11/11
(C) 7/7
(DC) 16/16
(DC) 7/7
(DC) 7/7
Hélène Barnekow
4/5*
1/1
(B) 15/16
(B) 7/7
(B) 7/7
Montserrat Maresch Pascual
10/11
7/7
(B) 16/16
(B) 7/7
(B) 7/7
Ronica Wang
5/5
(B) 16/16
(B) 7/7
(B) 7/7
Anette Weber
(C) 5/5
(B) 16/16
(B) 7/7
(B) 7/7
(C) Chairman
(DC) Deputy Chairman
(B) Board member
Please visit
www.gn.com/About/Management for more elaborate descriptions of the Board members’ competencies and management duties.
#/# signifies the number of Board and Committee meetings in which each member has participated followed by the total number o
f Board and Committee meetings.
* Hélène Barnekow was not a member of the Audit Committee for the full year.
Report on Corporate Governance cf. section 107b of the
Danish Financial Statements Act
The Board and the Executive Management continuously
strive to maintain a good corporate governance level.
The website of the Committee on Corporate Gov-
ernance - https://corporategovernance.dk/english –
lists its recommended best practice guidelines.
GN is required to report on its compliance with these rec-
ommendations according to the “comply or explain” prin-
ciple. GN’s compliance with the individual recommenda-
tions is reviewed once a year by the Board.
Download GN’s 2022 Corporate Governance Re-
port: www.gn.com/corporategovernance2022
Risk management related to financial reporting is de-
scribed in this report on page 54. Internal control systems
are described in the above-mentioned Corporate Govern-
ance Report. This constitutes GN’s statutory report on
corporate governance as required under section 107b of
the Danish Financial Statements Act.
GN’s full Remuneration Policy is available on
www.gn.com/remunerationpolicy
GN’s full Remuneration Report for 2022 is available
here: www.gn.com/remuneration2022
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Through an open and active dialogue,
GN strives to provide all stakeholders
with timely and relevant information
The GN share
The total market value of GN’s shares, excluding treasury shares, was
DKK 20 billion at the end of 2022. The price of the GN share was DKK
159.8 on December 31, 2022, which is equivalent to a decrease of 61%
compared to the end of 2021.
GN is, among other indices, included in the C25 index and Large Cap in-
dex on Nasdaq Copenhagen, as well as the Stoxx Europe 600 index and
the Stoxx Europe Sustainability index.
Ownership
The GN share is 100% free float, and the company has no dominant
shareholders. GN has approximately 50,000 registered shareholders
where around 30% of shareholders are located in Denmark, around
55% in rest of Europe, around 15% in North America and less than 1%
in Rest of World.
The 10 largest registered shareholders held in total around 39% of the
GN share capital at the end of 2022 (including GN’s holding of treasury
shares). By the end of 2022, two shareholders, William Demant Invest
A/S and Norges Bank, informed GN that they held 10% or more of the
share capital and 5% or more of the share capital, respectively.
Share capital and voting rights
GN’s share capital of DKK 548,773,512 consists of 137,193,378 shares,
each carrying four votes. GN has one share class with no restrictions on
ownership or voting rights.
Treasury shares
On December 31, 2022, GN held 9,220,261 treasury shares correspond-
ing to 6.7% of the share capital, and the value of the treasury shares
was DKK 1.5 billion. As part of the EUR 330 million convertible bond
offering concluded in May 2019, around 5,200,000 shares are kept in
Treasury to hedge future obligations of the convertible bond.
Until the Annual General Meeting on March 15, 2023, the Board of Di-
rectors is authorized to acquire shares in GN. The company's holding of
treasury shares may at no time exceed 15% of the share capital of the
company.
Dividend policy and share buyback programs
GN’s overall financial target is to deliver a competitive shareholder re-
turn through a combination of dividend payments and share price ap-
preciation. GN aims to pay out a dividend corresponding to 15 - 25% of
the annual net profit and to distribute additional excess cash to share-
holders through share buyback programs. Dividend payments and
share buybacks are subject to, among other factors, cash requirements
to support the ongoing operations, strategic opportunities, and the
company’s capital structure. Given the conclusions of the capital struc-
ture review, GN will not pay out a dividend in respect to the financial
year 2022 and share buyback programs have been paused.
Shareholder information
Shareholder return distribution
(DKK million)
Geographical split of shareholders
(Million)
182
197
206
206 214
986
1,195
150
1,148
1,168
1,392
356
1,354
2018
2019 20212020 2022
Dividends
Share buybacks
North
America
15%
Europe
55%
Rest of
the world
<1%
Denmark
30%
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As announced in the Q3 2022 report, GN has now conducted a compre-
hensive review into the appropriate capital structure for the medium
term. The review has concluded that GN’s current capital structure pol-
icy with a long-term target of 1-2x NIBD/EBITDA is appropriate.
Incentive programs
By the end of 2022, the total number of outstanding warrants in GN
Hearing was 822 (0.1%) of the share capital in GN Hearing. The total
number of outstanding warrants in GN Audio was 813 (0.2%) of
the share capital in GN Audio. The total number of outstanding
options in GN Store Nord was 3,053,227 (2.2%) of the share capital in
GN Store Nord.
Investor relations policy
As part of GN’s investor relations activities, an active dialogue is pur-
sued with existing and potential shareholders as well as with financial
analysts. GN ensures that relevant and timely information is provided
to the financial community to ensure that the GN share is fairly priced.
This is accomplished through information continually announced to
the market as company announcements and press releases, combined
with investor meetings, conferences and presentations of the com-
pany’s interim and annual results.
Following the release of interim and annual results, GN conducts road-
shows where the Executive Management and the investor relations
team inform investors and financial analysts about the recent
developments in the company. GN is covered by sell-side analysts, who
continually release analyst research reports on GN and the industry dy-
namics.
GN’s investor relations policy is available at:
www.gn.com/aboutIR
A full list of the analysts covering GN is available at:
www.gn.com/analysts
GN has a 30-days silent period prior to publication of a financial report.
During these silent periods, any communication with stakeholders is
restricted.
GN’s website www.gn.com contains historic and current information
about GN, including company announcements and press releases,
current and historic share price data, investor presentations, and
annual and interim reports. The investor relations team can be
contacted at: Inve[email protected]m
Notices for the Annual General Meeting
GN sends notices to convene Annual General Meetings by email.
Letters are sent to shareholders who have requested this instead of
emails. Thus, GN encourages all registered shareholders to sign up at
the investor portal with their email addresses and check the box la-
belled “subscribe/unsubscribe” in the field “Notice for the Annual
General Meeting”. Shareholders will then receive the notice by email in
the future.
Share price development
* Index: 31
-12-2021 = 100
Financial calendar for 2023
Event
Date
Annual General Meeting
March 15, 202
3
Interim Report Q1 202
3 April 27, 202
3
Interim Report Q2 202
3 August 17, 202
3
Interim Report Q3 202
3 November 10, 202
3
Read company
announcements on www.gn.com.
20
30
40
50
60
70
80
90
100
110
31-12-2021 31-03-2022 30-06-2022 30-09-2022
GN C25
Stoxx 600
87
87
39
31-12-2022
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Board of Directors
Per Wold-Olsen
(
Chair)
MBA. Formerly president
Merck & Co., Inc., Interconti-
nental Division, USA.
Chair
since 2008
Jukka Pekka Pertola
(Deputy
Chair)
M.Sc. Electrical Engineering.
Professional board member.
Former CEO of Siemens A/S
Hélène Barnekow
M.Sc.
(International Business).
Partner, Ascension AS. Former
CEO, Microsoft Sweden
Chair of the Boards of GN Audio A/S and GN Hearing A/S. Chair of
the Boards of Oncopeptides AB and Amarin Corporation plc.
Extensive global leadership expertise and knowledge of the
healthcare industry. Brings a unique set of capabilities and values
to the Board of GN Store Nord within marketing and product
development as well as commercialization of innovation. Also
possess
es in-depth knowledge of the U.S. market as well as
emerging markets.
Deputy Chair of the Boards of GN Audio A/S and GN Hearing A/S.
Chair
of the Board and the Remuneration Committee and member
of Nomination Committee of Asetek A/S
*. Chair of the Boards of
Siemens Gamesa Renewable Energy A/S
, Tryg A/S*, and Tryg For-
sikring A/S.
Chair of the Remuneration and Nomination Commit-
tees and member of IT
-Data Committee of Tryg A/S. Chair of the
Board
and member of Nomination Committee of COWI Holding
A/S.
Chair of the Boards of GomSpace Group AB** and GomSpace
A/S.
Broad international background with more than 20 years of man-
agement experience in the ICT, energy, industry, infrastructure
,
and healthcare sectors, solid experience with various business
models stretching from B2C to complex project business, IT out-
sourcing solutions, technology services
, and professional services.
Member of the Boards of GN Audio A/S and GN Hearing A/S.
Me
mber of the Boards of Voyado AB and Handelsbanken AB*.
Member of the Board and audit committee of Schibsted ASA
*.
Unique capabilities within general commercial management and
marketing, including go
-to-market, branding, communications,
product management
, and channel management from the mobile
communications and IT sector.
Board member since
2008
Board member since
2020
Board member since
2013
Term
2022/2023
Term
2022/2023
Term
2022/2023
Considered independent
No
Considered independent
Yes
Considered independent
Yes
Nationality
Norway
Nationality
Finland
Nationality
Sweden
Year of birth
1947
Year of birth
1960
Year of birth
1964
No. of GN shares
55,126 (+20,500)
No. of GN shares
3,000 (unchanged)
No. of GN shares
10,000 (unchanged)
Total remuneration 2022 (DKKt)
2,183
Total remuneration 2022 (DKKt)
1,696
Total remuneration 2022 (DKKt)
774
*
Company listed on a regulated market
** Company listed on First North Stockholm
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Board of Directors
Montserrat Maresch Pascual
MBA (Business Administra
-
tion). Co
-founder and Senior
Advisor, Naar + Maresch AB
Anette Weber
Lic.oec HSG, Finance &
Accounting. Group CFO of
BUCHERER
AG
Ronica Wang
MBA
and B.A.Sc. (Engineering),
Co
-founder and Global Manag-
ing Partner, The InnoGrowth
Group. Former
Chair and CEO
of Avon Japan (
listco) and lead-
ership positions
at Johnson &
J
ohnson, Hutchison-Priceline,
and Procter & Gamble
Member of the Boards of GN Audio A/S, GN Hearing A/S, and the
GN Store Nord Foundation.
International executive background and experience. In
-depth com-
petences within retail, branding, business development and imple-
mentation of business and marketing str
ategies and models, digi-
tal transformation, operations performance, and optimization of
customer experience.
Member of the Boards of GN Audio A/S and GN Hearing A/S. Mem-
ber of the Supervisory Board and Chair of the audit committee of
New Work S.E
*.
Exte
nsive global leadership expertise and knowledge from various
leadership positions in the global healthcare and IT industry.
In
-depth knowledge of finance, digitalization, development, gen-
eral and change management, platform economies, and M&A.
Member of the Boards of GN Audio A/S and GN Hearing A/S. Mem-
ber of the Board and Advisory Committee of Hotelbeds Group Ltd.
International experience
with proven success in innovative
business
model transformation, turnarounds, and growth
acceleration in the U.S., Au
stralia, and Asia-wide, especially China.
Expertise
in global branding, product strategy, and
commercialization, sales
and channel management, launching and
operating digital businesses, and organization
effectiveness in B2C,
professional B2B2C
, and B2B industries across consumer,
healthcare, technology, affordable luxury,
and retail sectors.
Board member since
2020
Board member since
2020
Board member since
2015
Term
2022/2023
Term
2022/2023
Term
2022/2023
Considered independent
Yes
Considered independent
Yes
Considered independent
Yes
Nationality
Spain and Sweden
Nationality
Germany
Nationality
Hong Kong
Year of birth
1964
Year of birth
1971
Year of birth
1962
No. of GN shares
1,400 (unchanged)
No. of GN shares
2,250 (+800)
No. of GN shares
11,195 (+1,345)
Total remuneration 2022 (DKKt)
915
Total remuneration 2022 (DKKt)
915
Total remuneration 2022 (DKKt)
730
* Company listed on a regulated market
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Employee elected members
Leo Larsen
M.Sc. (Electrical Engineering)
and a diploma in business ad-
ministration and international
trade.
Senior Director, Audio
Research, GN Audio
Cathrin Inge Hansen
B.Sc. (International Market-
ing), Graduate Diploma
(Busi-
ness Administration & Interna-
tional Trade), Senior Regula-
tory Process Compliance Spe-
cialist, GN Hearing
Claus Holmbeck-Madsen
Academy Foundation Degree
(Business). Global Head of
Knowledge & Learning, Jabra
Support and Services, GN Au-
dio
Board & Committee positions
Member of the Board of the
GN Store Nord Foundation
Board & Committee positions
-
Board & Committee positions
Member of the Board of the
GN Store Nord Foundation
Special competencies
N/A
Special competencies
N/A
Special competencies
N/A
Board member since
2007
Board member since
2022
Board member since
2022
Term
2022/2026
Term
2022/2026
Term
2022/2026
Considered independent
N/A
Considered independent
N/A
Considered independent
N/A
Nationality
Denmark
Nationality
Denmark
Nationality
Denmark
Year of birth
1959
Year of birth
1969
Year of birth
1968
No. of GN shares
1,387 (+250)
No. of GN shares
0 (unchanged)
No. of GN shares
0 (unchanged)
Total remuneration 2022 (DKKt)
305
Total remuneration 2022 (DKKt)
259
Total remuneration 2022 (DKKt)
229
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Executive Management
Peter Karlstromer
CEO, GN Audio
(CEO as of January 2, 2023)
Gitte Pugholm Aabo
CEO, GN Hearing and GN
Store Nord (registered CEO of
GN Store Nord as of January 2,
2023)
Peter La Cour Gormsen
CFO, GN Store Nord
and GN Audio
Member of the
Executive Manage-
ment since
2023
Member of the
Executive Manage-
ment since
2019
Member of the
Executive Management
since
2021
Year of birth
1971
Year of birth
1967
Year of birth
1974
No. of GN shares
3,050 (NA)
No. of GN shares
6,823 (unchanged)
No. of GN shares
7,918 (unchanged)
No. of GN options
0
No. of GN options
230,904 (+88,020)
No. of GN options
77,563 (+35,855)
No. of GN warrants
0
No. of GN warrants
- (unchanged)
No. of GN warrants
98 (unchanged)
Board positions
None
Board positions
Member of the Committee of Directors of
Danmarks Nationalbank
(the Danish National
Bank), member of the Boards of HIMPP A/S,
ALK-ABELLÓ A/S, UNION therapeutics A/S
and member of the Board and executive
committee of the Danish Chamber of
Commerce.
Board positions
None
René Svendsen-Tune
CEO, GN Store Nord
and GN Audio
(CEO until January 2, 2023)
Member of the
Executive Manage-
ment since
2015
Year of birth
1955
No. of GN shares
116,998 (unchanged)
No. of GN options
290,589 (+116,125)
No. of GN warrants
558 (-494)
Board positions
Chair of the Boards of Stokke A/S and GN
Store Nord Foundation, Deputy Chair
of the
Boards of NKT A/S and
Nilfisk Holding A/S.
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Progress towards our 2025 ESG goals 64
ESG data 65
ESG data – climate related 66
ESG data – other 68
Frameworks, certifications, and ratings 70
Materiality matrix 71
Stakeholder engagement 72
Policy overview and governance 73
EU Taxonomy Regulation disclosure 74
TCFD index 76
Consolidated
ESG
data
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On track to meet our sustainability
goals for 2025
GN’s sustainability strategy is based on three focus areas: health,
climate change, and products and packaging, built on a foundation of
responsible business processes.
As communicated in our 2020 report – issued in February 2021 – we
have set goals in these three areas for 2025. We chose 2025 as it is
both near enough to warrant immediate action, and far enough away
to be ambitious. Partly due to solid progress on all our goals in 2022,
we are on track to meet them.
Progress towards our 2025 ESG goals
2025 targets
Status
2022 progress
Health
Help 10 million people with hear-
ing loss
On track
GN Hearing launched five new product lines addressing the specific, yet very diverse requirements in different customer segments,
thus offering a completely new line
-up across all form factors and for all types of users. Additionally, in collaboration with GN Audio,
GN Hearing develop
ed and launched Jabra Enhance Plus to offer more choice, convenience, and accessibility, aiming to make it eas-
ier to more people to begin their hearing health journey. This product was in 2022 launched in the new over the counter chann
el in
the U.S.
Create awareness of hearing loss
and add new health functionality
to our products
On track
GN Hearing expanded communication activities to increase awareness of the negative impact of untreated hearing on people’s abil-
ity to communicate and socialize, ultimatel
y impacting their overall health and well-being. Further, GN Hearing completed the ac-
quisition of Lively (now renamed JabraEnhance.com)
– a leader in online hearing care that expands the accessibility and ease for
more people to understand hearing loss and act on it.
Support unmet hearing health
needs through donations and ca-
pacity-building
On track
See page 46.
Climate
Carbon neutral in own operations
(scope 1 and 2 emissions)
On track
Increased renewable energy share (location based) from 3% to 16%, signed PPA for Danish sites.
Halve the carbon footprint of
company air travel
On track
Reduced business air travel by 35% compared to 2019 baseline, from 1.62 to 1.05 tons CO2e per FTE.
Improve carbon transparency and
set additional climate goals
On track
Had science-based targets approved, improved CDP score to B (see pages 37 and 70).
Products and packaging
50% sustainable (non-virgin) ma-
terial* in all new products
On track
Prepared launch of first products containing recycled plastic in Q1 2023.
Minimal plastic, small size, FSC-
certified packaging for all new
products
On track
Goal achieved in Jabra, prepared for roll out across other product categories in 2023.
Give more products a second life
through take
-back schemes, re-
pair, or refurb
On track
See page 38.
* Sustainable material means % of either recycled or bio
-based content as a percentage of the total weight of materials for which sustainable alternatives exist (i.e., plastics, metals, fab-
rics)
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Overall ESG accounting policies
This report covers the environmental, social, and governance (ESG) is-
sues that are deemed relevant for GN and its stakeholders. We use
ESG data to support our business and to disclose relevant and trans-
parent information to our stakeholders.
Several international ESG reporting frameworks guide the data selec-
tion process (e.g. GHG Protocol, GRI, SASB). Key issues are identified
through ongoing stakeholder engagement and trendspotting, in-
formed by data-driven analysis and addressed by programs or action
plans with clear and measurable targets.
The issues presented in this report are deemed to have either a signifi-
cant impact on GN’s future business performance or are important to
our stakeholders. The accounting policies have been applied consist-
ently for all the years presented. Any changes to historical data are
only made if considered material.
Reporting period
All reported data covers the financial year: January 1 to
December 31, 2022.
Reporting boundaries
Entities included in the reported performance data are GN Store Nord
and its majority-owned subsidiaries following the operational control
approach, which in practice means where GN controls more than 50%
of the voting rights or that GN otherwise controls. If a majority-owned
entity is acquired during the financial year, it will be included in our per-
formance data as soon as possible but not later than the end of the fol-
lowing financial year. For the purpose of this report, recent acquisitions
SteelSeries and JabraEnhance.com (formerly Lively) are within scope.
Significant changes to reporting boundary
In January 2022, GN completed the acquisition of SteelSeries and in
December 2021, GN acquired JabraEnhance.com. No other significant
changes to the reporting boundary occurred in 2022. Belaudicao was
acquired in April 2022, and will be included in next year's report.
Data quality and consolidation
We have processes at market, regional, and global levels governing the
collection, review, and validation of non-financial data included in this
report. While we make every effort to capture all information as accu-
rately as possible, it is neither feasible nor practical to measure all data
with absolute certainty. Where we have made estimates or exercised
judgement, this is highlighted within these accounting policies.
Environmental data is collected and reported for all sites where we
have operational control (where GN has direct contracts with energy
providers), including office sites with more than 50 employees. For of-
fices with less than 50 employees an estimate is made using the con-
sumption of a similar office relative to the headcount or floorspace of
the office.
Social data is collected and reported through our global HR system for
all GN employees globally.
All data reported follows these principles unless otherwise stated in
the indicator definition.
This report is in accordance with the GRI Standards. See gn.com for a
full GRI content index.
ESG data
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Scope 1
• Stationary emissions, which represent gas consumption at GN-op-
erated sites, have reduced through initiatives to reduce gas use fol-
lowing global energy insecurity, as well as energy efficiency initia-
tives such as upgrading gas boilers at our production site in the UK.
• Mobile emissions have reduced due to the adoption of lower-car-
bon vehicles across our car fleet.
Scope 2
• Market-based scope 2 emissions have decreased by increasing our
share of renewable energy across our Chinese sites.
• Location-based scope 2 emissions have slightly increased, reflecting
increased energy consumption across GN-operated sites, reflecting
higher production-related energy use and FTE presence on-site due
to relaxing of COVID-19 measures at several sites.
Combined, scope 1 and (market-based) scope 2 emissions have de-
creased by 19%, which marks a significant step towards our science-
based reduction target of 80% by 2030.
Scope 3
Emissions across most scope 3 categories have increased through the
acquisition of SteelSeries in 2022. As 2021 is the baseline year for our
climate targets, 2021 SteelSeries emissions have also been included.
Achieving our science-based reduction target of 25% reduction in
scope 3 by 2030 requires at a minimum the following actions:
• Increasing low-carbon materials in products, as well as circularity
initiatives to reduce reliance on virgin material
• Increasing low-carbon transportation and warehousing, and scaling
up local customization of products and packaging
• Engaging key suppliers on transitioning towards low-carbon manu-
facturing processes and use of renewable energy
• Eliminating unnecessary business travel and encouraging environ-
mentally-friendly commuting
ESG data – climate related
Dimension
Units
Method
Emission Factors
2020
2021
2022
GHG emissions in Scope 1
Stationary emission sources
tons CO
2
e
Fuel-based
DEFRA
348
444
402*
Mobile emission sources
tons CO
2
e
Fuel and distance-based
DEFRA
1,827
1,888
1,751*
Fugitive emission sources
tons CO
2
e
GHG Protocol
80
79
71*
Total
tons CO
2
e
2,255
2,411
2,224*
GHG emissions in Scope 2
Location-based
tons CO
2
e
IEA, EPA, DEFRA
6,599
6,741
6,974*
Market-based
tons CO
2
e
EACs, residual mix, sup-
plier specific
7,837
8,096
6,251*
Total GHG emissions in Scopes 1 and 2 (market-based)
tons CO
2
e
10,092
10,507
8,475*
GHG emissions in Scope 3
Scope 3.1: Purchased goods and services
tons CO
2
e
Spend-based and LCAs
DEFRA, LCAs
170,427
259,439
292,007
Scope 3.2: Capital goods
tons CO
2
e
Average spend-based
DEFRA
9,265
15,732
11,456
Scope 3.3: Fuel and energy-related activities
tons CO
2
e
Average-data method
DEFRA
758
931
996
Scope 3.4: Upstream transportation and distribution
tons CO
2
e
Distance
-based and aver-
age-data
DEFRA
134,324
180,170
158,792
Scope 3.5: Waste generated in operations
tons CO
2
e
Waste-type-specific
DEFRA
99
86
99
Scope 3.6: Business travel
tons CO
2
e
Distance and spend
-
based
DEFRA
4,866
4,670
12,834
Scope 3.7: Employee commuting
tons CO
2
e
Distance-based
DEFRA
5,216
7,122
9,572
Scope 3.8: Upstream leased assets
tons CO
2
e
Asset-specific
Residual mix, supplier
specific
982
1,395
1,237
Scope 3.9: Downstream transportation and distribution
tons CO
2
e
Distance
-based and aver-
age-data
DEFRA
16,839
25,606
25,071
Scope 3.11: Use of sold products
tons CO
2
e
Direct use
-phase emis-
sions (electricity)
IEA, EPA, DEFRA
9,727
12,500
10,855
Scope 3.12: End-of-life treatment of sold products
tons CO
2
e
Waste-type-specific
DEFRA
1,101
1,382
1,657
Scope 3.15: Investments
tons CO
2
e
Average-data method
DEFRA
no data
4,695
5,613
Total for reported categories
tons CO
2
e
353,605
513,727
530,190
Out of scope emissions (biogenic emissions)
tons CO
2
e
DEFRA
56
66
78
* 2022 data in scope for limited assurance by PwC
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Accounting policies
Scope 1 and 2 emissio
ns
Direct emissions
(scope 1) are from the combustion of purchased fuels for en-
ergy. GN’s direct emissions arise from natural gas consumed at production
sites,
offices and retail locations, and from vehicles that are owned or leased
by the company. Direct emissions also include fugitive emissions, which arise
from GN’s use of refrigerant gases in production facilities.
In
direct emissions (scope 2) are from purcha
sed electricity and district heating
for production sites and offices and electric or hybrid vehicles that are owned
or leased by the company.
O
nly fuel, electricity, and heat that is purchased by GN is accounted for in
scopes 1 and 2. Energy that is not p
aid for by GN, but that is consumed in
buildings or vehicles leased by GN, is accounted for in
scope 3 category 8 in
line with guidance
from the GHG Protocol. Natural gas, electricity, and district
heating consumption is reported based on actual consumptio
n from invoices,
where possible.
Emissions from vehicles is calculated using the fuel
-based method. Fuel con-
sumption from vehicles is obtained either from third
-party leasing companies
or calculated based on invoiced quantities of fuel. Where
electricity consump-
tion data is unavailable, all emissions from electric or plug
-in hybrid vehicles
are accounted for using the distance
-based method.
Where actual energy consumption data is not available for the reporting
month, consumption is estimated based on an av
erage of previous months’
consumption. Where actual consumption data is not available, spend data is
converted to consumption data using an average price for the closest
availa-
ble time period.
The quantity of energy
consumed is multiplied by the relevant emission factor
as part of the consolidation process in our environmental management
sys-
tem. The emission factors are determined from internationally recognized
sources: DEFRA factors for emissions from heat and fuel
, and IEA factors for
electricity. GHG emission rate attributes (from Energy Attribute Certificates),
supplier
-specific and residual mix factors are used to calculate market-based
s
cope 2 emissions. Otherwise, location-based factors are used.
The 2021 GHG
inventory has been recalculated across all scopes to include
Lively, acquired in December 2021
, and SteelSeries, acquired in January 2022.
Scope 3 emissions
Our scope 3 GHG inventory is based on the scope 3 reporting guidance from
the GHG Protocol. Catego
ries 10 (Processing of goods sold) and 14 (Fran-
chises) are not relevant to GN and are not reported.
Actual data are used where available. Otherwise, industry averaged data or
data available from academic studies or similar businesses are used. Where
activ
ity data of sufficient quality is unavailable, spend data is used as a proxy.
All transport
-related emissions are calculated on a Well-to-Wheel basis.
Category 1
– Purchased goods and services
Emissions from goods and services purchased by GN are calculate
d using cat-
egorized spend data. This includes both direct and indirect procurement.
To
improve the accuracy of this category, where available, in 2022 data
derived
from product LCAs was used instead of spend data.
Category 2
– Capital goods
Emissions from
property, plant, and equipment (PPE), calculated using cate-
gorized spend data. In this case, PPE includes factory and office buildings,
leasehold improvements, plant and machinery, operating assets and
equip-
ment, and assets under construction.
Category 3
– Fuel and energy-related activities
Upstream emissions from energy consumption at sites where GN has
opera-
tional control and for fleet vehicles. Emissions are calculated on a location
-
based basis, using actual energy consumption data from sites and the fl
eet.
Category 4
– Upstream transportation and distribution
GN Hearing: All transportation and distribution (T&D) of goods, including air,
road, rail
, and ocean freight and warehousing carried out by a supplier and
paid for by GN. Data on the distance, weight and transport mode are collected
from GN Hearing’s transportation providers. GN Audio:
Emissions from trans-
portation and warehousing of GN products from global distribution centers to
retailers or webshop and B2B customers (excluding transportation of
SteelSeries products to APAC customers, which are reported in scope 3 cate-
gory 9). Calculation of transportation emissions required a mix of inhouse l
o-
gistics and modelled using product weights, production volumes, distances
,
and assumed transport modes.
Category 5
– Waste generated in operations
Collection and treatment emissions associated with waste generated by all
GN offices and production sites. E
missions are calculated using data from
waste management providers serving 4 of our 5 major production sites and
headquarters. For remaining sites, estimates are made based on production
volumes (production sites) and employee numbers (office and retail si
tes).
Category 6
– Business travel
Emissions from business air and train travel, calculated using ticket data
gathered from travel partners, uplifted using spend data to include travel not
booked through GN’s travel partners. Air travel emissions are uplif
ted to
account for the indirect effects of non
-CO
2
emissions. Emissions from fuel
purchased by employees for business travel and hotels are accounted for in
scope 3 category 1.
Category 7
– Employee commuting
Emissions from GN employees’ commute to and fr
om work, based on an em-
ployee survey conducted in 2021, accounting for homeworking (2020
-2022).
Category 8
– Upstream leased assets
Energy use at sites not included in scopes 1 and 2. Emissions are calculated on
a market
-based basis using actual data obtained from building management
providers and estimated data, where this is not available. Since 2021, some
scope 1 and 2 emissions have been recategorized into scope 3 category 8.
Category 9
– Downstream transportation and distribution
GN Hearing: Emissions
associated with the retail of GN products via retail
locations not owned by GN, calculated using average energy intensity per
product sold, by major market, and location
-based emission factors.
T
ransportation and warehousing emissions are accounted for in scope 3
category 4. GN Audio: Estimated warehousing
emissions not paid for by GN.
SteelSeries:
Emissions from transportation not directly paid for by GN.
Category 11
– Use of sold products
Emissions from the power consumption of all GN products, excluding
acces-
sory products in GN Hearing, calculated using estimated average use cases
and product lifetimes for main product categories.
Category 12
– End-of-life treatment of sold products
Collection and waste treatment of GN products and packaging, calculated
us-
ing product and packaging weights by major market country locations.
Category 15
- Investments
Estimated scope 1 and 2 emissions of GN’s investments calculated using reve-
nue and proxy data, combined with EEIO data and allocated based on share of
investme
nt.
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Notes – Environmental
Energy, waste, and water consumption
Energy consumption includes electricity, fuel, and heating used at all
GN sites and in the GN car fleet. Energy consumption is estimated
based on similar sites in terms of size and geography, where actual
data is not available.
Waste reported here amounts to all waste generated at all GN sites.
Actual data is used to calculate the waste volumes from the main pro-
duction sites and headquarters. Waste volume for GN’s hearing aid
production sites in the U.S. and Spain were estimated based on the
other production sites in Denmark, China, Malaysia, and the U.K., while
smaller offices’ waste volumes were estimated based on similar sites in
terms of size and geography. Water consumption was calculated in the
same way as waste generation. Increase in waste is mostly due to
higher office use post-pandemic and acquisitions.
Renewable energy share
The percentage of GN’s energy consumption within the operational
control boundary that comes from renewable sources, as stipulated by
contractual instruments, such as green tariffs, energy attribute
certificates purchased by GN or where GN has entered into power pur-
chase agreements.
TCO Certified products
A TCO Certified product is defined as a product that has received sepa-
rate certification from TCO Certified. For an overview of current GN
products with TCO certification, see https://tcocertified.com/product-
finder/index?brand=Jabra&tq=&pp=1.
FSC certified packaging
These data points are calculated by dividing the total number of prod-
ucts sold in 2022 with FSC certified packaging with the total number of
sold products. To calculate the number that represents the share of
newly launched products only, the same number is divided by the total
number of sold products that were launched in 2022 only. The de-
crease in this number is mostly due to the acquisition of SteelSeries,
for which we will also switch to FSC certified packaging in the near fu-
ture.
LCAs completed
This includes all completed product LCAs that have been externally
verified by Bureau Veritas. Up until this point, all LCAs have been com-
pleted for Jabra products. Further LCAs will be completed and verified
in early 2023. For a full overview see www.jabra.com/sustainability.
E-waste recycling financed
GN Audio is required as part of the WEEE Directive in the EU to help fi-
nance e-waste collection and recycling infrastructure in line with the
volume of electronic equipment put on the market in countries above a
set threshold. This requirement only applies to GN Audio and includes
products, batteries, and packaging (both plastic and cardboard). Per
law, our compliance with WEEE in Denmark was subject to an external
audit.
ESG data – other
Dimension
Units
2018
2019
2020
2021
2022
2025 tar-
get
Environmental
Energy consumption
MWh
24,374
27,875
27,597
Renewable energy share
%
3%
16%
Waste generation
metric tons
1,309
1,250
1,429
Water consumption
m3
71,594
73,975
73,073
TCO Certified products
# certified products
0
0
4
17
29
FSC certified packaging - share of total sold products
% sold products
0%
0%
4.9%
15%
20%
FSC certified packaging - share of newly launched sold products
% sold products
0%
0%
40%
100%
51%
100%
Product LCAs completed and externally verified
# LCAs
0
0
0
0
9
E-waste recycling financed
tons
2,788
3,671
4,210
4,777
4,302
Social
Number of people with hearing loss helped
# m people
9.0
9.1
9.4
9.8
>10
Supplier ESG audits
# audits of tier 1 and key
tier 2 suppliers
39
49
39
40
31
Lost time incidents (LTI) at GN operated manufacturing sites
# incidents
5
2
11
Employee turnover
% of total workforce
22%
Conflict Minerals Reporting Templates received
%CMRTs received
98%
98%
97%
100%
100%
100%
Governance
Women in Board of Directors (AGM elected)
% women
50%
40%
57%
57%
66%
>40%
Women in Senior Management
% women
20%
20%
21%
21%
23%*
>25%
Whistleblower cases
Number of cases
10
15
14
29
37
* 2022 data in scope for limited assurance by PwC
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Content
Notes - Social
People with hearing loss helped
This number is calculated using sales volumes of GN hearing aids and
assumptions based on EHIMA figures for binaural treatment and re-
placement rates (five years for high-income countries and eight years
for low-income countries).
Supplier ESG Audits
This includes any on-site audit executed by GN of tier 1 and key tier 2
suppliers dedicated to environmental, social, and governance compli-
ance with local law and our Codes of Conduct. Our ability to execute
on-site audits was heavily impacted by COVID-19 in 2022. We expect
to conduct a higher number of audits in 2023.
Lost time incidents (LTI)
An injury sustained by an employee that leads to loss of productive
work in the form of absenteeism or delays. Although occupational
health and safety procedures apply across all GN’s sites, the metric is
limited to GN Hearing’s operated manufacturing sites in China, Malay-
sia, U.K., U.S., and Denmark where LTIs are most probable and pose the
highest risk to employee wellbeing.
Employee turnover
Includes both voluntary and involuntary turnover for both white collar
and blue collar. As the integration of HR and IT systems is ongoing, this
number excludes SteelSeries.
Notes – Governance
Women in Board of Directors
The percentage of female Board members on December 31, 2022.
For the above two data points, we will include other underrepresented
genders in this number in future reporting, if this becomes a relevant
distinction either based on gender identification of GN employees or
through additional disclosure requirements.
Whistleblower cases
The number of cases reported through our whistleblower hotline, the
GN Alertline. The increase can both be interpreted as negative in the
sense of more incidents occurring that warrant whistle blowing, or as
positive in the sense of more employees feeling comfortable to use this
service to report grievances. Benchmarked against companies of simi-
lar size and geography, the current number of cases seems representa-
tive of a well-functioning whistleblower system.
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Accounting policies
Accounting policy for women in senior management positions
The percentage of female employees holding senior management posi-
tions on December 31, 2022, where senior management is defined as be-
ing part of the Executive Management, Global Management Team, or
Global Leadership Group employee groups.
Data is collected directly from the global HR system and employees are
categorized into the relevant senior management employee group based
on a clear set of criteria based on the chain of command assigned in the
HR system.
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Frameworks, certifications,
and
ratings
70/169
Responsible
business practices
UN Global Compact Member
GN Group 2010
Responsible Business
Alliance
Member GN Audio 2022
ISO Certified Sites and divisions within GN Group 2022
EcoVadis Bronze
GN Audio
2022
Products and
packaging
Forest Stewardship Council Certified All Jabra products since 2021 2022
TCO Certified Certified 2022
Climate ambition
and transparency
Science Based Targets Approved
GN Group
2022
CDP Climate Change B GN Group 2022
Task Force on Climate -
Related Financial
Disclosures
Aligned
GN Group 2022
ESG reporting and
performance
Global Reporting Initiative Aligned GN Group 2022
MSCI ESG Ratings AA GN Group 2022
Sustainalytics ESG Rating
13.2
(low risk)
GN Group 2022
Rating agency
Last
updatedOrganization/product
Rating/
Certification
Click to see current TCO
certified GN products
Pernille Bartel
Head of Market Access
GN Hearing
”As a company
our values help
us constantly
evolve and im-
prove what we
bring to the
market.”
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GN aims to act and report on the
sustainability topics that matter the
most to GN and our stakeholders
We determine the relevance to stakeholders for these topics by aggre-
gating sustainability-related requirements and inquiries from investors,
customers, and employees. We also take into account the salience of
the topic in (emerging) legislation and industry materiality guidance
from ESG reporting frameworks and rating agencies.
To determine “Impact on GN’s success”, we assessed to what extent
adequately addressing the topic contributes towards GN mitigating
risks or seizing opportunities, and thereby serve as an enabler of the
success of GN.
In 2023, we will execute a full value chain ‘double materiality’
assessment in accordance with the Corporate Sustainability Reporting
Directive (CSRD) standards.
Materiality matrix
Relevant to stakeholders
Impact on GN’s successLow High
Low
High
• Biodiversity
• Philanthropy and
volunteering
• Climate change
• Sustainable product design and
packaging
• Product circularity
• Waste in production
• Human Rights and conflict minerals
• Occupational health and safety
• Diversity and inclusion
• Data protection
• Business ethics and compliance
• Water use
• Hearing health
• Product safety
• Employee and
leadership
development
Environment Social Governance
Materiality matrix for GN
Three approaches to material topics
We consider topics material if they score at least ‘medium’ on at least one axis. How we approach
a specific material topic depends on the nature of the required actions to adequately address it.
We distinguish between three approaches.
1) Non-negotioable topics
Material topics that are rooted
in compliance with legal
standards or commitments
GN has made,
where meeting
these standards and
commitments always are non -
negotiable.
2) Focus area topics
Material topics for which we
see a high demand of
stakeholders to show
continuous improvement.
These topics are covered in
our 3 focus areas, for which
we have developed 2025
goals.
3) People topics
Material topics that relate to
our activities to create am
engaged, diverse, and inclusive
workforce in order to deliver
on our strategic priorities,
including our sustainability
agenda.
• Product safety
• Human Rights and conflict
minerals
• Occupational health and
safety
• Data protection
• Business ethics and
compliance
• Hearing health
• Climate change
• Sustainable product design
and packaging
• Product circularity
• Employee and leadership
development
• Diversity and inclusion
• Philanthropy and
volunteering
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We are in continuous dialogue with our
stakeholders to ensure we understand
their requirements and find ways to
work in partnership to strengthen our
business and the societies in which we
operate
Customers
We proactively engage with customer groups to improve our products.
We are keen to understand our customers’ and partners’ sustainability
requirements and aim to meet these standards. In 2022, sustainability
became an even more prominent topic of engagement with customers,
especially in GN Audio, including packaging, LCAs, certifications, decar-
bonization, and circularity.
Employees
All employees engage biannually in professional development discus-
sions. All employees are encouraged to participate in the biannual
engagement survey, a tool that enables leaders and employees to ad-
dress strengths as well as areas of improvement. Employees can ap-
proach their HR business partner for confidential discussions, as well as
report any concerns to a confidential whistleblower hotline, GN Alert-
line.
Investors
As a public company, GN discloses ESG data in relevant areas via our
integrated annual report, our Annual General Meeting, and where rele-
vant on request to ESG rating agencies and investors. To ensure our
ESG disclosures always meet investor requirements, we welcome dia-
logue with our investors on ESG topics at any time. In 2022, we contin-
ued to make ESG a prominent part of our proactive communication to
investors.
Regulatory authorities
GN assesses relevant regulations on an ongoing basis and ensures we
comply with all relevant legislation. We expect new legislation to
emerge in the area of product sustainability (especially in GN Audio), as
part of, among other, the European Green Deal and right to repair, as
well as additional sustainability/ESG disclosure requirements, espe-
cially related to GN’s impact on climate change and vice versa.
Suppliers
We expect our suppliers to uphold the same standards as we set for
ourselves. We audit our suppliers to ensure they comply with GN’s sup-
plier codes of conduct and policies. We work in partnership with our
suppliers to support their compliance, and we also expect that they act
to rectify any breaches. To strengthen our supply chain responsibility,
in 2022, GN Audio joined the Responsible Business Alliances (RBA).
Interest groups
We support the United Nation’s SDGs through our membership of the
UN Global Compact. Our efforts to raise awareness of hearing loss and
the benefits of early treatment include our participation in industry
groups such as the European Hearing Instrument Manufacturers Asso-
ciation (EHIMA) and promotion of the World Health Organization’s
World Hearing Day.
Stakeholder engagement
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Customers
Employees
Investors
Regulatory authorities
Interest groups
Suppliers
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Policy overview and governance
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Policy
What it covers
Policies guiding internal
processes
Sustainability Policy
GN’s general approach to sustainability across all ESG areas.
Diversity Policy
GN’s initiatives and tools to drive greater inclusion and diversity across GN.
Quality Policies GN Au-
dio and GN Hearing
GN Audio and GN Hearing’s processes that ensure we foster a quality culture with the objective to develop, manufacture, and market products and services
with superior quality as perceived by customers.
Ethics Guide*
Our internal Code of Conduct. The responsibilities and guidelines that describe the ethical standard expected of all GN employees, as well as a decision-making
process supporting the resolution of ethical issues.
Privacy Policy
How GN protects personal data belonging to customers, users, and employees.
Anti-corruption Policy*
How GN employees, suppliers, customers, and third-party representatives are expected to conduct business the right way, in compliance with all applicable
anti-bribery and anti-corruption laws, including (but not limited to) the US Foreign Corrupt Practices Act and the UK Bribery Act 2010.
Gifts, travel, and enter-
tainment Policy*
Guidelines for gifts, travel, and entertainment in GN, within the wider anti-corruption policy.
Non-retaliation Policy**
GN’s commitment to ensure that any employee who reports detected or suspected misconduct to a manager will not suffer any kind of retaliation or repercus-
sion as a result thereof.
Tax Policy
How GN pays its taxes in a responsible way.
Remuneration Policy
The guidelines for remuneration, including incentive pay, to members of GN’s registered management and such members’ remuneration in GN’s wholly-owned
subsidiaries, as well as remuneration to GN’s Board of Directors, in accordance with Section 4 of the Rec
ommendations on Corporate Governance and Section
139 of the Danish Companies Act.
Flexible Work Policy
How GN ensures a healthy work-life balance for employees by allowing for optimization of work arrangements based on individual circumstances.
Requirements for rele-
vant suppliers
Codes of Conduct GN
Audio and GN Hearing
How suppliers are expected to conduct business with respect to human rights, environmental standards, and ethical business practices across the value chain.
Modern Slavery and Sup-
ply Chain Disclosure
GN’s policies and procedures to comply with the UK Modern Slavery Act (2015) and the California Transparency in Supply Chains Act (2012).
Responsible Sourcing
Policy GN Audio
GN Audio’s application of the ten principles of the UN Global Compact in sourcing.
Conflict Minerals Policy
GN’s requirements and supporting due diligence process to ensure our suppliers do not source conflict minerals to be used in our products.
* All relevant employees required to sign.
** All managers required to sign.
The Board of Directors
Sustainability governance
The Board approves the strategic derection and key
decisions regarding sustainability
.
Executive Management
Executive Management owns sustainability as part of
the company’s strategy and is responsible for driving
progress.
Global Management Teams
Global Management Teams in the different business
divisions discuss sustainability at least on a quarterly
basis and are responsible for driving and tracking
processes on an operational level.
Group Sustainability
Group Sustainability, reporting to GN Store Nord’s
CFO, holds overall responsibility for supporting the
business in driving the sustainability agenda as well as
developing external reporting.
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In accordance with Article 8 of the delegated act for reporting in com-
pliance with the EU Taxonomy regulation, as a non-financial listed
company, GN assessed the eligibility and alignment of our economic
activities with the EU Taxonomy, based on activities listed in Annexes 1
and 2 to the delegated act.
Methodology and materiality
For the purpose of this disclosure, we executed a full screening of all
GN’s core and secondary economic activities within our operational
control against the eligible activities listed in the Taxonomy Compass,
for the two environmental objectives against which we are obligated to
report: climate mitigation and adaptation. An initial screening of all
economic activities listed in the compass yielded that GN’s core busi-
ness activities are not eligible for these objectives, while in terms of
secondary activities, we established two eligible activities: building ren-
ovation and the installation of charging stations.
For assessing eligible activities, we have assessed the feasibility of de-
veloping the required data to prove substantial contribution to the en-
vironmental objectives, only considering clearly identifiable parts of
our activities.
Accounting policies for OPEX and CAPEX
CAPEX is defined as Taxonomy-eligible CAPEX divided by total CAPEX.
The total CAPEX consists of additions to tangible and intangible fixed
assets before depreciation, amortisation, and any re-measurements. It
includes acquisitions of property plant and equipment, intangible as-
sets, leases with usage rights, and investment properties, and excludes
current assets, company acquisitions and non-current assets.
OPEX is defined as Taxonomy-eligible OPEX divided by the total OPEX.
The total OPEX consists of: research and development, excluding over-
head; building renovation; short-term lease agreements; mainte-
nance/upkeep and repairs: and any other direct expenditure related to
the routine maintenance of tangible assets by the company or by the
third party to whom activities are outsourced that are necessary to en-
sure the continued and effective functioning of such assets.
Eligibility and alignment with climate-related objectives
Core activities
Our core activity in GN Hearing is not covered by current EU Taxonomy
guidance.
Our core activity in GN Audio could be interpreted as eligible to the cli-
mate mitigation objective, as this activity falls in category 3.6 of the EU
Taxonomy: Manufacture of other low carbon technologies.
The basis for alignment would be that GN Audio’s products facilitate
remote, virtual collaboration which potentially leads to substantially
reduced GHG emissions compared to alternative solutions (for exam-
ple, face-to-face meetings with associated travel). This is confirmed in a
life-cycle analysis (LCA) study executed by independent third party (in
accordance with ISO 14064) that demonstrates that using our video
product PanaCast on average has 92% lower carbon emissions than
traveling to meetings. However, we are unable to demonstrate eligibil-
ity, as we lack LCA data of similar products made by other companies
to also satisfy the screening criterium that our products must have
lower GHG emissions than 'best performing alternative products'.
We, therefore, require additional guidance on the criteria for taxonomy
eligibility and/or alignment for this activity for the climate mitigation
objective. As we await this guidance, for the purpose of the 2022 dis-
closure, we preliminarily assess this activity to not be eligible.
Secondary activities
In addition, our screening yielded that in 2022, GN was involved in the
following secondary economic activities that match taxonomy-
eligibility criteria. As these are secondary activities, these logically do
not represent any turnover.
• Renovation of existing buildings, representing an estimated 3.15%
of CAPEX, 0.02% of OPEX and 0% turnover (see table on next
page)
• Installation, maintenance and repair of charging stations for elec-
tric vehicles in buildings, representing an estimated 0.08% of
CAPEX, 0% of OPEX and 0% turnover (see table on next page)
Neither of these activities meet the materiality threshold as described
above to justify a detailed alignment assessment.
As such, we assess none of GN’s activities to be aligned with the two
climate-related objectives. Given the reported low eligibility of our ac-
tivities for the climate-related objectives, alignment considerations
have not been included in the investment plans for the future.
Eligibility and alignment with remaining four environmental objectives
Based on the report of the EU Platform on Sustainable Finance in April
2022 on the remaining four objectives, we expect that if the suggested
screening criteria in that report are translated into formal reporting re-
quirements, a significant part of GN’s economic activities will be eligi-
ble for the Circular Economy objective. Given our focus on including
circularity in product development and services, we expect that in due
course we will be able to meet the technical screening criteria to be
aligned with this objective.
Finally, for GN Hearing, which creates significant social benefits to soci-
ety, we look forward to the development of a social taxonomy, which
will allow us to demonstrate the societal value of this activity.
EU Taxonomy Regulation disclosure
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CAPEX
OPEX
Substantial contribution crite-
ria
DNSH
criteria
Economic activities
Codes
Absolute
CAPEX (DKKm)
Proportion
of CAPEX
(%)
1 (%)
2 (%)
3-6 (%)
1-6
Min.
safe-
guards
Aligned
prop. of
CAPEX
(%)
Category
(enab-
ling)
Category
(transi-
tional)
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities
DKK 0
CAPEX of environmentally sustainable activities (Taxonomy-aligned) (A.1)
0%
0%
0%
n/a
n/a
n/a
0%
A.2 Taxonomy-eligible but not environmentally sustainable activities (not taxonomy-aligned)
Renovation of existing buildings
7.2
25
3.15%
T
Installation, maintenance, and repair of charging stations for electric vehicles
7.4
1
0.08%
E
CAPEX eligible but not aligned
26
3.24%
Total (A.1 + A.2)
26
3.24%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
CAPEX of taxonomy-non-eligible activities
783
96.76%
(Total A + B)
809
100%
Substantial contribution crite-
ria
DNSH
criteria
Economic activities
NACE
code(s)
Absolute OPEX
(DKKm)
Proportion
of OPEX
(%)
1 (%)
2 (%)
3-6 (%)
1-6
Min.
safe-
guards
Aligned
prop. of
OPEX
(%)
Category
(enab-
ling)
Category
(transi-
tional)
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities
DKK 0
OPEX of environmentally sustainable activities (Taxonomy-aligned) (A.1)
0%
0%
0%
n/a
n/a
n/a
0%
A.2 Taxonomy-eligible but not environmentally sustainable activities (not taxonomy-aligned)
Renovation of existing buildings
7.2
1
0.02%
T
OPEX eligible but not aligned
1
0.02%
Total (A.1 + A.2)
1
0.02%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
OPEX of taxonomy-non-eligible activities
7,689
99.98%
(Total A + B)
7,690
100%
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GN continues to develop our climate-related risk management and dis-
closure in line with the recommendations of the Task Force on Climate-
related Financial Disclosures (TCFD).
This table provides an overview of our TCFD alignment, along with ref-
erences to where you can find further information in this report.
TCFD index
TCFD Pillar
Recommendation
Details
Reference
Governance
Disclose company’s gov-
ernance around
climate-
related risks and oppor-
tunities.
GN’s governance of climate-related issues is outlined in the Sustainability Governance section of this report.
Sustainability govern-
ance
- page 73
Strategy
Disclose actual and po-
tential impacts of cli-
mate
-related risks and
opportunities on busi-
ness, strategy, and finan-
cial planning, where ma-
terial.
For an overview of GN’s climate
-related risks please see page 52. We anticipate that increasing investments in low-carbon technology, including batteries, and increasing availability of circular infrastruc-
ture and services will provide opportunities to meet demand for low
-impact products, comply with new regulations, and reduce raw material costs. Sustainability is a key enabler of GN’s strategy. Climate
change impact is
a strategic decision-making factor across the business and GN’s activities are evaluated using a set of success criteria that pay attention to climate-related issues as well as traditional
business objectives.
Financial resources allocated to supporting G
N’s low-carbon transition have increased over the past year, e.g. enabling sourcing of raw materials with lower climate impact. GN anticipates the integration
of broader financial needs with our climate performance from 2022 onwards.
Environmental perfor-
m
ance - pages 37-42
Risk Management
Disclose how the com-
pany identifies, assesses,
and manages climate
-re-
lated risks.
In 2021, in view of our first TCFD disclosure, we carried out a thorough assessment of climate-related risks and opportunities. Going forward, climate-related risks and opportunities will be included in
ongoing enterprise risk management. High
-level climate scenario analysis was conducted using the IEA's new Net Zero Roadmap report and the Net-Zero Emissions by 2050 Scenario, as well as regional-
level climate change impact projections from the IPCC's Working Group II report from the Fifth Assessment Report (2014). More
comprehensive climate-related scenario analysis will be phased in to
align our approach with TCFD recommendations.
Risk management - page
52
Metrics and targets
Disclose metrics and tar-
gets used to assess and
manage relevant cli-
mate
-related risks and
opportunities where
such information is ma-
terial.
Metrics
The principal metrics used to assess climate
-related risks and opportunities are:
-
Absolute scope 1, 2 and 3 greenhouse gas emissions
-
Share of total revenue from products or services that support the transition to a low-carbon economy
Performance on these metrics and other material ESG KPIs are d
isclosed in this report.
Targets
GN's existing climate targets for 2025 are to:
-
Become carbon-neutral in scopes 1 and 2 by 2025 through 100% renewable energy in our owned sites, a low-carbon car fleet, and investment in high quality carbon removal projects
-
Reduce emissions from business travel globally by 50%
Further, GN has set near
-term science-based targets through the Science Based Targets initiative (SBTi). GN commits to reduce absolute scope 1 and 2 GHG emissions 80% by 2030 from a 2021 base
yea
r. GN Store Nord also commits to reduce absolute scope 3 GHG emissions 25% within the same timeframe. These targets were approved in December 2022. GN is committed to setting a science-
based net
-zero target with the SBTi.
GN will draw up a transition plan within the next two years, supporting how we will reach our approved science-based targets, and work towards being net-zero before 2050.
ESG data - climate-re-
lated
- pages 66-67
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GN Hearing
Revenue
GN Hearing’s revenue in Q4 2022 was DKK 1,807 million compared to
DKK 1,429 million in Q4 2021, driven by an organic revenue growth of
14%. Revenue growth was 26% including around 6% impact from the
development in foreign exchange rates and around 6% impact from
M&A.
In North America, GN Hearing delivered strong performance in Q4
2022 in a soft hearing aid market. The launch of ReSound OMNIA, as
well as the generally strong product portfolio, drove an organic reve-
nue growth of 11% in North America, with particularly strong growth
in Veterans Affairs. In Europe, GN Hearing delivered strong organic rev-
enue growth of 8% driven by, among other, Germany and the U.K. In
Rest of World, organic revenue growth was 22% despite soft market
conditions and COVID-19 restrictions in China.
Earnings and other financial highlights
GN Hearing’s adj. gross profit increased by 33% to DKK 1,205 million in
Q4 2022. The adj. gross margin reached 66.7%, compared to 63.5% in
Q4 2021 due to higher volumes and better mix, but partly offset by el-
evated freight costs and increased material costs.
GN Hearing’s adj. EBITA was DKK 472 million, with the Core business
delivering adj. EBITA of DKK 503 million corresponding to an adj.
EBITA margin of 28.9%. The Emerging business, primarily
JabraEnhance.com, delivered an EBITA of DKK -31 million. Reported
EBITA amounted to DKK 436 million reflecting non-recurring items of
DKK -36 million in Q4 2022.
In Q4 2022, free cash flow excl. M&A reached DKK 64 million, com-
pared to DKK -61 million in Q4 2021 driven by the strong growth in
earnings, but partly offset by working capital.
GN Audio
Revenue
GN Audio delivered -3% organic revenue growth in Q4 2022. The
growth was driven by 9% organic revenue growth in Enterprise as a
result of the world-leading and updated product portfolio, as well as an
easing supply chain, but offset by -38% organic growth in Consumer.
SteelSeries delivered organic revenue growth of -4% while gaining
market share in a significantly declining market, impacted by lower
consumer sentiment. The growth was driven by the strong and
updated product line-up. Revenue growth in Q4 2022 was 30%
including a 29% impact from M&A, reflecting SteelSeries. The impact
from the development in foreign exchange rates was around 4%.
In North America, GN Audio delivered organic revenue growth of -18%,
while Europe saw organic revenue growth of 9%. Organic revenue
growth in the Rest of World region was -9% in Q4 2022.
Earnings and other financial highlights
GN Audio delivered a gross margin of 39.7% in Q4 2022 compared to
49.3% in Q4 2021, impacted by elevated level of freight costs, in-
creased material costs, the consolidation of SteelSeries, higher-than-
normal promotional activities in the consumer orientated business due
Q4 financial highlights
Financial overview Q4 2022
GN Hearing
GN Audio
DKK million – Q4 2022
GN
Hearing
Core
business
Emerging
business
GN
Audio
GN Audio
organic
Steel-
Series
Revenue
1,807
1,742
65
3,463
2,679
784
Organic growth
14%
14%
77%
-3%
-3%
-4%
Adj. EBITA**
472
503
-31
334
Adj. EBITA margin**
26.1%
28.9%
9.6%
Group total*
GN Hearing
GN Audio
DKK million
Q4 2022
Q4 2021
Growth
Q4 2022
Q4 2021
Growth
Q4 2022
Q4 2021
Growth
Revenue
5,270
4,100
29%
1,807
1,429
26%
3,463
2,671
30%
Organic growth
3%
-2%
14%
2%
-3%
-4%
Adj. Gross profit**
2,581
2,224
16%
1,205
908
33%
1,376
1,316
5%
Adj. Gross profit margin**
49.0%
54.2%
-5.2%p
66.7%
63.5%
3.2%p
39.7%
49.3%
-9.6%p
Adj. EBITA**
744
651
14%
472
219
116%
334
475
-30%
Adj. EBITA margin**
14.1%
15.9%
-1.8%p
26.1%
15.3%
10.8%p
9.6%
17.8%
-8.2%p
Adj. Earnings per share (EPS)***
3.92
4.14
-5%
Free cash flow excl. M&A
-105
-279
NA
64
-61
NA
-21
198
NA
* Including "Other"
** Excluding non
-recurring items (DKK -152 million in OPEX in GN Audio, DKK -11 million in COGS in GN Hearing and DKK -25 million in OPEX in GN Hearing) in 2022. Excluding non-
recurring items (DKK
-31 million in OPEX in GN Audio) in 2021
*** Excluding non-recurring items (DKK -188 million in 2022 and DKK -31 million in 2021) and amortization of acquired intangible assets
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to the increasing inventory, and a significant negative impact from the
development in foreign exchange rates.
GN Audio’s adj. EBITA ended at DKK 334 million in Q4 2022, translat-
ing into an adj. EBITA margin of 9.6%, compared to 17.8% in Q4 2021
reflecting the gross margin impact and timing effects of OPEX. Re-
ported EBITA was DKK 182 million, reflecting DKK -152 million in non-
recurring items related to the integration of SteelSeries and cost re-
duction measures.
In Q4 2022, free cash flow excl. M&A reached DKK -21 million, com-
pared to DKK 198 million in Q4 2021 driven by the decline in reported
earnings and a negative impact from working capital.
GN Store Nord
In Q4 2022, EBITA in Other amounted to DKK -62 million in Q4 2022,
compared to DKK -43 million in Q4 2021 due to timing effects. GN
Store Nord’s adj. EBITA was DKK 744 million compared to DKK 651
million in Q4 2021, driven by strong execution across GN Hearing and
GN Audio in soft market environments impacted by reduced consumer
sentiment. This corresponds to an adj. EBITA margin of 14.1% in Q4
2022 compared to 15.9% in Q4 2021. Reported EBITA was DKK 556
million, reflecting non-recurring items of DKK -188 million due to sup-
ply chain initiatives in GN Hearing, the non-recurring items related to
SteelSeries and cost reduction measures.
In Q4 2022, amortization of acquired intangible assets amounted to
DKK -116 million compared to DKK -103 million in Q4 2021 reflecting
the acquisition of SteelSeries. Financial items were DKK -82 million in
Q4 2022 compared to DKK 34 million in Q4 2021, driven by run-rate ef-
fects from the higher net interest-bearing debt.
Content
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Q4
Q4
Full year
Full year
2022
2021
2022
2021
DKK million
(unaud.)
(unaud.)
(aud.)
(aud.)
GN Store Nord
Revenue
5,270
4,100
18,687
15,775
Revenue growth
29%
0%
18%
17%
Organic growth
3%
-2%
-3%
20%
Gross profit margin
48.8%
54.2%
48.9%
55.0%
EBITA*
556
620
1,560
2,619
EBITA margin*
10.6%
15.1%
8.3%
16.6%
Profit (loss) before tax
354
540
725
2,271
Effective tax rate
21.5%
20.7%
21.4%
21.2%
ROIC (EBITA*/Average invested capital)
9%
25%
9%
25%
Earnings per share, basic (EPS)
2.06
3.30
4.00
13.63
Earnings per share, fully diluted (EPS diluted)
2.05
3.29
3.99
13.49
Free cash flow excl. M&A
-105
-279
-1,291
702
Cash conversion (Free cash flow excl. M&A/EBITA*)
-19%
-45%
-83%
27%
Equity ratio
22.2%
26.4%
22.2%
26.4%
Net interest-bearing debt
14,561
4,829
14,561
4,829
Net interest-bearing debt (period-end)/EBITDA
7.1
1.6
7.1
1.6
Payout ratio
-
-
0%
12%
Share buybacks**
-
54
-
1,166
Outstanding shares, end of period (thousand)
127,973
127,718
127,973
127,718
Average number of outstanding shares (thousand)
127,964
127,719
127,823
128,816
Average number of outstanding shares, fully diluted (thousand)
128,120
128,314
128,126
130,194
Treasury shares, end of period (thousand)
9,220
10,458
9,220
10,458
Share price at the end of the period
159.8
411.3
159.8
411.3
Market capitalization
20,444
52,530
20,444
52,530
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 amortization of development projects and software developed in
-house.
** Incl. buybacks as part of share based incentive programs
Q4
Q4
Full year
Full year
2022
2021
2022
2021
DKK million
(unaud.)
(unaud.)
(aud.)
(aud.)
GN Hearing
Revenue
1,807
1,429
6,227
5,332
Revenue growth
26%
4%
17%
13%
Organic growth
14%
2%
5%
16%
Gross profit margin
66.1%
63.5%
62.7%
63.8%
EBITA*
436
219
453
643
EBITA margin*
24.1%
15.3%
7.3%
12.1%
ROIC (EBITA*/Average invested capital)
5%
9%
5%
9%
Free cash flow excl. M&A
64
-61
-377
198
Cash conversion (Free cash flow excl. M&A/EBITA*)
15%
-28%
-83%
31%
GN Audio
Revenue
3,463
2,671
12,460
10,443
Revenue growth
30%
-1%
19%
20%
Organic growth
-3%
-4%
-7%
22%
Gross profit margin
39.7%
49.3%
41.9%
50.6%
EBITA*
182
444
1,299
2,164
EBITA margin*
5.3%
16.6%
10.4%
20.7%
ROIC (EBITA*/Average invested capital)
17%
79%
17%
79%
Free cash flow excl. M&A
-21
198
-91
1,288
Cash conversion (Free cash flow excl. M&A/EBITA*)
-12%
45%
-7%
60%
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 amortization of development projects and software developed in
-house.
** Incl. buybacks as part of share based incentive programs
Quarterly financial highlights
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Quarterly reporting by segment
Q1 2021
Q2 2021
Q3 2021
Q4 2021
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Full Year 2021
Full Year 2022
DKK million
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(aud.)
(aud.)
Income statement
Revenue
GN Hearing
1,234
1,322
1,347
1,429
1,337
1,529
1,554
1,807
5,332
6,227
GN Audio
2,876
2,456
2,440
2,671
2,522
3,328
3,147
3,463
10,443
12,460
Total
4,110
3,778
3,787
4,100
3,859
4,857
4,701
5,270
15,775
18,687
Organic growth
GN Hearing
1%
95%
4%
2%
2%
4%
0%
14%
16%
5%
GN Audio
82%
32%
1%
-4%
-30%
10%
-2%
-3%
22%
-7%
Total
46%
49%
2%
-2%
-21%
8%
-1%
3%
20%
-3%
Gross profit
GN Hearing
769
832
891
908
801
924
988
1,194
3,400
3,907
GN Audio
1,480
1,264
1,222
1,316
1,006
1,502
1,341
1,376
5,282
5,225
Total
2,249
2,096
2,113
2,224
1,807
2,426
2,329
2,570
8,682
9,132
Gross profit margin
GN Hearing
62.3%
62.9%
66.1%
63.5%
59.9%
60.4%
63.6%
66.1%
63.8%
62.7%
GN Audio
51.5%
51.5%
50.1%
49.3%
39.9%
45.1%
42.6%
39.7%
50.6%
41.9%
Total
54.7%
55.5%
55.8%
54.2%
46.8%
49.9%
49.5%
48.8%
55.0%
48.9%
Development costs
GN Hearing
-139
-154
-155
-131
-138
-142
-146
-124
-579
-550
GN Audio
-199
-168
-173
-185
-189
-166
-188
-238
-725
-781
Other*
-34
-27
-9
-15
-21
-16
-10
-27
-85
-74
Total
-372
-349
-337
-331
-348
-324
-344
-389
-1,389
-1,405
Selling and distribution costs and administrative expenses etc.
GN Hearing
-532
-525
-563
-558
-733
-776
-761
-634
-2,178
-2,904
GN Audio
-567
-564
-575
-687
-672
-804
-713
-956
-2,393
-3,145
Other*
-25
-23
-27
-28
-38
-23
-22
-35
-103
-118
Total
-1,124
-1,112
-1,165
-1,273
-1,443
-1,603
-1,496
-1,625
-4,674
-6,167
EBITA
GN Hearing
98
153
173
219
-70
6
81
436
643
453
GN Audio
714
532
474
444
145
532
440
182
2,164
1,299
Other*
-59
-50
-36
-43
-59
-39
-32
-62
-188
-192
Total
753
635
611
620
16
499
489
556
2,619
1,560
EBITA margin
GN Hearing
7.9%
11.6%
12.8%
15.3%
-5.2%
0.4%
5.2%
24.1%
12.1%
7.3%
GN Audio
24.8%
21.7%
19.4%
16.6%
5.7%
16.0%
14.0%
5.3%
20.7%
10.4%
Total
18.3%
16.8%
16.1%
15.1%
0.4%
10.3%
10.4%
10.6%
16.6%
8.3%
Depreciation and software amortization
GN Hearing
-42
-41
-40
-40
-38
-41
-42
-41
-163
-162
GN Audio
-33
-31
-34
-37
-45
-48
-54
-47
-135
-194
Other*
-30
-33
-32
-36
-35
-37
-36
-21
-131
-129
Total
-105
-105
-106
-113
-118
-126
-132
-109
-429
-485
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Quarterly reporting by segment (continued)
Q1 2021
Q2 2021
Q3 2021
Q4 2021
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Full Year 2021
Full Year 2022
DKK million
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(aud.)
(aud.)
EBITDA
GN Hearing
140
194
213
259
-32
47
123
477
806
615
GN Audio
747
563
508
481
190
580
494
229
2,299
1,493
Other*
-29
-17
-4
-7
-24
-2
4
-41
-57
-63
Total
858
740
717
733
134
625
621
665
3,048
2,045
EBITA
753
635
611
620
16
499
489
556
2,619
1,560
Amortization and impairment of acquired intangible assets
-41
-42
-40
-103
-103
-96
-125
-116
-226
-440
Gain (loss) on divestment of operations etc.
-
-9
-
13
-1
-6
-
-2
4
-9
Operating profit (loss)
712
584
571
530
-88
397
364
438
2,397
1,111
Share of profit (loss) in associates
-1
-20
9
-24
17
5
-1
-2
-36
19
Financial items, net
-99
-12
-13
34
-156
-77
-90
-82
-90
-405
Profit (loss) before tax
612
552
567
540
-227
325
273
354
2,271
725
Tax on profit (loss)
-130
-118
-121
-112
49
-70
-58
-76
-481
-155
Profit (loss)
482
434
446
428
-178
255
215
278
1,790
570
Balance sheet
Inventories
GN Hearing
677
675
683
743
770
816
892
850
743
850
GN Audio
939
1,049
1,019
1,205
2,012
2,282
2,968
2,666
1,205
2,666
Total
1,616
1,724
1,702
1,948
2,782
3,098
3,860
3,516
1,948
3,516
Trade receivables
GN Hearing
987
1,020
1,111
1,124
1,144
1,262
1,266
1,442
1,124
1,442
GN Audio
1,670
1,721
2,057
2,169
1,975
2,890
2,729
2,589
2,169
2,589
Other*
-
2
2
-
2
2
-
-
-
-
Total
2,657
2,743
3,170
3,293
3,121
4,154
3,995
4,031
3,293
4,031
Net working capital
GN Hearing
785
862
883
1,010
1,036
1,078
1,052
1,323
1,010
1,323
GN Audio
652
662
793
837
1,646
2,021
2,145
1,937
837
1,937
Other*
-189
-136
-149
-122
-165
-319
-259
-151
-122
-151
Total
1,248
1,388
1,527
1,725
2,517
2,780
2,938
3,109
1,725
3,109
Free cash flow excl. M&A
GN Hearing
-204
123
340
-61
-175
-326
60
64
198
-377
GN Audio
438
371
281
198
-140
49
21
-21
1,288
-91
Other*
-256
16
-128
-416
-242
-135
-298
-148
-784
-823
Total
-22
510
493
-279
-557
-412
-217
-105
702
-1,291
Acquisitions and divestments of companies
-38
-1
-1
-314
-7,037
-216
-15
11
-354
-7,257
Free cash flow
-60
509
492
-593
-7,594
-628
-232
-94
348
-8,548
* "Other" comprises Group Functions, GN Ejendomme and eliminations.
Note: Quartely splits have not been adjusted for the impacts, if any, of purchase price allocation finalisations.
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Regional growth, Q4 2022
GN Hearing
GN Audio
Consolidated total
Q4 2022
Q4 2021
Q4 2022
Q4 2021
Q4 2022
Q4 2021
(DKK million)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
Europe - revenue
525
432
1,704
1,320
2,229
1,752
Organic growth
8%
1%
9%
-18%
9%
-14%
FX growth
0%
2%
0%
1%
0%
1%
M&A growth
14%
0%
20%
0%
18%
0%
Revenue growth
22%
3%
29%
-17%
27%
-13%
North America - revenue
839
639
1,109
813
1,948
1,452
Organic growth
11%
-1%
-18%
7%
-5%
3%
FX growth
15%
3%
9%
4%
12%
4%
M&A growth
5%
-2%
45%
0%
27%
-1%
Revenue growth
31%
0%
36%
11%
34%
6%
Rest of World - revenue
443
358
650
538
1,093
896
Organic growth
22%
11%
-9%
38%
3%
26%
FX growth
2%
2%
4%
2%
3%
2%
M&A growth
0%
0%
26%
0%
16%
0%
Revenue growth
24%
13%
21%
40%
22%
28%
Total revenue
1,807
1,429
3,463
2,671
5,270
4,100
Organic growth
14%
2%
-3%
-4%
3%
-2%
FX growth
6%
3%
4%
2%
5%
2%
M&A growth
6%
-1%
29%
0%
21%
0%
Revenue growth
26%
4%
30%
-1%
29%
0%
Regional growth, YTD 2022
GN Hearing
GN Audio
Consolidated total
YTD 2022
YTD 2021
YTD 2022
YTD 2021
YTD 2022
YTD 2021
(DKK million)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
Europe - revenue
1,794
1,474
5,936
5,283
7,730
6,757
Organic growth
10%
7%
-1%
16%
1%
14%
FX growth
1%
0%
0%
1%
0%
0%
M&A growth
11%
0%
13%
0%
13%
0%
Revenue growth
22%
7%
12%
17%
14%
14%
North America - revenue
2,939
2,524
3,990
3,161
6,929
5,685
Organic growth
0%
17%
-19%
27%
-11%
22%
FX growth
13%
-5%
10%
-6%
12%
-6%
M&A growth
3%
-1%
35%
0%
21%
0%
Revenue growth
16%
11%
26%
21%
22%
16%
Rest of World - revenue
1,494
1,334
2,534
1,999
4,028
3,333
Organic growth
8%
26%
-6%
30%
0%
28%
FX growth
4%
-2%
7%
-3%
6%
-2%
M&A growth
0%
0%
26%
0%
15%
0%
Revenue growth
12%
24%
27%
27%
21%
26%
Total revenue
6,227
5,332
12,460
10,443
18,687
15,775
Organic growth
5%
16%
-7%
22%
-3%
20%
FX growth
7%
-3%
4%
-2%
5%
-3%
M&A growth
5%
-1%
22%
0%
16%
0%
Revenue growth
17%
13%
19%
20%
18%
17%
Regional growth composition
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Income statement
GN Hearing
GN Audio
Other*
Consolidated total
Q4 2022
Q4 2021
Q4 2022
Q4 2021
Q4 2022
Q4 2021
Q4 2022
Q4 2021
(DKK million)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
Revenue
1,807
1,429
3,463
2,671
-
-
5,270
4,100
Production costs
-613
-521
-2,087
-1,355
-
-
-2,700
-1,876
Gross profit
1,194
908
1,376
1,316
-
-
2,570
2,224
Development costs
-124
-131
-238
-185
-27
-15
-389
-331
Selling and distribution costs
-538
-397
-601
-541
-
-
-1,139
-938
Management and administrative expenses
-125
-145
-323
-166
-35
-28
-483
-339
Other operating income and costs, net
29
-16
-32
20
-
-
-3
4
EBITA
436
219
182
444
-62
-43
556
620
Amortization and impairment of acquired intangible assets
-19
-85
-97
-18
-
-
-116
-103
Gain (loss) on divestment of operations etc.
-2
13
-
-
-
-
-2
13
Operating profit (loss)
415
147
85
426
-62
-43
438
530
Share of profit (loss) in associates
-2
-23
-
-
-
-1
-2
-24
Financial items
-65
61
111
-1
-128
-26
-82
34
Profit (loss) before tax
348
185
196
425
-190
-70
354
540
Tax on profit (loss)
-43
-89
30
-35
-63
12
-76
-112
Profit (loss) for the period
305
96
226
390
-253
-58
278
428
Additional information
GN Hearing
GN Audio
Other*
Consolidated total
Q4 2022
Q4 2021
Q4 2022
Q4 2021
Q4 2022
Q4 2021
Q4 2022
Q4 2021
(DKK million)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
Revenue distributed geographically
Denmark
29
29
132
69
-
-
161
98
Europe
496
403
1,572
1,251
-
-
2,068
1,654
North America
839
639
1,109
813
-
-
1,948
1,452
Rest of World
443
358
650
538
-
-
1,093
896
Revenue
1,807
1,429
3,463
2,671
-
-
5,270
4,100
Incurred development costs
-170
-154
-374
-234
-29
-17
-573
-405
Capitalized development costs
128
103
234
114
-
-
362
217
Amortization, impairment and depreciation of development
projects**
-82
-80
-98
-65
2
2
-178
-143
Expensed development costs
-124
-131
-238
-185
-27
-15
-389
-331
EBITDA
477
259
229
481
-41
-7
665
733
Depreciation and software amortization
-41
-40
-47
-37
-21
-36
-109
-113
EBITA
436
219
182
444
-62
-43
556
620
EBITA margin
24.1%
15.3%
5.3%
16.6%
N/A
N/A
10.6%
15.1%
Number of employees, end of period
4,852
4,553
2,666
2,358
373
317
7,891
7,228
Cash flow statement
GN Hearing
GN Audio
Other*
Consolidated total
Q4 2022
Q4 2021
Q4 2022
Q4 2021
Q4 2022
Q4 2021
Q4 2022
Q4 2021
(DKK million)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
Operating activities before changes in working capital
519
344
460
523
-40
-9
939
858
Cash flow from changes in working capital
-259
-173
-179
-9
17
-33
-421
-215
Cash flow from operating activities excluding financial
items and tax
260
171
281
514
-23
-42
518
643
Cash flow from investing activities:
Development projects, investment
-128
-103
-234
-114
-
-
-362
-217
Other
-50
-379
-27
-43
-146
-136
-223
-558
Cash flow from operating and investing activities before
fi-
nancial items and tax
82
-311
20
357
-169
-178
-67
-132
Tax and financial items
-18
-64
-30
-159
21
-238
-27
-461
Cash flow from operating and investing activities (free cash
flow)
64
-375
-10
198
-148
-416
-94
-593
Cash flow from M&A activities
-
-314
11
-
-
-
11
-314
Free cash flow excl. M&A
64
-61
-21
198
-148
-416
-105
-279
* "Other" comprises Group Shared Services, GN Ejendomme and eliminations
** Does not include amortization of acquired intangible assets, cf. definition of EBITA
Q4 segment disclosures
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Consolidated financial statements
Consolidated income statement 86
Consolidated Statement of comprehensive income 86
Consolidated balance sheet at December 31 87
Consolidated statement of cash flow 88
Consolidated statement of equity 89
Consolidated
f
inancial
statements
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DKK million
Note
2022
2021
Revenue
2.2
Production costs
2.3, 2.4, 3.4, 3.6
-9,555
-7,093
Gross profit
Development costs
2.3, 2.4, 3.4
-1,405
-1,389
Selling and distribution costs
2.3, 2.4, 3.4
-4,563
-3,484
Management and administrative expenses
2.3, 2.4, 3.4, 5.8
-1,587
-1,205
Other operating income and costs, net
-17
EBITA*
Amortization and impairment of acquired intangible assets
2.6, 3.4
-440
-226
Gain (loss) on divestment of operations etc.
5.1
-9
Operating profit (loss)
Share of profit (loss) in associates
5.6
-36
Financial income
2.4, 4.5
Financial expenses
4.5
-661
-327
Profit (loss) before tax
Tax on profit (loss)
2.5
-155
-481
Profit (loss) for the year
Attributable to:
Non-controlling interests
Shareholders in GN Store Nord A/S
Earnings per share (EPS)
Earnings per share (EPS)
4.1
Earnings per share fully diluted (EPS diluted)
4.1
* Please refer to Key Ratio Definitions on page 145 for definition of EBITA
DKK million
Note
2022
2021
Profit (loss) for the year
Other comprehensive income
Items that will not be reclassified to the income statement
Actuarial gains (losses)
5.4
Tax relating to actuarial gains (losses)
2.5
-2
-10
Items that may be reclassified subsequently to the income statement
Adjustment of cash flow hedges
4.3
-73
Foreign exchange adjustments, etc.
Tax relating to other comprehensive income
2.5
-8
Other comprehensive income for the year, net of tax
Total comprehensive income for the year
Attributable to:
Non-controlling interests
Shareholders in GN Store Nord A/S
Consolidated income
statement
Consolidated statement of
comprehensive income
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DKK million
Note
2022
2021
Assets
Intangible assets
3.1, 3.4
Property, plant and equipment
3.2, 3.3, 3.4
Investments in associates
5.6
Deferred tax assets
2.5
Other non-current assets
3.5, 4.3, 5.4
Total non-current assets
Inventories
3.6
Trade receivables
3.7, 4.3
Tax receivables
Other receivables
Cash and cash equivalents
Total current assets
Total assets
Equity and Liabilities
Share capital
Other reserves
-4,263
-4,829
Proposed dividends for the year
Retained earnings
Total equity
Bank loans and issued bonds, non-current
4.2, 4.3, 4.4
Lease liabilities, non-current
3.3, 4.3, 4.4
Pension obligations
5.4
Provisions, non-current
3.8
Deferred tax liabilities
2.5
Other non-current liabilities
4.3, 4.4
Total non-current liabilities
Bank loans and issued bonds, current
4.2, 4.3, 4.4
Lease liabilities, current
3.3, 4.3, 4.4
Trade payables
Tax payables
Provisions
3.8
Other current liabilities
4.3, 4.4
Total current liabilities
Total equity and liabilities
Consolidated balance sheet at December 31
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DKK million
Note
2022
2021
Operating activities
Operating profit (loss)
Depreciation, amortization and impairment
3.4
Other non-cash adjustments
5.7
Cash flow from operating activities before changes in working capital
Change in inventories
-1,032
-137
Change in receivables
-393
-610
Change in trade payables and other payables
Total changes in working capital
-1,293
-710
Cash flow from operating activities before financial items and tax
Interest received
Interest etc. paid
-744
-320
Tax paid, net
2.5
-185
-571
Cash flow from operating activities
Investing activities
Development projects
3.1
-1,005
-755
Investments in intangible assets, excluding development projects
3.1
-454
-312
Investments in property, plant and equipment
3.2
-209
-457
Investments in other non-current assets
-539
-271
Disposal of intangible assets and property, plant and equipment
Disposal (repayment) of other non-current assets
Acquisition of companies/operations
5.1
-7,257
-354
Cash flow from investing activities
-9,175
-1,764
Cash flow from operating and investing activities (free cash flow)
-8,548
DKK million
Note
2022
2021
Financing activities
Increase of long-term loans
4.4
Increase of short-term loans
4.4
Decrease of long-term loans
4.4
-139
Net proceeds from issue of EMTN bonds
4.4
Paid dividends
-208
-188
Share-based payment (exercised)
Purchase of treasury shares
4.1
-1,166
Other adjustments
-30
-30
Cash flow from financing activities
Net cash flow
-5,204
Cash and cash equivalents, beginning of period
Adjustment foreign currency, cash and cash equivalents
-14
Cash and cash equivalents, end of period
Consolidated statement of cash flows
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2022
Other reserves
DKK million
Share
capital
Foreign
exchange
adjustme
nts
Hedging
reserve
Treasury
shares
Proposed
dividends
for the
year
Retained
earnings
Equity,
share-
holders
in
GN Store
Nord A/S
Non-
controllin
g
interests
Total
equity
Balance at January 1, 2022
-1,104
-3,731
Profit (loss) for the period
Actuarial gains (losses)
Tax relating to actuarial gains
(losses)
-2
-2
-2
Adjustment of cash flow hedges
-73
-73
-73
Foreign exchange adjustments,
etc.
Tax relating to other comprehen-
sive income
Other comprehensive income for
the year
-57
Total comprehensive income for
the year
-57
Cancellation of own shares
-4
-293
Share-based payment (granted)
Share-based payment (exercised)
-46
Tax related to share-based incen-
tive plans
Purchase of treasury shares
Reclassification of non-controlling
interests by recognizing a put op-
tion liability
-88
-88
-49
-137
Proposed dividends for the year*
-
Paid dividends
-198
-198
-10
-208
Dividends, treasury shares
-16
Balance at December 31, 2022
-846
-51
-3,366
* Equivalent to DKK 0.00 per share (2021: DKK 1.55 per share)
2021
Other reserves
DKK million
Share
capital
Foreign
exchange
adjustme
nts
Hedging
reserve
Treasury
shares
Proposed
dividends
for the
year
Retained
earnings
Equity,
share-
holders
in
GN Store
Nord A/S
Non-
controllin
g
interests
Total
equity
Balance at January 1, 2021
-1,500
-21
-3,640
Profit (loss) for the period
Actuarial gains (losses)
Tax relating to actuarial gains
(losses)
-10
-10
-10
Adjustment of cash flow hedges
Foreign exchange adjustments,
etc.
Tax relating to other comprehen-
sive income
-8
-8
-8
Other comprehensive income for
the year
Total comprehensive income for
the year
Cancellation of own shares
-16
-857
Share-based payment (granted)
Share-based payment (exercised)
-43
Tax related to share-based incen-
tive plans
Purchase of treasury shares
-1,166
-1,166
-1,166
Reclassification of non-controlling
interests by recognizing a put op-
tion liability
-66
-66
-34
-100
Proposed dividends for the year*
-214
Paid dividends
-188
-188
-188
Dividends, treasury shares
-18
Balance at December 31, 2021
-1,104
-3,731
Consolidated statement of changes in equity
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Section 1 - Basis of preparation
Overview of the financial accounting policies in general and an
introduction to Management's key accounting estimates and
judgments.
1.1 General accounting policies 91
1.2 Significant accounting estimates and judgments 92
1.3 Non-IFRS measures 92
Section 2 - Results of the year
Insights into the results for the year, including operating segments,
employee costs and taxes.
2.1 Segment disclosures 94
2.2 Revenue and geographical information 98
2.3 Staff Costs 100
2.4 Government grants 100
2.5 Tax 101
2.6 Income statement classified by function 103
Section 3 - Operating assets and liabilities
Insights into the assets that form the basis for the activities in GN
Store Nord, and the related liabilities. Most of these are included in
invested capital and some in net working capital.
3.1 Intangible assets 105
3.2 Property, plant and equipment 108
3.3 Leases 110
3.4 Depreciation, amortization and impairment 111
3.5 Other non-current assets 112
3.6 Inventories 114
3.7 Trade receivables 115
3.8 Provisions 116
Section 4 - Capital structure and financing
items
Insight into GN Store Nord's capital structure and financial items as
well as financial risks.
4.1 Outstanding shares and treasury shares 118
4.2 Financial risks 119
4.3 Financial instruments 124
4.4 Liabilities from financing activities 129
4.5 Financial income and expenses 130
Section 5 - Other disclosures
Statutory notes and other disclosures.
5.1 Acquisition and divestment of companies and operations 132
5.2 Remuneration of the Board of Directors and Executive
Management 135
5.3 Share-based incentive plans 137
5.4 Pension obligations 140
5.5 Contingent liabilities 141
5.6 Investments in associates 142
5.7 Other non-cash adjustments 142
5.8 Fees to statutory auditors 142
5.9 Related parties 142
5.10 Events after the reporting period 142
Consolidated
notes
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2.1
Segment disclosures 94
2.2 Revenue and geographical information 98
2.3 Staff Costs 100
2.4 Government grants 100
2.5 Tax 101
2.6 Income statement classified by function 103
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2.1 Segment disclosures (Continued)
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2.1 Segment disclosures (Continued)
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2.1 Segment disclosures (Continued)
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2.2 Revenue and geographical information
(Continued)
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2.2 Revenue and geographical information
(Continued)
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2.5 Tax (Continued)
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Introduction
Insights into the assets that form the basis for the activities in GN
Store Nord, and the related liabilities. Most of these are included in
invested capital and some in net working capital.
3.1 Intangible assets 105
3.2 Property, plant and equipment 108
3.3 Leases 110
3.4 Depreciation, amortization and impairment 111
3.5 Other non-current assets 112
3.6 Inventories 114
3.7 Trade receivables 115
3.8 Provisions 116
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3.1 Intangible assets (Continued)
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3.1 Intangible assets (Continued)
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3.1 Intangible assets (Continued)
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3.2 Property, plant and equipment
(Continued)
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3.3 Leases (continued)
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3.5 Other non-current assets (Continued)
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Introduction
Insight into GN Store Nord's capital structure and financial items as
well as financial risks.
4.1 Outstanding shares and treasury shares 118
4.2 Financial risks 119
4.3 Financial instruments 124
4.4 Liabilities from financing activities 129
4.5 Financial income and expenses 130
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4.1 Outstanding shares and treasury shares
(Continued)
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4.2 Financial risks (Continued)
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4.2 Financial risks (Continued)
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4.2 Financial risks (Continued)
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4.2 Financial risks (Continued)
GN Store Nord
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4.3 Financial instruments (Continued)
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4.3 Financial instruments (Continued)
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4.3 Financial instruments (Continued)
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4.3 Financial instruments (Continued)
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Introduction
Statutory notes and other disclosures.
5.1 Acquisition and divestment of companies and operations 132
5.2 Remuneration of the Board of Directors and Executive
Management 135
5.3 Share-based incentive plans 137
5.4 Pension obligations 140
5.5 Contingent liabilities 141
5.6 Investments in associates 142
5.7 Other non-cash adjustments 142
5.8 Fees to statutory auditors 142
5.9 Related parties 142
5.10 Events after the reporting period 142
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5.1 Acquisition and divestment of companies and operations
(Continued)
GN Store Nord
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5.1 Acquisition and divestment of companies and operations
(Continued)
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5.2 Remuneration of the Board of Directors
and Executive Management (Continued)
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5.3 Share-based incentive plans (Continued)
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5.3 Share-based incentive plans (Continued)
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5.4 Pension obligations (Continued)
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GN Store Nord
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GN Store Nord
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Companies in the GN Group (Continued)
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Income statements 147
Statement of comprehensive income 147
Balance sheet at December 31 148
Statement of cash flow 149
Statement of equity 150
Parent Company
Financial
statements
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DKK million
Note
2022
2021
Revenue
682
563
Gross profit
682
563
Development costs
-80
-91
Management and administrative expenses
1, 2, 3, 4
-793
-663
Other operating income and costs, net
-7
25
Operating profit (loss)
-198
-166
Share of profit after tax in subsidiaries
10
1,015
1,943
Share of profit (loss) in associates
11
-
-1
Financial income
5
190
100
Financial expenses
5
-537
-170
Profit (loss) before tax
470
1,706
Tax on profit (loss)
6
41
50
Profit (loss) for the year
511
1,756
Proposed profit appropriation/distribution of loss
Transferred to reserve for net revaluation according to the equity method
1,015
-57
Transferred to reserve for development projects
247
172
Retained earnings
-751
1,427
Proposed dividends for the year
-
214
511
1,756
DKK million
2022
2021
Profit (loss) for the year
511
1,756
Other comprehensive income
Items that will not be reclassified subsequently to the income statement
Other changes in equity in subsidiaries
5
36
Items that may be reclassified subsequently to the income statement
Foreign exchange adjustments, etc.
258
396
Other changes in equity in subsidiaries
-57
27
Other comprehensive income for the year
206
459
Total comprehensive income for the year
717
2,215
Income statement
Statement of
comprehensive income
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DKK million
Note
2022
2021
Assets
Intangible assets
7
904
589
Property, plant and equipment
8, 9
77
59
Investments in subsidiaries
10
10,455
11,201
Investments in associates
11
33
34
Amounts owed by subsidiaries
14
12,281
4,019
Total non-current assets
23,750
15,902
Tax receivables
159
40
Other receivables
14
293
158
Cash and cash equivalents
406
5,761
Total current assets
858
5,959
Total assets
24,608
21,861
Equity and liabilities
Share capital
549
553
Other reserves
1,024
-818
Proposed dividends for the year
-
214
Retained earnings
5,227
6,280
Total equity
6,800
6,229
Bank loans and issued bonds, non-current
14, 17
9,860
9,513
Lease liabilities, non-current
9, 14
38
14
Deferred tax liabilities
12
34
26
Total non-current liabilities
9,932
9,553
Bank loans and issued bonds, current
14, 17
6,005
1,606
Lease liabilities, current
9, 14
14
8
Trade payables
14
121
94
Amounts owed to subsidiaries
14, 17
1,411
4,186
Other payables
14
325
185
Total current liabilities
7,876
6,079
Total equity and liabilities
24,608
21,861
Balance sheet at December 31
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Statement of cash flows
DKK million
Note
2022
2021
Operating activities
Operating profit (loss)
-198
-166
Depreciation, amortization and impairment
3
104
104
Other non-cash adjustments
19
-22
Cash flow from operating activities before changes in working capital
-75
-84
Change in receivables
-100
-20
Change in trade payables and other payables
114
25
Total changes in working capital
14
5
Cash flow from operating activities before financial items and tax
-61
-79
Interest and dividends, etc. received
2,220
32
Interest paid
-485
-
Tax paid, net
-70
-143
Cash flow from operating activities
1,604
-190
Investing activities
Investments in intangible assets
7
-393
-290
Investments in tangible assets
8
-1
-31
Disposal of intangible assets
-
26
Investments in associates
-
-11
Amounts owed by subsidiaries
-8,262
-315
Cash flow from investing activities
-8,656
-621
Cash flow from operating and investing activities (free cash flow)
-7,052
-811
Financing activities
Increase of long-term loans
17
1,925
-
Decrease of long-term loans
17
-
-6
Increase in short-term loans and amounts owed to subsidiaries
17
-
1,568
Decrease of short-term loans and amounts owed to subsidiaries
17
-33
-
Net proceeds from issue of EMTN bonds
17
-
5,134
Paid dividends
-198
-188
Share-based payment (exercised)
3
-
Purchase/sale of treasury shares
-
-1,166
Cash flow from financing activities
1,697
5,342
Net cash flow
-5,355
4,531
Cash and cash equivalents, beginning of period
5,761
1,230
Cash and cash equivalents, end of period
406
5,761
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2022
Other reserves
DKK million
Share
capital*
Hedging
reserve
Treasury
shares
Reserve
according
to the
equity
method
Reserve
for
developm
ent
projects
Proposed
dividends
for the
year
Retained
earnings
Total
equity
Balance at January 1, 2022
553
6
-3,731
2,448
459
214
6,280
6,229
Profit (loss) for the period
-
-
-
1,015
247
-
-751
511
Adjustment of cash flow hedges
-
-6
-
-
-
-
6
-
Other changes in equity in subsidiaries
-
-
-
-52
-
-
-
-52
Foreign currency translation adjust-
ments of investments in subsidiaries
etc.
-
-
-
258
-
-
-
258
Other comprehensive income for the
year
-
-6
-
206
-
-
6
206
Total comprehensive income for the
year
-
-6
-
1,221
247
-
-745
717
Reduction of the share capital
-4
-
297
-
-
-
-293
-
Other changes in equity in subsidiaries
-
-
-
15
-
-
-
15
Purchase of ownership interests in
subsidiaries by payment in treasury
shares
-
-
68
-
-
-
-46
22
Share-based payment (granted)
-
-
-
-
-
-
15
15
Proposed dividends for the year*
-
-
-
-
-
-
-
-
Paid dividends
-
-
-
-
-
-198
-
-198
Dividends, treasury shares
-
-
-
-
-
-16
16
-
Balance at December 31, 2022
549
-
-3,366
3,684
706
-
5,227
6,800
* Equivalent to DKK 0.00 per share (2021: DKK 1.55 per share)
The reserve according to the equity method includes foreign exchange adjustments of DKK -846 million
(2021: DKK -1,104 million). Retained earnings, which are available for distribution from the Parent Company
amounts to DKK 1,861 million (2021: DKK 3,228 million).
2021
Other reserves
DKK million
Share
capital*
Hedging
reserve
Treasury
shares
Reserve
according
to the
equity
method
Reserve
for
developm
ent
projects
Proposed
dividends
for the
year
Retained
earnings
Total
equity
Balance at January 1, 2021
569
6
-3,640
2,024
287
206
5,726
5,178
Profit (loss) for the period
-
-
-
-57
172
-
1,641
1,756
Other changes in equity in subsidiaries
-
-
-
63
-
-
-
63
Foreign currency translation adjust-
ments of investments in
subsidiaries
etc.
-
-
-
396
-
-
-
396
Other comprehensive income for the
year
-
-
-
459
-
-
-
459
Total comprehensive income for the
year
-
-
-
402
172
-
1,641
2,215
Reduction of the share capital
-16
-
873
-
-
-
-857
-
Other changes in equity in subsidiaries
-
-
-
22
-
-
-
22
Purchase of ownership interests in
subsidiaries by payment in treasury
shares
-
-
202
-
-
-
-43
159
Share-based payment (granted)
-
-
-
-
-
-
4
4
Tax related to share-based incentive
plans
-
-
-
-
-
-
5
5
Purchase of treasury shares
-
-
-1,166
-
-
-
-
-1,166
Proposed dividends for the year*
-
-
-
-
-
214
-214
-
Paid dividends
-
-
-
-
-
-188
-
-188
Dividends, treasury shares
-
-
-
-
-
-18
18
-
Balance at December 31, 2021
553
6
-3,731
2,448
459
214
6,280
6,229
Statement of changes in equity
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Notes – Income statement and balance sheet
1 Staff costs 152
2 Share-based incentive plans 152
3 Depreciation, amortization and impairment 153
4 Fees to statutory auditors 153
5 Financial income and expenses 154
6 Tax 154
7 Intangible assets 154
8 Property, plant and equipment 155
9 Leases 156
10 Investments in subsidiaries 157
11 Investments in associates 157
12 Deferred tax 157
13 Contingent assets and liabilities 157
Notes – Other disclosures
14 Financial instruments 158
15 Outstanding shares and treasury shares 159
16 Related party transactions 159
17 Liabilities from financing activities 160
18 Accounting policies 160
Parent Company
notes
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1 Staff costs
DKK million
2022
2021
Wages, salaries and remuneration
261
208
Pensions
27
21
Share-based incentives
10
4
Other social security costs
2
1
Total
300
234
Executive Management remuneration can be specified
as follows:
Peter la Cour Gormsen, CFO, GN Store Nord
Fixed pay*
4.0
3.8
Short term incentives
1.1
3.2
Share-based incentives
2.2
1.6
Total
7.3
8.6
Board of Directors remuneration
6.4
6.4
Total remuneration
13.7
15.0
Staff costs are included in Management and adminis-
trative expenses.
Average number of employees
351
291
Number of employees at year-end
373
317
* Fixed pay
include Base salary and Other benefits. Other benefits include car allowances,
company paid telephone and internet cost.
For information regarding Executive Management and Board of Direc-
tors total remuneration please refer to note 5.2 Remuneration of the
Board of Directors and Executive Management in the consolidated
financial statements.
2 Share-based incentive plans
For 2019-2022 a share-based incentive plan has been implemented in
GN Store Nord. For a description of this, see note 5.3 Share-based in-
centive plans in the consolidated financial statements. The following
assumptions were applied for the calculation of the fair value at the
grant date of the options:
Recognition of expenses on warrants granted are accelerated for par-
ticipants not forfeiting the vesting conditions in connection with termi-
nations (good leavers) unless a service is pro-vided in the remaining
vesting period. The recognised expenses in 2022 include acceleration
44,750 and 18,094 warrants granted to Executive Management and
Other employees, respec-tively (GN Store Nord A/S).
Executive Management
Other employees
2022
2021
2022
2021
Number of option awarded in the year
26,500
18,250
61,483
50,288
Share price GN Store Nord at ordinary grant date
351
548
351
548
Vesting period
3 years
3 years
3 years
3 years
Life of option
6 years
6 years
6 years
6 years
Volatility*
34%
32%
34%
32%
Expected dividend
0.3%
0.3%
0.4%
0.3%
Risk-free interest rate**
0.00%
0.00%
0.00%
0.00%
Fair Value per option at ordinary grant (DKK)***
81
127
100
143
Total fair value at grant (DKK million)
2
2
6
7
Amortization period of the program
2022 - 2025
2021 - 2024
2022 - 2025
2021 - 2024
* Volatility is estimated by external experts, and is calculated based on data from a historical period matching the expected time to expiry of the options
** Risk-free interest rate is estimated by external experts and based on the zero yield curve derived from Danish government bonds with maturity equal to the expiry of the options
*** The fair value assumes a performance multiplier of 1
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2 Share-based incentive programs
(Continued)
3 Depreciation, amortization and
impairment
Depreciation, amortization and impairment for the year of property,
plant and equipment (incl. leased assets) and intangible assets of DKK
104 (2021: DKK 104 million), is recognized in the income statement as
management and administrative expenses.
4 Fees to statutory auditors
DKK million
2022
2021
Statutory audit
-3
-4
Tax advice services
-1
-1
Other services
-3
-10
Total
-7
-15
Services other than statutory audit are described in note 5.8 Fees to
statutory auditors in the consolidated financial statements.
DKK
Number*
Average
exercise
price
Executive
Management
Other
employees
Total
Outstanding options at January 1, 2021
344
89,670
108,085
197,755
Options transferred during the year**
332
23,458
-5,046
18,412
Options granted during the year
547
18,250
50,288
68,538
Options forfeited during the year
398
-
-5,441
-5,441
Outstanding options at December 31, 2021
392
131,378
147,886
279,264
Options granted during the year
348
26,500
67,611
94,111
Option increase from multiplier at vesting
313
45,116
35,904
81,020
Options forfeited during the year
387
-
-19,655
-19,655
Outstanding options at December 31, 2022
375
202,994
231,746
434,740
Weighted average term to maturity (Years)
3.0
3.6
3.3
Number of exercisable options at December 31, 2021
-
-
-
Number of exercisable options at December 31, 2022
108,659
84,319
192,978
* The performance multiplier can decrease the number of options to 0 or as maximum effect increase the number of options by a factor of 2
** Transfers relate to options transferred between GN Group companies due to changes in executive management in Group companies
DKK
Number*
Grant date
Exercise
price
Executive
Management
Other
employees
Total
April 2019**
313
108,659
84,319
192,978
February 2020
381
49,585
37,990
87,575
February 2021
550
18,250
42,346
60,596
May 2021
495
-
3,595
3,595
July, 2021
553
-
6,128
6,128
February, 2022
368
26,500
54,210
80,710
March, 2022
307
-
3,158
3,158
Outstanding options at December 31, 2022
202,994
231,746
434,740
* The performance multiplier can decrease the number of options to 0 or as maximum effect increase the number of options by a factor of 2
** For the 2019 program, number of options have increased by final multiple of 1.71
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5 Financial income and expenses
DKK million
2022
2021
Financial income
Interest income from subsidiaries*
181
49
Interest income from bank balances*
-
1
Financial income, other
9
1
Fair value adjustment of derivative financial instru-
ments, net
-
49
Total
190
100
Financial expenses
Interest expense to subsidiaries*
-18
-2
Interest expenses on bank loans and issued bonds*
-181
-74
Financial expenses, other
-38
-52
Fair value adjustment of derivative financial instru-
ments, net
-278
-
Foreign exchange loss
-22
-42
Total
-537
-170
* Interest income and expenses from financial assets and liabilities at amortized cost
6 Tax
DKK million
2022
2021
Tax on profit (loss)
Current tax for the year
37
38
Deferred tax for the year
1
13
Adjustment to current tax in respect of prior years
11
10
Adjustment to deferred tax in respect of prior years
-8
-11
Total
41
50
Reconciliation of effective tax rate
Danish tax rate
22.0%
22.0%
Non-taxable income
0.0%
0.0%
Non-deductible expenses
0.1%
0.1%
Adjustment of tax with respect of prior years
0.0%
0.0%
Share of profit (loss) in subsidiaries
-47.6%
-25.0%
Share of profits (loss) in associates
0.0%
0.0%
Other, including provisions for uncertain tax positions
16.6%
0.0%
Effective tax rate
-8.8%
-2.9%
In 2022, the company paid preliminary taxes of DKK 101 million in
Danish corporate income tax for the year on behalf of the joint Group
taxation (For the year 2021 DKK 353 million was paid in final tax for
the year in Danish corporate income tax).
7 Intangible assets
Software
DKK million
2022
2021
Cost at January 1
980
670
Additions
394
290
Transfers
-
21
Other adjustments
-
-1
Cost at December 31
1,374
980
Amortization and impairment at January 1
-391
-301
Amortization
-78
-86
Transfers
-
-4
Amortization and impairment at December 31
-469
-391
Carrying amount at December 31
905
589
Amortized over
3 - 10 years
1 - 7 years
The carrying amount includes software in progress of DKK 736 million
(2021: DKK 412 million).
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8 Property, plant and equipment
2022
2021
DKK million
Factory and office
buildings
Operating
assets and equip-
ment
Total
Factory and office
buildings
Operating
assets and equip-
ment
Total
Cost at January 1
-
62
62
-
52
52
Additions
-
1
1
-
31
31
Transfers
-
-
-
-
-21
-21
Cost at December 31
-
63
63
-
62
62
Depreciation and impairment at January 1
-
-24
-24
-
-17
-17
Depreciation
-
-12
-12
-
-11
-11
Transfers
-
-
-
-
4
4
Depreciation and impairment at December 31
-
-36
-36
-
-24
-24
Carrying amount at December 31
-
27
27
-
38
38
Leased assets, c.f. note 9
49
1
50
20
1
21
Total carrying amount at December 31
49
28
77
20
39
59
Operating assets and equipment are depreciated over 2
-7 years.
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9 Leases
Lease liabilities
DKK million
2022
2021
Contractual maturity analysis of lease liabilities:
Less than one year
14
8
Between one and three years
28
14
More than three years
11
-
Total
53
22
The parent company’s leases mainly consist of property leases of e.g.
offices but also include cars and office equipment. Rental contracts are
typically made for fixed periods but may have extension options. Con-
tracts may contain both lease and non-lease components. In such
cases the consideration in the contract is allocated to the lease and
Amounts expensed in the income statement and total cash outflow
DKK million
2022
2021
Interest expense on lease liabilities
1
-
Expense relating to low-value assets and short-term
leases
-
1
Cash outflow re. lease liabilities
10
6
Total cash outflow for leases
11
7
non-lease components based on their relative stand-alone prices. Lease
terms are negotiated on an individual basis and contain a wide range of
different terms and conditions.
The following right-of-use assets from leases are included in property, plant and equipment:
Leased
assets
2022
2021
DKK million
Factory
and office
buildings
Operating
assets and
equipment
Total
Factory
and office
buildings
Operating
assets and
equipment
Total
Carrying amount at January 1
20
1
21
35
1
36
Transfer from a group company
42
-
42
-
-
-
Additions
-
1
1
-
1
1
Remeasurements
-
-
-
-9
-
-9
Depreciation
-13
-1
-14
-6
-1
-7
Foreign exchange adjustments
-
-
-
-
-
-
Carrying amount at December 31
49
1
50
20
1
21
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10 Investments in subsidiaries
DKK million
2022
2021
Cost at January 1
6,753
6,594
Additions, capital contribution
18
159
Cost at December 31
6,771
6,753
Value adjustment at January 1
4,448
2,024
Share of profit after tax in subsidiaries
1,015
1,943
Foreign currency translation adjustments
258
396
Direct equity postings in subsidiaries
-37
85
Dividends received
-2,000
-
Value adjustments at December 31
3,684
4,448
Carrying amount at December 31
10,455
11,201
Group companies are listed on page 143.
11 Investments in associates
DKK million
2022
2021
Aggregated financial information for associates is
provided below:
Total share of loss in associates for the year
-
-1
Total unrecognized profit/loss in associates for the
year
-
-
Total share of net assets in associates
33
34
Cumulative unrecognized loss in associates
-
-
Carrying amount of associates
33
34
12 Deferred tax
DKK million
2022
2021
Deferred tax, net
Deferred tax at January 1, net
-26
-28
Adjustment in respect of prior years
-8
-11
Deferred tax for the year recognized in profit (loss) for
the year
-
13
Deferred tax at December 31, net
-34
-26
Deferred tax, net relates to
Intangible assets
-40
-43
Other
6
17
Total
-34
-26
13 Contingent assets and liabilities
The parent company has not issued any guarantees on behalf of sub-
sidiaries in 2022 (2021: DKK 24 million).
The company is jointly taxed with all Danish subsidiaries. The company
is jointly and severally liable with the other companies in the joint taxa-
tion for Danish corporate taxes and withholding taxes on dividend, in-
terests and royalties within the joint taxation.
GN Store Nord
Annual Report 2022 Financial Statements – Parent Company
Content
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14 Financial instruments
Categories of financial assets and liabilities
DKK million
2022
2021
Financial assets
Other receivables
103
75
Amounts owed by subsidiaries
12,281
4,019
Financial assets at amortized cost
12,384
4,094
Derivative financial instruments included in Other receivables
190
83
Financial assets at fair value through profit or loss
190
83
Financial liabilities
Issued bonds (bond-with-warrant units), non-current
2,401
2,363
Issued EMTN bonds, non-current
5,147
6,778
Bank loans, non-current
2,312
372
Bank loans and issued bonds, current
6,005
1,606
Lease liabilities
52
22
Trade payables
121
94
Amounts owed to subsidiaries
1,411
4,186
Financial liabilities at amortized cost
17,449
15,421
Derivative financial instruments included in Other payables
207
77
Financial liabilities at fair value through profit or loss
207
77
For a description of loans in GN Store Nord, as well as interest rate and
foreign exchange risk on these, please refer to note 4.2 Financial risks
in the consolidated financial statements.
Contractual maturity analysis for financial liabilities
DKK million
Less than
one year
Between
one
and three
years
More than
three
years
Total
2022
Issued bonds
1,716
6,987
899
9,602
Bank loans
4,428
449
2,063
6,940
Lease liabilities
14
28
11
53
Trade payables
121
-
-
121
Amounts owed to subsidiaries
1,411
-
-
1,411
Total non-derivative financial liabilities
7,690
7,464
2,973
18,127
Derivative financial liabilities
207
-
-
207
Total financial liabilities
7,897
7,464
2,973
18,334
2021
Issued Bonds
70
6,226
3,404
9,700
Bank loans
1,607
1
372
1,980
Lease liabilities
8
14
-
22
Trade payables
94
-
-
94
Amounts owed to subsidiaries
4,186
-
-
4,186
Total non-derivative financial liabilities
5,965
6,241
3,776
15,982
Derivative financial liabilities
68
-
9
77
Total financial liabilities
6,033
6,241
3,785
16,059
Fair value disclosures re. financial instruments at amortized cost
Based on observable inputs (fair value hierarchy level 2) the fair value
of issued bonds (zero coupon) amounted to DKK 2,222 million at
December 31, 2022 (2021: DKK 2,422 million), and the fair value of
EMTN bonds amounted to DKK 5,918 million (2021: DKK 6,832 mil-
lion). For other financial assets and liabilities, the fair value is approxi-
mately equal to the carrying amount.
The foreign currency risk in GN Store Nord A/S mainly arises from
translation of receivables, debt and cash balances related to EUR and
USD, of which a large part of the USD risk is related to intercompany
balances. The foreign currency risk is mitigated through non-desig-
nated derivatives. At year end 2022 the FX derivatives had a fair value
of DKK -17 million (2021: DKK 16 million), of which DKK -3 million
(2021: DKK -9 million) are related to derivatives of USD vs EUR or DKK,
DKK 1 million (2021: DKK 12 million) are related to derivatives of EUR
vs DKK and DKK -14 million (2021: DKK 4 million) are related to deriva-
tives of GBP vs DKK. The fair value of derivatives is categorized as level
2 (observable inputs) in the fair value hierarchy.
DKK million
2022
2021
Fair value adjustment for the year recognized in Other compre-
hensive income
-
-
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Annual Report 2022 Financial Statements – Parent Company
Content
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15 Outstanding shares and treasury shares
For information regarding outstanding shares and treasury shares
please refer to note 4.1 Outstanding shares and treasury shares in the
consolidated financial statements.
Funding, liquidity and capital structure is managed at Group level,
please refer to note 4.2 Financial risks in the consolidated financial
statements.
16 Related party transactions
In addition to disclosures given in note 5.9 Related parties, related par-
ties for the parent company comprise group enterprises and associates
over which GN Store Nord A/S exercises control or significant influ-
ence.
Group companies are listed on page 143. Trade with group enterprises
comprised:
DKK million
2022
2021
Sale of services to group enterprises
768
563
Lease income from group enterprises
31
28
Sale of intangible assets to group enterprises
-
26
Purchase of services from group enterprises
-158
-108
Lease costs paid to group enterprises
-40
-32
The parent company's balances with group enterprises at December
31, 2022 are disclosed in the balance sheet. Interest income and
expenses with respect to group enterprises are disclosed in note 5
Financial income and expenses. Further, balances with Group enter-
prises comprise trade balances related to the purchase and sale of
goods and services.
Sale of services to group enterprises consists of facility services, can-
teen services, management fee and IT costs. Purchase of services from
group enterprises mainly consists of facility services and canteen ser-
vices. Furthermore, the parent company has purchased development
services from subsidiaries related to the exploring research projects.
No transactions have been carried out with the Board of Directors, the
Executive Management, senior employees, major shareholders or other
related parties, apart from remuneration disclosed in notes 5.2
Remuneration of the Board of Directors and Executive Management
and 5.3 Share-based incentive plans in the consolidated financial state-
ments.
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Annual Report 2022 Financial Statements – Parent Company
Content
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17 Liabilities from financing activities
18 Accounting policies
The financial statements of the parent company, GN Store Nord A/S
have been prepared in accordance with International Financial Report-
ing Standards as adopted by the EU and Danish disclosure require-
ments for annual reports of listed companies. The financial statements
have been prepared in accordance with the historical cost convention,
as modified by the revaluation of certain financial instruments (includ-
ing derivative financial instruments) at fair value.
The accounting policies for the financial statements of the parent com-
pany have been changed in line with the changes to accounting policies
described in note 1.1 in the consolidated financial statements. These
changes have not had any material impact on recognition and meas-
urement in the parent company. Apart from the above-mentioned
changes the accounting policies for the financial statements of the par-
ent company are unchanged from the last financial year and are the
same as for the consolidated financial statements with the following
additions:
Supplementary accounting policies for the parent company
Investments in subsidiaries
Revenue in the parent company primarily relates to services rendered
to GN Group companies during the year.
Investments in subsidiaries are accounted for using the equity method
whereby the investment is initially recognized at cost and adjusted
thereafter for the post-acquisition change in the share of the subsidiar-
ies net assets. The share of the subsidiaries profit or loss, less unreal-
ized intra-Group profits, is included in the income statement of the par-
ent company and the share of the subsidiaries other comprehensive in-
come is included in other comprehensive income of the parent com-
pany. Received dividends reduce the carrying amount of the invest-
ments in subsidiaries.
To the extent net profit in subsidiaries exceeds declared or proposed
dividends from such companies, net revaluation of investments in sub-
sidiaries is transferred to Net revaluation reserve under Equity accord-
ing to the equity method.
Management’s report for the GN Parent company
The GN Parent Company reports GN Corporate level activities and
investments into GN Hearing and GN Audio. Revenue in 2022 grew
DKK 119 million (2021: DKK 107 million), primarily due to changes in
the Group Functions. Costs increased during the year due to changes in
the Group Functions. The GN Parent Company applies the equity
method for recognizing share of profit and investments in subsidiaries
and profit for the year and total equity developed in line with the
Group’s overall development. In 2022, cash flow from operating activi-
ties was positively impacted by dividends received in the total amount
of DKK 2,000 million (2021: DKK 0 million).
DKK million
Bank loans
Issued bonds
Lease liabilities
Bank loans and
issued bonds,
current
Amounts owed
to subsidiaries
Payment re. fro-
zen vacation
pay included in
Other payables
*
Total
Liabilities at January 1
372
9,141
22
1,606
4,186
-
15,327
Cash flows
1,935
-
-11
2,766
-2,799
-
1,891
Foreign exchange adjustments
5
-19
-
-1
24
-
9
New leases and remeasurements
-
-
42
-
-
-
42
Bonds reclassified to current
-
-1,634
-
1,634
-
-
-
Non-cash interest expenses
-
60
-
-
-
-
60
Liabilities at December 31, 2022
2,312
7,548
53
6,005
1,411
-
17,329
Liabilities at January 1
1,116
3,953
37
334
3,087
19
8,546
Cash flows
-
5,134
-6
528
1,060
-19
6,697
Foreign exchange adjustments
-
2
-
-
39
-
41
New leases and remeasurements
-
-
-9
-
-
-
-9
Loans reclassified to current
-744
-
-
744
-
-
-
Non-cash interest expenses
-
52
-
-
-
-
52
Liabilities at December 31, 2021
372
9,141
22
1,606
4,186
-
15,327
* Payment made to LD Fonde relating to the change in vacation year in Denmark and presented in Cash flow from financing activities.
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Content
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Executive Management
Board of Directors
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Report on the audit of the Financial Statements
Independent Auditor’s Reports
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GN Store Nord
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CVR no 3377 1231
GN Store Nord
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To the stakeholders of GN Store Nord A/S
GN Store Nord A/S engaged us to provide limited assurance on GHG
emissions in Scope 1 and GHG emissions in Scope 2 presented on page
66 and percentage of Women in Senior Management presented on
page 68 in the 2022 annual report of GN Store Nord A/S for the period
1 January – 31 December 2022 (the "Selected ESG data").
Our conclusion
Based on the procedures we performed and the evidence we obtained,
nothing came to our attention that causes us not to believe that the
Selected ESG data in the 2022 annual report of GN Store Nord A/S are
prepared, in all material respects, in accordance with the applied ac-
counting policies developed by GN Store Nord A/S as stated on pages
67 and 69 ( “accounting policies”).
This conclusion is to be read in the context of what we state in the re-
mainder of our report.
What we are assuring
The scope of our work was limited to assurance over the Selected ESG
data included in the ESG sections of the annual report for 2022 for the
period 1 January – 31 December 2022:
• GHG emissions in Scope 1 and 2, location and market based, as
stated on page 66;
• Women in Senior Management as stated on page 68.
We have not provided any assurance on any other ESG data in the
2022 annual report. We express limited assurance in our conclusion.
Professional standards applied and level of assurance
We performed a limited assurance engagement in accordance with In-
ternational Standard on Assurance Engagements 3000 (Revised) ‘As-
surance Engagements other than Audits and Reviews of Historical Fi-
nancial Information’ and, in respect of the greenhouse gas emissions, in
accordance with International Standard on Assurance Engagements
3410 ‘Assurance engagements on greenhouse gas statements’. The
quantification of greenhouse gas emissions is subject to inherent un-
certainty because of incomplete scientific knowledge used to deter-
mine the emissions factors and the values needed to combine emis-
sions of different gasses.
A limited assurance engagement is substantially less in scope than a
reasonable assurance engagement in relation to both the risk assess-
ment procedures, including an understanding of internal control, and
the procedures performed in response to the assessed risks; conse-
quently, the level of assurance obtained in a limited assurance engage-
ment is substantially lower than the assurance that would have been
obtained had a reasonable assurance engagement been performed.
Our independence and quality control
We have complied with the independence requirements and other ethi-
cal requirements in the International Ethics Standards Board for Ac-
countants’ International Code of Ethics for Professional Accountants
(IESBA Code), which is founded on fundamental principles of integrity,
objectivity, professional competence and due care, confidentiality and
professional behavior, and ethical requirements applicable in Denmark.
PricewaterhouseCoopers applies International Standard on Quality
Management 1, ISQM 1, which requires the firm to design, implement
and operate a system of quality management including policies or pro-
cedures regarding compliance with ethical requirements, professional
standards and applicable legal and regulatory requirements.
Our work was carried out by an independent multidisciplinary team
with experience in sustainability reporting and assurance.
Understanding reporting and measurement methodologies
The Selected ESG data need to be read and understood together with
the accounting policies. The accounting policies used for the prepara-
tion of the Selected ESG data are the applied accounting policies devel-
oped by GN Store Nord A/S, which Management is solely responsible
for selecting and applying.
The absence of a significant body of established practice on which to
draw to evaluate and measure ESG data allows for different, but ac-
ceptable, measurement techniques and can affect comparability be-
tween entities and over time.
Work performed
We are required to plan and perform our work in order to consider the
risk of material misstatement of the Selected ESG data. In doing so and
based on our professional judgement, we:
Independent limited assurance report
on Selected ESG data
GN Store Nord
Annual Report 2022
Content
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• made inquiries and conducted interviews with Group functions to
assess consolidation processes, use of company-wide systems, and
controls performed at Group level;
• checked the Selected ESG data on a sample basis to underlying
documentation and evaluated the appropriateness of quantifica-
tion methods and compliance with the accounting policies for pre-
paring the Selected ESG data;
• conducted an analytical review of the data and trend explanations
submitted by all business units for consolidation at Group level;
• considered the disclosure and presentation of the Selected ESG
data; and
• evaluated the obtained evidence.
Management’s responsibilities
Management of GN Store Nord A/S is responsible for:
• Designing, implementing and maintaining internal control over in-
formation relevant to the preparation of the Selected ESG data in
the annual report that are free from material misstatement,
whether due to fraud or error;
• Establishing objective accounting policies for preparing the Se-
lected ESG data;
• Measuring and reporting the information in the Selected ESG data
based on the accounting policies; and
• The content of the annual report.
Our responsibility
We are responsible for:
• Planning and performing the engagement to obtain limited assur-
ance about whether the Selected ESG data for the period 1 January
– 31 December 2022 are prepared, in all material respects, in ac-
cordance with the accounting policies;
• Forming an independent conclusion, based on the procedures per-
formed and the evidence obtained; and
• Reporting our conclusion to the stakeholders of GN Store Nord A/S.
Hellerup, 9 February 2023
PricewaterhouseCoopers
Statsautoriseret Revisionspartnerselskab
CVR no 3377 1231
Mads Melgaard
State Authorised Public Accountant
mne34354
Søren Ørjan Jensen
State Authorised Public Accountant
mne33226
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Content
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Co.reg. no 2 42578 43
© 202
3 GN Store Nord A/S. All rights reserved. Beltone, BlueParrott, Danavox, FalCom,
Interton, Jabra, ReSound
, and SteelSeries are trademarks of GN Group. All other trademarks
and logos included herein are the property of their respective owners.