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GN Store Nord
Annual Report 2023
Content
Introduction
2023 performance highlights 3
Letter from the Chair and CEO 4
2023 key events 5
The helicopter view
Innovation and ecosystem leadership 7
Purpose and strategic focus 8
Building the foundation for future success 12
Financials
Five year overview 16
Financial review 2023 17
Financial guidance 2024 21
ESG
ESG progress 23
Impact across our value chain 24
Double materiality assessment 25
Environment
Decarbonization 27
Responsible manufacturing 28
Product sustainability 29
Circularity 31
Sourcing 32
Social
Safeguarding human rights 34
People and culture drive performance 35
Supporting communities 37
Governance
Shareholder information 39
Risk management 41
Business ethics governance 45
Data privacy, security, and ethics 46
Corporate governance 47
Board of Directors 50
Executive Leadership Team 52
Consolidated ESG data
ESG accounting processes 54
ESG data – climate related 55
ESG data – other 57
Stakeholder engagement 59
Policy overview and governance 60
EU Taxonomy Regulation disclosure 61
TCFD index 64
Additional financial information 2023
(unaudited)
Q4 financial highlights 66
Quarterly financial highlights 68
Quarterly reporting by segment 69
Regional growth composition 71
Q4 segment disclosures 72
Consolidated Financial statements
Income statement 74
Statement of comprehensive income 74
Balance sheet at December 31 75
Statement of cash flow 76
Statement of equity 77
Consolidated notes 78
Parent company Financial statements
Statements 134
Parent Company notes 138
Statements
Statements by the Executive Management
and the Board of Directors 150
Independent Auditor’s Reports 151
Independent limited assurance report on
selected ESG data 155
Table of contents
Management’s report
Statements
Purpose
and
strategic
focus
Page 8
Building the
foundation
for future
success
Page 12
Financial
review
2023
Page 17
Other 2023 reports
www.gn.com/remuneration2023
www.gn.com/corporategovernance2023
Reporting framework
Our annual reporting suite comprises this integrated Annual Report on GN Store Nord’s financial, environmental, social
,
and governance performance, our
Remuneration Report, and our Corporate Governance Report. Our reporting is prepared in accordance with International Financial Reporting Standards as
adopted by the EU and further requirements in the Danish Financial Statem
ents Act, and constitutes GN’s reporting 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.
GN Store Nord A/S
Lautrupbjerg 7
2750 Ballerup
Denmark
+45 45 75 00 00
www.gn.com
Co.reg. no 24257843
In this Annual Report 2023, the financial reporting relates to
GN's 2023 organization in GN Store Nord, GN Hearing and GN
Audio. As communicated in September, 2023, the decision to
transform into a one-company setup is expected to change the
organizational setup and, consequently, the reporting structure.
GN's expected new organization is described on pages 8-13.
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2023 performance highlights
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Revenue (DKK)
-1% organic revenue growth
18.1 bn
Adj. EBITA (DKK)
9.9% adj. EBITA margin
1.8 bn
reduction in net interest-bearing debt
(DKK)
vs 2022
4 bn
Free cash flow excl. M&A (DKK)
1.1 bn
reduction in scope 3 carbon emissions
vs 2022
24%
reduction in scope 1 and 2 carbon emissions
vs 2022
34%
AGM-elected women on GN’s Board
50%
women in GN’s senior management
22%
people with hearing loss helped
vs 9.8 million in 2022
10.5 m
ESG ratings
MSCI
AA
Sustainalytics
12.3
(low risk)
CDP
B
Guidance 2024
See more details on performance
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Building leading market positions via
innovation, scale, and customer focus
Strong business execution in diverse market conditions
In 2023, GN executed well and delivered strong results in markets that
presented a mix of tailwinds and headwinds.
ReSound OMNIA drove market share gains and our hearing business
delivered 13% organic growth in a hearing aid market which returned
to pre-COVID growth rates. The enterprise market was negatively im-
pacted by macro economic headwinds and buyer hesitancy, however,
with promising stabilization in the latter part of the year. In the enter-
prise category, we successfully defended Jabra’s market leadership
through focused execution. Consumer markets stabilized throughout
2023 and SteelSeries, in particular, took significant market share, deliv-
ering 16% organic growth.
All our businesses updated their portfolios with very strong product
launches which were well received by customers and demonstrated
GN’s continued innovation leadership.
New capital plan provides solid foundation for strategy execution
We have during 2023 reduced our debt by DKK 4 billion through sub-
stantial positive cash flow excl. M&A of DKK 1.1 billion which - com-
bined with a successful equity raise, a competitive debt refinancing,
and attractive disposal of selected assets - extended the maturity of re-
maining material debt to Q3 2026.
We are confident that these actions place the company in the best po-
sition to continue and further develop our innovation strategy built on
155 years of technology-driven enhancement of vital human senses
with the company’s overarching purpose of Bringing People Closer.
Transforming GN into a fully integrated innovation powerhouse
In our Annual Report for 2022 we described our strategy to increase
the sharing of technologies between our different R&D organizations
and drive synergies between our go-to-market models to realize the
benefits of an integrated GN Group.
As a natural continuation, in September 2023 we announced the next
step in transforming GN’s businesses into a one-company setup and
simplifying the Group’s governance structure.
Our business activities are now being organized in three focused divi-
sions with accountability for customer and business success: Hearing,
Enterprise, and Gaming & Consumer. These divisions are supported by
strong functions to drive scale across the company: R&D, Operations,
Finance, People & Culture, IT, and Strategy & Transformation. The
leaders of these divisions and functions of scale together with the CEO
and the CFO constitute GN’s new Executive Leadership Team.
Entering 2024, the fundamental design of our new organization is
largely concluded and we have now moved into the execution of new
ways of working, aiming to deliver both financial benefits and multiple
advantages to customers, partners, employees, and shareholders.
As part of the one-company transformation, we identified company-
wide synergies which will support and accelerate margin improvement
across the Group. DKK ~600 million in cost synergies will be realized by
2026 of which approximately two-thirds will be achieved in 2024.
Capturing the full potential of working as one fully integrated com-
pany will over time include accelerating our innovation output, har-
vesting scale benefits, becoming a best-place-to-work company, and
delivering attractive value creation above peers.
This more streamlined and customer-focused organizational setup will
enable GN in years ahead to further expand our competitive positions
in attractive markets, returning to growth and increasing margins.
Thanks to all employees
2023 was a challenging year as GN leaders and employees were asked
to drive a fundamental transformation of the company while never los-
ing sight of our primary goal: to serve our customers well at all times.
The organization demonstrated great resilience and we are very proud
of the significant strides the people of GN have taken to ensure strong
performance while building an even stronger strategic foundation for
GN as a fully integrated innovation powerhouse with substantial scale.
We would like to sincerely thank all employees for their great efforts.
Jukka Pertola, Chair – Peter Karlstromer, CEO
Letter from the Chair and CEO
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2023 key events
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GN unveils its two most ad-
vanced earbuds ever: the
new military standard ear-
buds
Jabra Elite 8 Active
and the new top
-tier ear-
buds
Jabra Elite 10
SteelSeries update
s its
lineup of
Apex Pro key-
boards and makes them
even faster
August
GN expands ReSound
OMNIA
and Beltone
Achieve
families enabling
more people to hear their
best in noise
GN
announces Jabra
Speak2
- next-generation
professional
speaker-
phones for hybrid working
February
March
GN ranks one of Fast Com-
pany’s
Most Innovative
Companies 2023
Jukka Pekka Pertola
takes
over as
new Chair of GN’s
Board of Directors
June
GN announces new AI-
powered features for its
Jabra
PanaCast 50 and
PanaCast 50 Room Sys-
tem
, r
evolutionizing hybrid
video conferencing
Søren Jelert
is appointed
new
Group CFO for GN
September
GN pioneers the next era of
hearing through sound, de-
sign, and connectivity with
ReSound Nexia
and
Beltone
Serene
GN completes
divestment
of
BelAudição, bringing in
net proceeds of DKK
~500
million
May
GN announces new four
pillar
capital plan
to reduce
debt and push all material
debt maturities to
Q3 2026
October
SteelSeries launches Alias
microphones
powered by
Sonar for Streamers
, creat-
ing and delivering the ulti-
mate streaming experience
for gamers
March
GN introduces Jabra Elite
4
, feature-packed earbuds
for both work and play
GN
expands the Jabra
Evolve2
range with head-
sets built for ultra
-flexible
hybrid working
August
Moving towards reaching
our climate
targets, four
major GN sites switch to
renewable energy
September
GN announces one-com-
pany organization
with
three business
divisions,
group
-wide functions of
scale
, and a new Executive
Leadership Team
Peter Karlstromer ap-
pointed
new Group CEO
for GN
November
GN announces company-
wide synergies of DKK
~600 million following one-
company integration
GN announces sale and
leaseback agreement of
the company’s headquar-
ter, generating net pro-
ceeds of DKK ~500 million
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Innovation and ecosystem leadership 7
Purpose and strategic focus 8
Building the foundation for future success 12
The
helicopter
view
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GN pioneered the next era of hearing
through sound, design, and connectiv-
ity with the launch of ReSound Nexia
and Beltone Serene.
Top rated for speech understanding in
noise, these hearing aids offer an unri-
valed sound experience and are the
first to support Bluetooth LE Audio in-
cluding Auracast broadcast audio, the
future of low energy connectivity.
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Innovation and ecosystem leadership
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GN stands on a 155-year proud legacy as technology innovator. Our engineers have over the years delivered multiple
world’s firsts. Now transforming GN into a fully integrated innovation powerhouse will further strengthen our capabilities to
deliver unique customer experiences, enhancing vital human senses
Definitions: BTE: Behind the ear; DSP: Digital Signal Processing; ANC: Active Noise Cancellation; e2e: Ear to Ear; M&RIE: Microphone & Receiver-In-Ear
In 2023, the R&D spend was DKK 1.7 bn, corresponding to an R&D revenue ratio of 9.5%
2000
1
st
to introduce
Bluetooth
®
headset,
enabling connectivity
to e.g. mobile phones
2003
1
st
to introduce an
open mini BTE, greatly
improving hearing
comfort
2004
1
st
dedicated gaming
headset, improving
performance for
gamers
2011
1
st
Bluetooth
headset with Active
Noise Cancellation
2013
1
st
Bluetooth
®
stereo headphones
with Dolby
2014
1
st
wireless earbuds
with built-in heart
rate monitor, helping
you train better
2018
1
st
to introduce di-
rect streaming from
Android using Blue-
tooth
®
Low Energy
2020
1
st
to introduce All
Access Directionality
& M&RIE, providing a
more natural sound
experience
2022
Hearing aids to ad-
dress number one
hearing aid challenge
– hearing speech in
noise
2004
1
st
digital amplifier
for enterprise com-
munication with DSP
2012
1st to introduce 2.4
GHz e2e technology,
improving hearing
aid connectivity
2014
1
st
made for iPhone
hearing aids enabling
audio connectivity
2015
Smart Hearing Alliance
with Cochlear benefit-
ting people with coch-
lear implants
2019
1
st
smart panoramic -
4k-pixel plug-and-
play enterprise video
solution
2021
New advanced hear-
ing technology de-
veloped for over-the-
counter in the U.S.
2023
1
st
hearing aid sup-
porting Bluetooth
®
Low Energy Audio
2.4 GHz
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Bringing people closer
For 155 years, GN has developed 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 and further
down the road audio and hearing aid technology came into play. Now,
audio, video, gaming, and collaboration tools have become crucial in
how people connect and communicate in work and play.
All along, GN’s focus has been to facilitate meaningful human interac-
tions via customer-centric technology with the purpose of bringing
people closer to one another and what matters most to them.
Strong positions in attractive markets fueled by key megatrends
Over the past several years, GN has repositioned from mainly being per-
ceived as a hearing aid company to being a broader technology innova-
tion company. Today, we develop and market innovative hearing aids
for people with hearing loss; headsets, speakerphones, and video gear
for collaboration at work; a broad range of gear for gaming enthusiasts;
and true wireless earbuds for music, calls, and an active lifestyle – prod-
ucts that truly bring people closer.
Driven by our innovative and market-leading portfolio of hardware and
software technology solutions, GN enjoys strong positions across at-
tractive markets characterized by high barriers to entry, strong mega-
trends, and multiple long-term growth drivers.
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GN has competitive positions in
attractive markets driven by
strong megatrends
Strategic drivers
• Aging and growing populations
• Audio and video communication
replaces audio only
• Unified Communication moves
beyond the office
• Work-life becomes hybrid
• Low penetration rates across several
product categories
• Sustainability drives design and
manufacturing decisions
• Cyber and personal data security
• Gaming goes mainstream
• Regulatory shifts expanding markets
• Virtual meetings replace travel
• Consumerization of products and
channels
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Our strategic focus
GN continues to refine its proven growth model, focusing resources on
being a dedicated developer, manufacturer, and distributor, being a
trusted partner to our customers and partners throughout the globe.
An integral part of this asset-light business model is a collaborative ap-
proach 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.
GN’s fundamental strategy builds on hardware and software innova-
tion, combining our world-leading expertise and technologies. We will
grow our attractive hearing, enterprise, and gaming & consumer busi-
nesses leveraging our market access and our unique and synergistic
technology competencies.
GN’s strategy builds on hardware and
software innovation, combining our
world-leading expertise and technologies
Striving to modernize hearing care in core and emerging markets
Today, 80% of people with a hearing disability are non-users due to a
multitude of barriers. This is a major health and societal challenge as re-
search suggests a clear link between untreated hearing loss and cogni-
tive decline, and further documents that hearing aids may reduce de-
mentia risk by half.
GN strives to modernize hearing care to deliver relevant solutions to
people wherever they are and whenever they need it – whether in-per-
son, remote, or in any combination. This is pursued via GN’s innovation
philosophy of Organic Hearing with world-class sound quality and con-
nectivity. Additionally, focus is on further strengthening our service and
our unique non-competitive partnership with hearing care professionals
and building new ways of connecting with consumer and partners.
Utilize strong audio position to grow in video
GN’s strategy for its enterprise business is to maintain Jabra’s position
as the world’s leading enterprise audio brand and to build on the credi-
bility this position gives GN in businesses and IT departments of all sizes
to accelerate growth in enterprise grade video solutions.
With the prevalence of hybrid working models anticipated to continue –
on top of further penetration for enterprise products – the enterprise
audio and video markets are expected to offer growth in the future and
require products closely integrated into software vendor solutions such
as Microsoft Teams to best meet the needs of professionals and enter-
prises.
GN’s growth and market share gains in enterprise audio and video will
continue to be driven by product, software, and technology innovation
to ensure Jabra solutions offer the best audio and video solutions for all
businesses, regardless of their size or their choice of Unified Communi-
cation platform.
New market segments, such as frontline workers, and new software of-
ferings, such as the AI-based Jabra Engage AI, will create further
growth potential beyond the core enterprise audio, headset, speaker-
phone, and expanding video businesses.
Content
CASE STORY
Hearing aids may reduce
dementia risk by half
Health care cost is an increasing burden in many countries with
growing elderly populations. Technology is part of the solution
to lower cost and, not least, to improve quality of life. Many GN
solutions already play a role in healthcare – from audio and
video equipment facilitating physicians’ online consultations to
medical devices. Increasingly, sensors in earworn devices will be
able to assist with early detection of various deceases, also low-
ering healthcare cost and making life better for individuals.
A recent study* shows that for people with hearing loss the use
of hearing aids slowed cognitive decline by 48% for high-risk in-
dividuals. The study supports that hearing loss may be a modifi-
able risk factor for dementia, and that hearing aids may be used
as an interventional tool to slow cognitive decline in individuals
with higher risk of dementia.
The hearing industry has long suspected a clear link between
untreated hearing loss and risk of cognitive decline. This study
marks an important milestone as previous research between
hearing loss and dementia has predominantly been based on
retrospective studies relying on data collected after the fact.
For people with hearing
loss the use of hearing aids
slow cognitive decline by
48%
*) Johns Hopkins University School of Medicine: ACHIEVE study (Aging and
Cognitive Health Evaluation in Elders) www.achievestudy.org
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SteelSeries continues to grow as gaming goes mainstream
In 2023, there were around 1.5 billion gamers
1
globally across PCs, con-
sole, mobile, and other devices. Gaming has become ubiquitous, replac-
ing mainstream entertainment, and growth is expected to continue at
healthy rates going forward. It has become the preeminent form of so-
cial engagement. It is more than just entertainment - it is becoming a
lifestyle for all ages and genders.
SteelSeries was the original esports brand, and esports professionals
have won more money using SteelSeries gear than any other brand.
Over its 20+ years, it has become the brand of choice for those who
want to play like the pros. The focus for SteelSeries is to provide best-
in-class experiences through performance-enhancing software com-
bined with cutting-edge hardware. As a result, SteelSeries is one of the
fastest growing gaming gear brands in the world.
Focusing the product portfolio to create winners in consumer audio
GN’s world-class audio technology has strong application in the DKK
105 billion true wireless earbuds market. Today, consumers are looking
for products that keep up with their active lifestyles – from workout to
working from anywhere. To improve our impact in the market, we have
sharpened our product portfolio and our latest products, the Jabra Elite
10 and Elite 8 Active, have been racking up awards, including being rec-
ognized as the “Best running headphones of 2023”
2
and winning a CES
Innovation Award.
Integrated sustainability strategy with ambitious goals
Sustainability is integrated into our business strategies. In practice this
means that we aim to achieve our business goals at a minimal cost to
1
"Global Games Market Report”, Newzoo (gamers defined as “payers”)
2
By Run Testers, leading experts in the field.
the environment, while protecting the safety and rights of people
across our value chain.
In 2020, we set sustainability goals for 2025 in three priority areas: de-
carbonization, products and packaging, and health. In 2022, we added
science-based decarbonization targets for 2030. Due to significant pro-
gress in 2023, we are on track to meet our goals (see page 23).
We aim to achieve our business goals at
a minimal cost to the environment
Meanwhile, sustainability-related demands continue to increase from
customers, employees, legislators, and investors. We strive to meet
these demands proactively so that sustainability provides real value to
GN and our stakeholders, whether it is increasingly offering device-as-a-
service to support customers meet their circularity goals, scaling up
supply chain due diligence to meet new human rights legislation, or in-
vesting in charging capacity at our sites to enable our employees to
switch to cleaner cars.
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CASE STORY
Solving the hybrid challenges
Hybrid work increasingly becomes the new normal for millions
of knowledge workers around the world, challenging the way
we collaborate through online and hybrid meetings.
In our Jabra Hybrid Ways of Working 2023 Global Report*, we
found that how people were seen and heard, as well as how
well they could see and hear their colleagues in remote meet-
ings was impacting team trust, creativity, and innovation.
How much is the technology we’re using impacting our behav-
ior in meetings and our ability to collaborate effectively? Our
key findings are:
• Giving everyone the same professional equipment has a big
impact on their meeting experience
• Remote workers have increased presence, impact, and in-
clusion, when given the right equipment
• Meeting room equipment has a significant impact on re-
mote users’ meeting experience
• Technology influences how much we trust people in meet-
ings and trust is an enabler for all business. It opens and
closes doors, deals, and perhaps most importantly, it af-
fects our mental wellbeing and productivity at work
*) Meeting great expectations; behaviour, emotion, and trust (jabra.com) - A Jabra
study at the London School of Economics’ Behavioural Lab on the impact of tech-
nology on people in modern meetings (Meeting great expectations; behaviour,
emotion, and trust (jabra.com))
increase in engagement when using
optimized professional meeting-room
headset and video camera
84%
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CASE STORY
GN spearheaded the development of
the next generation of connectivity
For decades GN has been a pioneer in leveraging Bluetooth®
technology, bringing the first mobile headset to market and in-
troducing the first direct-wireless hearing aid, removing the
need for neck-worn devices.
Over 10 years ago, GN saw possibilities in a Bluetooth standard
protocol for the hearing aid industry, not only for increased ac-
cessibility but also for the wider community. Building on our
close audio business partnerships with large software vendors,
GN initiated the setup of a hearing aid working group within
the Bluetooth Special Interest Group (SIG), where GN took a
leading role in the development of a new Bluetooth standard -
Bluetooth Low Energy (LE) Audio.
GN has now introduced the first hearing aid supporting the
new Bluetooth LE Audio. ReSound Nexia and Beltone Serene
allow hearing aid users multiple simultaneous connections and
hands-free calls with Bluetooth LE Audio compatible devices,
as well as higher sound quality and significantly lower battery
consumption. And, with Auracast™ broadcast audio, this new
standard will allow hearing aid users to hear announcements in
public spaces, stream and share audio, transforming how users
experience audio in private and public spaces.
This new technology is not solely relevant to hearing aid users
but will be the future of how we all consume and share audio.
By taking a leading part in the development of the new stand-
ard, GN has ensured hearing aid users can benefit from this
new technology equally to non-hearing aid users, and that we
are ready to leverage the technology as it becomes relevant in
new innovations and devices.
At the hearing health industry’s Inter-
national EUHA Congress held in Oc-
tober 2023, GN showcased its newest
line of hearing technology, ReSound
Nexia and Beltone Serene, which sup-
ports the new Bluetooth® LE Audio
standard including Auracast™
…and as analysts and media re-
ported: “GN stole the show”.
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Simplifying our governance and organi-
zation, and fully utilizing GN’s scale
We remain excited and committed to our key markets – hearing aids,
enterprise collaboration, gaming gear, and consumer audio – where
attractive megatrends and GN’s strong positions will help us create
significant economic value.
In recent years, GN has worked to better exploit synergies within the
Group’s operating entities by increasingly sharing technologies across
R&D organizations, driving efficiencies in operations and supply chain,
and sharing back-office functions.
Transforming into a one-company setup
To unleash the full power of our organization, we in 2023 took the deci-
sion to simplify our governance and change our organization.
We established the foundation for successfully leveraging the signifi-
cant opportunities we have ahead of us. We strengthened our balance
sheet, changed our governance model, and began capturing early syn-
ergies from new ways of working, in parallel with executing well and de-
livering solid results.
On September 4, 2023, GN announced the Board’s decision to establish
a unified leadership with one Group CEO, one Group CFO, and a new Ex-
ecutive Leadership Team, replacing the previous governance model
with two sets of management for two separate companies as well as
parent company management.
Three targeted business divisions supported by functions of scale
On October 1, 2023, GN prepared to organize its business activities in
three divisions with clear accountability for customer and business suc-
cess: Hearing, Enterprise, and Gaming & Consumer.
At the same time, support and back-office functions were merged and
reorganized to drive scale and synergies across the company: R&D, Op-
erations, Finance, IT, People & Culture, and Strategy & Transformation.
The leaders of these divisions and functions of scale together with the
CEO and the CFO constitute GN’s new Executive Leadership Team.
These changes simplify our governance and strengthen the way GN op-
erates. Transforming from a dual leadership with dual organizations to
a single-string leadership and one unified company will remove internal
efficiency roadblocks, siloed systems and processes, and make the or-
ganization simpler, faster, and more impactful.
Utilizing common technologies and expertise across product groups
A cornerstone in driving more innovation in a fully integrated one-com-
pany setup is combining our different R&D organizations into one or-
ganization, addressing also the ongoing technology and segment con-
vergence more effectively. Leveraging scale and competencies while
maintaining a rigorous focus on different customer requirements – no-
tably the differences between medical and consumer regulation – is a
core element in creating a fully integrated innovation powerhouse.
While the types of challenges that our products are engineered to solve
for customers are highly varied, the technologies inside increasingly
converge, enabling better utilization of common standards and
Building the foundation
for
future success
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A simpler and more powerful
company, benefitting customers,
employees, and shareholders
Strategy &
Transformation
Operations
Finance
People &
Culture
IT R&D
Hearing
Gaming &
Consumer
Enterprise
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platforms. Technologies such as sound processing, Bluetooth and wire-
less connectivity, Artificial Intelligence, miniaturization, power manage-
ment, software ecosystems, and many more are developed and applied
across GN’s diverse product innovation.
Scale and critical mass within talents, ideas, technologies, and invest-
ments will allow us to innovate more, faster, and better, providing our
business divisions with more power to drive impact in their markets. All
to the benefit of customers specifically and all other stakeholders gen-
erally.
Reliable, diverse, and agile IT, operations, and supply chain services
The advantages of scale and uniform systems and processes equally ap-
ply in Operations, where we in the first half of 2023 started to combine
our diversified manufacturing and supply chain organizations.
This unified global operations organization manages a significant sup-
ply chain, delivering one product every second all year round, providing
significant scale benefits from procurement and component sourcing
through manufacturing and assembly to distribution and delivery. The
integration provides the opportunity to transform into a more cus-
tomer-centric operations and supply chain engine.
The transformation will also build on a modernization and streamlining
of IT, systems, and processes to further support efficient workflows and
enable GN’s 7,000+ employees to more freely collaborate and utilize
their unique competencies. Having a singular vision and serving a uni-
fied company will over time enhance IT's ability to leverage functional
scale to benefit across all GN’s business activities.
New Finance operating model
In mid-2023, GN commenced the reorganization of its separate finance
functions into one organization under the leadership of CFO Søren
Jelert, who joined GN in June 2023.
The finance organization now moves to a new operating model based
on a more scalable platform. This includes setting up a new in-house
service delivery center in Warsaw, Poland, supplementing such existing
centers in North America and China, driving consistency, scalability,
standardization, and automation of end-to-end core finance processes.
The new Warsaw-center will become operational in 2024.
Bringing our own people closer
The transformation into one fully integrated company will help ensure
GN is a great company to work for. It will free up managers’ and em-
ployees’ time and resources from working more unified to deliver to-
wards innovation, provide strong learning opportunities, enhance ca-
reer paths across the organization, and support employees’ careers
over time.
Scale and critical mass within talents,
ideas, technologies, and investments
will allow us to innovate more, faster,
and better
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Significant One-GN cost synergies
GN has identified DKK ~600 million in cost synergies from moving
to a one-company setup. Approximately two-thirds of these cost
savings (across COGS and OPEX) will be achieved in 2024 and the
remainder will be realized by 2026. The main sources of these syn-
ergies are shown below:
Operations
Efficiencies
& processes
Organization
DKK
~600m
3
1
2
Operations – DKK ~200 million
• Joint sourcing of core product
components (chipsets, hybrids,
etc.)
• Joint sourcing of commodities
(plastics, batteries, cables, elec-
tronics, mechanical parts, etc.)
• Joint sourcing of packaging and
accessories (packaging materials,
accessories, carrying cases, etc.)
1
Efficiencies & processes – DKK ~200 million
• Indirect procurement (IT software, marketing procurement, external consul-
tancy, IPR services, courier, HR activities, travel, etc.)
• Finance operating model (three regional shared delivery centers (SDC), consoli-
dation of European SDC in Poland)
• Other process initiatives (Office footprint optimization, alignment of IT systems,
etc.)
Organization – DKK ~200 million
• Re-organization (reducing 300 positions in over-lapping positions in new func-
tions of scale and capacity adjustments in new divisions)
• New ways of working (digitizing workflows, removing internal efficiency road-
blocks, siloed systems and processes)
2
3
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Global reach, local presence
Research & Development
GN has R&D centers in Denmark, the
United States, the Netherlands,
Poland, France, and China.
The Group
has a unique blend of leading expertise of the human ear,
audio, video, speech, gaming, wireless technologies, software, and
miniaturization.
In 202
3, GN invested DKK 1.7 bn in research and development.
Manufacturing
GN has its
own
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 produced by carefully se-
lected manufacturers
mainly in China and Southeast Asia. Most compo-
nents are sourced from suppliers in Asia. GN works with a small number
of tier
-one manufacturers supported by more than 100 sub-suppliers.
Sales and distribution
GN’s hearing aids are sold in around 100 countries across the world.
GN has its own
customer teams in 30+ countries and operates via part-
ners and distributors in another 70 countries.
GN’s audio, video, and gaming products are sold via distributors
, retail-
ers
, and GN’s own web-stores
in 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 Mexico, Poland, China, and Hong Kong.
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Content
GN offices
Countries with direct sales
Countries with GN distributors
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Five year overview 16
Financial review 2023 17
Financial guidance 2024 21
Financial
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Jabra expanded the Evolve2 range
with the most comfortable headsets
built for ultra-flexible hybrid working.
The Evolve2 65 Flex is the most port-
able professional headset with best-
in-class ANC performance and fold-
and-go design to support work from
anywhere.
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DKK million
2019
2020
2021
2022
2023
GN Store Nord
Revenue
12,574
13,449
15,775
18,687
18,120
Revenue growth
19%
7%
17%
18%
-3%
Organic growth
15%
9%
20%
-3%
-1%
Gross profit margin
60.3%
54.3%
55.0%
48.9%
49.4%
EBITA*
2,321
1,866
2,619
1,560
1,200
EBITA margin*
18.5%
13.9%
16.6%
8.3%
6.6%
Operating profit (loss)
2,002
1,627
2,397
1,111
869
Financial items, net
-92
-6
-90
-405
-462
Profit (loss) before tax
1,913
1,612
2,271
725
343
Effective tax rate
23.3%
21.3%
21.2%
21.4%
22.4%
Profit (loss) for the year
1,468
1,269
1,790
570
266
Total assets
16,683
16,682
23,552
30,589
30,642
Total equity
4,849
5,178
6,229
6,800
9,587
ROIC (EBITA*/Average invested capital)
25%
19%
25%
9%
5%
Earnings per share, basic (EPS)
11.12
9.72
13.63
4.00
1.64
Earnings per share, fully diluted (EPS diluted)
10.98
9.63
13.49
3.99
1.64
Investments in property, plant and equipment
-232
-221
-457
-209
-351
Free cash flow excl. company acquisitions and divestments
1,296
1,865
702
-1,291
1,092
Cash conversion (free cash flow excl. company acquisitions and divest-
ments/EBITA*)
56% 100% 27% -83% 91%
Equity ratio
29.1%
31.0%
26.4%
22.2%
31.3%
Net interest-bearing debt**
4,805
3,755
4,829
14,561
10,567
Net interest-bearing debt (period-end)/EBITDA
1.8
1.6
1.6
7.1
6.0
Payout ratio
14%
16%
12%
-
-
Share buybacks***
1,626
453
1,166
-
-
Outstanding shares, end of period (thousand)
128,952
128,975
127,718
127,973
145,613
Average number of outstanding shares (thousand)
130,762
128,805
128,816
127,823
138,883
Average number of outstanding shares, fully diluted (thousand)
132,367
130,032
130,194
128,126
138,991
Treasury shares, end of period (thousand)
13,316
13,293
10,458
9,220
5,300
Share price at the end of the period
313.3
487.2
411.3
159.8
172
Market capitalization
40,401
62,837
52,530
20,444
25,016
* Please refer to Key Ratio Definitions on
page 132 for definition of EBITA ** Please refer to Key Ratio Definitions on page 132 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 share-based incentive programs
DKK million
2019
2020
2021
2022
2023
GN Hearing
Revenue
6,351
4,725
5,332
6,227
6,802
Revenue growth
9%
-26%
13%
17%
9%
Organic growth
7%
-24%
16%
5%
13%
Gross profit margin
69.0%
61.5%
63.8%
62.7%
59.9%
EBITA*
1,284
41
643
453
554
EBITA margin*
20.2%
0.9%
12.1%
7.3%
8.1%
ROIC (EBITA*/Average invested capital)
19%
1%
9%
5%
7%
Free cash flow excl. company acquisitions and divestments
672
127
198
-377
269
Cash conversion (free cash flow excl. company acquisitions and divest-
ments/EBITA*)
52% 310% 31% -83% 49%
GN Audio
Revenue
6,223
8,724
10,443
12,460
11,318
Revenue growth
30%
40%
20%
19%
-9%
Organic growth
26%
42%
22%
-7%
-8%
Gross profit margin
51.5%
50.4%
50.6%
41.9%
43.0%
EBITA*
1,192
2,002
2,164
1,299
1,019
EBITA margin*
19.2%
22.9%
20.7%
10.4%
9.0%
ROIC (EBITA*/Average invested capital)
57%
81%
79%
17%
9%
Free cash flow excl. company acquisitions and divestments
849
1,729
1,288
-91
1,031
Cash conversion (free cash flow excl. company acquisitions and divest-
ments/EBITA*)
71%
86%
60%
-7%
101%
ESG summary
2019
2020
2021
2022
2023
Environmental
Scope 1 and 2 emissions (tons CO2e)
-
-
10,507
8,475
5,564
Scope 3 emissions (tons CO2e)
-
-
430,242
456,562
345,081
Social
Number of people with hearing loss helped (m)
9
9.1
9.4
9.8
10.5
Supplier ESG audits
49
39
40
31
61
Governance
Women in senior management (%)
20%
21%
21%
23%
22%
AGM-elected women on GN's Board (%)
40%
57%
57%
66%
50%
Five year overview
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Revenue
In 2023, the markets presented a mixed bag of tailwinds and head-
winds, but the company executed well and delivered strong results. GN
Store Nord’s revenue ended at DKK 18,120 million including organic
revenue growth of -1% compared to -3% in 2022 - in line with financial
guidance. The impact from the development in foreign exchange rates
was -2%.
GN Hearing
In the hearing aid business, GN executed strongly leading to market
share gains as a result of 13% organic revenue growth – in line with fi-
nancial guidance. The performance was broad-based across channels
driven by the successful ReSound OMNIA family with 12% organic rev-
enue growth in the Core business and 33% organic revenue growth in
the Emerging business. Revenue reached DKK 6,802 million, compared
to DKK 6,227 million in 2022, including M&A impact of -1% while im-
pact from foreign exchange rates was -2%.
In North America, the hearing aid market experienced strong volume
growth in 2023, somewhat higher than the historical 4-6% volume
growth. On the back of the robust hearing aid market, GN delivered
continued market share gains, realizing an organic revenue growth of
20% in 2023.
The performance in the U.S. Veterans Affairs (VA) was characterized by
a stabilized market share position as a result of the ReSound OMNIA
launch in late 2022. The VA channel has proven more sticky than the
rest of the market, but the stabilization of the market share has pro-
vided a solid foundation for ReSound Nexia, which will be available by
May 1, 2024.
The reception of Jabra Enhance Pro 10 at a large retailer was very
strong and drove a meaningful part of the overall growth for North
America. By late 2023, Jabra Enhance Pro 20 was launched into the re-
tailer with strong early feedback.
In the independent channel, GN continued to win market share driven
by ReSound OMNIA and with strong initial reception of ReSound Nexia
in late 2023. In the online channel/OTC, GN performed strongly with
33% organic growth in the Emerging business. The overall revenue in
North America ended at DKK 3,407 million (compared to DKK 2,939
million in 2022), equal to revenue growth of 16% with M&A impact of
-2%, while impact from foreign exchange rates was -2%.
In Europe, the hearing aid market experienced volume growth slightly
below the historical 4-6% growth rate. Despite the challenging market
conditions and a difficult comparison base, GN took market share and
delivered organic revenue growth of 5%. The performance was sup-
ported by strong execution in especially France and the U.K. The over-
all revenue in Europe ended at DKK 1,887 million (compared to DKK
1,794 million in 2022), equal to revenue growth of 5% with M&A impact
of 1%, while impact from foreign exchange rates was -1%.
In Rest of World, the hearing aid market experienced a general catch-
up following COVID-19 with market volume growth above the histori-
cal 4-6% growth rate. GN performed strongly leading to organic reve-
nue growth of 6% driven by strong performance in Australia, China,
and Japan on top of a difficult comparison base. Overall revenue in
Rest of World ended at DKK 1,508 million (compared to DKK 1,494 mil-
lion in 2022), equal to revenue growth of 1%, while impact from foreign
exchange rates was -5%.
Financial review 2023
Revenue (DKKm) and organic revenue growth (%)
Revenue distribution
6,351
4,725
5,332
6,227
6,802
4,680
7,221
8,271
8,677
7,463
1,543
1,503
2,172
1,466
1,253
2,317
2,602
2019 2020 20222021 2023
Org.
growth
15% 9% 20% -3% -1%
18,687
18,120
15,775
13,449
12,574
Revenue Consumer business (DKKm)
Revenue Gaming business (DKKm)
Revenue Enterprise business (DKKm)
Revenue Hearing business (DKKm)
North
America
38%
Europe
41
%
Rest of
World
21%
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GN Audio
In the Enterprise business, GN executed solidly in challenging market
conditions and against a high comparison base, while defending its
global market leadership, thus positioning GN well for the anticipated
enterprise market recovery. SteelSeries continued its strong execution,
and once again took significant market share in a flat market, while the
Consumer business took important steps to improve profitability by
narrowing the product portfolio. The execution led to -8% organic reve-
nue growth for GN Audio – in line with financial guidance. Revenue in
2023 reached DKK 11,318 million, compared to DKK 12,460 million in
2022, while impact from foreign exchange rates was -1%.
In the Enterprise business, GN was negatively impacted by challenging
market conditions driven by macro uncertainty and buyer hesitancy,
although with some market stabilization during the year. Moreover, the
enterprise market faced a high comparison base from 2022, when sup-
ply chain constraints easened, resulting in estimated double-digit nega-
tive market growth. As a result of continued channel execution and the
market-leading product portfolio, Enterprise revenue was DKK 7,463
million compared to DKK 8,677 million in 2022 translating into organic
revenue growth of -13%.
In the Gaming business, SteelSeries was exposed to a flat gaming gear
market development in 2023. In this stabilized market, SteelSeries con-
tinued to take advantage of its premium and innovative product port-
folio and continued channel execution to once again win significant
market share. In addition, SteelSeries executed very well on inventory
reduction initiatives. The strong performance resulted in revenue of
DKK 2,602 million compared to DKK 2,317 million in 2022 translating
into organic revenue growth of 16%.
In the Consumer business, GN was exposed to a broader consumer
market that saw some stabilization during the year. GN took important
actions to restructure the Consumer business by narrowing the product
portfolio to set the business up for growth and profitability. An im-
portant lever in the execution was related to the launch of one mid-
range and two new premium true wireless earbuds, Jabra Elite 8 Active
and Elite 10, which were brought to market in Q3 and drove a signifi-
cant part of the revenue at the end of the year. Due to the execution
across the business, the true wireless earbud category (which is the
clear majority of the revenue in the Consumer business) experienced
some growth in 2023. As a result, the Consumer revenue was DKK
1,253 million compared to DKK 1,466 million in 2022 translating into
an organic revenue growth of -13%.
Gross Profit
GN Store Nord’s adj. gross profit reached DKK 9,038 million compared
to DKK 9,283 million in 2022. The adj. gross margin ended at 49.9%
(compared to 49.7%) and was negatively impacted by the revenue
decline in Enterprise, promotional activities in the consumer-facing
businesses as well as negative mix in the hearing aid business, but
somewhat offset by the easing of freight costs.
GN Hearing
Adj. gross profit reached DKK 4,169 million corresponding to a gross
margin of 61.3% compared to 63.6% in 2022. The gross margin was
positively impacted by pricing initiatives of the premium launches, but
more than offset by retail disposals including BelAudição as well as a
negative channel/country mix.
GN Audio
Adj. gross profit reached DKK 4,869 million corresponding to a gross
margin of 43.0% compared to 43.5% in 2022. The development reflects
a negative business mix as well as ongoing broadly promotional
activities in the consumer-oriented businesses, but almost offset by a
price increase in Enterprise as well as easing freight costs.
OPEX
GN Store Nord’s adj. OPEX ended at DKK -7,244 million in 2023
compared to DKK -7,218 million in 2022. The development reflects
continued cost reduction measures implemented throughout the year
on top of inflationary impact and IT investments.
GN Hearing
Following a few years of ongoing cost reduction measures to right-size
the cost base, further initiatives were executed during 2023 with the
aim to keep OPEX in check compared to 2022. Consequently, total
OPEX excl. non-recurring items and hedging effects ended at DKK -
3,361 million, equal to a increase of 2% compared to 2022.
GN Audio
OPEX was prudently managed during the year with an 7% reduction in
selling and distribution costs as a consequence of cost reduction
measures. This was partly offset by investments into IT. Consequently,
total OPEX excl. non-recurring items and hedging effects ended at DKK
-3,672 million, equal to a decrease of 1% compared to 2022.
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EBITA
GN Store Nord’s adj. EBITA was DKK 1,794 million compared to DKK
2,166 million in 2022 (EBITA in Other ended at DKK -211 million ex-
cluding non-recurring items of DKK -160 million). The decline was pri-
marily driven by negative operating leverage in GN Audio as a result of
the revenue decline as well as ongoing promotional activities in the
consumer-oriented businesses. As a result, GN Store Nord’s adj. EBITA
margin ended at 9.9% compared to 11.6% in 2022. Reported EBITA was
DKK 1,200 million, reflecting non-recurring items of DKK -594 million
due to initiatives to restore profitability across the group including the
announced synergy initiatives.
GN Hearing
GN Hearing’s adj. EBITA was DKK 808 million, with the Core business
delivering adj. EBITA of DKK 960 million, equal to an EBITA margin of
14.7% compared to 13.1% in 2022, in line with the financial guidance.
The development reflects the significant market share gains on top of
tightly managed OPEX driving operating leverage. The Emerging busi-
ness delivered EBITA of DKK -152 million due to continued investments
in lead generation to drive topline growth. Reported EBITA for GN
Hearing amounted to DKK 554 million reflecting non-recurring items of
DKK -254 million.
GN Audio
GN Audio’s adj. EBITA ended at DKK 1,197 million, translating into an
adj. EBITA margin of 10.6%, compared to 14.1% in 2022, which was in
line with financial guidance. The development reflects the revenue de-
cline, partly off-set by tightly managed OPEX. Reported EBITA was
DKK 1,017 million, reflecting DKK -180 million in non-recurring items.
Other profit & loss items
In 2023, amortization of acquired intangible assets amounted to DKK
-392 million compared to DKK -440 million in 2022. Financial items
were DKK -462 million in 2023 compared to DKK -405 million in 2022,
primarily driven by increasing financing costs as a consequence of the
increasing interest rate levels.
In 2023, share of profit (loss) in associates was DKK -64 million com-
pared to DKK 19 million in 2022. Gain (loss) on divestment of opera-
tions, etc. was DKK 61 million compared to DKK -9 million in 2022 pri-
marily due to a non-cash gain from the disposal of BelAudição. Adj.
profit before tax was DKK 937 million (reported profit before tax was
DKK 343 million) compared to DKK 1,349 million in 2022.
The effective tax rate was 22.4% (an increase of around 1 percentage
point due to a previous R&D tax relief scheme in Denmark not being
prolonged), translating into an adj. net profit of DKK 727 million (re-
ported net profit of DKK 266 million) compared to DKK 1,060 million in
2022.
Free cash flow
GN Store Nord delivered a substantial free cash flow excl. M&A of DKK
1,092 million compared to DKK -1,291 million in 2022, mainly driven by
the solid earnings level and a positive change in working capital related
to inventory reductions as well as a significant improvement in trade
payables driven by a new commercial agreement with a major manu-
facturing and logistics provider.
In addition to the strong operational cash flow, M&A contributed with
an additional DKK 405 million primarily explained by the disposal of
BelAudição. As a result, total free cash flow ended at DKK 1,497 mil-
lion.
Adj. EBITA (DKKm) and Adj. EBITA margin (%)
*Excluding non
-recurring items in 2019, 2020, 2021, 2022, and 2023
Free cash flow excl. M&A (DKKm) and cash conversion (%)
1,284
41
643
786
960
-187
-152
1,244
1,888
2,209
1,759
1,197
-155
-177
-188
-192
-211
2019 2020 2021 2022
Adj. EBITA
margin*
18.9% 13.0% 16.9% 11.6% 9.9%
Adj. EBITA GN Hearing Emerging business (DKKm)*
Adj. EBITA GN Hearing Core business (DKKm
)*
Adj. EBITA GN Audio (DKKm
)*
Adj. EBITA Other (DKKm)*
2,373
2,664
2,166
1,794
1,752
2023
1,296
1,865
702
-1,291
1,092
2020 20222019 2021 2023
Free cash flow excl. M&A
Cash
conversion
56% 100% 27% -83% 91%
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Capital structure
Net interest-bearing debt decreased significantly by 27% to DKK
10,567 million compared to DKK 14,561 million by the end of 2022,
driven by the strong free cash flow generation including the disposal of
BelAudição as well as the private placing of 17 million shares. The adj.
leverage ended at 4.5x as a result of the strong decrease in net inter-
est-bearing debt, only partly offset by the negative impact on adj.
EBITDA from the revenue decline. Reported leverage ratio was 6.0x re-
flecting DKK -594 million non-recurring items. By the end of 2023, GN
had cash and cash equivalents of DKK 2,162 million. Moreover, GN has
access to an undrawn revolving credit facility of DKK 3.9 billion (EUR
520 million) with maturity in Q2 2027.
Capital plan
In May, 2023, GN announced a new capital plan to prepare for repay-
ment of approximately DKK 7 billion debt that matures in 2024 and ef-
fectively pushes all material debt maturities to Q3 2026. Execution of
the four pillars of the plan continues to progress well. The pillars are:
• Equity: An accelerated bookbuild of a directed issue and private
placing of 17 million new shares and existing treasury shares exe-
cuted on May 24, 2023, which generated DKK 2.6 billion net pro-
ceeds
• Debt refinancing: New DKK 6.0 billion (EUR 800 million) term loan
facility maturing in 2026 replaced existing DKK 3.9 billion (EUR 520
million) term loan. The new loan was signed and finalized on Sep-
tember 27, 2023
• Disposals: DKK 1.0 – 2.0 billion to be generated by disposals of se-
lected assets. Disposal of BelAudição generated DKK ~500 million
in Q3 2023. Moreover, GN has arranged a sale and leaseback of the
company’s headquarter, which generated net proceeds of DKK
~500 million during Q4 2023
• Operational measures: Cash at hand and positive free cash flow
excl. M&A for 2023 and 2024 at Group level; DKK 1.1 billion cash
flow excl. M&A generated in 2023
Net interest-bearing debt (DKKm)
4,805
3,755
4,829
14,561
10,567
2019 2020 20222021 2023
Net interest-bearing debt (DKKm)
Adj.
leverage
2.0x 1.8x 1.8x 5.5x 4.5x
Financial overview 2023
GN Hearing
GN Audio
DKK million - 2023
Core
business
Emerging
business
GN
Hearing
Enterprise
Consumer
Steel-
Series
GN
Audio
Revenue
6,535
267
6,802
7,463
1,253
2,602
11,318
Organic growth
12%
33%
13%
-13%
-13%
16%
-8%
Adj. EBITA**
960
-152
808
1,197
Adj. EBITA margin**
14.7%
11.9%
10.6%
Group total*
GN Hearing
GN Audio
DKK million
2023
2022
Growth
2023
2022
Growth
2023
2022
Growth
Revenue
18,120
18,687
-3%
6,802
6,227
9%
11,318
12,460
-9%
Organic growth
-1%
-3%
13%
5%
-8%
-7%
Adj. Gross profit**
9,038
9,384
-4%
4,169
3,963
5%
4,869
5,421
-10%
Adj. Gross profit margin**
49.9%
50.2%
-0.3%p
61.3%
63.6%
-2.3%p
43.0%
43.5%
-0.5%p
Adj. EBITA**
1,794
2,166
-17%
808
599
35%
1,197
1,759
-32%
Adj. EBITA margin**
9.9%
11.6%
-1.7%p
11.9%
9.6%
2.3%p
10.6%
14.1%
-3.5%p
Adj. Earnings per share (EPS)***
6.82
10.54
-35%
Free cash flow excl. M&A
1,092
-1,291
2,383
269
-377
646
1,034
-91
1,125
* Including "Other"
** Excluding non
-recurring items (DKK -180 million in OPEX in GN Audio, DKK -93 million in COGS in GN Hearing, DKK -161 million in OPEX in GN Hearing and DKK -160 million in OPEX in
Other) in 2023. 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 202
2
*** Excluding non-recurring items (DKK -594 million in 2023 and DKK -624 million in 2022) and amortization of acquired intangible assets
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Key assumptions
Hearing division
Following a very strong market growth in 2023, GN expects the mar-
kets to return to historical growth rates supported by ongoing favora-
ble demographic trends. As such, GN projects 4-6% market volume
growth and -1% to -2% market ASP decline.
Driven by the overwhelmingly positive feedback on ReSound Nexia, GN
expects continued strong market share gains on top of a very success-
ful 2023. Consequently, the Hearing division assumes to contribute
with organic revenue growth of 8% to 12%. Moreover, the underlying
assumptions include an EBITA margin in the core hearing aid business
of 18% to 20%.
Enterprise division
Following some very difficult years in the broader Enterprise equip-
ment market, 2023 saw some general volume stabilization. Supported
by early signs of a healthier PC market at the end of 2023 and an ex-
pected increase in broader IT equipment spend during 2024, GN pro-
jects that the addressable Enterprise market will return to positive
value growth sometime during 2024.
GN expects to be able to continue to defend its market-leading position
in Enterprise headsets driven by the updated and innovation-led prod-
uct portfolio and to win market share in Enterprise video due to our in-
dustry-leading offering, channel access strength, and strong partner-
ships with leading software vendors. Consequently, the Enterprise divi-
sion assumes to contribute with organic revenue growth of -3% to 5%.
Gaming & Consumer division
The broader Consumer market experienced general stabilization during
2023, following a very difficult 2022. Despite the current macro eco-
nomic headwinds and related impact on consumer sentiment, GN pro-
jects a slightly growing value market for GN’s addressable Gaming &
Consumer market in 2024.
GN expects to be able to defend its market share in the true wireless
segment driven by continued innovation and continue to gain market
share within SteelSeries because of the very strong brand and innova-
tion leadership. Consequently, the Gaming & Consumer division as-
sumes to contribute with organic revenue growth of 2% to 10%.
Financial guidance 2024
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 as well
as foreign exchange rates, technological developments, changes
and amendments to legislation and regulations governing GN’s
markets, changes in the demand for GN's products, competition,
fluctuations in sub-contractor supplies, and developments in
ongoing litigation (including but not limited to class action and
patent infringement litigation in the United States).
For more information, please see the "Management's report"
and "Risk management” sections in this Annual Report. This
Annual Report should not be considered an offer to sell
securities in GN.
organic revenue
growth
2% to 8%
12%
to 14%
EBITA
margin
>700
Free cash flow
excl. M&A (DKKm)
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ESG progress 23
Impact across our value chain 24
Double materiality assessment 25
ESG
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The Arctis Nova Pro wireless headset from
SteelSeries provides high fidelity audio, 360
degrees spatial audio, Sonar audio software
suite, and Pro Grade Parametric EQ - and is
the first gaming headset to gain TCO certi-
fication, the leading sustainability certifica-
tion for headsets.
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In 2023, we made significant progress
towards our ESG goals
Our current ESG agenda is centered around three pillars: Health, cli-
mate, and products and packaging.
In the health pillar, we during 2023 met our target to help 10 million
people with hearing loss ahead of our 2025 target.
In the climate pillar, we made significant progress towards our decar-
bonization goal in scopes 1 and 2, and have also reduced emissions in
scope 3. With the plans and activities we have initiated, we expect the
major decarbonization effects in scope 3 to take place 2025-2030.
In the products and packaging pillar, we have significantly increased
the use of recycled plastics in our products and are on track to meet
our 2025 target, while the vast majority of our packaging already now
meets the sustainability requirements set for 2025.
ESG progress
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* Calculated using sales volumes of GN hearing aids and assumptions based on EHIMA figures for binaural treatment and
replacement rates (five years for high -income countries and eight years for low-income countries)
** Measured as % of total weight of mechanical parts
Health
2023
progress
Help 10 million people with
hearing loss by 2025
We estimated that we helped 10.5* million
people with hearing loss
(see page 37)
We continued to invest in cognitive health
research and greater awareness of hearing
health (see page 37)
We have engaged in several philanthropic
activities (see page 37)
Create awareness of hearing loss
and add new health functionality to
our products by 2025
Support unmet hearing health
needs through donations and
capacity-building (ongoing)
Target
Climate
2023 progress
We have reduced scope 3 emissions by 20%
vs our 2021 baseline (see page 27)
We have reduced scope 1 and 2 emissions
by 47% compared to our 2021 baseline
(see page 27)
We have reduced the carbon footprint of
business travel per employee by 17% vs a
2019 baseline
Reduce carbon emissions in scopes
1 and 2 by 80% by 2030
Reduce carbon emissions in scope 3
by 25% by 2030
Halve the carbon footprint of
company air travel per employee
compared to 2019 (ongoing)
Target
Products and
packaging
2023 progress
We launched nine products containing
recycled plastic, of which four already meet
the 50% target (see page 30)
62% of our newly launched products met
our sustainable packaging requirements
(see page 30)
We have taken several circularity initiatives
(see page 31)
Use at least 50% non-virgin
material** in new products by 2025
Minimal plastic, small size, FSC -
certified packaging for all new
products by
2025
Give more products a second life
through take-back schemes, repair,
or refurb by
2025
Target
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HCP
Impact across
our value chain
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Our investors
Delivering shareholder value by
executing on the company strategy
Key resources
Engaged and focused people
Innovation and ecosystem leadership
Global reach, local presence
Our customers and partners
Creating products, services,
and experiences that thrill
customers and partners
Our people
Providing a great, safe, and
rewarding place to work with
equal opportunity for all
Our world and environment
Pursuing responsible and inclusive business
practices. Designing environmentally conscious
products, services, and operations
Maximize positive impact
Minimize negative impact
Value chain
Value created
A fully integrated innovation powerhouse
with strong positions and substantial future
growth opportunities in attractive hearing,
audio, video, and gaming markets
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
Innovate
for effective
remote collaboration:
reduce business travel
Traffic safety and
wellbeing for drivers
Increase circularity:
takeback 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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Getting ready for EU CSRD reporting
GN is subject to the EU’s Corporate Sustainability Reporting Directive
(CSRD), and in accordance with this directive, our Annual Report for
2024 will comply with its reporting standards. As specified in the stand-
ards, in 2023 we have executed a double materiality assessment to set
the scope for CSRD-compliant reporting from next year onwards.
Methodology
We executed the double materiality assessment by scoring 132 ESG
sub-topics contained in the 12 standards on a scale from 0-5 on two pa-
rameters:
• Actual or potential impact of GN on people and environment (e.g.
air pollution as a consequence of manufacturing of our products)
• Actual or potential financial risk to GN as a consequence of this
topic (e.g. the cost to GN’s operations of climate adaptation)
A scoring key and methodology were developed in accordance with the
standard and 27 internal and 8 external stakeholders were consulted in
the scoring process. We made a distinction between ‘own operations’,
which will all be in scope for full-year 2024 reporting and ‘value chain’
topics, some of which will phase in as reporting requirements over the
next years. Topics that are scored a 2 or above are considered material
to GN, while topics that are scored 3 or above are considered highly
material to GN.
Results
Based on our current understanding, we assess around half of sub-top-
ics to be either material or highly material for our own operations. We
continuously review materiality of topics based on additional EU
guidance and/or data and insights, and will adjust materiality scores ac-
cordingly ahead of FY2024 reporting if needed. For our value chain, our
assessment shows that a larger number of topics are material, reflect-
ing a higher number of (potential) ESG impacts in some of the indus-
tries on which we depend. Our reporting on value chain topics will re-
flect that some of these topics require less quantitative data and will
phase in after financial year 2024.
Next steps
In 2024, we will implement an updated ESG reporting framework with
robust reporting processes, systems, and controls to report on all
highly material topics (score ≥3) for disclosures related to our own op-
erations, and where relevant our value chain, in accordance with the
standards.
For material topics (score ≥2-3) we will closely track evolving guidance
and consensus from the EU, assurance providers, and within our indus-
tries in several areas in which there is currently a lack of clarity on how
to interpret the standards. Where this impacts scoring, we will make re-
quired adjustments to the scope of our full-year 2024 reporting.
Double materiality assessment
31%
21%
48%
Highly material Material Not material
Materiality of
topics in
own operations
Materiality of topics in
value chain
45%
35%
20%
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Overview of highly material topics
Own operations
Dependence on
suppliers to mitigate
ESG impacts
Health and safetyCarbon emissions in
scope 1+2
Violence and
harassment
Energy use
Gender equalityResource inflow and
outflow
Adequate wage (blue
collar)
Substances of concern
Waste
Dependence on
suppliers to mitigate
ESG impacts
Health and safetyCarbon emissions in
scope 3
Secure employmentEnergy use
Violence and
harassment
Water, soil, and food
pollution
Work -life balance and
adequate wages
Substances of (very
high) concern and
microplastics
Social dialogueWater withdrawal and
discharge
Freedom of association
and collective
bargaining
Biodiversity
(land use
,
species extinction, and
pollution)
Child and forced laborResource inflow
(Gender) diversity and
inclusion
Production waste
Value chain
Environment Social Governance
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Decarbonization 27
Responsible manufacturing 28
Product sustainability 29
Circularity 31
Sourcing 32
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Jabra PanaCast 50 Video Bar System
facilitates next-level hybrid meeting
experiences with a full suite of flexi-
ble, scalable deployment options,
offering a more collaborative and
inclusive experience on native Unified
Communications applications like
Microsoft Teams Rooms and Zoom
Rooms.
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Content
Content
40.7%
59.3%
1.0%
29.5%
10.2%
10.2%
18.1%
31.
1%
Supplier Guarantees of Origin
Renewable energy
Energy attribute certificates
Non-renewable energy
Gas
Residual mix electricity
District heating
Power purchase agreement
Our carbon footprint
We completed a full scope 3 inventory aligned with the GHG
Protocol Corporate Standard. The chart shows the relative size
of emission sources along our value chain.
Scope 1 and 2 emissions roadmap
We will close the gap to our 2030 scope 1 and 2 emission reduction
target by increasing energy efficiency at our major sites and mov-
ing to renewable energy where possible for all remaining sites.
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7% 18%
0.3%19%
32%
Raw materials and
manufacturing
Indirect procurement
and investments
Transportation
and retail
Product use
End of life
Employee travel
and commuting
42%
Historical emissions
Emissions trajectory
Power purchase agreement
EAC long-term purchase agreement
Other green power initiatives
10,092
10,507
8,475 5,564
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
80%
by 2030
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11,569
11,714
11,680
2021 2022 2023
277
269
227
2021 2022 2023
45,279
51,257
52
,838
2021 2022 2023
Energy consumption
Total energy use in GN-operated manufacturing sites (MWh)
Waste
Total waste generated by all GN manufacturing sites (mt)
Water use
Total water use at GN manufacturing sites (m
3
)
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dergo rigorous testing to ensure we meet strict requirements in socially
Content
Sustainability in the product
lifecycle
Execute studies for sustainability areas that cannot be cap-
tured 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 im -
plemented in-market
Contribute to giving products a second life through
WEEE compliance and circularity initiatives
Pre-concepting
Concepting
Product development
Launch
In-market
End-of-life
Decarbonizing our packaging
47%
lower carbon
emissions
79
%
lower carbon
emissions
Jabra Elite 65t
Jabra Elite 10
All new hearing products sold
from the end of 2024 onwards
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Life-cycle assessments
Plastics1
Metals
2
Electronic components
3
Printed circuit board4
Manufacturing energy5
Packaging6
Transport7
Usage8
Other (foams and EoL)9
2.2%
~0.0%
4.1%
7.6%
19.9%
1.8%
27.0%
34.5%
2.9%
1.5%
3.6%
28.5%
2.1%
17.1%
0.9%
42.3%
0.0%
3.9%
8.7%
5.5%
5.6%
15.5%
16.0%
4.2%
42.9%
1.0%
0.6%
13.5%
5.0%
15.4%
16.9%
1.8%
1.9%
41.6%
0.9%
2.8%
ReSound OMNIA
(rechargeable
battery)
ReSound OMNIA
(disposable
battery)
Jabra Evolve2
65 Flex
SteelSeries
Arctis Nova 7
ReSound
OMNIA (r)
ReSound
OMNIA (d)
Jabra
Evolve2
65 Flex
SteelSeries
Arctis
Nova 7
3
1
kg CO2eq
4
1
2
3
5
6
7
8
kg CO2
eq
10.94
8.93
kg CO2eq
12.62
kg CO2eq
7
.86
1
2
3
4
5
6
7
8 9
3
4
5
7
9
4
5
6
8
9
9
1
7
2
6
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Content
Product design
4
5
6
Sourcing
Manufacturing
Distribution
Sales
Product use
End-of-life
1
2
3
Circularity initiatives across our value chain
Circular design
Design is the key enabler for circularity. Design for repair and
disassembly is a key element in our sustainability requirements
(see pages 29-30).
1
Circular materials
We are rapidly increasing our use of non-virgin materials in
new products, launching nine products in 2023 containing re-
cycled plastic (see page 30).
2
Low-waste manufacturing
Among other initiatives to reduce manufacturing waste, in
2023, we reduced the use of IPA, which is a hazardous form of
alcohol used in the washing process for production.
3
Recycling
To comply with product recycling legislation, we finance recy-
cling infrastructure according to the EU WEEE directive in EU
markets. In the U.S. states where our products are covered by
Extended Producer Responsibility legislation, we established a
partnership with ERI in 2023 to enable users to send their
products in for recycling.
4
Repair, takeback, and refurbishment
GN offers return and repair for selected products as well as a
‘screen and clean’ scheme, where unsold or returned products
are tested and repacked for resell. For out-of-warranty prod-
ucts, we will in 2024 launch additional repair and takeback of-
ferings in relevant markets for our video and audio products.
5
Device-as-a-service
In 2023, we launched a global device-as-a-service offering for
our enterprise customers, with a built-in free-of-charge take-
back option, enabling us to give products a second life at the
end of the contract.
6
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Safeguarding human rights 34
People and culture drive performance 35
Supporting communities 37
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GN expanded the very successful ReSound
OMNIA portfolio to offer a full range of pop-
ular styles, including BTE and custom-made
styles as well as GN’s smallest rechargeable
hearing aid yet, the miniRIE, allowing more
people than ever to benefit from technology
which addresses the No.1 hearing aid chal-
lenge: hearing speech in noise.
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Occupational health and safety: 12 findings
Overuse of dispatched workers: 4 findings
Excessive overtime: 13 findings
Inadequate parental leave: 6
findings
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Age distribution of employees
7,165
employees globally
(-10% compared
to 2022)
49%
Women in
new hires
46%
Women in
workforce
36%
Women
managers
22%
Women in
senior
management
≤ 22 years 22 – 37 years 38 - 53 years 54+ years
2% 42% 42
%
14%
50+
nationalities in
headquarter alone
1,369
new colleagues on-
boarded during 2023
40+
countries where GN
has own staff located
Participation rate in GN’s latest employee
engagement survey
88%
Engagement score on a 10-scale score, which is
0.5 points above industry benchmark
8.2
Employee Net Promoter Score, demonstrating
high employee engagement, which is a corner -
stone in GN’s vision to be a great place to work
51
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In 2023
, 68% of our “Transform”
talents are female leaders…
and
12 different nationalities
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Shareholder information 39
Risk management 41
Business ethics governance 45
Data privacy, security, and ethics 46
Corporate governance 47
Board of Directors 50
Executive Leadership Team 52
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G
overnance
Jabra’s most advanced earbuds ever
mark the brand’s leadership in pre-
mium true wireless. The Jabra Elite
10 are the new top tier earbuds opti-
mized for Dolby Atmos with Dolby
Head Tracking, engineered for all-day
comfort and crystal clear calls.
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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 25 billion at the end of 2023. The price of the GN share was DKK
171.8 on December 31, 2023, which is equivalent to an increase of 8%
compared to the end of 2022.
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 60,000 registered shareholders
where around 35% of shareholders are located in Denmark, around
45% in rest of Europe, around 20% in North America, and less than 1%
in Rest of World.
The 10 largest registered shareholders held in total around 35% of the
GN share capital at the end of 2023 (including GN’s holding of treasury
shares). By the end of 2023, one shareholder, William Demant Invest
A/S, has reported an ownership interest in excess of 10% of GN’s share
capital.
Share capital and voting rights
GN’s share capital of DKK 603,650,860 consists of 150,912,715 shares,
each carrying four votes. GN has one share class with no restrictions on
ownership or voting rights.
Treasury shares
On December 31, 2023, GN held 5.3 million treasury shares corre-
sponding to 3.5% of the share capital, and the value of the treasury
shares was DKK 911 million.
Until the Annual General Meeting on March 13, 2024, 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,
cash requirements to support the ongoing operations, strategic oppor-
tunities, and the company’s capital structure. Given the current adj. lev-
erage of 4.5x, GN prioritizes to reduce the leverage until it is back at
the long-term target of 2.0x. As a result. GN will not pay out dividend in
respect of the financial year 2023 and share buyback programs have
been paused for the time being.
Shareholder information
Geographical split of shareholders (% of share capital)
Major indices including GN Store Nord
Index
Focus
OMX C25
Denmark
OMX C20
Denmark
STOXX Europe 600
Europe
OMX Nordic Large Cap
Nordics
STXE Health Care
Europe
Denmark
35%
Europe
45%
North America
20%
Rest of the World
<1%
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As announced previously, GN’s current capital structure policy remains
a long-term target of 1-2x NIBD/EBITDA.
Incentive programs
By the end of 2023, the total number of outstanding
options in GN Store Nord were 4,044,858 (2.7%) 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 company’s in-
terim 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 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: 3
0-12-2022 = 100
Financial calendar for 2024
Event
Date
Annual General Meeting
March 13, 2024
Interim Report Q1 2024
May 2, 2024
Capital Markets Day
May 7
, 2024
Interim Report Q2 2024
August 22, 2024
Interim Report Q3 2024
November 7, 2024
Read company
announcements on www.gn.com.
Additional relevant information
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
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Content
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.
Risk management
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Q1
Q2
Q4
Q3
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Board of Directors’ risk review.
Board Top Risk Review
Prioritized areas receive automated
risk and maturity questionnaires.
The responses are automatically
calculated into risk likelihood and
risk impact. Hereafter, the results
are evaluated and challenged by the
Corporate Risk Governanceteam
and consolidated in meetings with
managers from prioritized areas.
Initial risk assessment process
Meeting with Executive Leadership
Team who collectively challenges,
validates, and prioritizes risks and
risk handling activities.
Audit Committee reviews
Organization Risk Governance
process.
Board Audit Committee
Risk Governance Review
Executive impact review
Risk identification and mitigation process
Financial review
Meeting with Finance to assess
and validate impact of potential
risks, measured as % of EBITA.
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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. Even though inflationary pressures have
decreased during the second half of 2023, uncertainties related to the economy continues,
which may result in declining demand for GN’s products.
GN’s supply chains, including component sourcing, remain heavily dependent on availability
of components and manufacturing capacity in China and Asia. Escalating geopolitical
instability and deteriorating trade relations may impact key suppliers and GN’s operations.
And this in turn may impact GN’s ability to continue to supply key markets.
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, our supply chains begin with
mining activities and require 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 ad-
versely 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. 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, and ultimately jeopard-
ize GN’s ability to remain a relevant player in key markets.
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. Long-term, GN will ensure diversified supply chains and mitigate risk of market
access restrictions.
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 reaching net-zero by 2050, at the latest.
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 64.
Mitigating actions
GN continuously updates product roadmaps to remain competitive in all current and
future categories and assesses new categories where GN could have a meaningful im-
pact. GN’s research and development teams remain at the forefront of new technolo-
gies to be harnessed in future product roadmaps.
To gain the required competencies, GN sources engineering and software develop-
ment talent globally.
GN spends significant effort in protecting its intellectual property and ensuring free-
dom to operate in its development 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.
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.
Compliance
Characteristics
Authorities and customers require compliance with legislative and regulatory regimes and
standards. Failure to explicitly fulfil such requirements could compromise GN’s license to
operate and risk irreversible loss of customer confidence, effectively giving up large mar-
kets to competitors.
IT and data
Characteristics
IT and data are foundational business enablers for GN across all value chain components.
All platforms are required to be available and provide the functionalities needed. Addition-
ally, 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.
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.
Direct-to-consumer sales of hearing aids remain a small business for GN, but long-term
focus on this segment remains a priority as GN believes this to be a future growth op-
portunity to compete in the newly opened U.S. over-the-counter market.
Mitigating actions
GN is dedicated to responsible and ethical business practices and does its utmost to
safeguard its businesses and protect the safety and privacy of customers.
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.
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-commerce
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.
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Transformation to a one-company setup
Characteristics
GN’s decision to bring its previously independently managed business entities together in a
one-company setup is critical to GN’s efforts to reorganize the company to operate in sim-
pler, faster, and more impactful manner, ensuring efficient and optimal use of resources in
an increasingly competitive environment. The initial assessment is that the transformation
will allow GN to reap significant benefits. The transformation will require strong leadership,
change management, and commitment throughout the organization. The transformation is
progressing well, but GN still has risks related to realizing all the planned and expected syn-
ergies from a full and successful integration.
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 decreased during 2023 to DKK 10,567 million (2022: DKK
14,561 million). As a result, the net interest-bearing debt to EBITDA ratio ended at 6.0x
(2022: 7.1x) driven by the execution of the group’s capital plan and strong cash flow gener-
ation.
GN’s loans and bonds are primarily long-term with maturities until 2036 with mostly fixed
interest rates.
Annual EBITA impact from a 5% increase in currency before hedging
(DKK million)
Currency
GN Store Nord
USD
-50
GBP
35
JPY
15
AUD
12
Mitigating actions
GN has set up an Integration Management Office with experienced internal resources
and supported by external advisory consultants to assist GN’s Executive Leadership
Team in the transformation. This includes significant efforts to ensure genuine buy-in
from the organization, design of the future-state organization, and assigned ownership
of processes and tasks. The Integration Management Office ensures close control and
follow-up on deliverables and deadlines.
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 27, 2023, GN has entered into a three-year EUR 800 million term loan
with its commercial banking group to refinance its short-term funding requirements in-
cluding EUR 220 million EMTN bond, EUR 330 million Convertible Bond, and EUR 600
million EMTN Bond.
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
442 million, with a utilization of EUR 214 million on December 31, 2023.
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 32 million on December 31, 2023.
In total, GN has outstanding senior unsecured bonds and Private Placements of around
EUR 695 million in aggregate under the EMTN program by December 31, 2023, with ma-
turities 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 520 million, which was undrawn as of December 31, 2023.
Please refer to note 4.2 in the financial statements for further information about finan-
cial risks.
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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 GN’s high standards.
To ensure and document that employees are familiar with the GN Eth-
ics Guide and other key policies, employees are annually required to
sign off on complying with GN policies within specific areas. Likewise,
employees annually complete GN’s e-learning courses within key topics
such as anti-corruption, information security, data security, and compe-
tition compliance. Every year, this is supplemented with tailored com-
pliance training for selected business areas and employees, live train-
ings conducted based on risk assessment and on request.
Anti-corruption compliance reviews
As part of GN’s anti-corruption compliance program, on-site reviews of
selected GN business areas are conducted to identify and assess
relevant risk areas, to review whether adequate controls are in place to
ensure compliance, and to assist with corrective actions where re-
quired. The selection of business areas for compliance reviews is based
on an annual country and market risk assessment based on a set of pre-
defined risk indicators. In 2023, four compliance reviews were con-
ducted in tight cooperation between various functions within the or-
ganization.
Third-party due diligence
In 2023, GN continued the granular roll-out of the third-party due dili-
gence screening program for assessing and managing corruption, sanc-
tions, and supply chain risks associated with third-party business part-
ners. This involves questionnaires and screenings focusing on the po-
tential reputational and legal risks and a thorough check of beneficial
owners to ensure GN is at no risk of violating international sanctions re-
gimes. GN is focused on ensuring that no partners violate international
sanctions and that all partners understand and comply with GN’s posi-
tions in the area.
Whistleblower system
GN’s whistleblower hotline, the GN Alertline, is independently man-
aged by a third party. All investigations are managed internally by
trusted GN employees. The hotline can be used by employees as well
as external parties to report concerns and experienced or perceived
misconduct. This is an important tool for ensuring that alleged illegal
or unethical conduct is reported and immediately addressed. All com-
plaints are treated with the required confidentiality, and GN is commit-
ted to deal with any employee who takes action and/or participates in
an investigation in a fair and respectful manner. This is emphasized in
GN’s non-retaliation policy. GN ensures that our policies and systems
are fully compliant with all local and international regulatory require-
ments on whistleblower systems. In 2023, GN updated the setup to
comply with the final implementation if the EU Whistleblower
directive.
Business ethics governance
Content
Additional relevant information
GN’s Codes of Conduct and policies:
www.gn.com/responsibilitydocuments
Reporting and additional details on GN’s whistleblower 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
29
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
12
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
A comprehensive mandatory Anti -Harassment
Awareness Training was delivered to all GN employees
in Q4 2023
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Data privacy
GN is committed to protecting the personal data entrusted to us by
customers, partners, users, and employees.
In 2023, 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 applying internal data privacy review to ensure
continual compliance and awareness.
In 2024, 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 cyber security in our infra-
structure, products and services, and adherence to legislation across
the entire organization. Information security management systems are
in place based on ISO 27000. In addition, we have Information Security
Policies in place with training materials, and all training is conducted
annually for all employees. The information security management sys-
tem is being reviewed and approved on an annual basis by the Board of
Directors and Executive Management.
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. Equally, security by design is pivotal in
our products lifecycles and services.
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.
Data privacy, security, and ethics
Content
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Additional relevant information
GN’s data privacy policy:
www.gn.com/privacy-policy
GN’s Data Ethics Policy:
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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 the General Meeting.
On September 4, 2023, GN announced that its Board of Directors had
decided to execute the next step of integration and transition into a
more streamlined one-company setup with one Group Chief Executive
Officer and one Group Chief Financial Officer, simplifying the Group's
governance structure. The changes to the Executive Management took
effect from October 1, 2023.
As a consequence thereof, as from January 2024, board members
elected by the Annual General Meeting of GN Store Nord will only
serve as board members of GN Store Nord, and not also as board
members of each of GN Hearing and GN Audio. Going forward, the
Board of Directors in GN Hearing and GN Audio will consist of GN’s
senior management in line with other operational subsidiaries in the
GN Group.
Board of Directors
GN's Board currently comprises seven members, of which four have
been elected by the shareholders at the Annual General Meeting, and
three by the employees in accordance with the Danish Companies Act.
In accordance with GN’s Articles of Association, the Board will be re-
plenished at the next Annual General Meeting so that at least five
members are elected by the shareholders.
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.
The board members possess global expertise within med-tech &
healthcare, ESG, innovation, product development, IT, software, digital
transformation, online marketing, commercialization, technology &
professional services, finance, and change management. See pages 50-
51 for a description of the Directors’ competencies and experience.
The Board of Directors’ annual self-evaluation
In 2023, the Board of Directors performed its annual evaluation of the
Board with the assistance of an external advisor. This is consistent with
the recommendations of the Danish Committee on Corporate Govern-
ance that companies conduct an external, objective evaluation at least
every three years.
The Process
The evaluation was based on the input of eight board members, seven
executives, and two auditors. It encompassed comprehensive personal
interviews, tailored online questionnaires, a mapping of the board com-
position, board composition benchmarking, and analysis of time spent
during board meetings.
Additionally, various documents were reviewed, including agendas,
board material, and committee charters. Individual board members re-
ceived constructive feedback on their performance and contributions
as part of the evaluation.
Corporate governance
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GN’s framework
for corporate governance
General Meeting
Board of Directors
Board Committees
Executive Management
Executive Leadership Team
The board members of GN are elected at GN’s General Meeting.
The Board of Directors has established Audit, Remuneration, Nomi-
nation and Strategy Committees, and appoints the members of the
Executive Management. In addition, GN has established an Execu-
tive Leadership Team.
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The result of the general board evaluation, including practical recom-
mendations, was discussed at a board meeting in December 2023.
General conclusions
The board members are empowered to express their thoughts and
opinions; they are perceived to be well-prepared and highly committed.
The Board has diverse experiences, personal styles, cultural back-
grounds, and a good gender balance. The Chair is seen as an inclusive
and seasoned professional, well trusted by the management and with a
sincere ambition to do what is right.
As part of the general evaluation conclusions, the external advisor pro-
vided certain recommendations, which the Board intends to take into
consideration going forward.
As the Board has had a year of maneuvering turbulent macroeconomic
and geopolitical times, introducing a new company structure, and re-
cruiting a new CEO and CFO, this has required significant time and ef-
fort spent on tactical topics.
In the future, the Board should and will allocate relatively more time to
long-term strategic questions and continue building an encouraging
and valuable relationship with the (new) management team.
The Chair of the Board will account for the process and the general
conclusions in his statement at the Annual General Meeting.
Additional information on the evaluation process and the
general conclusions of the 2023 evaluation may be found on
the company’s website: www.gn.com/boardevaluation2023
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’ work in 2023 are summa-
rized below:
Audit Committee
The Audit Committee continued to provide oversight of the financial
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,
risk management processes covering key risks, and monitoring of ESG
targets and reporting thereon. Further, the committee considered the
need for an internal audit function, which was not deemed necessary at
this time.
Remuneration Committee
The Remuneration Committee supervised and reviewed the re-
muneration policy, salary, bonus, long-term incentive process and
results, and assisted with the preparation of the Remuneration Report.
The Committee also considered grants under GN’s long term incentive
program, talent development and succession planning process and
results.
Finally, the Committee reviewed remuneration, incentive plans, and
severance packages for the Executive Management and the new
Executive Leadership Team.
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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-
omm
endations 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 2023 Corporate Governance Re-
port: www.gn.com/corporategovernance2023
Risk management related to financial reporting is de-
scribed in this report on page 44. 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 Remuneration Policy is available at
www.gn.com/remunerationpolicy
GN’s Remuneration Report for 2023 is available at:
www.gn.com/remuneration2023
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Nomination Committee
The Nomination Committee focused on ensuring that Board and Exec-
utive Management composition and competencies continue to support
GN sufficiently and in line with GN’s strategy and purpose.
This includes competencies in relation to GN’s transformation to a one-
company structure, extensive succession and recruitment processes to
adequately plan and prepare talent pipeline for Board and Executive
Management positions, while ensuring good culture and sound values
as an integral part of all nominations, appointments, and succession
planning.
The Committee also monitored Board performance and competencies
and conducted a thorough Board assessment with external assistance.
Finally, the current structure and diversity of the Board have been re-
viewed and found to meet relevant governance requirements.
Strategy Committee
The Strategy Committee oversaw a series of existing projects as well as
new projects to explore technological innovations within the broader
technology space. Further, the committee explored the further devel-
opment of collaboration and synergies between GN’s business entities
and support functions.
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.
GN’s Remuneration Policy is available at www.gn.com/remu-
nerationpolicy, and GN’s Remuneration Report for 2023 is
available at: www.gn.com/remuneration2023.
Meeting attendance 2023
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
Jukka Pekka Pertola
(C) 16/16
10/10
14/14
(C) 4/4
(C) 22/22
(C) 6/6
(C) 6/6
Klaus Holse
(DC) 9/16*
3/4**
10/10**
3/4**
(DC) 12/22*
(DC) 3/6*
(DC) 3/6*
Hélène Barnekow
4/4
(C) 10/10
(C) 9/14**
(B) 17/22
(B) 6/6
(B) 6/6
Anette Weber
(C) 4/4
9/10**
(B) 22/22
(B) 6/6
(B) 6/6
Leo Larsen
3/4**
(B) 21/22
Cathrin Inge Hansen
(B) 21/22
Claus Holmbeck-Madsen
(B) 21/22
(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.
* Was not a member of the Board for the full year.
** Was not a member of the Committee for the full year.
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Jukka Pekka Pertola
(Chair)
M.Sc.
(Electrical Engineering.)
Professional board member. For-
mer CEO of Siemens A/S
Chair since 2023
Klaus Holse
(Deputy Chair)
M.Sc.
(Computer Science.) Pro-
fessional board member. Former
CEO of SimCorp A/S
Deputy
Chair since 2023
Hélène Barnekow
M.Sc.
(International Business).
Partner, Gaia Leadership. Former
CEO, Microsoft Sweden
Anette Weber
Lic.oec HSG, Finance &
Accounting. Group CFO of
BUCHERER
AG
Chair of the Boards of Tryg A/S*, Tryg Forsikring A/S, Cowi Holding
A/S, and
Siemens Gamesa Renewable Energy A/S.
Member of the Board of Asetek
* A/S.
Committee memberships: Strategy (Chair), Nomination and Remu-
neration (Member); in Tryg A/S: Remuneration (Chair), Nomination
(Chair), and IT
-Data; in COWI Holding A/S: Nomination and Remu-
neration Committee (Chair); in Asetek A/S: Remuneration Commit-
tee (Ch
air).
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-
sourc
ing solutions, technology services, and professional services.
Chair of the Boards of Danish Industry, Macrobond Financial AB,
Vizrt Group AS, EG A/S, and SuperOffice AS. Member of the Boards
of Terma A/S and Zenegy ApS. Committee memberships: Audit
(Member), Nomination (Member), and Strategy (Member).
Broad international background with more than 20 years of man-
agement experience in the IT and software industry and brings to
the company’s Board of Directors a vast experience and insight
into the green agenda and digitalization.
Chair of the Board of Mindler AB. Member of the Boards of Voyado
AB and Handelsbanken AB*.
Committee memberships: Nomina-
tion (Chair), Remuneration (Chair)
, and Audit (Member).
Long international experience, mainly in the technology sector and
in different C
-level positions. Experience ranging from product de-
velopment to sales
and marketing. Managed significant digital
transformations across companies and geographies with focus on
inclusive transformation leadership.
Member of the Supervisory Board of New Work SE*
Committee memberships: Audit (Chair) and Nomination (Mem-
ber), in New Work SE; Audit (
Chair).
Extensive global leadership expertise and knowledge from various
leadership positions in the global healthcare, IT, and luxury retail
industry. In
-depth knowledge of finance, digitalization, develop-
ment, general and change management, platform economies, and
M&A.
Board member since
2020
Board member since
2023
Board member since
2013
Board member since
2020
Term
2023/2024
Term
2023/2024
Term
2023/2024
Term
2023/2024
Considered independent
Yes
Considered independent
Yes
Considered independent
Yes
Considered independent
Yes
Nationality
Finnish
Nationality
Danish
Nationality
Swedish
Nationality
German
Year of birth
1960
Year of birth
1961
Year of birth
1964
Year of birth
1971
* Company listed on a regulated market
Board of Directors
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Leo Larsen
(
Employee-elected member)
M.Sc. (Electrical Engineering)
and a diploma in business admin-
istration and international trade.
Senior Director, Audio Research
Cathrin Inge Hansen
(
Employee-elected member)
B.Sc. (International Marketing),
Graduate Diploma (Business Ad-
ministration & International
Trade), Senior Regulatory Pro-
cess Compliance Specialist
Claus Holmbeck-Madsen
(Employee
-elected member)
Academy Foundation Degree (Busi-
ness). Global Head of Knowledge &
Learning,
Global Customer Experi-
ence
Board & Committee positions
Board member since
Term
Nationality
Year of birth
Member of the Board of the GN
Store Nord Foundation
and of
the Strategy Committee
2007
2022/2026
Danish
1959
Board & Committee positions
Board member since
Term
Nationality
Year of birth
-
2022
2022/2026
Danish
1969
Board & Committee positions
Board member since
Term
Nationality
Year of birth
Member of the Board of the GN
Store Nord Foundation
2022
2022/2026
Danish
1968
Board of Directors
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On September 4, 2023, GN announced that its Board of Directors had
decided to execute the transformation to a more streamlined one-
company setup with one Group Chief Executive Officer and one Group
Chief Financial Officer, simplifying the Group's governance structure.
The changes to the Executive Management and the establishment of
the new Executive Leadership Team, announced on September 28,
2023, took effect from October 1, 2023.
Read more about our Executive Leadership Team and their back-
grounds at https://www.gn.com/About/Management
Peter Karlstromer
Chief Executive Officer (CEO)
(CEO GN Audio as of January 2, 2023, and CEO GN Store
Nord and GN Hearing as of October 1, 2023)
Member since
2023
Year of birth
1971
Member of Executive Management
Peter brings a strong international senior leadership track record, working with multiple
aspects of technology around the world.
Peter holds a M.Sc. Management, Business Administration and
Economics, and a M.Sc.
Electrical and Electronics Engineering from Lund University. Prior to joining GN Peter held
leadership positions with McKinsey & Company, Cisco Systems, and Securitas Group.
Søren Jelert
Chief Financial Officer (CFO)
(as of
June 1, 2023)
Member since
2023
Year of birth
1972
Member of Executive Management
Søren is an internationally experienced finance professional, who contributes with
strong financial and business leadership, building strong teams and solid
relationships
with investors.
Søren graduated with a B
.Sc., M.Sc. Management Accounting from Copenhagen Busi-
ness School. His career spans operational and finance leadership positions with Maersk
Oil & Gas, Novo Nordisk, NNE Pharmaplan, and prior to joining GN as CFO of ALK
-
Abello.
Executive Leadership Team
Ann Fogelgren
Chief Information Officer (CIO)
Joined GN in 2020
Christoph Schmid
Chief R&D Officer
Joined GN in 2021
Pierre Berkmann
Chief People Officer
Joined GN in 2016
Stefan Bergfors
Chief Operations Officer (COO)
Joined GN in 2017
Calum MacDougall
President Enterprise division
(interim)
Joined GN in 2015
Ehtisham Rabbani
President Gaming & Consumer
division
Joined GN in 2022
Scott Davis
President Hearing division
Joined GN in 2019
Trine Finnemann
Chief Strategy & Transformation
Officer
Joined GN in 2019
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ESG accounting processes 54
ESG data – climate related 55
ESG data – other 57
Stakeholder engagement 59
Policy overview and governance 60
EU Taxonomy Regulation disclosure 61
TCFD index 64
Consolidated
ESG
data
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Content
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Jabra Speak2 - the next generation of
Jabra’s successful professional speak-
erphones features advanced full du-
plex audio, creating natural two-way
conversation, as if everyone speaking
was there in person.
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This report covers the environmental, social, and governance (ESG) is-
sues that are deemed relevant for GN and its stakeholders. Key issues
are identified through ongoing stakeholder engagement and our dou-
ble materiality assessment (see page 25), informed by data-driven
analysis and addressed by programs or action plans with clear and
measurable targets. We use ESG data to support our business and to
disclose relevant and transparent information to our stakeholders. The
accounting policies have been applied consistently for all the years pre-
sented. Any changes to historical data are only made if considered ma-
terial.
Reporting period
All reported data covers the financial year: January 1 to
December 31, 2023.
Baseline
The baseline year for our science-based climate targets is 2021.
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.
Significant changes to reporting boundary
No material changes were made to the reporting boundary.
Data quality and consolidation
We have processes at market, regional, and global levels governing the
collection, review, and validation of ESG data included in this report.
While we make every effort to capture all information as accurately as
possible, it is neither feasible nor practical to measure all data with ab-
solute certainty. Where we have estimated or exercised judgement,
this is highlighted in the accounting policies and notes.
Environmental data is collected and reported for sites where we have
operational control. The number of sites in scope for data collection in-
creased in 2023, as the reporting threshold of 50 employees was re-
moved. Social data related to our own workforce is collected and re-
ported through our global HR system for all GN employees globally.
All data reported follows these principles unless otherwise stated.
Restatements
We may restate historical data due to structural changes, including
from acquisitions or divestments; improvements in data accuracy and
calculation methodologies; and changes to accounting policies.
We recalculate comparatives if any such changes impact a given metric
by more than 5%. We may also recalculate for changes less than 5%,
for example to reflect changes in our business and operating model.
We recalculate our baseline GHG emissions in accordance with this pol-
icy, which also complies with the GHG Protocol.
Emissions, waste and women in senior management in 2021 and 2022
hav
e been restated to reflect changes to emission factors, improved in-
put data and calculation methodologies, as well as changes to ac-
counting policies.
ESG accounting processes
Content
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Other relevant documents
This report is in accordance with the GRI Standards. See
www.gn.com/About/Corporate-sustainability for a full GRI con-
tent index.
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Scopes 1 and 2
Combined, scope 1 and (market-based) scope 2 emissions have de-
creased by 47% from the 2021 baseline and 34% from 2022, which
marks a significant step towards our science-based reduction target of
80% by 2030.
Stationary emissions have increased due to a new site with gas con-
sumption in 2023 and a small increase in natural gas consumption at
existing sites. Mobile emissions have increased, due to better data
availability in relation to fuel consumption.
Location-based scope 2 emissions have increased from 2022, despite a
de-crease in electricity and district heat consumption at sites. The
change is due to increased emissions from electric and plug-in hybrid
cars.
Market-based scope 2 emissions have significantly decreased since
2021 be-cause of a rapidly growing share of renewable power.
Scope 3
Total scope 3 emissions have decreased by 20% compared with the
2021 baseline and 24% from 2022. Emissions intensity per unit revenue
across all scopes has also decreased by 31% from 2021. The largest re-
ductions are in category 1 (products and indirect procurement), caused
by decreased direct procurement in the Enterprise, Gaming & Con-
sumer divisions linked to high inventory at the start of 2023, which out-
weighed increased direct procurement in the Hearing division to meet
growing market demands, and category 4 (transportation and distribu-
tion), because of a greater share of ocean and rail freight (vs. air).
New data have significantly improved the data quality and assump-
tions be-hind the scope 3 accounting. The most material changes have
occurred in categories 1 and 11 (emissions from products and product
use), mainly be-cause of increased LCA coverage of the GN product
portfolio. The new LCA data has also improved modelling accuracy in
category 12 (product disposal).
See page 27 for details of our decarbonization initiatives in 2023.
ESG data – climate related
Dimension
Units
Method
Emission Factors
2021
2022
2023
GHG emissions in scope 1
Stationary emission sources
tons CO2e
Fuel-based
DEFRA
444
402*
414*
Mobile emission sources
tons CO2e
Fuel and distance-based
DEFRA
1,888
1,751*
1,942*
Fugitive emission sources
tons CO2e
GHG Protocol
79
71*
58*
Total
tons CO2e
2,411
2,224*
2,414*
GHG emissions in scope 2
tons CO2e
Location-based
tons CO2e
IEA, EPA, DEFRA
6,353
6,431*
6,479*
Market-based
tons CO2e
Instruments, supplier
specific and residual mix
8,096
6,251*
3,150*
Total GHG emissions in scopes 1 and 2 (market-based)
tons CO2e
10,507
8,475*
5,564*
GHG emissions in scope 3
tons CO2e
Scope 3.1: Purchased goods and services
tons CO2e
Spend-based and LCAs
DEFRA
144,020
188,102
131,463
Scope 3.2: Capital goods
tons CO2e
Average spend-based
DEFRA
17,992
11,107
7,500
Scope 3.3: Fuel and energy-related activities
tons CO2e
Average-data method
DEFRA
1,920
1,831
2,069
Scope 3.4: Upstream transportation and distribution
tons CO2e
Distance-based and aver-
age-data
DEFRA, supplier specific
151,985
135,307
96,207
Scope 3.5: Waste generated in operations
tons CO2e
Waste-type-specific
DEFRA
112
120
136
Scope 3.6: Business travel
tons CO2e
Distance and spend-
based
DEFRA
2,650
11,185
13,100
Scope 3.7: Employee commuting
tons CO2e
Distance-based
DEFRA
7,122
9,572
10,059
Scope 3.8: Upstream leased assets
tons CO2e
Asset-specific
IEA, EPA, DEFRA
1,631
1,538
1,548
Scope 3.9: Downstream transportation and distribution
tons CO2e
Distance-based and aver-
age-data
DEFRA
16,972
16,174
16,974
Scope 3.11: Use of sold products
tons CO2e
Direct use-phase emis-
sions (electricity)
IEA, EPA, DEFRA
80,349
75,127
62,116
Scope 3.12: End-of-life treatment of sold products
tons CO2e
Waste-type-specific
DEFRA
794
885
1,153
Scope 3.15: Investments
tons CO2e
Average-data method
DEFRA
4,695
5,613
2,757
Total for reported categories
tons CO2e
430,242
456,562
345,081
Out of scope emissions
tons CO2e
DEFRA
66
78
123
* 2023 data in scope for limited assurance by PwC.
Scope 2 market-based emissions have been restated in 2022, based on work performed to improve reporting processes and data quality.
Emissions in scope 3 categories 1-6 and 8-12 have been restated due to improved data quality and updated emission factors.
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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.
Indirect emissions (scope 2) are from purchased 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 directly from the vendor by
GN is accounted for in scopes 1 and 2 (GN applies the operational control ap-
proach). Natural gas, electricity, and district heating consumption is reported
based on actual consum
ption from invoices, where possible.
Emissions from vehicles is calculated using the fuel
-based method. Fuel or
electricity consumption from vehicles is obtained from either invoices or sys-
tem
-generated reports from vendors, including leasing companies and fuel
card vendors. Where consumption
data is unavailable, emissions from vehi-
cles are accounted for using the distance
-based method.
Where actual data is not available for the reporting period, consumption is es-
timated based on the relevant historical period. Where consumption data is
not available, spend data is converted to consumption data using an average
price for the closest avail
able 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 UK electricit
y, heat, fuel, and
transport, US EPA factors for US electricity
, and IEA factors for electricity
consumed in other locations. GHG emission attributes (from Energy Attribute
Certificates), supplier
-specific and residual mix factors are used to calculate
market
-based scope 2 emissions. Otherwise, location-based factors are used.
Sc
ope 3 emissions
Our scope 3 GHG reporting is based
on the GHG Protocol guidance. Catego-
ries 10 (Processing of goods sold), 13 (Downstream leased assets) and 14
(Franchises) are not relevant to GN and are not reported.
Actual data
is used where available. Otherwise, industry averaged data or
data available from academic studies or similar businesses are used. Where
activity data quality is insufficient, 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
, calculated using catego-
rized spend data. This includes both direct and indirect procurement. To fur-
ther improve the accuracy of this category, in 2023 data derived from product
LCAs across all divisions 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 fleet.
Category 4
– Upstream transportation and distribution
Hearing: All transportation and distribution of goods, including freighting and
warehousing carried out by the supplier and paid for by GN. Data on the dis-
tance, weight and transport mode are collected from GN Hearing’s transpor-
tation providers. Enterprise
, Gaming & Consumer: Emissions from transporta-
tion and warehousing of GN products from global distribution centers to re-
tailers or
web shop and B2B customers (excluding transportation of
SteelSeries products to APAC customers, which are reported in scope 3 cate-
gory 9). Emissions are calculated using inhouse and vendor shipment data. All
freight emissions are calculated using DEFRA freight fac
tors. Warehouse
emissions are modelled using a floorspace estimation and industry averaged
emission factors from the US EPA, unle
ss included by the vendor.
Category 5
– Waste generated in operations
Collection and treatment emissions associated with waste generated by GN
offices and production sites. Emissions are calculated using data from waste
management providers serving four of our five major production sites and
headquarters. For remaining sites, estimates are made based on production
volumes (production sites) and employee numbers (office and retail sites).
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 uplifted 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’ commuting is based on an employee survey
conducted in 2021, scaled for country
-level changes in employee numbers.
Category 8
– Upstream leased assets
Energy use at sites not included in scopes 1 and 2. Emissions are calculated
with a market
-based approach using actual data obtained from building man-
agement providers and estimated data, where necessary. Since 2022, some
scope 1 and 2 emissions have been
recategorized into scope 3 category 8.
Category 9
– Downstream transportation and distribution
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.
Enterprise and
Gaming & Consumer: Estimated warehousing emissions not
paid for by GN and SteelSeries product freighting not directly paid for by GN.
Category 11
– Use of sold products
Emissions from the power consumption of all GN products, excluding Hearing
accessories, calculated using estimated average use cases and product life-
times 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 averaged product
s and packaging weights by grouped market 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
investment.
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Notes – Environmental
Energy, waste, and water consumption
Energy consumption includes electricity, fuel, and heating used at all
GN sites under operational control and in the GN car fleet. Energy con-
sumption is estimated based on similar sites in terms of size and geog-
raphy, 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 site in the U.S. was estimated based on the other produc-
tion sites in Denmark, China, Malaysia, and Spain, while smaller offices’
waste volumes were estimated based on similar sites in terms of size
and geography. Waste figures for 2020-2022 have been restated to
correct for a calculation error. Water consumption was calculated in
the same way as waste generation.
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 certifi-
cates purchased by GN or where GN has entered into power purchase
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 2023 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 2023 only.
LCAs completed
This includes all completed product LCAs that have been externally
verified by Bureau Veritas. LCAs have been completed for Jabra,
SteelSeries, and ReSound products.
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
2023
2025 tar-
get
Environmental
Energy consumption
MWh
28,636
29,459
30,270
Renewable energy share
%
3%
9%
30%
Total waste generated
metric tons
575
656
781
673
Water consumption
m3
71,594
73,975
73,073
74,948
TCO Certified products
# certified products
0
0
4
17
29
38
FSC certified packaging - share of total sold products
% sold products
0%
0%
4.9%
15%
20%
26%
FSC certified packaging - share of newly launched sold products
% sold products
0%
0%
40%
100%
51%
62%
100%
Product LCAs completed and externally verified
# LCAs
0
0
0
0
9
20
E-waste recycling financed
tons
2,788
3,671
4,210
4,777
4,302
3,921
Social
Number of people with hearing loss helped
# m people
9.0
9.1
9.4
9.8
10.5
>10
Supplier ESG audits
# supplier audits
39
49
39
40
31
61
Lost time incidents (LTI) at GN-operated manufacturing sites
# incidents
5
2
11
3
Lost time incidents frequency rate at GN-operated manufacturing sites
rate
0.44
Lost time incidents severity rate at GN-operated manufacturing sites
rate
0.74
Days lost due to injury at GN-operated manufacturing sites
# days
5
Employee turnover
% of total workforce
22.0%
20.8%
Conflict Minerals Reporting Templates received
%CMRTs received
98%
98%
97%
100%
100%
100%
100%
Governance
AGM-elected women on GN's Board
% women
50%
40%
57%
57%
66%
50%
>40%
Women in senior management*
% women
20%
20%
21%
22%
23%
22%
>25%
Whistleblower cases
Number of cases
10
15
14
29
37
29
* 2023 data in scope for limited assurance by PwC. 2021 and 2022 data for women in senior management has been recalculated ba
sed on the updated accounting
policy.
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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.
Lost time incidents (LTI)
An injury sustained by an employee that leads to loss of productive
work in the form of absenteeism or delays. In 2023, the definition was
expanded to include both manufacturing and warehousing sites. Alt-
hough occupational health and safety procedures apply across all GN’s
sites, the metric is limited to these sites as it is where LTIs are most
probable and pose the highest risk to employee wellbeing. For the LTI
frequency and severity rates, we divided the number of cases and the
total number of days lost respectively by the average number of total
hours worked in GN by the blue collar workforce, multiplied by 1 mil-
lion.
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, 2023.
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. Benchmarked against companies of similar size and geog-
raphy, the current number of cases seems representative of a well-
functioning whistleblower system.
Content
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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, 2023, where senior management is defined as em-
ployees occupying a position at GN level 17.1 or above (equivalent to a
Mercer IPE score 56 or above). The accounting policy has been updated to
more accurately and robustly define senior management positions based
on job levels, rather than seniority being based on membership of the
Global Leadership Group, as it was in previous years.
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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We are in continuous dialogue with our stakeholders to ensure we un-
derstand 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 2023, sustainability
became an even more prominent topic of engagement with customers,
including packaging, LCAs, certifications, decarbonization, and circular-
ity.
Employees
All employees engage biannually in professional development discus-
sions. All employees are encouraged to participate in the annual en-
gagement 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 2023, 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 to ensure we
comply with all relevant legislation. New legislation is emerging in the
area of product sustainability, including further chemical restrictions,
right to repair, and battery legislation. On a corporate level, aside from
CSRD (see page 25), we closely monitor legislation in the area of ESG
due diligence (CSDDD) and human rights-related laws across many dif-
ferent geographies.
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
Supplier Codes of Conduct and other relevant policies. We work in
partnership with our suppliers to support their compliance and to
jointly achieve sustainability goals (see page 32).
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
Content
Memberships, certifications, and
ratings
Rating/
certification
Memberships
201034
Affiliate
member
UN Global Compact
202234
Affiliate
member
Responsible Business
Alliance
Last
updated
Page
reference
202357Certified
Forest Stewardship
Council
2023CertifiedTCO Certified
202332BronzeEcoVadis
202329CertifiedISO
202354Aligned
Global Reporting
Initiative
2023AAMSCI ESG Ratings
2023
12.3
(low risk)
Sustainalytics ESG
Rating
2023BCDP Climate Change
2023CCDP Water
Certifications
ESG reporting and performance
TCO
certified GN
products
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Policy overview and governance
Content
Policy
What it covers
Policies guiding internal
processes
Sustainability | ESG Pol-
icy
GN’s general approach to sustainability across all ESG areas.
Diversity, Equity and In-
clusion Policies
GN’s initiatives and tools to drive greater diversity, equity, and inclusion across GN.
Quality Policies
GN'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
Supplier Code of Con-
duct
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).
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.
Sustainability governance
The Board of Directors
The Board approves the strategic direction and key
decisions in all sustainability areas.
Executive Leadership Team
The leaders of GN’s business divisions and functions of
scale together with the CEO and the CFO constitute the
Executive Leadership Team (E LT).
The ELT is responsible for including sustainability in
business decisions and for driving and tracking initiatives
at an operational level and as part of the company’s
strategy.
Each member of the ELT has sustainability objectives as
part of their annual incentives.
Group Sustainability
Group Sustainability, reporting to the CFO, holds overall
responsibility for supporting the business in driving the
sustainability agenda and external reporting.
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GN Store Nord
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Content
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
to the climate and environmental delegated acts.
Methodology and materiality
For the purpose of this disclosure, we executed a full screening of all
GN’s core and secondary economic activities against the eligible activi-
ties listed in the Taxonomy Compass. For eligible activities, we have as-
sessed the feasibility of obtaining the required data to prove substan-
tial contribution to the environmental objectives, only considering
parts of our activities for which we have detailed data available due to
their significant contribution to GN’s overall business model. As an ex-
ample, it is not feasible to apply extensive alignment criteria on a very
minor building renovation project that does not directly contribute to
GN’s core activities. This feasibility forms a threshold for reporting on
alignment.
Accounting policies for Turnover, OPEX, and CAPEX
The turnover KPI is defined as Turnover-eligible turnover divided by to-
tal turnover. The total turnover is GN’s total revenue. Our consolidated
net turnover can be reconciled to our consolidated financial statement,
see the income statement on page 82 ('Revenue').
The CAPEX KPI is defined as Taxonomy-eligible CAPEX divided by total
CAPEX. The total CAPEX consists of additions to tangible and intangi-
ble fixed assets before depreciation, amortization, and any re-measure-
ments. It includes acquisitions of property plant and equipment, intan-
gible assets, leases with usage rights, investment properties, additions
due to acquired business and excludes current and non-current assets,
goodwill.
The OPEX KPI is defined as Taxonomy-eligible OPEX divided by the to-
tal OPEX. The total OPEX consists of research and development, ex-
cluding overhead; building renovation; short-term lease agreements;
maintenance/upkeep and repairs: and any other direct expenditure re-
lated to the routine maintenance of tangible assets by the company or
by the third party to whom activities are outsourced that are necessary
to ensure the continued and effective functioning of such assets.
Eligibility and alignment with climate and environmental related
objectives
Core activities
One of GN’s core activities is eligible to the circular economy objective,
as this activity falls in category 1.2 of the EU . Taxonomy: Manufacture
of electrical and electronic equipment, which includes the manufactur-
ing of our hearing aids, and excludes outsourced manufacturing for all
other product categories. In accordance with the regulation, we will as-
sess alignment with the circular economy objective for this activity in
2024.
Secondary activities
In addition, our screening yielded that in 2023, GN was involved in
three secondary economic activities that match taxonomy-eligibility
criteria (see tables for details). As these are secondary activities, these
logically do not represent any turnover. Neither of these activities
meet the materiality threshold as described above to justify a detailed
alignment assessment.
EU Taxonomy Regulation disclosure
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Content
Turnover
Financial year 2023
2023
Substantial contribution criteria
DNSH criteria (‘Does Not Significantly Harm’)
Economic activities (1)
Code (2)
Turno-
ver (3)
Prop. of
turnover,
year 2023
(4)
Climate
change
mitiga-
tion (5)
Climate
change
adapta-
tion (6)
Water
(7)
Pollution
(8)
Circular
economy
(9)
Biodiver-
sity (10)
Climate
change
mitiga-
tion (11)
Climate
change
adaption
(12)
Water
(13)
Pollution
(14)
Circular
economy
(15)
Biodiver-
sity (16)
Minimum
safe-
guards
(17)
Prop. of Taxonomy
aligned (A.1) or eli-
gible (A.2) turno-
ver, year 2023 (18)
Category
enabling
activity
(19)
Category
transi-
tional ac-
tivity (20)
Text
(DKKm)
%
Y;N;N/EL
Y;N;N/EL
Y;N;N/EL
Y;N;N/EL
Y;N;N/EL
Y;N;N/EL
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
E
T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (Taxonomy-
aligned)
Turnover of environmentally sustainable activities (Taxonomy-
aligned) (A.1)
0
0%
0%
0%
0%
0%
0%
0%
Y
Y
Y
Y
Y
Y
Y
0%
Of which Enabling
0%
0%
0%
0%
0%
0%
0%
Y
Y
Y
Y
Y
Y
Y
0%
E
Of which Transitional
0%
0%
Y
Y
Y
Y
Y
Y
Y
0%
T
A.2. Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
EL;N/EL
EL;N/EL
EL;N/EL
EL;N/EL
EL;N/EL
EL;N/EL
Manufacture of electrical and electronic equipment
6,802
37.53%
N/EL
N/EL
N/EL
N/EL
EL
N/EL
0%
Turnover of Taxonomy-eligible but not environmentally sus-
tainable activities (not Taxonomy-aligned activities) (A.2)
6,802
37.53%
0%
0%
0%
0%
0%
0%
0%
A. Turnover of Taxonomy eligible activities (A1 + A2)
6,802
37.53%
0%
0%
0%
0%
0%
0%
0%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Turnover of Taxonomy-non-eligible activities
11,318
62,47%
Total
18,120
100%
CAPEX
Financial year 2023
2023
Substantial contribution criteria
DNSH criteria (‘Does Not Significantly Harm’)
Economic activities (1)
Code (2)
CAPEX
(3)
Prop. of
CAPEX,
year 2023
(4)
Climate
change
mitiga-
tion (5)
Climate
change
adapta-
tion (6)
Water
(7)
Pollution
(8)
Circular
economy
(9)
Biodiver-
sity (10)
Climate
change
mitiga-
tion (11)
Climate
change
adaption
(12)
Water
(13)
Pollution
(14)
Circular
economy
(15)
Biodiver-
sity (16)
Minimum
safe-
guards
(17)
Prop. of Taxonomy
aligned (A.1) or eli-
gible (A.2) turno-
ver, year 2023 (18)
Category
enabling
activity
(19)
Category
transi-
tional ac-
tivity (20)
Text
(DKKm)
%
Y;N;N/EL
Y;N;N/EL
Y;N;N/EL
Y;N;N/EL
Y;N;N/EL
Y;N;N/EL
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
E
T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (Taxonomy
-
aligned)
CAPEX
of environmentally sustainable activities (Taxonomy-
aligned) (A.1)
0
0%
0%
0%
0%
0%
0%
0%
Y Y Y Y Y Y Y
0%
Of which Enabling
0%
0%
0%
0%
0%
0%
0%
Y
Y
Y
Y
Y
Y
Y
0%
E
Of which Transitional
0%
0%
Y
Y
Y
Y
Y
Y
Y
0%
T
A.2. Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
EL;N/EL
EL;N/EL
EL;N/EL
EL;N/EL
EL;N/EL
EL;N/EL
Renovation of existing buildings
CCM 7.2 /
CCA 7.2
9
0.60%
EL
EL
N/EL
N/EL
N/EL
N/EL
3.15%
T
Installation, maintenance, and repair of charging stations for
electric vehicles
CCM 7.4 /
CCA 7.4
2
0.15%
EL
EL
N/EL
N/EL
N/EL
N/EL
0.08%
E
CAPEX
of Taxonomy-eligible but not environmentally sustain-
able activities (not Taxonomy-aligned activities) (A.2)
12
0.75%
0%
0%
0%
0%
0%
0%
3.24%
A. CAPEX of Taxonomy eligible activities (A1 + A2)
12
0.75%
0%
0%
0%
0%
0%
0%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
CAPEX of Taxonomy-non-eligible activities
1,537
99.25%
Total
1,548
100%
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OPEX
Financial year 2023
2023
Substantial contribution criteria
DNSH criteria (‘Does Not Significantly Harm’)
Economic activities (1)
Code (2)
OPEX
(3)
Prop. of
OPEX,
year 2023
(4)
Climate
change
mitiga-
tion (5)
Climate
change
adapta-
tion (6)
Water
(7)
Pollution
(8)
Circular
economy
(9)
Biodiver-
sity (10)
Climate
change
mitiga-
tion (11)
Climate
change
adaption
(12)
Water
(13)
Pollution
(14)
Circular
economy
(15)
Biodiver-
sity (16)
Minimum
safe-
guards
(17)
Prop. of Taxonomy
aligned (A.1) or eli-
gible (A.2) turno-
ver, year 2023 (18)
Category
enabling
activity
(19)
Category
transi-
tional ac-
tivity (20)
Text
(DKKm)
%
Y;N;N/EL
Y;N;N/EL
Y;N;N/EL
Y;N;N/EL
Y;N;N/EL
Y;N;N/EL
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
E
T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (Taxonomy-
aligned)
OPEX of environmentally sustainable activities (Taxonomy-
aligned) (A.1)
0
0%
0%
0%
0%
0%
0%
0%
Y
Y
Y
Y
Y
Y
Y
0%
Of which Enabling
0%
0%
0%
0%
0%
0%
0%
Y
Y
Y
Y
Y
Y
Y
0%
E
Of which Transitional
0%
0%
Y
Y
Y
Y
Y
Y
Y
0%
T
A.2. Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
EL;N/EL
EL;N/EL
EL;N/EL
EL;N/EL
EL;N/EL
EL;N/EL
Renovation of existing buildings
CCM 7.2 /
CCA 7.2
3
0.09%
EL
EL
N/EL
N/EL
N/EL
N/EL
0.02%
T
Installation, maintenance, and repair of charging stations for
electric vehicles
CCM 7.4 /
CCA 7.4
0
0.00%
EL
EL
N/EL
N/EL
N/EL
N/EL
0%
Manufacture of electrical and electronic equipment
CE 1.2
1,306
36.82%
N/EL
N/EL
N/EL
N/EL
EL
N/EL
0%
Repair, refurbishment, and remanufacturing
CE 5.1
128
3.61
N/EL
N/EL
N/EL
N/EL
EL
N/EL
0%
OPEX of Taxonomy-eligible but not environmentally sustaina-
ble activities (not Taxonomy-aligned activities) (A.2)
1,437
40.53%
0%
0%
0%
0%
0%
0%
0.02%
A. OPEX of Taxonomy eligible activities (A1 + A2)
1,437
40.53%
0%
0%
0%
0%
0%
0%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
OPEX of Taxonomy-non-eligible activities
2,109
59.47%
Total
3,546
100%
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Content
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 60
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 42. We anticipate that increasing investments in low-carbon technology, including batteries, and increasing availability of circular infrastruc-
ture and services will provide opportunities to mee
t 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 GN’s low
-carbon transition have increased over the past year, e.g. enabling sourcing of materials with lower carbon footprints, supply chain engagement to
collect data via EcoVadis, and implementing energy efficiency and renewable energy measures at key production sites.
Environmental perfor-
mance
- pages 27-32
Risk management
Disclose how the com-
pany identifies, assesses,
and manages climate
-re-
lated risks
Climate-related risks and opportunities are 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
42
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
-
Renewable energy share (as % of total energy consumption)
Performance on these metrics and other material ES
G KPIs are disclosed in this report.
Targets
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 year. GN
also commits to re
duce absolute scope 3 GHG emissions 25% within the same timeframe. These targets were validated by SBTi in December 2022. GN will reach net-zero emissions, in line with the SBTi
Net
-Zero Standard, by 2050 at the latest.
GN also has a short
-term target to reduce emissions from business travel per employee by 50% by 2025 from a 2019 baseline.
GN will draw up a transition plan within the next two years, outlining how we will reach our science-based targets, and work towards being net-zero before 2050.
ESG data - climate-re-
lated
- pages 55-56
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Content
GN Hearing
Revenue
GN Hearing’s revenue in Q4 2023 was DKK 1,808 million compared to
DKK 1,807 million in Q4 2022, driven by an organic revenue growth of
7%. Revenue growth was 0% including around -3% impact from the de-
velopment in foreign exchange rates and around -4% impact from
M&A.
In North America, GN Hearing delivered continued strong performance
in Q4 2023 in a very healthy hearing aid market. The initial launch of
ReSound Nexia as well as the continued strong performance of Re-
Sound OMNIA, drove an organic revenue growth of 24% in North
America. In Europe, GN Hearing delivered an organic revenue growth
of -3% in a soft hearing aid market on top of a larger than normal reve-
nue in Q4 2022 from GN's strategic partner Cochlear. In Rest of World,
organic revenue growth was -16% driven by strong growth in Australia
and China on top of a larger than normal revenue in Q4 2022 from
GN's strategic partner Cochlear.
Earnings and other financial highlights
GN Hearing’s adj. gross profit ended at DKK 1,099 million in Q4 2023
(compared to DKK 1,205 million in Q4 2022. The development reflects
an annualization of increasing input costs as well as the disposal of re-
tail activities including BelAudição.
GN Hearing’s adj. EBITA was DKK 282 million, with the Core business
delivering adj. EBITA of DKK 311 million corresponding to an adj.
EBITA margin of 18.0%. The Emerging business, primarily
JabraEnhance.com, delivered an EBITA of DKK -29 million. Reported
EBITA amounted to DKK 143 million reflecting non-recurring items of
DKK -139 million in Q4 2023.
In Q4 2023, free cash flow excl. M&A reached DKK 155 million, com-
pared to DKK 64 million in Q4 2022.
GN Audio
Revenue
GN Audio’s revenue in Q4 2023 was DKK 3,261 million compared to
DKK 3,463 million in Q4 2022, due to -4% organic revenue growth.
Revenue growth was -6% including around -2% impact from the
development in foreign exchange rates.
The development was driven by -9% organic revenue growth in
Enterprise, and by -14% organic growth in Consumer. SteelSeries
delivered organic revenue growth of 17% while gaining market share in
a stabilized market. The growth was driven by the strong and updated
product line-up.
In North America, GN Audio delivered organic revenue growth of -4%,
while Europe saw organic revenue growth of -8%. Organic revenue
growth in the Rest of World region was 7% in Q4 2023.
Earnings and other financial highlights
GN Audio delivered a gross margin of 43.5% in Q4 2023 compared to
39.7% in Q4 2022, driven by easing freight costs on top of negative
business mix.
Q4 financial highlights
Financial overview Q4 2023
GN Hearing
GN Audio
DKK million – Q4 2023
Core
business
Emerging
business
GN
Hearing
Enterprise
Consumer
Steel-
Series
GN
Audio
Revenue
1,727
81
1,808
1,997
368
896
3,261
Organic growth
6%
28%
7%
-9%
-14%
17%
-4%
Adj. EBITA**
311
-29
282
432
Adj. EBITA margin**
18.0%
15.6%
13.2%
Group total*
GN Hearing
GN Audio
DKK million
Q4 2023
Q4 2022
Growth
Q4 2023
Q4 2022
Growth
Q4 2023
Q4 2022
Growth
Revenue
5,069
5,270
-4%
1,808
1,807
0%
3,261
3,463
-6%
Organic growth
0%
2%
7%
14%
-4%
-3%
Adj. Gross profit**
2,518
2,581
-2%
1,099
1,205
-9%
1,419
1,376
3%
Adj. Gross profit margin**
49.7%
49.0%
0.7%p
60.8%
66.7%
-5.9%p
43.5%
39.7%
3.8%p
Adj. EBITA**
644
744
-13%
282
472
-40%
432
344
29%
Adj. EBITA margin**
12.7%
14.1%
-1.4%p
15.6%
26.1%
-10.5%p
13.2%
9.6%
3.6%p
Adj. Earnings per share (EPS)***
2.86
3.92
-27%
Free cash flow excl. M&A
769
-217
986
155
64
91
659
-21
680
*
Including "Other"
**
Excluding non-recurring items (DKK -79 million in OPEX in GN Audio, DKK -60 million in COGS in GN Hearing, DKK -79 million in OPEX in GN Hearing and DKK -160 million in OPEX in
Other) in 2023. 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 -378 million in 2023 and DKK -188 million in 2022) and amortization of acquired intangible assets
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GN Audio’s adj. EBITA ended at DKK 432 million in Q4 2023, translat-
ing into an adj. EBITA margin of 13.2%, compared to 9.6% in Q4 2022
reflecting the gross margin impact and tightly managed OPEX. Re-
ported EBITA was DKK 353 million, reflecting DKK -79 million in non-
recurring items related to the initiatives to improvement margins in-
cluding One-GN initiatives.
In Q4 2023, free cash flow excl. M&A reached DKK 659 million, com-
pared to DKK -21 million in Q4 2022 driven by the improved profitabil-
ity and a decrease in working capital as a result of the inventory reduc-
tions.
GN Store Nord
GN Store Nord’s adj. EBITA was DKK 644 million compared to DKK 744
million in Q4 2022 (EBITA in Other amounted to DKK -70 million ex-
cluding non-recurring items), negatively impacted by the high compari-
son base in GN Hearing. This corresponds to an adj. EBITA margin of
12.7% in Q4 2023 compared to 14.1% in Q4 2022. Reported EBITA was
DKK 266 million, reflecting non-recurring items of DKK -378 million
due to costs related to unlocking synergies as part of the One-GN
transformation.
In Q4 2023, amortization of acquired intangible assets amounted to
DKK -90 million compared to DKK -116 million in Q4 2022. Financial
items were DKK -117 million in Q4 2023 compared to DKK -82 million
in Q4 2022, driven by run-rate effects from the higher net interest-
bearing debt.
In Q4 2023, free cash flow excl. M&A reached DKK 769 million, com-
pared to DKK -106 million in Q4 2022 driven by strong profitability and
a decrease in working capital as a result of the inventory reductions.
Development compared to 2022 (statutory results)
DKK million
Adjusted 2023
Non-recurring
adjustments
Reported 2023
Reported 2022
Revenue
18,120
-
18,120
18,687
Production costs
-9,082
-93
-9,175
-9,555
Gross profit
9,038
-93
8,945
9,132
Development costs
-1,343
-203
-1,546
-1,405
Selling and distribution costs
-4,296
-101
-4,397
-4,563
Management and administrative expenses
-1,613
-197
-1,810
-1,587
Other operating income and costs, net
8
-
8
-17
EBITA
1,794
-594
1,200
1,560
In 2023, the markets presented a mixed bag of tailwinds and head-
winds, but the company executed well and delivered strong results. GN
Store Nord’s revenue ended at DKK 18,120 million including organic
revenue growth of -1% compared to -3% in 2022 - in line with financial
guidance. The impact from the development in foreign exchange rates
was -2%. Gross margin of 49.4% in 2023 was slightly higher than the
48.9% reported in 2022, driven by DKK -252 million non-recurring
items in 2022 versus DKK -93 million in 2023. The 2022 non-recurring
items included a DKK -196 million non-cash PPA related to the
SteelSeries acquisition. The development in OPEX reflects the increase
of non-recurring items of DKK-147 million in 2023 compared to 2022.
These costs primarily relate to the One-GN integration, which was an-
nounced in Q3 2023. Excluding these non-recurring items, the develop-
ment in OPEX primarily reflects continued cost reduction measures im-
plemented throughout the year on top of inflationary impact and IT in-
vestments. The development in other profit & loss items and, free cash
flow and capital structures are consistent with those reported under
the “Financial review 2023” section of this report.
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Content
Q4
Q4
Full year
Full year
2023
2022
2023
2022
DKK million
(unaud.)
(unaud.)
(aud.)
(aud.)
GN Store Nord
Revenue
5,069
5,270
18,120
18,687
Revenue growth
-4%
29%
-3%
18%
Organic growth
0%
3%
-1%
-3%
Gross profit margin
48.5%
48.8%
49.4%
48.9%
EBITA*
266
556
1,200
1,560
EBITA margin*
5.2%
10.6%
6.6%
8.3%
Profit (loss) before tax
48
354
343
725
Effective tax rate
18.8%
21.5%
22.4%
21.4%
ROIC (EBITA*/Average invested capital)
5%
9%
5%
9%
Earnings per share, basic (EPS)
0.25
2.06
1.64
4.00
Earnings per share, fully diluted (EPS diluted)
0.25
2.05
1.64
3.99
Free cash flow excl. M&A
769
-105
1,092
-1,291
Cash conversion (Free cash flow excl. M&A/EBITA*)
289%
-19%
91%
-83%
Equity ratio
31.3%
22.2%
31.3%
22.2%
Net interest-bearing debt
10,567
14,561
10,567
14,561
Net interest-bearing debt (period-end)/EBITDA
6.0
7.1
6.0
7.1
-
-
-
-
Outstanding shares, end of period (thousand)
145,613
127,973
145,613
127,973
Average number of outstanding shares (thousand)
145,562
127,964
138,883
127,823
Average number of outstanding shares, fully diluted (thousand)
145,579
128,120
138,991
128,126
Treasury shares, end of period (thousand)
5,300
9,220
5,300
9,220
Share price at the end of the period
171.8
159.8
171.8
159.8
Market capitalization
25,016
20,444
25,016
20,444
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.
Q4
Q4
Full year
Full year
2023
2022
2023
2022
DKK million
(unaud.)
(unaud.)
(aud.)
(aud.)
GN Hearing
Revenue
1,808
1,807
6,802
6,227
Revenue growth
0%
26%
9%
17%
Organic growth
7%
14%
13%
5%
Gross profit margin
57.5%
66.1%
59.9%
62.7%
EBITA*
143
436
554
453
EBITA margin*
7.9%
24.1%
8.1%
7.3%
ROIC (EBITA*/Average invested capital)
7%
5%
7%
5%
Free cash flow excl. M&A
155
64
269
-377
Cash conversion (Free cash flow excl. M&A/EBITA*)
108%
15%
49%
-83%
GN Audio
Revenue
3,261
3,463
11,318
12,460
Revenue growth
-6%
30%
-9%
19%
Organic growth
-4%
-3%
-8%
-8%
Gross profit margin
43.5%
39.7%
43.0%
41.9%
EBITA*
353
182
1,017
1,299
EBITA margin*
10.8%
5.3%
9.0%
10.4%
ROIC (EBITA*/Average invested capital)
9%
17%
9%
17%
Free cash flow excl. M&A
659
-21
1,034
-91
Cash conversion (Free cash flow excl. M&A/EBITA*)
187%
-12%
102%
-7%
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.
Quarterly financial highlights
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Content
Quarterly reporting by segment
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Q1 2023
Q2 2023
Q3 2023
Q4 2023
YTD 2022
YTD 2023
DKK million
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(aud.)
(aud.)
Income statement
Revenue
GN Hearing
1,337
1,529
1,554
1,807
1,622
1,719
1,653
1,808
6,227
6,802
GN Audio
2,522
3,328
3,147
3,463
2,592
2,675
2,790
3,261
12,460
11,318
Total
3,859
4,857
4,701
5,270
4,214
4,394
4,443
5,069
18,687
18,120
Organic growth
GN Hearing
2%
4%
0%
14%
15%
15%
15%
7%
5%
13%
GN Audio
-30%
10%
-2%
-3%
2%
-18%
-8%
-4%
-7%
-8%
Total
-21%
8%
-1%
3%
7%
-8%
0%
0%
-3%
-1%
Gross profit
GN Hearing
801
924
988
1,194
979
1,039
1,019
1,039
3,907
4,076
GN Audio
1,006
1,502
1,341
1,376
1,062
1,183
1,205
1,419
5,225
4,869
Total
1,807
2,426
2,329
2,570
2,041
2,222
2,224
2,458
9,132
8,945
Gross profit margin
GN Hearing
59.9%
60.4%
63.6%
66.1%
60.4%
60.4%
61.6%
57.5%
62.7%
59.9%
GN Audio
39.9%
45.1%
42.6%
39.7%
41.0%
44.2%
43.2%
43.5%
41.9%
43.0%
Total
46.8%
49.9%
49.5%
48.8%
48.4%
50.6%
50.1%
48.5%
48.9%
49.4%
Development costs
GN Hearing
-138
-142
-146
-124
-166
-130
-126
-167
-550
-589
GN Audio
-189
-166
-188
-238
-188
-226
-190
-290
-781
-894
Other*
-21
-16
-10
-27
-13
-14
-19
-17
-74
-63
Total
-348
-324
-344
-389
-367
-370
-335
-474
-1,405
-1,546
Selling and distribution costs and administrative expenses etc.
GN Hearing
-733
-776
-761
-634
-760
-741
-703
-729
-2,904
-2,933
GN Audio
-672
-804
-713
-956
-711
-751
-720
-776
-3,145
-2,958
Other*
-38
-23
-22
-35
-30
-29
-36
-213
-118
-308
Total
-1,443
-1,603
-1,496
-1,625
-1,501
-1,521
-1,459
-1,718
-6,167
-6,199
EBITA
GN Hearing
-70
6
81
436
53
168
190
143
453
554
GN Audio
145
532
440
182
163
206
295
353
1,299
1,017
Other*
-59
-39
-32
-62
-43
-43
-55
-230
-192
-371
Total
16
499
489
556
173
331
430
266
1,560
1,200
EBITA margin
GN Hearing
-5.2%
0.4%
5.2%
24.1%
3.3%
9.8%
11.5%
7.9%
7.3%
8.1%
GN Audio
5.7%
16.0%
14.0%
5.3%
6.3%
7.7%
10.6%
10.8%
10.4%
9.0%
Total
0.4%
10.3%
10.4%
10.6%
4.1%
7.5%
9.7%
5.2%
8.3%
6.6%
Depreciation and software amortization
GN Hearing
-38
-41
-42
-41
-42
-41
-36
-38
-162
-157
GN Audio
-45
-48
-54
-47
-46
-45
-43
-47
-194
-181
Other*
-35
-37
-36
-21
-21
-27
-29
-136
-129
-213
Total
-118
-126
-132
-109
-109
-113
-108
-221
-485
-551
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Content
Quarterly reporting by segment (continued)
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Q1 2023
Q2 2023
Q3 2023
Q4 2023
YTD 2022
YTD 2023
DKK million
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(aud.)
(aud.)
EBITDA
GN Hearing
-32
47
123
477
95
209
226
181
615
711
GN Audio
190
580
494
229
209
251
338
400
1,493
1,198
Other*
-24
-2
4
-41
-22
-16
-26
-94
-63
-158
Total
134
625
621
665
282
444
538
487
2,045
1,751
EBITA
16
499
489
556
173
331
430
266
1,560
1,200
Amortization and impairment of acquired intangible assets
-103
-96
-125
-116
-102
-101
-99
-90
-440
-392
Gain (loss) on divestment of operations etc.
-1
-6
-
-2
-1
1
60
1
-9
61
Operating profit (loss)
-88
397
364
438
70
231
391
177
1,111
869
Share of profit (loss) in associates
17
5
-1
-2
-1
-46
-5
-12
19
-64
Financial items, net
-156
-77
-90
-82
-125
-129
-91
-117
-405
-462
Profit (loss) before tax
-227
325
273
354
-56
56
295
48
725
343
Tax on profit (loss)
49
-70
-58
-76
13
-13
-68
-9
-155
-77
Profit (loss)
-178
255
215
278
-43
43
227
39
570
266
Balance sheet
Inventories
GN Hearing
770
816
892
850
842
841
856
790
850
790
GN Audio
2,012
2,282
2,968
2,666
2,506
2,449
2,353
1,867
2,666
1,867
Total
2,782
3,098
3,860
3,516
3,348
3,290
3,209
2,657
3,516
2,657
Trade receivables
GN Hearing
1,144
1,262
1,266
1,442
1,446
1,398
1,451
1,489
1,442
1,489
GN Audio
1,975
2,890
2,729
2,589
2,314
2,429
2,827
2,953
2,589
2,953
Other*
2
2
-
-
-
-13
-
-
-
-
Total
3,121
4,154
3,995
4,031
3,760
3,814
4,278
4,442
4,031
4,442
Net working capital
GN Hearing
1,036
1,078
1,052
1,323
1,380
1,281
1,196
1,077
1,323
1,077
GN Audio
1,646
2,021
2,145
1,937
2,222
1,872
1,930
1,548
1,937
1,548
Other*
-165
-319
-259
-151
-43
-102
-120
16
-151
16
Total
2,517
2,780
2,938
3,109
3,559
3,051
3,006
2,641
3,109
2,641
Free cash flow excl. M&A
GN Hearing
-175
-326
60
64
-132
131
115
155
-377
269
GN Audio
-140
49
21
-21
-304
464
215
659
-91
1,034
Other*
-242
-135
-298
-148
-142
27
-51
-45
-823
-211
Total
-557
-412
-217
-105
-578
622
279
769
-1,291
1,092
Acquisitions and divestments of companies
-7,037
-216
-15
11
-36
-
441
-
-7,257
405
Free cash flow
-7,594
-628
-232
-94
-614
622
720
769
-8,548
1,497
* "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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Content
Regional growth, Q4 2023
GN Hearing
GN Audio
Consolidated total
Q4 2023
Q4 2022
Q4 2023
Q4 2022
Q4 2023
Q4 2022
(DKK million)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
Europe - revenue
451
525
1,588
1,704
2,039
2,229
Organic growth
-3%
8%
-8%
9%
-7%
9%
FX growth
0%
0%
1%
0%
1%
0%
M&A growth
-11%
14%
0%
20%
-3%
18%
Revenue growth
-14%
22%
-7%
29%
-9%
27%
North America - revenue
996
839
1,019
1,109
2,015
1,948
Organic growth
24%
11%
-4%
-18%
8%
-5%
FX growth
-3%
15%
-4%
9%
-4%
12%
M&A growth
-2%
5%
0%
45%
-1%
27%
Revenue growth
19%
31%
-8%
36%
3%
34%
Rest of World - revenue
361
443
654
650
1,015
1,093
Organic growth
-16%
22%
7%
-9%
-2%
3%
FX growth
-3%
2%
-6%
4%
-5%
3%
M&A growth
0%
0%
0%
26%
0%
16%
Revenue growth
-19%
24%
1%
21%
-7%
22%
Total revenue
1,808
1,807
3,261
3,463
5,069
5,270
Organic growth
7%
14%
-4%
-3%
0%
3%
FX growth
-3%
6%
-2%
4%
-3%
5%
M&A growth
-4%
6%
0%
29%
-1%
21%
Revenue growth
0%
26%
-6%
30%
-4%
29%
Regional growth, YTD 2023
GN Hearing
GN Audio
Consolidated total
YTD 2023
YTD 2022
YTD 2023
YTD 2022
YTD 2023
YTD 2022
(DKK million)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
Europe - revenue
1,887
1,794
5,473
5,936
7,360
7,730
Organic growth
5%
10%
-9%
-1%
-6%
1%
FX growth
-1%
1%
1%
0%
1%
0%
M&A growth
1%
11%
0%
13%
0%
13%
Revenue growth
5%
22%
-8%
12%
-5%
14%
North America - revenue
3,407
2,939
3,432
3,990
6,839
6,929
Organic growth
20%
0%
-11%
-19%
2%
-11%
FX growth
-2%
13%
-3%
10%
-2%
12%
M&A growth
-2%
3%
0%
35%
-1%
21%
Revenue growth
16%
16%
-14%
26%
-1%
22%
Rest of World - revenue
1,508
1,494
2,413
2,534
3,921
4,028
Organic growth
6%
8%
0%
-6%
2%
0%
FX growth
-5%
4%
-5%
7%
-5%
6%
M&A growth
0%
0%
0%
26%
0%
15%
Revenue growth
1%
12%
-5%
27%
-3%
21%
Total revenue
6,802
6,227
11,318
12,460
18,120
18,687
Organic growth
13%
5%
-8%
-7%
-1%
-3%
FX growth
-2%
7%
-1%
4%
-2%
5%
M&A growth
-1%
5%
0%
22%
0%
16%
Revenue growth
10%
17%
-9%
19%
-3%
18%
Regional growth composition
72/1
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GN Store Nord
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Content
Income statement
GN Hearing
GN Audio
Other*
Consolidated total
Q4 2023
Q4 2022
Q4 2023
Q4 2022
Q4 2023
Q4 2022
Q4 2023
Q4 2022
(DKK million)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
Revenue
1,808
1,807
3,261
3,463
-
-
5,069
5,270
Production costs
-769
-613
-1,842
-2,087
-
-
-2,611
-2,700
Gross profit
1,039
1,194
1,419
1,376
-
-
2,458
2,570
Development costs
-167
-124
-290
-238
-17
-27
-474
-389
Selling and distribution costs
-517
-538
-570
-601
-
-
-1,087
-1,139
Management and administrative expenses
-218
-125
-206
-323
-214
-35
-638
-483
Other operating income and costs, net
6
29
-
-32
1
-
7
-3
EBITA
143
436
353
182
-230
-62
266
556
Amortization and impairment of acquired intangible assets
-6
-19
-84
-97
-
-
-90
-116
Gain (loss) on divestment of operations etc.
1
-2
-
-
-
-
1
-2
Operating profit (loss)
138
415
269
85
-230
-62
177
438
Share of profit (loss) in associates
-1
-2
-11
-
-
-
-12
-2
Financial items
-105
-65
-42
111
30
-128
-117
-82
Profit (loss) before tax
32
348
216
196
-200
-190
48
354
Tax on profit (loss)
9
-43
-
30
-18
-63
-9
-76
Profit (loss) for the period
41
305
216
226
-218
-253
39
278
Additional information
GN Hearing
GN Audio
Other*
Consolidated total
Q4 2023
Q4 2022
Q4 2023
Q4 2022
Q4 2023
Q4 2022
Q4 2023
Q4 2022
(DKK million)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
Revenue distributed geographically
Denmark
12
29
65
132
-
-
77
161
Europe
439
496
1,523
1,572
-
-
1,962
2,068
North America
996
839
1,019
1,109
-
-
2,015
1,948
Rest of World
361
443
654
650
-
-
1,015
1,093
Revenue
1,808
1,807
3,261
3,463
-
-
5,069
5,270
Incurred development costs
-138
-170
-239
-374
-17
-29
-394
-573
Capitalized development costs
76
128
132
234
-
-
208
362
Amortization, impairment and depreciation of development
projects**
-49 -82 -183 -98 - 2 -232 -178
Expensed development costs
-111
-124
-290
-238
-17
-27
-418
-389
EBITDA
181
477
400
229
-94
-41
487
665
Depreciation and software amortization
-38
-41
-47
-47
-136
-21
-221
-109
EBITA
143
436
353
182
-230
-62
266
556
EBITA margin
7.9%
24.1%
10.8%
5.3%
N/A
N/A
5.2%
10.6%
Number of employees, end of period
4,349
4,852
2,462
2,666
354
373
7,165
7,891
Q4 segment disclosures
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Content
Consolidated income statement 74
Consolidated Statement of comprehensive income 74
Consolidated balance sheet at December 31 75
Consolidated statement of cash flow 76
Consolidated statement of equity 77
Consolidated
f
inancial
statements
GN Store Nord
Annual Report 2023 Financial Statements – Consolidated
Content
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Annual Report 2023 Financial Statements – Consolidated
Content
DKK million
Note
2023
2022
Revenue
2.2
Production costs
2.3, 2.4, 3.4, 3.6
-9,175
-9,555
Gross profit
Development costs
2.3, 2.4, 3.4
-1,546
-1,405
Selling and distribution costs
2.3, 2.4, 3.4
-4,397
-4,563
Management and administrative expenses
2.3, 2.4, 3.4, 5.8
-1,810
-1,587
Other operating income and costs, net
-17
EBITA*
Amortization and impairment of acquired intangible assets
2.6, 3.4
-392
-440
Gain (loss) on divestment of operations etc.
5.1
-9
Operating profit (loss)
Share of profit (loss) in associates
5.6
-64
Financial income
2.4, 4.5
Financial expenses
4.5
-626
-661
Profit (loss) before tax
Tax on profit (loss)
2.5
-77
-155
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 132 for definition of EBITA
DKK million
Note
2023
2022
Profit (loss) for the year
Other comprehensive income
Items that will not be reclassified to the income statement
Actuarial gains (losses)
5.4
-2
Tax relating to actuarial gains (losses)
2.5
-2
-2
Items that may be reclassified subsequently to the income statement
Adjustment of cash flow hedges
4.3
-73
Foreign exchange adjustments, etc.
-216
Tax relating to other comprehensive income
2.5
-11
Other comprehensive income for the year, net of tax
-180
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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Content
DKK million
Note
2023
2022
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
-3,798
-4,263
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
76/157
GN Store Nord
Annual Report 2023 Financial Statements – Consolidated
Content
DKK million
Note
2023
2022
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
Change in receivables
-490
-393
Change in trade payables and other payables
Total changes in working capital
-1,293
Cash flow from operating activities before financial items and tax
Interest received
Interest etc. paid
-428
-744
Tax paid, net
2.5
-175
-185
Cash flow from operating activities
Investing activities
Development projects
3.1
-951
-1,005
Investments in intangible assets, excluding development projects
3.1
-388
-454
Investments in property, plant and equipment
3.2
-93
-209
Investments in other non-current assets
-131
-539
Disposal of intangible assets and property, plant and equipment
Disposal (repayment) of other non-current assets
Acquisition of companies/operations
5.1
-36
-7,257
Divestment of companies/operations
5.1
Cash flow from investing activities
-1,141
-9,175
Cash flow from operating and investing activities (free cash flow)
-8,548
DKK million
Note
2023
2022
Financing activities
Increase (decrease) of long-term loans
4.4
Increase (decrease) of short-term loans
4.4
-3,273
Paid dividends
-32
-208
Share-based payment (exercised)
Proceeds from share placement, net of costs
Other adjustments
-30
Cash flow from financing activities
-312
Net cash flow
-5,204
Cash and cash equivalents, beginning of period
Adjustment foreign currency, cash and cash equivalents
-13
-14
Cash and cash equivalents, end of period
Consolidated statement of cash flows
77/157
GN Store Nord
Annual Report 2023 Financial Statements – Consolidated
Content
2023
Other reserves
DKK million
Share
capital
Foreign
exchange
adjust-
ments
Hedging
reserve
Treasury
shares
Proposed
dividends
for the
year
Retained
earnings
Equity,
share-
holders
in
GN Store
Nord A/S
Non-con-
trolling
interests
Total
equity
Balance at January 1, 2023
-846
-51
-3,366
Profit (loss) for the period
Actuarial gains (losses)
-2
-2
-2
Tax relating to actuarial gains
(losses)
-2
-2
-2
Adjustment of cash flow hedges
Foreign exchange adjustments, etc.
-216
-216
-216
Tax relating to other comprehensive
income
-11
-11
-11
Other comprehensive income for
the year
-216
-4
-180
-180
Total comprehensive income for
the year
-216
Increase in share capital, net of costs
Share-based payment (granted)
Share-based payment (exercised)
-69
Tax related to share-based incentive
plans
Treasury shares placement, net of
costs
Reclassification of non-controlling
interests by recognizing a put option
liability
-6
Paid dividends
-32
-32
Dividends, treasury shares
Balance at December 31, 2023
-1,062
-11
-2,725
* Equivalent to DKK 0.00 per share (2022: DKK 0.00 per share)
2022
Other reserves
DKK million
Share
capital
Foreign
exchange
adjust-
ments
Hedging
reserve
Treasury
shares
Proposed
dividends
for the
year
Retained
earnings
Equity,
share-
holders
in
GN Store
Nord A/S
Non-con-
trolling
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
Treasury shares placement, net of
costs
-
Reclassification of non-controlling
interests by recognizing a put op-
tion liability
-88
-88
-49
-137
Paid dividends
-198
-198
-10
-208
Dividends, treasury shares
-16
Balance at December 31, 2022
-846
-51
-3,366
Consolidated statement of changes in equity
78/157
GN Store Nord
Annual Report 2023 Financial Statements – Consolidated
Content
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 79
1.2 Significant accounting estimates and judgments 80
1.3 Non-IFRS measures 80
Section 2 - Results of the year
Insights into the results for the year, including operating segments,
employee costs and taxes.
2.1 Segment disclosures 82
2.2 Revenue and geographical information 86
2.3 Staff Costs 88
2.4 Government grants 88
2.5 Tax 89
2.6 Income statement classified by function 91
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 93
3.2 Property, plant and equipment 96
3.3 Leases 98
3.4 Depreciation, amortization and impairment 99
3.5 Other non-current assets 100
3.6 Inventories 102
3.7 Trade receivables 103
3.8 Provisions 104
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 106
4.2 Financial risks 107
4.3 Financial instruments 111
4.4 Liabilities from financing activities 116
4.5 Financial income and expenses 117
Section 5 - Other disclosures
Statutory notes and other disclosures.
5.1 Acquisition and divestment of companies and operations 119
5.2 Remuneration of the Board of Directors and Executive
Management 122
5.3 Share-based incentive plans 124
5.4 Pension obligations 127
5.5 Contingent liabilities 128
5.6 Investments in associates 129
5.7 Other non-cash adjustments 129
5.8 Fees to statutory auditors 129
5.9 Related parties 129
5.10 Events after the reporting period 129
Consolidated
notes
GN Store Nord
Annual Report 2023 Financial Statements – Consolidated
Content
78/157
79/157
GN Store Nord
Annual Report 2023 Financial Statements – Consolidated
Content
80/157
GN Store Nord
Annual Report 2023 Financial Statements – Consolidated
Content
81/157
GN Store Nord
Annual Report 2023 Financial Statements – Consolidated
Content
2.1
Segment disclosures 82
2.2 Revenue and geographical information 86
2.3 Staff Costs 88
2.4 Government grants 88
2.5 Tax 89
2.6 Income statement classified by function 91
Section 2 -
Results of the year
GN Store Nord
Annual Report 2023 Financial Statements – Consolidated
Content
81/157
82/157
GN Store Nord
Annual Report 2023 Financial Statements – Consolidated
Content
83/157
GN Store Nord
Annual Report 2023 Financial Statements – Consolidated
Content
2.1 Segment disclosures (Continued)
84/157
GN Store Nord
Annual Report 2023 Financial Statements – Consolidated
Content
2.1 Segment disclosures (Continued)
85/157
GN Store Nord
Annual Report 2023 Financial Statements – Consolidated
Content
2.1 Segment disclosures (Continued)
86/157
GN Store Nord
Annual Report 2023 Financial Statements – Consolidated
Content
87/157
GN Store Nord
Annual Report 2023 Financial Statements – Consolidated
Content
2.2 Revenue and geographical information
(Continued)
88/157
GN Store Nord
Annual Report 2023 Financial Statements – Consolidated
Content
2.2 Revenue and geographical information
(Continued)
89/157
GN Store Nord
Annual Report 2023 Financial Statements – Consolidated
Content
90/157
GN Store Nord
Annual Report 2023 Financial Statements – Consolidated
Content
2.5 Tax (Continued)
91/157
GN Store Nord
Annual Report 2023 Financial Statements – Consolidated
Content
92/157
GN Store Nord
Annual Report 2023 Financial Statements – Consolidated
Content
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 93
3.2 Property, plant and equipment 96
3.3 Leases 98
3.4 Depreciation, amortization and impairment 99
3.5 Other non-current assets 100
3.6 Inventories 102
3.7 Trade receivables 103
3.8 Provisions 104
Section 3 -
Operating assets and liabilities
GN Store Nord
Annual Report 2023 Financial Statements – Consolidated
Content
92/157
93/157
GN Store Nord
Annual Report 2023 Financial Statements – Consolidated
Content
94/157
GN Store Nord
Annual Report 2023 Financial Statements – Consolidated
Content
3.1 Intangible assets (Continued)
95/157
GN Store Nord
Annual Report 2023 Financial Statements – Consolidated
Content
3.1 Intangible assets (Continued)
96/157
GN Store Nord
Annual Report 2023 Financial Statements – Consolidated
Content
3.1 Intangible assets (Continued)
97/157
GN Store Nord
Annual Report 2023 Financial Statements – Consolidated
Content
3.2 Property, plant and equipment
(Continued)
98/157
GN Store Nord
Annual Report 2023 Financial Statements – Consolidated
Content
99/157
GN Store Nord
Annual Report 2023 Financial Statements – Consolidated
Content
3.3 Leases (continued)
100/157
GN Store Nord
Annual Report 2023 Financial Statements – Consolidated
Content
101/157
GN Store Nord
Annual Report 2023 Financial Statements – Consolidated
Content
3.5 Other non-current assets (Continued)
102/157
GN Store Nord
Annual Report 2023 Financial Statements – Consolidated
Content
103/157
GN Store Nord
Annual Report 2023 Financial Statements – Consolidated
Content
104/157
GN Store Nord
Annual Report 2023 Financial Statements – Consolidated
Content
105/157
GN Store Nord
Annual Report 2023 Financial Statements – Consolidated
Content
Introduction
Insight into GN Store Nord's capital structure and financial items as
well as financial risks.
4.1 Outstanding shares and treasury shares 106
4.2 Financial risks 107
4.3 Financial instruments 111
4.4 Liabilities from financing activities 116
4.5 Financial income and expenses 117
Section 4 - Capital structure
and financing items
GN Store Nord
Annual Report 2023 Financial Statements – Consolidated
Content
105/157
106/157
GN Store Nord
Annual Report 2023 Financial Statements – Consolidated
Content
107/157
GN Store Nord
Annual Report 2023 Financial Statements – Consolidated
Content
4.1 Outstanding shares and treasury shares
(Continued)
108/157
GN Store Nord
Annual Report 2023 Financial Statements – Consolidated
Content
4.2 Financial risks (Continued)
109/157
GN Store Nord
Annual Report 2023 Financial Statements – Consolidated
Content
4.2 Financial risks (Continued)
110/157
GN Store Nord
Annual Report 2023 Financial Statements – Consolidated
Content
4.2 Financial risks (Continued)
111/157
GN Store Nord
Annual Report 2023 Financial Statements – Consolidated
Content
112/157
GN Store Nord
Annual Report 2023 Financial Statements – Consolidated
Content
4.3 Financial instruments (Continued)
113/157
GN Store Nord
Annual Report 2023 Financial Statements – Consolidated
Content
4.3 Financial instruments (Continued)
114/157
GN Store Nord
Annual Report 2023 Financial Statements – Consolidated
Content
4.3 Financial instruments (Continued)
115/157
GN Store Nord
Annual Report 2023 Financial Statements – Consolidated
Content
4.3 Financial instruments (Continued)
116/157
GN Store Nord
Annual Report 2023 Financial Statements – Consolidated
Content
117/157
GN Store Nord
Annual Report 2023 Financial Statements – Consolidated
Content
118/157
GN Store Nord
Annual Report 2023 Financial Statements – Consolidated
Content
Introduction
Statutory notes and other disclosures.
5.1 Acquisition and divestment of companies and operations 119
5.2 Remuneration of the Board of Directors and Executive
Management 122
5.3 Share-based incentive plans 124
5.4 Pension obligations 127
5.5 Contingent liabilities 128
5.6 Investments in associates 129
5.7 Other non-cash adjustments 129
5.8 Fees to statutory auditors 129
5.9 Related parties 129
5.10 Events after the reporting period 129
Section 5 -
Other disclosures
GN Store Nord
Annual Report 2023 Financial Statements – Consolidated
Content
118/157
119/157
GN Store Nord
Annual Report 2023 Financial Statements – Consolidated
Content
120/157
GN Store Nord
Annual Report 2023 Financial Statements – Consolidated
Content
5.1 Acquisition and divestment of companies and operations
(Continued)
121/157
GN Store Nord
Annual Report 2023 Financial Statements – Consolidated
Content
5.1 Acquisition and divestment of companies and operations
(Continued)
122/157
GN Store Nord
Annual Report 2023 Financial Statements – Consolidated
Content
123/157
GN Store Nord
Annual Report 2023 Financial Statements – Consolidated
Content
5.2 Remuneration of the Board of Directors
and Executive Management (Continued)
124/157
GN Store Nord
Annual Report 2023 Financial Statements – Consolidated
Content
125/157
GN Store Nord
Annual Report 2023 Financial Statements – Consolidated
Content
5.3 Share-based incentive plans (Continued)
126/157
GN Store Nord
Annual Report 2023 Financial Statements – Consolidated
Content
5.3 Share-based incentive plans (Continued)
127/157
GN Store Nord
Annual Report 2023 Financial Statements – Consolidated
Content
128/157
GN Store Nord
Annual Report 2023 Financial Statements – Consolidated
Content
5.4 Pension obligations (Continued)
129/157
GN Store Nord
Annual Report 2023 Financial Statements – Consolidated
Content
130/157
GN Store Nord
Annual Report 2023 Financial Statements – Consolidated
Content
131/157
GN Store Nord
Annual Report 2023 Financial Statements – Consolidated
Content
Companies in the GN Group (Continued)
132/157
GN Store Nord
Annual Report 2023 Financial Statements – Consolidated
Content
133/157
GN Store Nord
Annual Report 2023 Financial Statements – Consolidated
Content
Income statements 134
Statement of comprehensive income 134
Balance sheet at December 31 135
Statement of cash flow 136
Statement of equity 137
Parent Company
Financial
statements
GN Store Nord
Annual Report 2023 Financial Statements – Parent Company
Content
133/157
134/157
GN Store Nord
Annual Report 2023 Financial Statements – Parent Company
Content
DKK million
Note
2023
2022
Revenue
738
682
Gross profit
738
682
Development costs
-66
-80
Management and administrative expenses
1, 2, 3, 4
-1,021
-793
Other operating income and costs, net
-23
-7
Operating profit (loss)
-372
-198
Share of profit after tax in subsidiaries
10
670
1,015
Share of profit (loss) in associates
11
-33
-
Financial income
5
432
190
Financial expenses
5
-418
-537
Profit (loss) before tax
279
470
Tax on profit (loss)
6
-51
41
Profit (loss) for the year
228
511
Proposed profit appropriation/distribution of loss
Transferred to reserve for net revaluation according to the equity method
670
1,015
Transferred to reserve for development projects
615
247
Retained earnings
-1,057
-751
228
511
DKK million
2023
2022
Profit (loss) for the year
228
511
Other comprehensive income
Items that will not be reclassified subsequently to the income statement
Other changes in equity in subsidiaries
-
5
Items that may be reclassified subsequently to the income statement
Foreign exchange adjustments, etc.
-279
258
Other changes in equity in subsidiaries
60
-57
Tax relating to other comprehensive income
-11
-
Other comprehensive income for the year
-230
206
Total comprehensive income for the year
-3
717
Income statement
Statement of
comprehensive income
135/157
GN Store Nord
Annual Report 2023 Financial Statements – Parent Company
Content
DKK million
Note
2023
2022
Assets
Intangible assets
7
1,694
904
Property, plant and equipment
8, 9
43
77
Investments in subsidiaries
10
16,587
10,455
Investments in associates
11
-
33
Amounts owed by subsidiaries
14
4,145
12,281
Other non-current assets
4
-
Total non-current assets
22,473
23,750
Tax receivables
61
159
Other receivables
14
339
293
Cash and cash equivalents
681
406
Total current assets
1,081
858
Total assets
23,554
24,608
Equity and liabilities
Share capital
604
549
Other reserves
2,865
1,024
Retained earnings
6,118
5,227
Total equity
9,587
6,800
Bank loans and issued bonds, non-current
14, 17
3,024
9,860
Lease liabilities, non-current
9, 14
18
38
Deferred tax liabilities
12
86
34
Total non-current liabilities
3,128
9,932
Bank loans and issued bonds, current
14, 17
9,674
6,005
Lease liabilities, current
9, 14
8
14
Trade payables
14
125
121
Amounts owed to subsidiaries
14, 17
749
1,411
Provisions, current
49
-
Other payables
14
234
325
Total current liabilities
10,839
7,876
Total equity and liabilities
23,554
24,608
Balance sheet at December 31
136/157
GN Store Nord
Annual Report 2023 Financial Statements – Parent Company
Content
Statement of cash flows
DKK million
Note
2023
2022
Operating activities
Operating profit (loss)
-372
-198
Depreciation, amortization and impairment
3
208
104
Other non-cash adjustments
40
19
Cash flow from operating activities before changes in working capital
-124
-75
Change in receivables
-89
-100
Change in trade payables and other payables
-1
114
Total changes in working capital
-90
14
Cash flow from operating activities before financial items and tax
-214
-61
Interest and dividends, etc. received
405
2,220
Interest paid
-332
-485
Tax paid, net
187
-70
Cash flow from operating activities
46
1,604
Investing activities
Investments in intangible assets
7
-980
-393
Investments in tangible assets
8
-1
-1
Investments in non-current assets
-4
-
Amounts owed by subsidiaries
1,858
-8,262
Cash flow from investing activities
873
-8,656
Cash flow from operating and investing activities (free cash flow)
919
-7,052
Financing activities
Increase of long-term loans
17
-1,149
1,925
Decrease of short-term loans and amounts owed to subsidiaries
17
-2,135
-33
Proceeds from share placement, net of costs
17
2,621
-
Paid dividends
-
-198
Share-based payment (exercised)
19
3
Cash flow from financing activities
-644
1,697
Net cash flow
275
-5,355
Cash and cash equivalents, beginning of period
406
5,761
Cash and cash equivalents, end of period
681
406
137/157
GN Store Nord
Annual Report 2023 Financial Statements – Parent Company
Content
2023
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, 2023
549
-
-3,366
3,684
706
-
5,227
6,800
Profit (loss) for the period
-
-
-
670
95
-
-537
228
Adjustment of cash flow hedges
-
-
-
-
-
-
-
-
Other changes in equity in subsidiaries
-
-
-
60
-
-
-
60
Foreign currency translation adjust-
ments of investments in subsidiaries
etc.
-
-
-
-279
-
-
-
-279
Tax relating to other comprehensive
income
-
-
-
-13
-
2
-11
Other comprehensive income for the
year
-
-
-
-232
-
-
2
-230
Total comprehensive income for the
year
-
-
-
438
95
-
-535
-2
Increase in share capital, net of costs
55
-
-
-
-
-
2,021
2,076
Other changes in equity in subsidiaries
-
-
-
147
-
-
-
147
Purchase of ownership interests in
subsidiaries by payment in treasury
shares
-
-
96
-
-
-
-69
27
Share-based payment (granted)
-
-
-
-
-
-
-6
-6
Treasury shares placement, net of
costs
-
-
545
-
-
-
-
545
Balance at December 31, 2023
604
-
-2,725
4,269
801
-
6,638
9,587
The reserve according to the equity method includes foreign exchange adjustments of DKK -1,062 million
(2022: DKK -846 million). Retained earnings, which are available for distribution from the Parent Company
amounts to DKK 4,008 million (2022: DKK 1,861 million).
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
Paid dividends
-
-
-
-
-
-198
-
-198
Dividends, treasury shares
-
-
-
-
-
-16
16
-
Balance at December 31, 2022
549
-
-3,366
3,684
706
-
5,227
6,800
Statement of changes in equity
138/157
GN Store Nord
Annual Report 2023 Financial Statements – Parent Company
Content
Notes – Income statement and balance sheet
1 Staff costs 139
2 Share-based incentive plans 139
3 Depreciation, amortization and impairment 140
4 Fees to statutory auditors 140
5 Financial income and expenses 141
6 Tax 141
7 Intangible assets 142
8 Property, plant and equipment 143
9 Leases 144
10 Investments in subsidiaries 145
11 Investments in associates 145
12 Deferred tax 145
13 Contingent assets and liabilities 145
Notes – Other disclosures
14 Financial instruments 146
15 Outstanding shares and treasury shares 147
16 Related party transactions 147
17 Liabilities from financing activities 148
18 Accounting policies 148
Parent Company
notes
GN Store Nord
Annual Report 2023 Financial Statements – Parent Company
Content
138/157
139/157
GN Store Nord
Annual Report 2023 Financial Statements – Parent Company
Content
1 Staff costs
DKK million
2023
2022
Wages, salaries and remuneration
316
261
Pensions
27
27
Share-based incentives
6
10
Other social security costs
2
2
Total
351
300
Executive Management remuneration can be specified
as follows:
Fixed pay*
15.2
4.0
Short term incentives
13.2
1.1
Share-based incentives
-0.3
2.2
Total
28.1
7.3
Board of Directors remuneration
6.2
6.4
Total remuneration
34.3
13.7
Staff costs are included in Management and adminis-
trative expenses.
Average number of employees
359
351
Number of employees at year-end
354
373
* 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 2019-2023 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 options granted are accelerated for partici-
pants not forfeiting the vesting conditions in connection with termina-
tions (good leavers) unless a service is provided in the remaining vest-
ing period. The recognized expenses in 2023 include acceleration of
27,537 options granted to Other employees of GN Store Nord A/S.
Executive Management
Other employees
2023
2022
2023
2022
Number of option awarded in the year
202,139
26,500
118,820
61,483
Share price GN Store Nord at ordinary grant date
167
351
167
351
Vesting period
3 years
3 years
3 years
3 years
Life of option
6 years
6 years
6 years
6 years
Volatility*
43%
34%
42%
34%
Expected dividend
0.4%
0.3%
0.5%
0.4%
Risk-free interest rate**
2.43%
0.00%
2.72%
0.00%
Fair Value per option at ordinary grant (DKK)***
46
81
61
100
Total fair value at grant (DKK million)
12
2
7
6
Amortization period of the program
2023 - 2026
2022 - 2025
2023 - 2026
2022 - 2025
* 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
140/157
GN Store Nord
Annual Report 2023 Financial Statements – Parent Company
Content
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
208 million (2022: DKK 104 million), is recognized in the income state-
ment as management and administrative expenses.
4 Fees to statutory auditors
DKK million
2023
2022
Statutory audit
-3
-3
Tax advice services
-1
-1
Other services
-4
-3
Total
-8
-7
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, 2022
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
Options granted during the year
167
202,139
118,820
320,959
Options forfeited during the year
378
-49,585
-84,621
-134,206
Outstanding options at December 31, 2023
284
355,548
265,945
621,493
Weighted average term to maturity (Years)
2.2
2.2
2.2
Number of exercisable options at December 31, 2022
108,659
84,319
192,978
Number of exercisable options at December 31, 2023
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
DKK
Number*
Grant date
Exercise
price
Executive
Management
Other
employees
Total
April 2019**
313
108,659
91,591
200,250
February 2021
550
18,250
28,310
46,560
May 2021
495
-
3,595
3,595
February 2022
368
26,500
37,893
64,393
March 2022
307
-
3,158
3,158
February 2023
164
-
101,398
101,398
March 2023
151
97,300
-
97,300
June 2023
170
104,839
-
104,839
Outstanding options at December 31, 2023
355,548
265,945
621,493
* 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
141/157
GN Store Nord
Annual Report 2023 Financial Statements – Parent Company
Content
5 Financial income and expenses
DKK million
2023
2022
Financial income
Interest income from subsidiaries*
354
181
Interest income from bank balances*
14
-
Financial income, other
1
9
Fair value adjustment of derivative financial instru-
ments, net
63
-
Total
432
190
Financial expenses
Interest expense to subsidiaries*
-8
-18
Interest expenses on bank loans and issued bonds*
-310
-181
Financial expenses, other
-89
-38
Fair
value adjustment of derivative financial instru-
ments, net
-
-278
Foreign exchange loss
-11
-22
Total
-418
-537
* 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
119
37
Deferred tax for the year
-45
1
Adjustment to current tax in respect of prior years
7
11
Adjustment to deferred tax in respect of prior years
-7
-8
Total
74
41
Reconciliation of effective tax rate
Danish tax rate
22.0%
22.0%
Non-taxable income
0.9%
0.0%
Non-deductible expenses
-2.5%
0.1%
Adjustment of tax with respect of prior years
0.0%
0.0%
Share of profit (loss) in subsidiaries
6.2%
-47.6%
Share of profits (loss) in associates
0.0%
0.0%
Other, including provisions for uncertain tax positions
0.0%
16.6%
Effective tax rate
26.6%
-8.8%
In 2023, the company paid preliminary taxes of DKK 98 million in Dan-
ish corporate income tax for the year on behalf of the joint Group taxa-
tion (For the year 2022 DKK 21 million was paid in final tax for the year
in Danish corporate income tax).
142/157
GN Store Nord
Annual Report 2023 Financial Statements – Parent Company
Content
7 Intangible assets
The carrying amount includes software in progress of DKK 642 million
(2022: DKK 736 million).
2023
2022
DKK million
Software
Patents and licenses
Total
Software
Cost at January 1
1,374
-
1,374
980
Additions
313
667
980
394
Transfers
-
-
-
-
Other adjustments
-
-
-
-
Cost at December 31
1,687
667
2,354
1,374
Amortization and impairment at January 1
-469
-
-469
-391
Amortization
-58
-
-58
-78
Impairment
-133
-
-133
-
Transfers
-
-
-
-
Amortization and impairment at December 31
-660
-
-660
-469
Carrying amount at December 31
1,027
667
1,694
905
Amortized over
3-10 years
3-10 years
3-10 years
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GN Store Nord
Annual Report 2023 Financial Statements – Parent Company
Content
8 Property, plant and equipment
2023
2022
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
-
63
63
-
62
62
Additions
-
1
1
-
1
1
Cost at December 31
-
64
64
-
63
63
Depreciation and impairment at January 1
-
-36
-36
-
-24
-24
Depreciation
-
-6
-6
-
-12
-12
Depreciation and impairment at December 31
-
-42
-42
-
-36
-36
Carrying amount at December 31
-
22
22
-
27
27
Leased assets, c.f. note 9
19
2
21
49
1
50
Total carrying amount at December 31
19
24
43
49
28
77
Operating assets and equipment are depreciated over 2
-7 years.
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GN Store Nord
Annual Report 2023 Financial Statements – Parent Company
Content
9 Leases
Lease liabilities
DKK million
2023
2022
Contractual maturity analysis of lease liabilities:
Less than one year
8
14
Between one and three years
15
28
More than three years
3
11
Total
26
53
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
2023
2022
Interest expense on lease liabilities
1
1
Expense relating to low
-value assets and short-term
leases
2
-
Cash outflow re. lease liabilities
6
10
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
2023
2022
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
49
1
50
20
1
21
Transfer from a group company
-
-
-
42
-
42
Additions
-
2
2
-
1
1
Disposal
-20
-
-20
Depreciation
-10
-1
-11
-13
-1
-14
Carrying amount at December 31
19
2
21
49
1
50
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GN Store Nord
Annual Report 2023 Financial Statements – Parent Company
Content
10 Investments in subsidiaries
DKK million
2023
2022
Cost at January 1
6,771
6,753
Additions, capital contribution
5,547
18
Cost at December 31
12,318
6,771
Value adjustment at January 1
3,684
4,448
Share of profit after tax in subsidiaries
670
1,015
Foreign currency translation adjustments
-279
258
Direct equity postings in subsidiaries
194
-37
Dividends received
-
-2,000
Value adjustments at December 31
4,269
3,684
Carrying amount at December 31
16,587
10,455
Group companies are listed on page 143.
11 Investments in associates
DKK million
2023
2022
Aggregated financial information for associates is
provided below:
Total share of loss in associates for the year
-33
-
Total share of net assets in associates
-
33
Carrying amount of associates
-
33
12 Deferred tax
DKK million
2023
2022
Deferred tax, net
Deferred tax at January 1, net
-34
-26
Adjustment in respect of prior years
-7
-8
Deferred tax for the year recognized in profit (loss) for
the year
-45
-
Deferred tax at December 31, net
-86
-34
Deferred tax, net relates to
Intangible assets
-220
-40
Other
134
6
Total
-86
-34
13 Contingent assets and liabilities
The parent company has not issued any guarantees on behalf of sub-
sidiaries in 2023 (2022: DKK 0 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.
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GN Store Nord
Annual Report 2023 Financial Statements – Parent Company
Content
14 Financial instruments
Categories of financial assets and liabilities
DKK million
2023
2022
Financial assets
Other receivables
220
103
Amounts owed by subsidiaries
4,145
12,281
Financial assets at amortized cost
4,365
12,384
Derivative financial instruments included in Other receivables
119
190
Financial assets at fair value through profit or loss
119
190
Financial liabilities
Issued bonds (bond-with-warrant units), non-current
2,689
2,401
Issued EMTN bonds, non-current
335
5,147
Bank loans, non-current
-
2,312
Bank loans and issued bonds, current
9,674
6,005
Lease liabilities
23
52
Trade payables
125
121
Amounts owed to subsidiaries
749
1,411
Financial liabilities at amortized cost
13,595
17,449
Derivative financial instruments included in Other payables
119
207
Financial liabilities at fair value through profit or loss
119
207
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
2023
Issued bonds
7,053
37
892
7,982
Bank loans
2,548
449
2,029
5,026
Lease liabilities
8
15
3
26
Trade payables
125
-
-
125
Amounts owed to subsidiaries
749
-
-
749
Total non-derivative financial liabilities
10,483
501
2,924
13,908
Derivative financial liabilities
119
-
-
119
Total financial liabilities
10,602
501
2,924
14,027
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
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 2,403 million at De-
cember 31, 2023 (2022: DKK 2,222 million), and the fair value of EMTN
bonds amounted to DKK 4,726 million (2022: DKK 5,918 million). For
other financial assets and liabilities, the fair value is approximately
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 2023 the FX derivatives had a fair value
of DKK 1 million (2022: DKK -16 million), of which DKK 5 million (2022:
DKK -3 million) are related to derivatives of USD vs EUR or DKK, DKK 1
million (2022: DKK 1 million) are related to derivatives of EUR vs DKK
and DKK -4 million (2022: DKK -14 million) are related to derivatives of
GBP vs DKK. The fair value of derivatives is categorized as level 2 (ob-
servable inputs) in the fair value hierarchy. There were no fair value ad-
justment recognized in other comprehensive income in 2023 and 2022.
147/157
GN Store Nord
Annual Report 2023 Financial Statements – Parent Company
Content
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
2023
2022
Sale of services to group enterprises
796
768
Lease income from group enterprises
31
31
Sale of intangible assets to group enterprises
-
-
Purchase of services from group enterprises
-839
-158
Lease costs paid to group enterprises
-40
-40
The parent company's balances with group enterprises at December
31, 2023 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.
148/157
GN Store Nord
Annual Report 2023 Financial Statements – Parent Company
Content
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 IFRS Accounting Standards as
adopted by the EU and Danish disclosure requirements for annual re-
ports of listed companies. The financial statements have been pre-
pared in accordance with the historical cost convention, as modified by
the revaluation of certain financial instruments (including derivative fi-
nancial 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 2023 grew
DKK 56 million (2022: DKK 119 million), primarily due to changes in
the Group Functions. Costs increased during the year includes impair-
ment of software for DKK 133 million. 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 2023, cash flow from operat-
ing activities was positively impacted by interests received in the total
amount of DKK 405 million (2022: DKK 2,000 million).
DKK million
Bank loans
Issued bonds
Lease liabilities
Bank loans and
issued bonds,
current
Amounts owed
to subsidiaries
Total
Liabilities at January 1
2,312
7,548
53
6,005
1,411
17,329
Cash flows
-2,312
2,290
-8
-3,262
8
-3,284
Foreign exchange adjustments
-
57
-1
-
-670
-614
New leases and remeasurements
-
-
-15
-
-
-15
Bonds reclassified to current
-
-6,931
-
6,931
-
-
Non-cash interest expenses
-
60
-
-
-
60
Liabilities at December 31, 2023
-
3,024
29
9,674
749
13,476
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
Loans 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
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GN Store Nord
Annual Report 2023
Content
Executive Management
Board of Directors
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GN Store Nord
Annual Report 2023
Content
Report on the audit of the Financial Statements
Independent Auditor’s Reports
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GN Store Nord
Annual Report 2023
Content
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GN Store Nord
Annual Report 2023
Content
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GN Store Nord
Annual Report 2023
Content
CVR no 3377 1231
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GN Store Nord
Annual Report 2023
Content
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
55 and percentage of Women in Senior Management presented on
page 57 in the 2023 annual report of GN Store Nord A/S for the period
1 January – 31 December 2023 (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 for the period 1 January - 31 December 2023 pre-
sented in the 2023 annual report of GN Store Nord A/S are prepared, in
all material respects, in accordance with the applied accounting poli-
cies developed by GN Store Nord A/S as stated on pages 56 and 58 the
“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 2023 for the
period 1 January – 31 December 2023:
• GHG emissions in Scope 1 and 2, location and market based, as
stated on page 55;
• Women in Senior Management as stated on page 57.
We have not provided any assurance on any other ESG data in the
2023 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 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:
• Evaluated the appropriateness of the accounting policies used,
their consistent application and related disclosures
Independent limited assurance report
on
selected ESG data
156/157
GN Store Nord
Annual Report 2023
Content
• 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;
• Performed analytical review and trend explanation of the Sustaina-
bility Information;
• 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 2023 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, 8 February 2024
PricewaterhouseCoopers
Statsautoriseret Revisionspartnerselskab
CVR no 3377 1231
Mads Melgaard
State Authorised Public Accountant
mne34354
Søren Ørjan Jensen
State Authorised Public Accountant
mne33226
157/157
GN Store Nord
Annual Report 2023
Content
Co.reg. no 2 42578 43
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