XCSE:GN ESEF Annual Report
GN STORE NORD A/S (XCSE:GN)
ESEF Annual Report
2024-10-03
For: 2023-03-31
View Original
Added on
September 23, 2026
1 Interim Report Q1 2023
Financial overview Q
1 2023
GN Hearing
GN Audio
DKK million – Q1 2023
Core
Emerging
GN Hearing
Enterprise
Consumer
SteelSeries
GN Audio
Revenue
1,560
62
1,622
1,767
285
540
2,592
Organic growth
14%
46%
15%
-3%
9%
22%
2%
Adj. EBITA**
154
-41
113
181
Adj. EBITA margin **
9.9%
7.0%
7.0%
GN Store Nord*
GN Hearing
GN Audio
DKK million
Q1 2023 Q1 2022 Growth Q1 2023 Q1 2022 Growth Q1 2023 Q1 2022 Growth
Revenue
4,214
3,859
9%
1,622
1,337
21%
2,592
2,522
3%
Organic growth
7%
-21%
15%
2%
2%
-30%
Adj. Gross profit**
2,058
1,952
5%
996
804
24%
1,062
1,148
-7%
Adj. Gross profit margin**
48.8%
50.6%
-1.8%p
61.4%
60.1%
1.3%p
41.0%
45.5%
-4.5%p
Adj. EBITA**
251
264
-5%
113
-41
NA
181
364
NA
Adj. EBITA margin**
6.0%
6.8%
-0.8%p
7.0%
-3.1%
10.1%p
7.0%
14.4%
-7.4%p
Non-recurring items
-78
-266
-60
-29
-18
-219
Adj. Earnings per share (EPS)***
0.66
0.77
-15%
Free cash flow excl. M&A
-578
-557
-21
-132
-175
43
-304
-140
-164
* Including "Other", ** Excluding non-recurring items (DKK -18 million in OPEX in GN Audio, DKK -17 million in COGS in GN Hearing and DKK -43 million in OPEX in GN Hearing),
*** Excluding non-recurring items (DKK -78 million OPEX and COGS) and amortization of acquired intangible assets
Interim Report Q1 2023
GN Store Nord delivered
7% organic revenue growth
driven by
strong market share gains. Full year
guidance
upgraded
GN Store Nord
7%
organic growth
• GN delivered 9% revenue growth, of which 7% was organic revenue growth, leading to revenue of
DKK 4,214 million reflecting strong execution in challenging market conditions
•
Adj. EBITA was DKK 251 million and free cash flow excl. M&A was DKK -578 million driven by non-
recurring items as well as seasonality in cash flow due to, among other, payment of corporate tax
•
New financing plan will be announced in the short-term with the aim to clear the 2024 and 2025
debt maturities
•
The financial guidance on organic revenue growth is upgraded from “-6% to +6%” to “-5% to +7%”
following a stronger than expected start to the year in GN Hearing
GN Hearing
15%
organic growth
•
GN Hearing delivered strong revenue growth of 21%, of which organic revenue growth was 15%,
driven by the launch of the ReSound OMNIA family resulting in significant market share gains
•
Adj. EBITA margin was 9.9% in the Core business driven by traditional seasonality with lower
absolute revenue as well as investments in launch activities to fuel the strong momentum of
ReSound OMNIA.
•
The Emerging business delivered strong organic revenue growth of 46% and EBITA of DKK -41
million, driven by continued investments in growth
•
Free cash flow excl. M&A was DKK -132 million due to traditional seasonality including payment of
corporate tax
•
Following a stronger than expected start to the year, GN Hearing is upgrading its organic revenue
growth guidance from “2% to 8%” to “5% to 10%”. At the same time, the adj. EBITA margin in the
core business is upgraded from “13% to 16%” to “14% to 16%”
GN Audio
2%
organic growth
• GN Audio delivered revenue growth of 3%, of which organic revenue growth was 2%, driven by
continued strong market share gains despite challenging market conditions. Organic revenue
growth was driven by 22% growth in SteelSeries and 9% growth in Consumer, partly offset by a 3%
decline in Enterprise
•
Adj. EBITA margin was 7.0%, negatively impacted by FX, business mix and promotional activities in
the consumer-oriented businesses to reduce inventories in line with the rest of the industry
•
Free cash flow excl. M&A was DKK -304 million reflecting the earnings level and traditional
seasonality including payment of corporate tax, but partly offset by reduction in inventories
• Full year guidance confirmed
2
Q1
Q1
Full year
2023
2022
2022
DKK million
(unaud.)
(unaud.)
(aud.)
GN Hearing
Revenue
1,622
1,337
6,227
Revenue growth
21%
8%
17%
Organic growth
15%
2%
5%
Gross profit margin
60.4%
59.9%
62.7%
EBITA*
53
-70
453
EBITA margin*
3.3%
-5.2%
7.3%
ROIC (EBITA*/Average invested capital)
7%
7%
5%
Free cash flow excl. M&A
-132
-175
-377
Cash conversion (Free cash flow excl. M&A/EBITA*)
NA
NA
-83%
GN Audio
Revenue
2,592
2,522
12,460
Revenue growth
3%
-12%
19%
Organic growth
2%
-30%
-7%
Gross profit margin
41.0%
39.9%
41.9%
EBITA*
163
145
1,299
EBITA margin*
6.3%
5.7%
10.4%
ROIC (EBITA*/Average invested capital)
11%
22%
17%
Free cash flow excl. M&A
-304
-140
-91
Cash conversion (Free cash flow excl. M&A/EBITA*)
NA
NA
-7%
GN Store Nord
Revenue
4,214
3,859
18,687
Revenue growth
9%
-6%
18%
Organic growth
7%
-21%
-3%
Gross profit margin
48.4%
46.8%
48.9%
EBITA*
173
16
1,560
EBITA margin*
4.1%
0.4%
8.3%
Profit (loss) before tax
-56
-227
725
Effective tax rate
23.2%
21.6%
21.4%
ROIC (EBITA*/Average invested capital)
8%
12%
9%
Earnings per share, basic (EPS)
-0.42
-1.50
4.00
Earnings per share, fully diluted (EPS diluted)
-0.42
-1.49
3.99
Free cash flow excl. M&A
-578
-557
-1,291
Cash conversion (Free cash flow excl. M&A/EBITA*)
NA
NA
-83%
Equity ratio
22.2%
21.9%
22.2%
Net interest-bearing debt**
15,275
13,694
14,561
Net interest-bearing debt (period-end)/EBITDA**
7.0
5.9
7.1
Payout ratio
-
-
-
Share buybacks***
-
-
-
Outstanding shares, end of period (thousand)
127,976
127,750
127,973
Average number of outstanding shares (thousand)
127,974
127,723
127,823
Average number of outstanding shares, fully diluted (thousand)
128,122
128,357
128,126
Treasury shares, end of period (thousand)
9,218
10,426
9,220
Share price at the end of the period
153.9
332.7
159.8
Market capitalization
19,696
42,502
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.
** NIBD including Loans to dispensers
*** Incl. buybacks as part of share based incentive programs
Financial highlights
3
Highlights Q1 2023
• GN Hearing delivered strong revenue growth of 21%, of
which organic revenue growth was 15%, driven by the
launch of the ReSound OMNIA family resulting in
significant market share gains
• Adj. EBITA margin was 9.9% in the Core business driven
by traditional seasonality with lower absolute revenue as
well as investments in launch activities to fuel the strong
momentum of ReSound OMNIA
• The Emerging business delivered strong organic revenue
growth of 46% and EBITA of DKK -41 million, driven by
continued investments in growth
• Free cash flow excl. M&A was DKK -132 million due to
traditional seasonality including payment of corporate
tax
• Following a stronger than expected start to the year, GN
Hearing is upgrading its organic revenue growth
guidance from “2% to 8%” to “5% to 10%”. At the same
time, the adj. EBITA margin in the core business is
upgraded from “13% to 16%” to “14% to 16%”
Revenue
Strong revenue growth of 21% as a result of 15% organic
revenue growth, around 2% impact from the development
in foreign exchange rates and around 4% impact from
M&A. The Emerging business delivered 46% organic
revenue growth, while the Core business delivered 14%.
The strong performance was a result of the continued
strong momentum from the complete ReSound OMNIA
family boding well for the rest of the year.
GN Hearing revenue development
North America
In North America, the hearing aid market returned to
positive growth in the quarter. GN Hearing outgrew the
market significantly with 15% organic revenue growth as a
result of strong performance across channels including
strong growth in the online channel with
JabraEnhance.com. The strong performance is a
testimony to the very positive customer reception of the
new ReSound OMNIA family.
In North America overall, revenue growth was 19%
including around 7% impact from the development in
foreign exchange rates and -3% impact from M&A.
Europe
In Europe, the hearing aid market was impacted by current
macroeconomic headwinds especially affecting France
and Germany, while the market growth in Europe as a
whole is estimated to be slightly positive. Despite the
difficult market conditions, GN Hearing performed
strongly with 18% organic revenue growth, with particular
strong growth observed in Southern Europe and the U.K.
In Europe overall, revenue growth was 34% including
around -1% impact from the development in foreign
exchange rates and 17% impact from M&A.
Rest of World
The Rest of World region saw strong market recovery
driven by lift of COVID restrictions in China. Organic
revenue growth in the Rest of World region was 12% with
particular strong performance in China and Japan.
In the Rest of World overall, revenue growth was 11%
including around -1% impact from the development in
foreign exchange rates.
Earnings and other financial highlights
Adj. gross profit reached DKK 996 million in Q1 2023
corresponding to a gross margin of 61.4% compared to
60.1% in Q1 2022. The gross margin is positively impacted
by product mix driven by ReSound OMNIA, but partly
offset by increasing input costs and channel/country mix.
Adj. OPEX increased 4% compared to Q1 2022 due to the
impact of the acquisition of Belaudicao last year as well as
investments into launch activities with the complete
ReSound OMNIA family and inflationary impact on the cost
base. Adj. selling and distribution costs increased by 9%
reflecting Belaudicao and investments in launch costs. Adj.
general and administrative expenses decreased by 6%
compared to Q1 2022, due to prudent cost management,
while investments into R&D increased by 16% driven by
completion of the full ReSound OMNIA family.
GN Hearing’s adj. EBITA was DKK 113 million, with the Core
business delivering adj. EBITA of DKK 154 million, equal to an
EBITA margin of 9.9% compared to 2.0% in Q1 2022. This
was a result of the positive development in gross margin and
GN Hearing
15% organic revenue growth driven by market share gains as a result of the
continued strong momentum
of the ReSound OMNIA family. Financial guidance
upgraded
4
strong operating leverage. The Emerging business delivered
an EBITA of DKK -41 million due to continued investments in
lead generation to drive topline growth. Reported EBITA
amounted to DKK 53 million reflecting non-recurring items
of DKK -60 million.
GN Hearing adj. EBITA development
*Excluding non-recurring items
The return on invested capital (ROIC) was 7% in Q1 2023,
equivalent to Q1 2022, mainly due to the improvement in
EBITA being offset by a slight increase in invested capital.
Free cash flow excl. M&A was DKK -132 million in Q1 2023
compared to DKK -175 million in Q1 2022, mainly driven by
traditional seasonality including payment of corporate tax.
Business highlights
Completing the ReSound OMNIA family
On February 7, 2023, GN Hearing announced the expansion
and completion of the ReSound OMNIA family, providing
more options to address the biggest unmet need for people
with hearing loss: hearing speech in noisy environments. The
expanded portfolio offers a full range of popular styles,
including BTE and custom-made styles as well as GN’s
smallest rechargeable hearing aid yet, the miniRIE.
ReSound OMNIA provides an exceptional 150% improvement
in speech understanding in noise and is the only hearing
solution to simultaneously combine two benefits – narrow
beamforming directionality for hearing in noise and
omnidirectional listening for a natural listening experience
without feeling cut off. All solutions under the ReSound
OMNIA family provides enhanced connectivity, whether users
are streaming phone calls or music to their ears.
Restoring profitability and non-recurring items
As communicated, GN Hearing expects the Core business to
restore profitability to an EBITA margin of more than 20% by
2024, driven by above-market revenue growth and several
operational initiatives primarily related to the supply chain. To
accelerate the initiatives and restore profitability, GN Hearing
will incur DKK ~ -150 million in non-recurring items in 2023.
For Q1 2023, non-recurring items amounted to
DKK -60 million as a result of design for manufacturing
initiatives, simplification of supply chain as well as targeted
redundancies.
GN Hearing non-recurring items
Market development
In Q1 2023, the market grew more-than-expected and in line
with historical growth rates of 4-6% volume growth and -1%
to -2% market ASP decline. GN Hearing is now projecting
markets to grow with similar growth rates for 2023.
Management quote
“We are very pleased to see the great momentum from Q4
2022 continue into 2023 with 15% organic revenue growth
delivered in Q1. Our strong performance is broad based across
regions, and with our new full product line-up of popular styles
in the very successful ReSound OMNIA family, our growth
platform is in place, boding well for the remainder of the year,
why we are also confident in upgrading the guidance for our
full-year.”
Gitte Aabo, CEO of GN Hearing
5
Highlights Q1 2023
• GN Audio delivered revenue growth of 3%, of which
organic revenue growth was 2%, driven by continued
strong market share gains despite challenging market
conditions. Organic revenue growth was driven by 22%
growth in SteelSeries and 9% growth in Consumer, partly
offset by a 3% decline in Enterprise
• Adj. EBITA margin was 7.0%, negatively impacted by FX,
business mix and promotional activities in the consumer-
oriented businesses to reduce inventories in line with the
rest of the industry
• Free cash flow excl. M&A was DKK -304 million reflecting
the earnings level and traditional seasonality including
payment of corporate tax, but partly offset by reduction
in inventories
• Full year guidance confirmed
Revenue
Revenue growth was 3% as a result of 2% organic revenue
growth, a slightly positive impact from the development in
foreign exchange rates, and no impact from M&A. Organic
revenue growth was driven by 22% growth in SteelSeries and
9% growth in Consumer, partly offset by a 3% decline in
Enterprise. The performance in the consumer-oriented
businesses was a result of very strong performance especially
in SteelSeries with strong market share gains as well as
ongoing promotional activities to reduce inventory levels. The
Enterprise business was executing strongly with market share
gains in a challenged market characterized by uncertainty and
buyer hesitancy. Despite the challenged current market
conditions in Enterprise, the realized revenue of DKK 1,767
million was 34% higher than Q1 2020 underpinning a new
sustainable higher base following COVID-19.
GN Audio revenue development
North America
In North America, GN Audio delivered -8% organic revenue
growth due to challenged market conditions across
Enterprise and Consumer primarily driven by continued
buying hesitancy from large corporations due to
continued hybrid working considerations as well as market
uncertainty. SteelSeries managed to take advantage of its
updated product portfolio, particular headset portfolio, to
drive strong growth in the region. Revenue growth was
-6% with no impact from M&A and 2% impact from
development in foreign exchange rates.
Europe
In Europe, GN Audio delivered organic revenue growth of
8% while revenue growth was 7% including around -1%
impact from the development in foreign exchange rates
and no impact from M&A. The strong growth was a result
of positive growth across Enterprise, SteelSeries and
Consumer.
Rest of World
In the Rest of World region, GN Audio delivered 6%
organic revenue growth, and revenue growth was 6% with
no impact from M&A and development in foreign
exchange rates. The growth was positive across
Enterprise, SteelSeries and Consumer.
Earnings and other financial highlights
GN Audio delivered a gross margin of 41.0% in Q1 2023
compared to adj. gross margin of 45.5% in Q1 2022, due
to increased input costs, the impact of development in
foreign exchange rates, business mix as well as ongoing
promotional activities in the consumer-oriented
businesses. Compared to Q4 2022, the gross margin
increased from 39.7% to 41.0% primarily as a result of
price increases in the Enterprise business. Further gross
margin improvements remain a key priority throughout
the year.
During the quarter, GN Audio took significant actions to
continue to manage the cost base, which included a
further rightsizing of the organization to react to
the
market uncertainties. During the last two quarters, GN
Audio has executed layoffs of approximately 10% of the
total number of FTEs.
GN Audio’s adj. EBITA ended at DKK 181 million,
translating into an adjusted EBITA margin of 7.0%,
compared to 14.4% in Q1 2022. The development reflects
the gross margin development, impact of development in
foreign exchange rates, phasing of OPEX costs as well as
inflationary impact.
GN Audio
GN Audio delivered 2% organic revenue growth despite challenged markets. Our
industry leading
product portfolio and strong execution drove
market share gains
in key strategic markets including the Enterprise and gaming gear market
s
6
Reported EBITA was DKK 163 million, reflecting DKK -18
million in non-recurring items.
GN Audio adj. EBITA development
*Excluding non-recurring items
The return on invested capital (ROIC) was 11% compared
to 22% in Q1 2022, driven by the lower EBITA. Free cash
flow excl. M&A was DKK -304 million compared to DKK
-140 million in Q1 2022. The decrease in cash flow was
mainly driven by the lower reported EBITA and tax
payments.
Business highlights
Product launches
GN Audio launched several products that will drive growth
throughout the year and further strengthen the position
across key markets:
• On February 28, 2023, GN Audio announced the Speak2
range, the newest products in Jabra’s market-leading
Speak line-up of professional speakerphones which
includes the Speak2 75, Speak2 55 and the Speak2 40.
The new range features advanced full duplex audio,
creating natural 2-way conversation, as if everyone
speaking was there in person and it is equipped with four
beamforming microphones with innovative background
noise reduction technology
• On March 21, 2023, GN Audio announced the Elite 4, the
latest addition to its unique Elite lineup. The Elite 4
delivers strong benefits in comfort, optimal sound and
convenience, all at an affordable price point
• On March 27, 2023, GN Audio announced the new
additions to the very successful high-end Evolve2
portfolio, including Evolve2 50 Flex, Evolve2 55 and
Evolve2 65 Flex, which delivers maximum flexibility, with
its unique design as well as superior sound quality thanks
to a powerful chipset, advanced digital algorithm, and
beamforming Jabra ClearVoice microphones for the open
office
Taking strong actions in an ever-changing macro-environment
Acknowledging the uncertain environment, GN Audio again in
Q1 2023 took proactive and significant action to reduce the
cost base and defend the agility of the company. For this
purpose, GN Audio booked non-recurring items of DKK -18
million in Q1 2023 related to right-sizing of the organization.
GN Audio non-recurring items
Market development
In Q1 2023, the demand in GN Audio’s core enterprise
markets was challenged by the current buyer hesitancy,
particularly in the U.S. The challenges are expected to
continue during 2023 as earlier anticipated. However, the
long-term drivers are fully intact driven by flexible working,
significant uptake of Unified Communications platforms and
other attractive megatrends. For the coming years, GN Audio
expects that the markets will return to its favorable trends
and that the overall addressable market will grow at around
10% in value when assuming a stable macro environment.
Management quote
“As expected, we continued to face challenging market
conditions in Q1. In this environment our teams have executed
strongly resulting in market share gains, and consequently all
three business lines delivered organic revenue growth above
our expectations. I’m especially pleased to see SteelSeries
continuing to outperform the market growing 22%,
showcasing the strength of our premium gaming portfolio. To
further strengthen the resilience of GN Audio and weather the
challenging market conditions, we executed a series of cost
reduction initiatives during Q1 to protect our margins and
improve future cash flow.”
Peter Karlstromer, CEO of GN Audio
7
Highlights Q1 2023
• GN delivered 9% revenue growth, of which 7% was
organic revenue growth, leading to revenue of DKK 4,214
million reflecting strong execution in challenging market
conditions
• Adj. EBITA was DKK 251 million and free cash flow excl.
M&A was DKK -578 million driven by non-recurring items
as well as seasonality in cash flow due to, among other,
payment of corporate tax
• New financing plan will be announced in the short-term
with the aim to clear the 2024 and 2025 debt maturities
• The financial guidance on organic revenue growth is
upgraded from “-6% to +6%” to “-5% to +7%” following a
stronger than expected start to the year in GN Hearing
Revenue
GN delivered 9% revenue growth, of which 7% was organic
revenue growth, around 1% impact from M&A and around
1% impact from the development in foreign exchange rates.
GN Store Nord revenue development
Earnings and other financial highlights
EBITA in Other amounted to DKK -43 million, compared to
DKK -59 million in Q1 2022 driven by timing effects. GN Store
Nord’s adj. EBITA was DKK 251 million compared to DKK 264
million in Q1 2022, primarily driven by increased input costs,
the impact from development from foreign exchange rates as
well as ongoing promotional activities in the consumer
orientated businesses. This corresponds to an adj. EBITA
margin of 6.0% in Q1 2023 compared to 6.8% in Q1 2022.
Reported EBITA was DKK 173 million, reflecting non-
recurring items of DKK -78 million due to initiatives to restore
profitability across GN Hearing and GN Audio.
GN Store Nord adj. EBITA development
*Excluding non-recurring items
Amortization of acquired intangible assets amounted to DKK
-102 million compared to DKK -103 million. Financial items
were DKK -125 million in the quarter compared to DKK -156
million in Q1 2022. Financial items were impacted by
underwriting and up-front fees related to the cancelled rights
offering on top of run-rate financial items. Share of profit
(loss) in associates was DKK -1 million compared to DKK 17
million in Q1 2022.
The adj. profit before tax was DKK 22 million (reported profit
before tax was DKK -56 million) compared to DKK 39 million
in Q1 2022. The effective tax rate was 23.2% compared to
21.6% in Q1 2022 due to a previous R&D tax relief scheme in
Denmark not expected to be prolonged. Adj. net profit was
DKK 17 million in Q1 2023 (reported net profit of DKK -43
million) compared to DKK 31 million in Q1 2022.
Free cash flow excl. M&A was DKK -578 million compared to
DKK -557 million in Q1 2022, mainly driven by slightly higher
financial items and corporate tax payments.
Adj. earnings per share (Adj. EPS),
was DKK 0.66 in Q1 2023
compared to DKK 0.77 in Q1 2022.
GN Store Nord adj. EPS development
*Excluding non-recurring items and amortization of acquired intangible assets
By the end of Q1 2023, equity in GN Store Nord amounted to
DKK 6,630 million compared to DKK 6,016 million in Q1
2022. The increase was driven by the net profits for the
period.
GN Store Nord
8
Capital structure
Net interest-bearing debt ended at DKK 15,275 million in Q1
2023 compared to DKK 14,561 million by the end of 2022,
mainly driven by the negative free cash flow. As a result, the
adj. leverage ended at 5.8x. Reported leverage ratio was 7.0x
reflecting the DKK -436 million non-recurring items in the last
four quarters. By the end of Q1 2023, GN had cash and cash
equivalents of DKK 676 million.
Strategy execution
GN continues to execute on its current strategy built on 150
years of technology-driven enhancement of vital human
senses with the underlying philosophy of bringing people
closer. This entails further realization of the synergies that
can be derived from a one-company mindset with hearing,
audio, and gaming technologies, competencies, channels, and
support functions in one efficient and lean organization. The
operational initiatives to drive further synergies are currently
centered around 4 main levers:
1) Innovation and technology
Further utilizing the ability to share deep and complex
technology between GN’s diversified R&D organizations as
technologies are expected to continue to converge. The
emerging OTC market is just one example, where GN is
benefitting from both audio and hearing technologies to
develop Jabra Enhance Plus. As AI and other critical
technologies continue to converge, GN’s broad range of R&D
expertise and combined scale will gain increasing importance
as a competitive advantage.
2) Go-to-market
Further utilizing benefits of shared go-to-market models and
channel overlap. Most recently, SteelSeries’ and Jabra’s Retail
Sales & Marketing organizations were merged into one team
under the leadership of SteelSeries’ CEO to leverage the
combined scale and increase relevance and strategic
importance with key retailers and distributors. This part of the
integration was initiated in Q4 2022 and is currently being
completed.
3) Operations and supply chain
Further utilizing efficiencies and driving down product related
costs as a result of one shared operations and supply chain
organization. In April 2023, GN Hearing’s and GN Audio’s two
Global Operations organizations were merged into one team
to further leverage both structural and operational synergies
within sourcing, manufacturing, and distribution. The scale
and magnitude of products handled by this single
organization will be significantly larger than the volumes of
the entire hearing aid industry.
4) Back-office, support services, and new ERP
Further utilizing know-how and company scale across GN's
operating assets to drive synergies across back-office
functions including shared IT, HR etc. Currently, a first phase
of a new cloud-based ERP system has gone live as a common
system to ultimately encompass audio, hearing, SteelSeries
and group functions.
GN has focused on driving company-wide synergies in recent
years, and believe that the development in converging
technologies and the changes in market trends warrant a
significant potential for harvesting further synergies and
advantages with GN’s business model. The Board and
Management are confident in GN’s strategy, our markets, and
our ability to execute and continue to gain market share
which we believe will create significant value for shareholders
in the coming years.
New debt financing plan to be announced
The Group has ample liquidity until the current convertible
bond matures in May 2024 and the focus is, therefore, on
ensuring we can meet our debt obligations. Following an
ongoing dialogue with investors, focus for the capital
structure is to clear the debt maturities in 2024 and 2025,
including repayment of the approximately DKK 7 billion debt
maturing in 2024. The following building blocks will be
carefully considered as part of a new financing plan, which
will be announced in the short term:
• Strong operational focus on cash flow
• Disposals of selected assets
• Debt and/or equity opportunities
Currently, GN has a positive ongoing dialogue with its core
banking group to explore further opportunities for funding.
The long-term leverage target of 1-2x was confirmed in
February 2023, but the pace of deleveraging is anticipated to
be slower than originally planned, while financial items are
expected to significantly increase due to the withdrawal of
the proposed rights offering. The new plan will aim to strike
the right balance between current market challenges and
future significant growth opportunities, allowing GN to
execute on both short- and long-term market share
opportunities.
Foreign exchange exposure
GN has hedged a substantial part of the expected net cash-
flow in foreign currencies to secure the EBITA contribution of
the material trading currencies for the next 12 months across
both GN Hearing and GN Audio.
9
Financial guidance 2023
Organic revenue growth
Adjusted EBITA margin
2)
Non-recurring items (DKK
million)
GN Hearing
5% to 10%
- Core Business
14% to 16%
~ -150
- Emerging Business
1)
(DKK million)
~ -150
GN Audio
-10% to +5%
10% to 15%
~ -150
Other (DKK million)
~ -200
GN Store Nord
-5% to +7%
~ -300
Note 1) Emerging Business mainly includes the JabraEnhance.com (formerly Lively)
Note 2) Excluding non-recurring items
Based on foreign exchange rates as of April 26, 2023
Primary risk factors in relation to the financial guidance
The basic assumptions behind the guidance remain more uncertain than normal. Primary risk factors include inflationary
pressures, consumer sentiment and general economic uncertainty. GN’s supply chains, including component sourcing and
local and geopolitical instability and deteriorating trade relations may impact key suppliers and GN’s operations.
Financial guidance
2023
(Financial guidance upgraded on April 26, 2023)
Forward-looking statements
The forward-looking statements in this report reflect the management's current expectations of certain future events
and financial results. Statements regarding the future are, naturally, subject to risks and uncertainties, which may result
in considerable deviations from the outlook set forth. Furthermore, some of these expectations are based on
assumptions regarding future events, which may prove incorrect. Changes to such expectation and assumptions will not
be disclosed on an ongoing basis, unless required pursuant to general disclosure obligations to which GN is subject.
Factors that may cause actual results to deviate materially from expectations include – but are not limited to – general
economic developments and developments in the financial markets, technological developments, changes and
amendments to legislation and regulations governing GN’s markets, changes in the demand for GN's products,
competition, fluctuations in sub-contractor supplies and developments in ongoing litigation (including but not limited to
class action and patent infringement litigation in the United States).
Due to the COVID-19 situation – which impacts the company in many different ways – it must be stressed that the basic
assumptions behind the guidance remain significantly more uncertain than normal.
10
Teleconference
GN will host a teleconference at 11.00 am CEST on April 27,
2023. Please visit www.gn.com to access the teleconference.
Presentation material will be available on the website
approximately one hour prior to the start of the
teleconference.
Financial calendar 2023
Interim Report Q2 2023: August 17, 2023
Interim Report Q3 2023: November 10, 2023
Forward-looking statements
The forward-looking statements in this report reflect the
management's current expectations of certain future events
and financial results. Statements regarding the future are,
naturally, subject to risks and uncertainties, which may result
in considerable deviations from the outlook set forth.
Furthermore, some of these expectations are based on
assumptions regarding future events, which may prove
incorrect. Changes to such expectation and assumptions will
not be disclosed on an ongoing basis, unless required
pursuant to general disclosure obligations to which GN is
subject.
Factors that may cause actual results to deviate materially
from expectations include – but are not limited to – general
economic developments and developments in the financial
markets, technological developments, changes and
amendments to legislation and regulations governing GN’s
markets, changes in the demand for GN's products,
competition, fluctuations in sub-contractor supplies and
developments in ongoing litigation (including but not limited
to class action and patent infringement litigation in the
United States).
The information on the upgraded guidance constitutes inside
information.
For further information please contact:
Anne Sofie Staunsbæk Veyhe
Vice President, Investor Relations, Treasury and M&A
GN Store Nord A/S
Email: asveyhe@gn.com
Tel: +45 45 75 85 06
Rune Sandager
Senior Director, Investor Relations
GN Store Nord A/S
Email: [email protected]
Tel: +45 45 75 92 57
GN Store Nord A/S
Lautrupbjerg 7
2750 Ballerup
Denmark
Company reg. no. 24257843
Additional information
11
Note 1 – Accounting policies 18
Note 2 – Segment disclosures Q1 2023 19
Note 3 – Incentive plans 21
Note 4 – Shareholdings 21
Content
Financial
statements
Financial statements
Quarterly reporting by segment
12
Regional grow
th composition Q1 2023 13
Consolidated income statement
14
Consolidated statement of comprehensive income
14
Consolidated balance sheet
15
Consolidated statement of cash flow
16
Consolidated statement o
f equity 17
Notes
12
Quarterly reporting by segment
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Q1 2023
Full year 2022
DKK million
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(aud.)
Income statement
Revenue
GN Hearing
1,337
1,529
1,554
1,807
1,622
6,227
GN Audio
2,522
3,328
3,147
3,463
2,592
12,460
Total
3,859
4,857
4,701
5,270
4,214
18,687
Organic growth
GN Hearing
2%
4%
0%
14%
15%
5%
GN Audio
-30%
10%
-2%
-3%
2%
-7%
Total
-21%
8%
-1%
3%
7%
-3%
Gross profit
GN Hearing
801
924
988
1,194
979
3,907
GN Audio
1,006
1,502
1,341
1,376
1,062
5,225
Total
1,807
2,426
2,329
2,570
2,041
9,132
Gross profit margin
GN Hearing
59.9%
60.4%
63.6%
66.1%
60.4%
62.7%
GN Audio
39.9%
45.1%
42.6%
39.7%
41.0%
41.9%
Total
46.8%
49.9%
49.5%
48.8%
48.4%
48.9%
Development costs
GN Hearing
-138
-142
-146
-124
-166
-550
GN Audio
-189
-166
-188
-238
-188
-781
Other *
-21
-16
-10
-27
-13
-74
Total
-348
-324
-344
-389
-367
-1,405
Selling and distribution costs and administrative expenses etc.
GN Hearing
-733
-776
-761
-634
-760
-2,904
GN Audio
-672
-804
-713
-956
-711
-3,145
Other *
-38
-23
-22
-35
-30
-118
Total
-1,443
-1,603
-1,496
-1,625
-1,501
-6,167
EBITA
GN Hearing
-70
6
81
436
53
453
GN Audio
145
532
440
182
163
1,299
Other *
-59
-39
-32
-62
-43
-192
Total
16
499
489
556
173
1,560
EBITA margin
GN Hearing
-5.2%
0.4%
5.2%
24.1%
3.3%
7.3%
GN Audio
5.7%
16.0%
14.0%
5.3%
6.3%
10.4%
Total
0.4%
10.3%
10.4%
10.6%
4.1%
8.3%
Depreciation and software amortization
GN Hearing
-38
-41
-42
-41
-42
-162
GN Audio
-45
-48
-54
-47
-46
-194
Other *
-35
-37
-36
-21
-21
-129
Total
-118
-126
-132
-109
-109
-485
EBITDA
GN Hearing
-32
47
123
477
95
615
GN Audio
190
580
494
229
209
1,493
Other *
-24
-2
4
-41
-22
-63
Total
134
625
621
665
282
2,045
EBITA
16
499
489
556
173
1,560
Amortization and impairment of acquired intangible assets
-103
-96
-125
-116
-102
-440
Gain (loss) on divestment of operations etc.
-1
-6
-
-2
-1
-9
Operating profit (loss)
-88
397
364
438
70
1,111
Share of profit (loss) in associates
17
5
-1
-2
-1
19
Financial items
-156
-77
-90
-82
-125
-405
Profit (loss) before tax
-227
325
273
354
-56
725
Tax on profit (loss)
49
-70
-58
-76
13
-155
Profit (loss)
-178
255
215
278
-43
570
Balance sheet
Inventories
GN Hearing
770
816
892
850
842
850
GN Audio
2,012
2,282
2,968
2,666
2,506
2,666
Total
2,782
3,098
3,860
3,516
3,348
3,516
Trade receivables
GN Hearing
1,144
1,262
1,266
1,442
1,446
1,442
GN Audio
1,975
2,890
2,729
2,589
2,314
2,589
Other *
2
2
-
-
-
-
Total
3,121
4,154
3,995
4,031
3,760
4,031
Net working capital
GN Hearing
1,036
1,078
1,052
1,323
1,380
1,323
GN Audio
1,646
2,021
2,145
1,937
2,222
1,937
Other *
-165
-319
-259
-151
-43
-151
Total
2,517
2,780
2,938
3,109
3,559
3,109
Free cash flow excl. M&A
GN Hearing
-175
-326
60
64
-132
-377
GN Audio
-140
49
21
-21
-304
-91
Other *
-242
-135
-298
-148
-142
-823
Total
-557
-412
-217
-105
-578
-1,291
Acquisitions and divestments of companies
-7,037
-216
-15
11
-36
-7,257
Free cash flow
-7,594
-628
-232
-94
-614
-8,548
* "Other" comprises Group Functions, GN Ejendomme and eliminations.
13
Regional growth composition Q1 2023
GN Hearing
GN Audio
Consolidated total
Q1
Q1
Q1
Q1
Q1
Q1
2023
2022
2023
2022
2023
2022
(DKK million)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
Europe - revenue
496
369
1,311
1,223
1,807
1,592
Organic growth
18%
2%
8%
-36%
10%
-29%
FX growth
-1%
2%
-1%
1%
-1%
1%
M&A growth
17%
0%
0%
8%
5%
7%
Revenue growth
34%
4%
7%
-28%
14%
-22%
North America - revenue
762
641
740
791
1,502
1,432
Organic growth
15%
1%
-8%
-26%
2%
-14%
FX growth
7%
8%
2%
6%
4%
7%
M&A growth
-3%
3%
0%
28%
-1%
17%
Revenue growth
19%
12%
-6%
8%
5%
10%
Rest of World - revenue
364
327
541
508
905
835
Organic growth
12%
3%
6%
-14%
8%
-7%
FX growth
-1%
3%
0%
5%
0%
3%
M&A growth
0%
0%
0%
23%
0%
14%
Revenue growth
11%
6%
6%
14%
8%
10%
Total revenue
1,622
1,337
2,592
2,522
4,214
3,859
Organic growth
15%
2%
2%
-30%
7%
-21%
FX growth
2%
5%
1%
2%
1%
3%
M&A growth
4%
1%
0%
16%
1%
12%
Revenue growth
21%
8%
3%
-12%
9%
-6%
14
Consolidated income statement
Q1 2023
Q1 2022
Full Year
2022
(DKK million)
(unaud.)
(unaud.)
(aud.)
Revenue
Production costs
-2,173
-2,052
-9,555
Gross profit
Development costs
-367
-348
-1,405
Selling and distribution costs
-1,125
-1,017
-4,563
Management and administrative expenses
-376
-422
-1,587
Other operating income and costs, net
-4
-17
EBITA*
Amortization and impairment of acquired intangible assets
-102
-103
-440
Gain (loss) on divestment of operations etc.
-1
-1
-9
Operating profit (loss)
-88
Share of profit (loss) in associates
-1
Financial items
-125
-156
-405
Profit (loss) before tax
-56
-227
Tax on profit (loss)
-155
Profit (loss) for the period
-43
-178
Attributable to:
Non-controlling interests
Shareholders in GN Store Nord A/S
-54
-191
Earnings per share (EPS):
Earnings per share (EPS)
-0.42
-1.50
Earnings per share, fully diluted (EPS diluted)
-0.42
-1.49
* Excluding gain (loss) on divestments of operations etc. and amortization of acquired intangible assets but including amortization of development projects and software developed in-house.
Consolidated statement of comprehensive income
Q1 2023
Q1 2022
Full Year
2022
(DKK million)
(unaud.)
(unaud.)
(aud.)
Profit (loss) for the period
-43
-178
Other comprehensive income
Items that will not be reclassified to profit or loss
Actuarial gains (losses)
Tax relating to actuarial gains (losses)
-2
Items that may be reclassified subsequently to profit or loss
Adjustment of cash flow hedges
-7
-73
Foreign exchange adjustments, etc.
-108
Tax relating to other comprehensive income
Other comprehensive income for the period
-105
Total comprehensive income for the period
-148
-63
Attributable to:
Non-controlling interests
Shareholders in GN Store Nord A/S
-159
-76
15
Consolidated balance sheet
Mar. 31 2023
Dec. 31 2022
Sep. 30 2022
Jun. 30 2022
Mar. 31 2022
(DKK million)
(unaud.)
(aud.)
(unaud.)
(unaud.)
(unaud.)
Assets
Intangible assets
Property, plant and equipment
Investments in associates
Deferred tax assets
Other non-current assets
Total non-current assets
Inventories
Trade receivables
Tax receivables
Other receivables
Cash and cash equivalents
Total current assets
Total assets
Equity and liabilities
Equity
Bank loans and issued bonds, non-current
Lease liabilities, non-current
Pension obligations
Provisions, non-current
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities
Bank loans and issued bonds, current
Lease liabilities, current
Trade payables
Tax payables
Provisions, current
Other current liabilities
Total current liabilities
Total equity and liabilities
16
Consolidated statement of cash flow
Q1 2023
Q1 2022
Full Year
2022
(DKK million)
(unaud.)
(unaud.)
(aud.)
Operating activities
Operating profit (loss)
-88
Depreciation, amortization and impairment
Other non-cash adjustments
Cash flow from operating activities before changes in working capital
Changes in working capital
-397
-484
-1,293
Cash flow from operating activities before financial items and tax
-100
Financial items, net
-109
-53
-598
Tax paid, net
-81
-78
-185
Cash flow from operating activities
-141
-231
Investing activities
Development projects
-249
-202
-1,005
Investments in other intangible assets, net
-112
-91
-454
Investments in property, plant and equipment, net
-34
-20
-204
Investments in other non-current assets, net
-42
-13
-255
Company acquisitions
-36
-7,037
-7,257
Cash flow from investing activities
-473
-7,363
-9,175
Cash flow from operating and investing activities (free cash flow)
-614
-7,594
-8,548
Financing activities
Paid dividends
-14
-155
-208
Share-based payment (exercised)
Increase/decrease in bank loans and other adjustments
Cash flow from financing activities
Net cash flow
-310
-5,255
-5,204
Cash and cash equivalents beginning of period
Adjustment foreign currency, cash and cash equivalents
-4
-14
Cash and cash equivalents, end of period
17
Consolidated statement of equity
Other reserves
Q1 2022 (DKK million)
Share
capital*
Foreign
exchange
adjustments
Hedging
reserve
Treasury
shares
Proposed
dividends
for the
year
Retained
earnings
Equity,
shareholders
in GN Store
Nord A/S
Non-
controlling
interests
Total
equity
Balance at December 31, 2021
-1,104
-3,731
Profit (loss) for the period
-191
-191
-178
Adjustment of cash flow hedges
-7
-7
-7
Foreign exchange adjustments, etc.
Other comprehensive income for the period
-7
Total comprehensive income for the period
-7
-191
-76
-63
Share-based payment (granted)
Share based payment (exercised)
-3
Reclassification of
non-controlling interests by
recognizing a put option liability
-13
-10
Paid dividends*
-198
-198
-198
Dividends, treasury shares
-16
Balance at March 31, 2022
-982
-1
-3,723
Q1 2023 (DKK million)
Balance at December 31, 2022
-846
-51
-3,366
Profit (loss) for the period
-54
-54
-43
Adjustment of cash flow hedges
Foreign exchange adjustments, etc.
-108
-108
-108
Other comprehensive income for the period
-108
-105
-105
Total comprehensive income for the period
-108
-54
-159
-148
Transaction costs
-8
-8
-8
Share-based payment (exercised)
-1
Reclassification of non-controlling interests by
recognizing a put option liability
-3
-3
Paid dividends*
-14
-14
Balance at March 31, 2023
-954
-48
-3,365
* shares of DKK 4 each
18
Note 1 – Accounting policies
This interim report has been prepared in accordance with IAS 34 “Interim Financial Reporting” as adopted by the EU and
Danish interim financial reporting requirements for listed companies.
New standards, interpretations and amendments adopted by GN Store Nord
As of January 1, 2023, GN Store Nord adopted all relevant new or revised International Financial Reporting Standards and
IFRIC Interpretations with effective date January 1, 2023, or earlier. The new or revised Standards and Interpretations did not
affect recognition and measurement or result in any material changes to disclosures. Apart from this, the accounting policies
applied are unchanged from those applied in the Annual Report 2022.
19
Note 2 – Segment disclosures Q1 2023
Income stat
ement
GN Hearing
GN Audio
Other**
Consolidated
total
Q1
2023
Q1
2022
Q1
2023
Q1
2022
Q1
2023
Q1
2022
Q1
2023
Q1
2022
(DKK million)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
Revenue
1,622
1,337
2,592
2,522
-
-
4,214
3,859
Production costs
-643
-536
-1,530
-1,516
-
-
-2,173
-2,052
Gross profit
979
801
1,062
1,006
-
-
2,041
1,807
Development costs
-166
-138
-188
-189
-13
-21
-367
-348
Selling and distribution costs
-587
-541
-538
-476
-
-
-1,125
-1,017
Management and administrative expenses
-175
-174
-171
-216
-30
-32
-376
-422
Other operating income and costs, net
2
-18
-2
20
-
-6
-
-4
EBITA*
53
-70
163
145
-43
-59
173
16
Amortization and impairment of acquired intangible assets
-18
-15
-84
-88
-
-
-102
-103
Gain (loss) on divestment of operations etc.
-1
-1
-
-
-
-
-1
-1
Operating profit (loss)
34
-86
79
57
-43
-59
70
-88
Share of profit (loss) in associates
-
17
-1
-
-
-
-1
17
Financial items
-56
-28
-85
-19
16
-109
-125
-156
Profit (loss) before tax
-22
-97
-7
38
-27
-168
-56
-227
Tax on profit (loss)
5
21
2
-8
6
36
13
49
Profit (loss) for the period
-17
-76
-5
30
-21
-132
-43
-178
Cash flow statement
GN Hearing
GN Audio
Other**
Consolidated
total
Q1
2023
Q1
2022
Q1
2023
Q1
2022
Q1
2023
Q1
2022
Q1
2023
Q1
2022
(DKK million)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
Operating activities before changes in working capital
190
75
281
325
-25
-16
446
384
Cash flow from changes in working capital
-41
-63
-297
-313
-59
-108
-397
-484
Cash flow from operating activities excluding financial items and tax
149
12
-16
12
-84
-124
49
-100
Cash flow from investing activities:
Development projects, investment
-100
-91
-148
-111
-1
-
-249
-202
Other investing activities
-103
-38
-22
-7,045
-99
-78
-224
-7,161
Cash flow from operating and investing activities before financial items
and tax
-54
-117
-186
-7,144
-184
-202
-424
-7,463
Tax and financial items
-114
-82
-118
-9
42
-40
-190
-131
Cash flow from operating and investing activities (free cash flow)
-168
-199
-304
-7,153
-142
-242
-614
-7,594
Cash flow from M&A activities
-36
-24
-
-7,013
-
-
-36
-7,037
Free cash flow excl. M&A
-132
-175
-304
-140
-142
-242
-578
-557
Additional information
GN Hearing
GN Audio
Other**
Consolidated
total
Q1
2023
Q1
2022
Q1
2023
Q1
2022
Q1
2023
Q1
2022
Q1
2023
Q1
2022
(DKK million)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
Revenue distributed geographically
Denmark
20
18
43
47
-
-
63
65
Europe
476
351
1,268
1,176
-
-
1,744
1,527
North America
762
641
740
791
-
-
1,502
1,432
Rest of World
364
327
541
508
-
-
905
835
Revenue
1,622
1,337
2,592
2,522
-
-
4,214
3,859
Incurred development costs
-186
-150
-264
-229
-14
-22
-464
-401
Capitalized development costs
100
91
148
111
1
-
249
202
Amortization, impairment and depreciation of development projects***
-80
-79
-72
-71
0
1
-152
-149
Expensed development costs
-166
-138
-188
-189
-13
-21
-367
-348
EBITDA
95
-32
209
190
-22
-24
282
134
Depreciation and software amortization
-42
-38
-46
-45
-21
-35
-109
-118
EBITA*
53
-70
163
145
-43
-59
173
16
EBITA margin
3.3%
-5.2%
6.3%
5.7%
N/A
N/A
4.1%
0.4%
Number of employees, end of period
4,704
4,690
2,607
2,730
356
325
7,667
7,745
* Excluding gain (loss) on divestments of operations etc. and amortization of acquired intangible assets but including amortization of development projects and software developed in-house.
** "Other" comprises Group Shared Services, GN Ejendomme and eliminations
*** Does not include amortization of acquired intangible assets, cf. definition of EBITA
20
Note 2 – Segment disclosures Q1 2023 (Continued)
Balance sheet
GN Hearing
GN Audio
Other*
Consolidated
total
Mar. 31
Mar. 31
Mar. 31
Mar. 31
Mar. 31
Mar. 31
Mar. 31
Mar. 31
2023
2022
2023
2022
2023
2022
2023
2022
(DKK million)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
ASSETS
Goodwill
4,637
4,256
6,842
6,615
-
-
11,479
10,871
Development projects
1,116
1,026
1,057
859
-1
-7
2,172
1,878
Other intangible assets
443
274
2,469
2,707
985
633
3,897
3,614
Property, plant and equipment
388
463
363
411
447
455
1,198
1,329
Investments in associates
271
133
11
13
33
34
315
180
Deferred tax assets
417
376
157
46
-93
-77
481
345
Loans to dispensers and ownership interests
1,108
979
-
-
4
-
1,112
979
Other financial assets
516
442
8
2
-
-
524
444
Total non-current assets
8,896
7,949
10,907
10,653
1,375
1,038
21,178
19,640
Inventories
842
770
2,506
2,012
-
-
3,348
2,782
Trade receivables
1,446
1,144
2,314
1,975
-
2
3,760
3,121
Receivables from group companies**
-
-
-
-
-
-
-
-
Tax receivables
67
89
109
132
-68
-53
108
168
Other receivables
402
344
328
401
107
104
837
849
Cash and cash equivalents
233
180
307
292
136
487
676
959
Total current assets
2,990
2,527
5,564
4,812
175
540
8,729
7,879
Total assets
11,886
10,476
16,471
15,465
1,550
1,578
29,907
27,519
EQUITY AND LIABILITIES
Equity
5,430
5,957
4,693
5,177
-3,493
-5,118
6,630
6,016
Bank loans and issued bonds, non-current
-
-
5
20
12,137
10,655
12,142
10,675
Lease liabilities, non-current
154
182
53
72
46
48
253
302
Pension obligations
-
-
8
7
-
-
8
7
Provisions, non-current
78
73
58
105
4
4
140
182
Deferred tax liabilities
344
268
611
655
-41
-50
914
873
Other non-current liabilities
414
453
388
260
-
2
802
715
Total non-current liabilities
990
976
1,123
1,119
12,146
10,659
14,259
12,754
Bank loans and issued bonds, current
-
1
-
10
4,181
4,061
4,181
4,072
Lease liabilities, current
55
79
37
45
3
13
95
137
Trade payables
257
271
850
899
59
59
1,166
1,229
Amounts owed to group companies**
3,889
2,081
7,355
6,103
-11,244
-8,184
-
-
Tax payables
64
25
260
141
-193
-124
131
42
Provisions, current
148
135
77
128
-
-
225
263
Other current liabilities
1,053
951
2,076
1,843
91
212
3,220
3,006
Total current liabilities
5,466
3,543
10,655
9,169
-7,103
-3,963
9,018
8,749
Total equity and liabilities
11,886
10,476
16,471
15,465
1,550
1,578
29,907
27,519
Invested capital***
8,846
7,826
12,818
12,005
1,388
912
23,052
20,743
Average invested capital
8,336
7,203
12,412
7,343
1,150
761
21,898
15,307
* "Other" comprises Group Shared Services, GN Ejendomme and eliminations
** Net amount
***
Includes Net working capital (Inventories, Trade receivables, Other receivables, Trade payables and Other current liabilities), Goodwill, Development projects, Other intangible assets,
Property, plant and equipment, Loans to dispensers and ownership interests and Provisions
21
Note 3 – Incentive plans
As of March 31, 2023, the total number of outstanding warrants in GN Hearing was 822 (0.1% of the shares issued in GN
Hearing). The total number of outstanding warrants in GN Audio was 807 (0.2% of the shares issued in GN Audio). The total
number of outstanding options in GN Store Nord is 4,002,588 (2.9% of the shares issued in GN Store Nord)
Note 4 – Shareholdings
On March 31, 2023, members of the board of directors and the executive management, respectively, own 31,242 and 25,991
shares in GN Store Nord.
On March 31, 2023, GN owns 9,217,789 treasury shares, equivalent to 6.7% of the 137,193,378 shares issued.
The GN stock is 100% free float, and the company has no dominant shareholders. William Demant Invest A/S has reported an
ownership interest in excess of 10%, while Norges Bank has reported an ownership interest in excess of 5% of GN’s share
capital. Foreign ownership of GN is estimated to be around 70%.
22
April 26, 2023
Executive Management
Board of Directors
23
Co.reg. no 24257843