Published: 2013-02-21 08:05:52 CET
GN Store Nord A/S
Annual report/ annual accounts

Annual Report 2012 – Strong innovation drives topline growth, well on track to deliver on financial targets for 2013

Copenhagen, 2013-02-21 08:05 CET (GLOBE NEWSWIRE) -- 2012 was a strong year for GN Store Nord. As guided, GN Store Nord delivered improvements in profitability and solid topline growth through breakthrough products, improved commercialization capabilities and the SMART restructuring program in GN ReSound. The revenue and EBITA for 2012 ended in the guidance range set at the beginning of the year in the annual report for 2011 and represent another solid step towards achieving the financial targets set for 2013.

In November 2010, GN Store Nord announced financial targets for 2013. GN Store Nord set out to deliver a significant improvement in earnings and a doubling of the EBITA margin from around 9% in 2010 to “around 19%” in 2013. In addition, GN Store Nord targeted an increase in revenue from DKK 5.1 billion in 2010 to “more than DKK 6.3 billion” in 2013. GN Store Nord is pleased to confirm the target of doubling the EBITA margin in 2013 compared to around 9% in 2010. Based on the strong technological position and the recent product development track record, GN Store Nord expects to exceed the revenue target and reach DKK 6.55 - 6.70 billion in 2013 - corresponding to DKK 150 - 300 million above the target. 

In 2012, GN Store Nord’s revenue was DKK 6,251 million and overall organic growth was 6%, thereby exceeding the updated growth guidance announced in the Interim Report Q3 2012 of “4 - 5%” organic growth. The organic growth in GN ReSound was 6% for the year, exceeding the updated guidance of “3-5%”, and the organic growth in GN Netcom was 7%, also exceeding the updated guidance of “around 5%”. The consolidated EBITA ended at DKK 846 million (excluding SMART restructuring costs) representing improvements in EBITA of 29% in GN ReSound and 17% in GN Netcom compared to 2011.

 

Q4 results

  • Total GN Store Nord revenue was DKK 1,764 million and organic growth was 9%
     
  • Consolidated EBITA was DKK 301 million (excluding SMART restructuring costs of DKK 85 million) compared to DKK 878 million in Q4 2011 (including TPSA income of DKK 731 million)
     
  • The free cash flow excluding acquisitions was DKK (349) million (impacted by a tax payment of DKK (546) million related to the TPSA income)
     
  • Revenue in GN ReSound was DKK 1,093 million and organic growth was 10%. GN ReSound’s EBITA was DKK 212 million excluding SMART restructuring costs, up from DKK 193 million in Q4 2011
     
  • Revenue in GN Netcom was DKK 671 million and organic growth was 7%. GN Netcom’s EBITA was DKK 115 million, compared to DKK 110 million in Q4 2011

 

Full year results

  • Total GN Store Nord revenue was DKK 6,251 million representing organic growth of 6% compared to 9% in 2011. GN ReSound’s organic growth ended at 6% for the year while GN Netcom achieved organic growth of 7%
     
  • The gross margin improved from 59.0% in 2011 to 59.7% in 2012
     
  • The consolidated EBITA ended at DKK 846 million (excluding SMART restructuring costs of DKK 230 million) compared to DKK 1,284 million in 2011 (including TPSA income of DKK 731 million). GN ReSound contributed to EBITA with DKK 551 million excluding restructuring costs, and GN Netcom contributed with DKK 362 million to EBITA
     
  • Net profit ended at DKK 321 million. The effective tax rate was 30%
     
  • The free cash flow excluding acquisitions was DKK 2,719 million in 2012 compared to DKK 216 million in 2011
     
  • Net interest-bearing debt ended at DKK 230 million (DKK 1,269 million on December 31, 2011)

 

Additional highlights

  • In 2012, GN Store Nord repurchased shares for an amount of DKK 1,550 million. The number of shares repurchased as part of the share buyback programs was 23,140,355 corresponding to 11.9% of the share capital
     
  • Reflecting the capital structure policy and the continued improvement in the business fundamentals and financial results, GN Store Nord initiates a new DKK 300 million share buyback program today, February 21, 2013. The program will be concluded no later than December 31, 2013
     
  • At the annual general meeting to be held in March 2013, the Board of Directors will propose to the shareholders that a dividend of 17% of the net result, excluding SMART restructuring costs, equivalent to DKK 94 million or DKK 0.49 per share will be paid out to shareholders on March 27, 2013 in respect of the financial year 2012

 

Outlook 2013

In 2013, GN Store Nord expects overall organic growth in the range of 9 - 12 % and EBITA excluding SMART restructuring costs is expected to increase by around 40 - 50% from DKK 846 million in 2012 to DKK 1,190 -1,280 million in 2013. SMART restructuring costs are expected to amount to “around DKK 100 million” in 2013 as previously communicated.


Revenue

  • GN ReSound: 4 - 6% organic growth
     
  • GN Netcom: 17 - 20% organic growth
     
  • GN Store Nord total: 9 - 12% organic growth

 

EBITA

  • GN ReSound: DKK 775 - 825 million (excluding SMART restructuring costs of around DKK 100 million)
     
  • GN Netcom: DKK 450 - 500 million
     
  • Other: DKK (35) - (45) million
     
  • GN Store Nord total: DKK 1,190 - 1,280 million (excluding SMART restructuring costs of around DKK 100 million)
     
  • Amortizations of other intangible assets are expected to amount to DKK (25) - (30) million, and financial items are expected to amount to DKK (25) - (45) million

 

Q4 2012 Segment Disclosures

The segment disclosures for Q4 2012 are included as an attachment to this company announcement.

 

Teleconference

A teleconference will be held on February 21, 2013 at 11.00 a.m. CET. Please see www.gn.com for dial-in details.

 

For further information, please contact:

Michael Bjergby
Director – IR, Communications, CSR & Treasury
GN Store Nord A/S
Tel: +45 45 75 02 92

 


Segment disclosure Q4 2012.pdf
GN Store Nord AS Annual Report 2012.pdf