Company Announcements

Highlights

• GN delivered continued execution across the three divisions resulting in 5% organic revenue growth for the Group
• The Hearing division delivered continued market share gains leading to 14% organic revenue growth, resulting in 8.2 percentage point increase in the divisional profit margin supported by synergies and a successful ReSound Nexia roll-out
• The Enterprise division continued its relentless commercial execution in a stabilizing market leading to 0% organic revenue growth. The divisional profit margin increased by 5.7 percentage points driven by easing freight costs, synergies, product mix, and strict cost control
• The Gaming & Consumer division delivered organic revenue growth of 0% due to a demanding comparison base from Q1 2023. The divisional profit margin increased by 3.8 percentage points driven by easing freight costs, synergies, and less promotional activity, while investing in sales and marketing
• Group EBITA grew 114% to DKK 538 million, equal to an EBITA margin of 12.5%, which was an improvement of 6.5 percentage points compared to adj. EBITA in Q1 2023, driven by improved divisional profits, tightly managed R&D and general admin costs. EBITA was supported by total One-GN synergies of DKK ~90 million realized in the quarter
• Free cash flow excl. M&A ended at DKK 46 million compared to DKK -578 million in Q1 2023 primarily driven by a significant increase in operating cash flow. As a consequence of the strong margin expansion and stable development in net interest-bearing debt, the adj. leverage decreased from 4.5x in Q4 2023 to 4.0x in Q1 2024
• The full year guidance is confirmed

Financial guidance for 2024

	Organic revenue growth	EBITA margin	Free cash flow excl. M&A (DKK million)
GN Store Nord	2% to 8%	12% to 14%	>700

Quotes from Executive Management
Peter Karlstromer, CEO of GN Store Nord, comments: “The results in Q1 2024 demonstrates that we are on track with the transformation of GN and delivering the business performance and value creation we have promised. Our Hearing division continues its great momentum supporting existing and new customers, and we are pleased to continue to gain share. Our Enterprise division has executed well based on our industry-leading product portfolio and strong position in a stabilizing market. In Gaming & Consumer we were up against difficult comparison numbers from last year and, still, we delivered revenue on par with last year, which was in line with how we planned. Across the Group we see strong improvement in profitability. So, over-all, we are moving in the right direction.”

Financial overview Q1 2024

	GN Store Nord			Hearing division			Enterprise division			Gaming & Consumer division
DKK million	Q1 2024	Q1 2023	Growth	Q1 2024	Q1 2023	Growth	Q1 2024	Q1 2023	Growth	Q1 2024	Q1 2023	Growth
Revenue	4,303	4,214	2%	1,737	1,622	7%	1,751	1,767	-1%	815	825	-1%
Organic growth	5%	7%		14%	15%		0%	-3%		0%	17%
Gross profit*	2,275	2,058	11%	1,089	996	9%	963	883	9%	223	179	25%
Gross profit margin*	52.9%	48.8%	4.1%p	62.7%	61.4%	1.3%p	55.0%	50.0%	5.0%p	27.4%	21.7%	5.7%p
Divisional profit*	1,249	951	31%	599	427	40%	613	518	18%	37	6	517%
Divisional profit margin*	29.0%	22.6%	6.4%p	34.5%	26.3%	8.2%p	35.0%	29.3%	5.7%p	4.5%	0.7%	3.8%p
EBITA*	538	251	114%
EBITA margin*	12.5%	6.0%	6.5%p
Free cash flow excl. M&A	46	-578	624

*Excluding non-recurring items in Q1 2023

Teleconference
GN Store Nord will host a teleconference at 11.00 a.m. CET on May 2, 2024. Please visit www.gn.com/investor to access the teleconference. Presentation material will be available on the website prior to the start of the teleconference.

For further information, please contact:

Investor Relations
Rune Sandager +45 45 75 92 57


Media Relations
Steen Frentz Laursen +45 20 65 34 20

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 expectations 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 the Annual Report. This Report should not be considered an offer to sell securities in GN.

About GN
GN brings people closer through our leading intelligent hearing, audio, video, and gaming solutions. Inspired by people and driven by innovation, we deliver technologies that enhance the senses of hearing and sight. We help people with hearing loss overcome real-life challenges, improve communication and collaboration for businesses, and provide great experiences for audio and gaming enthusiasts. GN was founded more than 150 years ago with a vision to connect the world. Today, inspired by our strong heritage, GN touches more lives than ever with our unique expertise and the broadest portfolio of products and services in our history – bringing people closer to what is important to them.

We market our solutions with the brands Jabra, ReSound, SteelSeries, Beltone, Interton, BlueParrott, Danavox, and FalCom in 100 countries. Founded in 1869, GN Group employs more than 7,000 people and is listed on Nasdaq Copenhagen (GN.CO).

Visit our homepage GN.com and connect with us on LinkedIn, Facebook and X.

Attachment

• Interim Report Q1 2024