Annual General Meeting Radisson Blu Falconer, Copenhagen Thursday March 10, 2016

Transcription

1 Annual General Meeting 2016 Radisson Blu Falconer, Copenhagen Thursday March 10, 2016

2 GN STORE NORD Welcome by Chairman Per Wold-Olsen Slide 2

3 GN STORE NORD AGENDA a) Report by the Board of Directors on the activities of the company during the past year b) Submission of the audited annual report for adoption and resolution of discharge to the Board of Directors and the executive board c) Decision on application of profits or covering of losses in accordance with the approved annual report d) Approval of the remuneration to the Board of Directors for the current financial year e) Election of members to the Board of Directors f) Election of a state-authorized public accountant to serve until the company s next annual general meeting g) Proposals from the Board of Directors and shareholders h) Any other business Slide 3

4 Making life sound better

5 SHARE PRICE DEVELOPMENT IN DKK Slide 5

6 SHARE PRICE DEVELOPMENT IN DKK GN C20 CAP Index: = 100 Slide 6

7 STRONG FUNDAMENTAL RESULTS IN 2015 SOLID PLATFORM FOR GROWTH IN 2016 AND BEYOND 14% revenue growth reported 6%organic revenue growth EBITA of DKK 1.5bn +16% vs % cash conversion +13%pts vs 2014 DKK 1.2bn share buybacks and dividend +34% vs 2014 Slide 7

8 GN STORE NORD REPORT ON THE ACTIVITIES OF THE COMPANY (AGENDA ITEM A, B AND C) By chairman Per Wold-Olsen The year 2015 Making life sound better Outlook for GN Slide 8

9 EXECUTION ON STRATEGY : INNOVATION & GROWTH Same formula for success with changed focus GN will continue to drive sustainable and profitable growth through innovation and commercialization With the restructuring programs being completed, GN is able to shift even more organizational capacity towards commercialization and innovative product development New hires on the commercial side support this changed focus Restructuring Commercialization Innovative product development Focus Productivity increase Commercialization Innovative product development Focus Slide 9

10 ACCELERATED R&D INNOVATIONS AND SIGNIFICANT PRODUCT LAUNCHES IN 2015 GN ReSound GN Netcom GN ReSoundLiNX 2 Jabra Speak 810 GN ReSound Enya Jabra Evolve 80 GN ReSoundENZO 2 Jabra Sport Coach and Pace Wireless Slide 10

11 GN RESOUND STRATEGY EXECUTION 2015 Increase marketing and sales efforts Extraordinary media exposure Enhanced marketing and sales initiatives centered around product launches during the year The result is significant growth in key markets and channels worldwide Computerworld CNN en Espanõl Wired UK USA TODAY Slide 11 The News Tribune Modern HIFI

12 GN RESOUND STRATEGY EXECUTION 2015 (CONT D) Gain preferred supplier status Significant growth in key channels Broad based success in 2015, across markets and channels Market share in Veterans Affairs increased 60% in 2015 Won Costco s Kirkland Signature 6 contract, underlining the leading technology and superior customer service provided by GN ReSound Slide 12

13 GN RESOUND STRATEGY EXECUTION 2015 (CONT D) Grow GN Otometricsinto new channels and offerings Launched new features and enhancements in AURICAL, helping hearing care professionals boost efficiency in the fitting process and optimize quality counseling and care Acquired Biomedica from Amplifon, strengthening Otometric s position in Italy Optimizing quality counselling and care AURICAL Slide 13

14 GN NETCOM STRATEGY EXECUTION 2015 Increase marketing and sales efforts Global approach Focus on product launch execution New global marketing organization covering both CC&O and Mobile with significantly upgraded competencies, including within digital marketing Increased level of investments in comarketing with selected channel and retail partners Slide 14

15 GN NETCOM STRATEGY EXECUTION 2015 (CONT D) Key markets initiatives Strong development in key markets and with key customers Leveraged strong CC&O product portfolio and improved sales execution to gain market share, e.g., in US and with global accounts Further strengthened position as the world s leading UC supplier Strengthened partnerships with key US retailers in the consumer space Slide 15

16 GN NETCOM STRATEGY EXECUTION 2015 (CONT D) Deeper and broader customer focus UC implementations are broadening toward smaller businesses (SMB) Alignment of channel resources to capture the growing SMB market Continued to develop and commercialize innovative solutions with distinctive customer benefits, for example with Jabra Evolve and with Jabra Speak 810 UC market development Large enterprise Medium enterprise Small enterprise Slide 16

17 GN NETCOM STRATEGY EXECUTION 2015 (CONT D) Stronger online presence, including digital marketing The Jabra online site Further strengthened focus on digital as a key marketing platform with increased digital presence and uplift in digitally generated revenue Delivered new distinct product features and services based on digital assets Slide 17

18 Making life sound better

19 GN STORE NORD FINANCIAL RESULTS Results in 2014 Results in 2015 Reported growth: 8% 14% Organic growth: 9% 6% EBITA (DKKm): 1,260 1,457 Slide 19

20 GN RESOUND KEY FINANCIAL RESULTS - GUIDANCE FOR THE FINANCIAL RESULTS IN 2015 WAS MET 8% organic revenue growth in a market which grew 4% Revenue of DKK 5.2 billion exceeded 2015 targets EBITA on DKK 995 million with a underlying margin improvement of 0.4% points compared to ,500 5,000 4,500 4,000 3,500 Revenue DKKm 4,179 4,469 5, EBITA DKKm 1,050 1, * * Excl. SMART costs Slide 20

21 GN NETCOM KEY FINANCIAL RESULTS - RETURN TO NORMAL IN SECOND HALF OF YEAR, AS PROJECTED 2% organic revenue growth fortified its market leading position in the UC space Revenue of DKK 3.2 billion equivalent to a revenue growth of 12% compared to 2014 Revenue DKKm 3,500 3,229 3,000 2,871 2,612 2,500 2, EBITA of DKK 540 million an underlying improvement of 0.4% points compared to 2014 EBITA DKKm Slide 21

22 GN STORE NORD FIVE-YEAR DEVELOPMENT IN REVENUE AND EBITA DKKm 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1, ,564 Revenue 6, EBITA 6,791 7,340 8,404 1,233 1,357 1, * 2012** 2013** 2014*** 2015 *Excl. TPSA and non-recurrent costs in Other in 2011 ** Excl. Non-recurrent costs (SMART and reversal of impairment) *** Excl. Non-recurrent costs relating to the discontinued acquisition opportunity Slide 22

23 GN STORE NORD REPORT ON THE ACTIVITIES OF THE COMPANY (AGENDA ITEM A, B AND C) By chairman Per Wold-Olsen The year 2015 Making life sound better Outlook for GN Slide 23

24 THE TURNAROUND PROCESS Any turnaround can be visualized as a curve in the shape of a capital letter U If the strong waves ebb away completely, the company reach absolute low tide at the bottom left of the U-curve GN moved to the bottom right of the U- curve by the spring of 2010 when GN ReSound launched its groundbreaking 2.4 GHz technology and GN Netcom s the year before had begun to market products under the brand name Jabra A C These developments gave a sound foundation to begin the climb up to the top right-hand corner of the U-curve The top will only be reached through focus on new markets, new products, new staff members and new investments B GN today 2010 Slide 24 Source: Martin Jes Iversen, Associate Professor, PhD, Copenhagen Business School 2008

25 GN TODAY World leading audio solutions expertise all under one roof Hearing Instruments 54% of revenue Diagnostic Equipment Contact Centers & Offices 8% of revenue 25% of revenue Mobile 13% of revenue Slide 25

26 GN S PURPOSE Making life sound better Slide 26

27 GN S VISION To be the leader in intelligent audio solutions, transforming lives through the power of sound Slide 27

28 WHAT WE DO Intelligent audio solutions that let you hear more, do more and be more than you ever thought possible Slide 28

29 GN STORE NORD REPORT ON THE ACTIVITIES OF THE COMPANY (AGENDA ITEM A, B AND C) By chairman Per Wold-Olsen Making life sound better The year 2015 Outlook for GN Slide 29

30 THE YEAR 2016 In 2016, we will continue to execute on our strategy for , INNOVATION & GROWTH, and we will continue to become more professional at commercializing innovation We are well positioned to deliver on our financial targets for 2016 just as we delivered on the ambitious targets in our strategy for Today we have a joint purpose across the GN group: Making life sound better. GN is uniquely positioned to develop intelligent audio solutions that allow our users to hear more, do more and be more than they ever thought possible In late 2016, we will communicate our strategy for Profitable growth driven by innovation and commercialization will continue to be the core of our business. Slide 30

31 OUTLOOK 2016 CONTINUED STRONG AND PROFITABLE GROWTH In 2016, GN Store Nord guides for organic growth of around 7%, up from 6% in 2015 Around 6% growth in GN ReSound in % growth in GN Netcom in 2016 EBITA is expected to be around DKK 1,720 million in GN Store Nord This is an increase in EBITA of more than DKK 260 million compared to 2015, reflecting an EBITA growth of more than 18% FINANCIAL GUIDANCE 2016 DKK million Organic revenue growth EBITA Profit before tax Effective tax rate GN ReSound Around 6% Around 1,200 GN Netcom 7-10% Around CC&O More than 10% - Mobile Other 0-6% Around (70) GN Store Nord Around 7% Around 1,720 Around 1, % Slide 31

32 GN STORE NORD USER EXPERIENCES Videos Slide 32

33 COMPOSITION OF THE BOARD OF DIRECTORS Per Wold-Olsen Bill Hoover Wolfgang Reim Hélène Barnekow Carsten Krogsgaard Thomsen Ronica Wang Slide 33 Leo Larsen Morten Andersen Nikolai Bisgaard

34 GN STORE NORD THE BOARD OF DIRECTORS REMUNERATION FOR 2015 At the annual general meeting in 2015 the Board of Directors remuneration of DKK 6,675,000 was approved The total actual remuneration of the Board of Directors was DKK 6,675,000 as stated in the Annual Report 2015 Slide 34

35 GN STORE NORD DIVIDENDS AND SHARE BUYBACK General policies Dividend policy GN aims to pay out a dividend corresponding to 15-25% of the annual net results Share buyback policy The company will also, with shareholder authorization and the communicated long-term capital structure policy of having interestbearing debt of up to a maximum of two times EBITDA, initiate share buyback programs when appropriate Recommendation for 2015 results Dividends for 2015 The Board of Directors proposes to pay out a total dividend of DKK 161 million for 2015 DKK 0.99 per share The remaining profit is proposed to be transferred to the company s reserves Share buyback program GN Store Nord has just finished a DKK 500 million share buyback program and intends to initiate a new share buyback program Slide 35

36 GN STORE NORD REPORT OF ACTIVITIES OF THE COMPANY Thankyoufor your attention Slide 36

37 GN STORE NORD AGENDA ITEM D d) Approval of the remuneration to the Board of Directors for the current financial year Pursuant to Article 15.4 of the Articles of Association, a total remuneration of DKK 6,675,000 is proposed to the Board of Directors for The remuneration is unchanged compared to The remuneration is allocated as follows: The base fee for serving on the Board of Directors of GN Store Nord A/S remains at DKK 250,000 with two times the base fee to the deputy chairman and three times the base fee to the chairman. The base fee for serving on the Board of Directors of GN Netcom A/S and GN ReSound A/S remains at DKK 100,000 with 1.75 times the base fee to the deputy chairman and 2.5 times the base fee to the chairman. The base fee for serving on the audit committee, the remuneration committee and the strategy committee remains at DKK 150,000 with two times the base fee to the chairman. The base fee for serving on the nomination committee remains at DKK 75,000 with two times the base fee to the chairman. Slide 37

38 GN STORE NORD AGENDA ITEM D (CONT D) d) Approval of the remuneration to the Board of Directors for the current financial year In addition, members of the Board of Directors who are not Danish residents are entitled to receive a fixed travel allowance in the following amount in connection with participation in board meetings in Denmark: EUR 3,000 per meeting for European-based board members, and EUR 6,000 per meeting for non-european based board members Slide 38

39 GN STORE NORD AGENDA ITEM E e) Election of members to the Board of Directors Pursuant to Article 15.1 of the Articles of Association, all members of the Board of Directors elected by the general meeting must be elected every year. Accordingly, Per Wold-Olsen, William E. Hoover, Jr., Carsten Krogsgaard Thomsen, Wolfgang Reim, Hélène Barnekow and Ronica Wang are up for election. The Board of Directors proposes that Per Wold-Olsen, William E. Hoover, Jr., Carsten Krogsgaard Thomsen, Wolfgang Reim, Hélène Barnekow and Ronica Wang are re-elected. Each of the proposed members of the Board of Directors is considered independent as defined by the Committee on Corporate Governance. For information on directorships and management positions of each proposed re-elected member of the Board of Directors, reference is made to and the Annual Report Slide 39

40 GN STORE NORD AGENDA ITEM F f) Election of a state-authorized public accountant to serve until the company s next annual general meeting Pursuant to Article 19.2 of the Articles of Association a state-authorized public accountant is to be elected for the term until the next annual general meeting. The Board of Directors proposes re-election of Ernst & Young, Godkendt Revisionspartnerselskab, CVR no.: Slide 40

41 GN STORE NORD AGENDA ITEM G g.1) Proposals by the Board of Directors g.1.1) Proposal from the Board of Directors to authorize the Board of Directors to acquire treasury shares g.1.2) Proposal from the Board of Directors to authorize the Board of Directors to reduce the share capital through the cancellation of treasury shares g.1.3) Proposal from the Board of Directors to renew the authorization to the Board of Directors to increase the share capital, see Article 5 of the Articles of Association g.1.4) Proposal from the Board of Directors to abolish mandatory retirement age for members of the Board of Directors g.1.5) Proposal from the Board of Directors to change the company s shares from bearer shares to registered shares g.1.6) Proposal from the Board of Directors to adopt amended general guidelines for incentive pay to the management g.2) Proposals from shareholders There are no proposals from shareholders Slide 41

42 GN STORE NORD AGENDA ITEM H h) Any other business No decisions nor proposals can be adopted under item h). Any matter related to the company can be directed to the Board of Directors. Slide 42

43 THANK YOU FOR YOUR ATTENTION Radisson Blu Falconer, Copenhagen Thursday, March 10, 2016