--- title: "GN Q1 2026 Conference Call Presentation" period: "2026-q1" kind: "conference-call-presentation" source_url: "https://www.gn.com/-/media/Files/Financial-Download-Center/2026/Q2/GN-Q1-2026-conference-call.pdf" downloaded_at: "2026-06-06" pdf_sha256: "5520895639af4f618d355c27576ff18b76e9761d1a0367f8a9d2a0bad41372b1" pdf_size_bytes: 1016083 extractor: "pdfjs-dist-6.0.227" --- GN Interim Report Q1 2026 Conference call presentation May 7, 2026 --- Safe Harbor Statement 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). This presentation should not be considered an offer to sell or buy securities in GN Store Nord. 2 --- Group highlights Divisional highlights Hearing divestment – update and further financial details Financial guidance 2026 Agenda 3 --- Group highlights Continuing operations Discontinued operations Hearing Enterprise Gaming Strong growth in NA and APAC while business Solid execution leading to -1% organic ReSound Vivia continues to do well with in EMEA continues to be challenged due to revenue growth in a difficult market strong progress across regions and channels weak demand and channel inventory environment on a demanding comparison reductions base 9% organic revenue growth driven by continued market share gains Launch of Evolve3 is progressing well driving Some margin increase driven by positive ASP accelerated growth in premium segment of development and continued cost control Focused business execution, while preparing headsets for closing of the sale to Amplifon Nova Pro Omni launch will support business Margins influenced by tariff annualization, in premium headsets for 2026 inventory provisions and channel investments to support Evolve3 launch and rollout 4 --- Group highlights Divisional highlights Hearing divestment – update and further financial details Financial guidance 2026 Agenda 5 --- Enterprise: Evolve3 drives accelerated growth in premium segment. Weak demand and channel reductions in EMEA • Strong growth in North America and APAC while business in DKK million Q1 2026 Q1 2025 Growth EMEA continues to be challenged due to weak demand and channel inventory reductions resulting in -5% organic revenue growth Revenue 1,516 1,666 -9% - Organic growth -5% -9% • Gross profit of DKK 814 million, translating into a gross - M&A impact 0% 0% margin of 53.7% compared to 55.9% in Q1 2025, primarily - FX impact -4% +1% due to annualization of tariff costs and inventory provisions related to the US warehouse movement. These effects are Gross profit 814 931 -13% temporary by nature, and gross margins are expected to Gross margin 53.7% 55.9% -2.2%p stabilize in coming quarters S&M -379 -383 -1% Divisional profit 435 548 -21% • Divisional profit of DKK 435 million, translating into a divisional profit margin of 28.7% (compared to 32.9% in Q1 Divisional profit margin 28.7% 32.9% -4.2%p 2025), reflecting the gross margin development as well as channel investments into the successful launch and rollout of Evolve3 • The launch of Evolve3 is progressing well driving accelerated growth in the premium segment of headsets. The rollout of further technology levels throughout the year will support growth 6 --- Evolve3 launch off to a promising start with strong growth in premium segment. Launch effects will grow stronger later in the year Enterprise product split Revenue development Assumptions on the headset revenue build-up for 2026 1 in Premium Bluetooth Enterprise demand in EMEA foreseen to remain challenged due to macro environment – further channel reduction also +50% ~15% assumed in the short-term Gradual rollout and launch of Evolve3 platform ~65% .. Resulting in slightly more seasonality than normal Enterprise headsets 2026 enterprise headset revenue development (illustrative) Premium Bluetooth <20% 2025 Q1 2025 Q1 2026 1 Premium Bluetooth headsets Remaining enterprise headset portfolio Q1 2026 Q2 2026 Q3 2026 Q4 2026 2 Evolve3 portfolio Remaining enterprise headset portfolio Other categories Note 1: Evolve portfolio (75 and 85 technology levels) 7 Note 2: Other categories include “Frontline worker”, “Meeting room video & audio” and “FalCom” --- Strong growth in US and APAC while business in EMEA continues to be challenged due to weak demand and channel inventory reductions North America EMEA APAC ~25% of revenue ~60% of revenue ~15% of revenue Sell-out growth Market share Channel inventory Organic Double-digit positive Double-digit negative Double-digit positive revenue organic revenue growth organic revenue growth organic revenue growth growth 8 --- Gaming: -1% growth and margin expansion on demanding comparison base • Gaming delivered organic revenue growth of -1% on top of a DKK million Q1 2026 Q1 2025 Growth demanding comparison base (+11% in Q1 2025) • Solid growth in North America, while difficult market Revenue 580 617 -6% conditions in EMEA and APAC resulted in negative organic 1 - Organic growth -1% +11% revenue growth in those regions - M&A impact 0% 0% • Strong growth and market share gains in headsets, while - FX impact -5% +2% keyboards and mice had a more difficult quarter - Gross profit 197 227 -13% predominantly in the lower price points segments Gross margin 34.0% 36.8% -2.8%p • Gross profit of DKK 197 million, translating into a gross S&M -133 -163 -18% margin of 34.0%, compared to 36.8% in Q1 2025, primarily Divisional profit 64 64 0% driven by healthy ASP increase, but offset by annualization of Divisional profit margin 11.0% 10.4% +0.6%p tariff costs as well as wind-down effects in Q1 2025 Note 1: Excluding wind-down of Elite and Talk • Divisional profit of DKK 64 million, translating into a divisional profit margin of 11.0% compared to 10.4% in Q1 2025, reflecting continued cost focus, partly offset by the annualization of tariffs 9 --- Arctis Nova Pro Omni: A new high-end headset Will support growth already from Q2 Primary headset family Ultimate immersion Complete Omnipresence Audiophile grade sound across price points 2) Omniplay – PC+PS+XBOX Hi-Res Wireless Certified “The Best ANC In Gaming” (up to 5 devices at once) Gaming Headset Nova 1 AI Noise Rejection Omni-Control - Real-Time Custom Hi-Res Neodymium 1) 40% more than competition Audio Control Magnetic Drivers Nova 3 ClearCast Pro microphone To Infinity and Beyond… 96% background noise reduction 2 Batteries, No Downtime Nova 5 Gamebuds Nova 7 Nova Pro ~1/3 of headset revenue Nova Elite Arctis Nova Pro Omni In a refined design Note 1) Independently lab tested against key competitors. (Oct 2025), Note 2) Hi-Res Wireless Certified by the Japanese Audio Society (JAS) 10 --- Group highlights Divisional highlights Hearing divestment – update and further financial details Financial guidance 2026 Agenda 11 --- Hearing divestment – update and further financial details • Carve-out process well underway – closing still expected towards the end of the year • Amplifon shareholding has customary lock up period – strong believe in the strategic fit and significant shareholder creation in the future • Upfront tax payment estimated to DKK 1.5 - 2.0 billion. GN can use same amount to reduce its taxes in coming years • Capital allocation: GN will target a leverage of 1.0x-1.5x in the short-term. GN will initiate a share buyback program after closing. No plans for larger acquisitions • Immediate cost initiatives to be executed during 2026, which will drive around DKK 200 million in structural cost savings in 2027 (compared to 2026) to counter the DKK 200 million in “stranded costs” • To drive the carve-out and restore profitability, GN will incur one-off cash costs in the area of DKK 750 million across 2026 and 2027. In addition, a number of non-cash impairments have been executed 12 --- Transaction will unlock significant value: New share buyback program expected to be launched following closing Conceptual framework for shareholder distribution in 2027 (DKK) (illustrative) 1.0-1.5x 1.5-2.0bn 3.5-4.5bn Will result in an equal sized tax asset that will be 12.6bn utilized going Amplifon forward shares and other financial assets hold value that can be sold over time Net interest-bearing Transaction Transaction tax payment Operating cash Target debt additions "Excess cash" debt before closing proceeds (cash) flow in 2027 to hit leverage target 13 --- Initiatives being executed to right-size for an underlying EBITA margin of 10-11% Adj. EBITA margin bridge 2026 for continuing operations 10-11% ~2%p 8-9% 7.6% 1 2 FY 2025 2026 margin expansion FY 2026 guidance Structural run-rate savings Underlying margin structure 2026 14 Note 1) Includes DKK 200 million in “stranded” group costs that will be carried by the continuing business; Note 2) Cost savings that will be visible in FY 2027 financials --- Overview of one-off costs to drive carve-out of Hearing and profitability of NewGN Transaction costs Carve-out costs Right-sizing costs Balance sheet • Advisor and consultant • Severance costs • Asset impairments • Advisor and consultant fees across IT, R&D and fees facilities • Legal costs • Legal costs Examples of • IT system landscape • Internal project costs cost items • Facility separation costs • Retention costs • Shared contract separation costs Cash Cash Cash Non-cash Nature 2026 2026 and 2027 2026 and 2027 H1 2026 Timing Around DKK 1,300 million Around DKK 750 million, of which approximately 75% is expected in 2026 Amount and 2026 estimated split split ~30% ~30% ~70% ~70% 15 Continuing operations Discontinued operations --- Group highlights Divisional highlights Hearing divestment – update and further financial details Financial guidance 2026 Agenda 16 --- GN Store Nord: Group result for Q1 Continuing operations 2026 – Hearing business treated as Revenue (DKKm) 2,283 discontinued operations 2,096 -4% -4% 0% Continuing operations • Organic revenue growth of -4%, while revenue growth ended at -8% Q1 2025 Organic growth FX growth M&A growth Q1 2026 • Gross profit of DKK 1,011 million, equal to a gross margin of Gross profit (DKKm) Adj. EBITA (DKKm) 48.2% compared to 50.7% in Q1 2025, reflecting the development in Enterprise 1,158 1,011 129 • Adj. EBITA ended at DKK 6 million, equal to an adjusted 50.7% 48.2% EBITA margin of 0% compared to 6% in Q1 2025. Total 5.7% 6 incurred one-off costs of DKK 404 million (of which DKK 375 0.3% Q1 2025 Q1 2026 million is non-cash) Q1 2025 Q1 2026 GN Store Nord GN Store Nord FCF excl. M&A (DKKm) NIBD (DKKm) and leverage • Free cash flow excl. M&A ended at DKK -45 million, driven by 10,145 traditional seasonality, but partly offset by well-managed 8,914 working capital -45 4.4x 3.8x • Net interest-bearing debt of DKK 8.9 billion, corresponding to -395 an adjusted leverage of 3.8x (compared to 4.4x in Q1 2025) Q1 2025 Q1 2026 Q1 2025 Q1 2026 17 --- 2026 financial guidance Organic revenue growth Adjusted EBITA margin Continuing operations 0% to 6% 8% to 9% 18 --- Q&A www.gn.com E-mail: investor@gn.com Rune Sandager, Head of Investor Relations, Tel.: +45 4575 9257 19 --- Appendix 20 --- GN Store Nord (continuing and discontinued operations) – five-year performance 2021 2022 2023 2024 2025 DKK million GN Store Nord Revenue 15,775 18,687 18,120 17,985 16,782 Organic growth* 20% -3% -1% 1% -1% Gross profit margin 55.0% 48.9% 49.4% 53.2% 54.6% EBITA 2,619 1,560 1,200 2,153 1,908 EBITA margin 16.6% 8.3% 6.6% 12.0% 11.4% Operating profit 2,397 1,111 869 1,860 1,596 Financial items -90 -405 -462 -492 -685 Profit before tax 2,271 725 343 1,361 914 Effective tax rate 21% 21% 22% 22% 22% Net profit 1,790 570 266 1,059 710 ROIC (EBITA/Invested capital) 25% 9% 5% 10% 9% Free cash flow excl. M&A 702 -1,291 1,092 1,081 1,112 Cash conversion** 27% -83% 91% 50% 58% EPS 13.63 4.00 1.64 6.79 4.48 *Excl. the wind-down of Elite and Talk **Free cash flow excl. M&A / EBITA 21 --- GN continuing operations – financial development, excl. one-offs Q1 2025 Q2 2025 Q3 2025 Q4 2025 FY 2025 Q1 2026 DKK million Continuing operations Revenue 2,283 2,302 2,211 2,772 9,568 2,096 Enterprise 1,666 1,713 1,624 1,896 6,899 1,516 Gaming 617 589 587 876 2,669 580 Organic growth* -4% -5% -3% -6% -5% -4% Enterprise -9% -7% -4% -3% -6% -5% Gaming* 11% 0% 3% -12% -2% -1% Gross profit margin 50.7% 50.4% 49.0% 48.6% 49.6% 48.2% Enterprise 55.9% 56.1% 55.8% 55.5% 55.8% 53.7% Gaming 36.8% 34.0% 30.3% 33.7% 33.7% 34.0% Divisional profit margin 26.8% 28.5% 26.3% 27.9% 27.4% 23.8% Enterprise 32.9% 34.0% 33.8% 33.3% 33.5% 28.7% Gaming 10.4% 12.2% 5.5% 16.2% 11.6% 11.0% EBITA 129 164 194 240 727 6 EBITA margin 5.7% 7.1% 8.8% 8.7% 7.6% 0.3% Operating profit 53 87 108 175 423 -68 Financial items -100 -255 -152 -109 -616 -89 Profit before tax -47 -168 -44 66 -193 -157 *Excl. the wind-down of Elite and Talk 22 --- GN Store Nord share overview Share price development • GN has a share capital of DKK 603,650,860, which is consisting of 120 150,912,715 shares, each carrying four votes. GN has one share class, 110 100 and there are no restrictions on ownership or voting rights 90 80 • GN is, among other indices, included in the C25 index and Large Cap 70 31-Dec-2025 30-Jan-2026 1-Mar-2026 31-Mar-2026 index on Nasdaq Copenhagen, as well as the Stoxx Europe 600 index, GN C25 CAP Index: 31-12-2025 = 100 the Stoxx Europe Sustainability index Financial calendar 2026 • Ticker symbols: GN:DC (Bloomberg) and GN.CO (Reuters) Date Event • Number of registered shareholders: ~63,000 (2025) August 20, 2026 Interim Report Q2 2026 • Treasury shares: 5.3 million, 3.5% of shares (Q1 2026) November 5, 2026 Interim Report Q3 2026 • Market cap: DKK 15 billion (Q1 2026) • Largest shareholder: William Demant Invest A/S (>10%) 23