GN Store Nord A/S: Interim Report Q2 2025: Commercial and operational agility drove market share gains and 46% EBITA growth

Highlights

• The Hearing division delivered 8% organic revenue growth driven by broad-based market share gains of ReSound Vivia across global markets growing below structural trends. The strong growth led to 12% growth in divisional profit, equaling a divisional profit margin of 36% driven by operating leverage
• The Enterprise division was - as expected - challenged by market uncertainty due to the global trade environment. The organic revenue growth was -7% due to the market uncertainty and a difficult comparison base, while being supported by strong progress in FalCom. The divisional profit margin ended at 34% as a result of pricing discipline and cost focus, offsetting the direct tariff costs
• The Gaming division was - as expected - challenged by the tariff environment and weak consumer sentiment. Despite these challenges, Gaming performed well leading to 0% organic revenue growth on top of a very challenging comparison base. The divisional profit margin (excluding wind-down effects) ended at 12% as a result of pricing discipline and one-company supply chain benefits
• Group reported EBITA increased 46% to DKK 546 million (EBITA margin of 13%), reflecting gross margin improvements, strong cost focus due to the group-wide cost program and no extraordinary costs
• Free cash flow excl. M&A ended at DKK 353 million reflecting the earnings profile and positive impact on working capital. Net interest-bearing debt ended at DKK 9,850 million, equaling a reported leverage of 4.0x (reported leverage of 4.9x in Q2 2024)
• Following a successful execution in the first half of the year, and GN's company-wide agility, the financial guidance for 2025 is confirmed. The organic revenue growth guidance of -3% to +3% (excluding wind-down effects) is narrowed to -2% to +2%. The guidance on EBITA-margin and free cash flow excl. M&A is confirmed

Financial guidance for 2025

Organic revenue growth excl. wind-down		EBITA margin	Free cash flow excl. M&A (DKK million)
Updated	Prior	Confirmed	Confirmed
-2% to +2%	-3% to +3%	11% to 13%	~800

Key revenue assumptions for financial guidance 2025

Hearing division
GN is exposed to an attractive hearing aid market, which has historically been growing 4-6% in volumes driven by ongoing favorable demographic trends. With an assumed -1% yearly ASP impact, the structural market value growth assumptions of 3-5%. As a consequence of the slower beginning of the year driven by the uncertain macroeconomic environment, it is currently expected that the market in 2025 will grow slower than its structural trend.

Based on the strong sales momentum of ReSound Vivia and ReSound Savi, GN in 2025 expects to continue to gain market share. In the beginning of 2025, we assumed the Hearing division to contribute with organic revenue growth of 5% to 9%. Due to the lower market growth assumption, it is currently assumed that the Hearing division will grow at the lower half of that range.

Enterprise division
The uncertainty and change in the trade environment are impacting our Enterprise division. We have taken significant actions to further diversify our manufacturing footprint to mitigate this, and we have also implemented targeted price adjustments in the US. With these initiatives in place, we are progressing well towards the existing assumptions for the year. In April 2025, we assumed the Enterprise division would contribute with organic revenue growth of -8% to 0%, and we are continuing to assume a contribution in the middle of this range.

Gaming division
Similar to the Enterprise market, the Gaming market is also impacted by the change in trade environment and general weak consumer sentiment. We have taken several mitigation actions including diversification of our manufacturing footprint and targeted price increases. These initiatives work well. In April 2025, we assumed the Gaming division to contribute with organic revenue growth of -6% to +2% (excluding the impact from the wind-down). Driven by the strong execution in the first half of the year, the Gaming division is now assuming to contribute with organic revenue growth in the upper half of that range.

Key EBITA margin assumptions for the financial guidance of 2025
In light of the evolving changes in the global trade environment, GN launched significant mitigating actions in May 2025 to protect Group profitability. These significant actions included but were not limited to 1) Acceleration of diversification of manufacturing footprint; 2) U.S. price increases for Enterprise and Gaming; 3) Group-wide cost and cash initiatives.

In the quarter, the changing trade environment has been managed well. The efforts to diversify the supply chain are continuing in line with original plans. Thanks to this diversification, the group-wide cost control efforts and the commercial actions that were taken across Enterprise and Gaming, the overall impact is being mitigated well. We are continuously assessing the developments and additional prudent and diligent actions will be taken as needed going forward. It is currently expected that the net impact from tariffs will impact group EBITA margin by around -1% in 2025 (as earlier communicated), of which around 0.5% has a more temporary effect.

Quotes from Executive Management
Peter Karlstromer, CEO of GN Store Nord, comments: "While the macro-economic environment continues to pose challenges to GN and to our customers, we are very pleased with our execution and the progress we are making. In Hearing, our Vivia launch is going very well, leading to market share gains around the world. In Enterprise and Gaming, we have continued the diversification of our supply chain and also taken constructive commercial actions to manage the changing trade environment. We have done this well with limited negative impact while continuing to serve our customers with no disruption. All in all, we are gradually taking ourselves through a challenging period and remain very excited about the opportunities we have ahead of us across our markets and our group. Thanks to all customers, partners and employees for making this possible."

Financial overview Q2 2025

	GN Store Nord			Hearing division			Enterprise division			Gaming division
										Gaming			Consumer
DKK million	Q2 2025	Q2 2024	Growth	Q2 2025	Q2 2024	Growth	Q2 2025	Q2 2024	Growth	Q2 2025	Q2 2024	Growth	Q2 2025	Q2 2024	Growth
Revenue	4,160	4,499	-8%	1,858	1,792	4%	1,713	1,873	-9%	589	611	-4%	0	223	-100%
Organic growth	0%*	5%		8%	10%		-7%	-1%		0%	12%		-100%	3%
Gross profit	2,313	2,334	-1%	1,152	1,131	2%	961	1,015	-5%	191	186	3%	9	2	350%
Gross profit margin	55.6%	51.9%	3.7%p	62.0%	63.1%	-1.1%p	56.1%	54.2%	1.9%p	32.4%	30.4%	2.0%p	NA	0.9%	NA
Divisional profit	1,323	1,239	7%	668	598	12%	583	651	-10%	70			2
Divisional profit margin	31.8%	27.5%	4.3%p	36.0%	33.4%	2.6%p	34.0%	34.8%	-0.8%p	11.9%			NA
EBITA	546	374	46%
EBITA margin	13.1%	8.3%	4.8%p
Free cash flow excl. M&A	353	155	198

* Excluding wind-down effect. Reported organic revenue growth of -5%

Teleconference
GN Store Nord will host a teleconference at 11.00 a.m. CEST on August 21, 2025. 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 [phone]

Media Relations
Steen Frentz Laursen [phone]

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).

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