Gn Store Nord A/S Adr

Hello, everyone, and welcome to GN's conference call in relation to a Q3 report announced this morning. Participating in today's call is Group CEO Peter Karlstrammer, Group CFO Søren Jelert, and myself, Rune Sanner, Head of Investor Relations. The presentation is expected to last about 20 minutes, after which we'll turn to the Q&A session. The presentation is already uploaded on GN.com. And with that, I'm happy to hand over to Peter for some opening remarks.

Thank you, Rune, and thanks to all of you for joining us today. Let me start with the group highlights on slide four. In Q3, we delivered a solid quarter with 1% organic revenue growth, driven by market share gains and strong performance across our divisions. Our execution led to a healthy margin and cash flow development, allowing us to reconfirm our guidance for the year. In hearing, the roll-out to Reason Vivia is continuing progressing very well. Vivia's strong differentiation and our solid commercial execution led to broad-based market share gains and 7% organic growth. Overall, we are very pleased with the positive feedback received in our two recent launches of Vivia and Enso, and we are confident that they will successfully support our future growth ambitions. In enterprise, Q3 marked the fourth consecutive quarter of positive sell-out growth across North America and APAC, driven by market-leading innovation and strong channel execution. In Europe, we are successfully defending a market-leading position, while our top line is impacted by the ongoing market uncertainty. In total, enterprise organic revenue growth in the quarter was negative 4%, while the sell-out growth was somewhat stronger. We deliver healthy gross margins despite headwinds from the current tariff environment, thanks to the successful supply chain and pricing action we have taken. In the quarter, we also announced a partnership with Hadley concerning large meeting room experiences and introduced a range of new products in Falcon. In gaming, we continue to gain market share and deliver 3% organic growth in the gaming equipment market challenged by tariffs and lower consumer sentiment. In the quarter, we execute a well-known tariff mitigation plan, further diversifying our manufacturing footprint and rolling out price increases to limit the net impact from tariffs. We're also excited and proud to have launched Arctis Nova Elite, the world's first premium wireless gaming headset with a higher resolution sound. In summary, we are pleased with our execution and results in a relatively challenging market environment and are ready to benefit from markets as they grow stronger. And with that, I'm happy to hand over to CERN for group numbers in the quarter.

Thank you, Peter. As Peter mentions, our third quarter was a solid quarter and an important step towards our strategic ambitions. In summary, our group organic revenue growth ended at 1%, excluding the wind down driven by a continued strong performance in hearing with a 7% growth offset by a negative 4%. growth in enterprise due to the global market uncertainty in EMEA. Gaming continued to perform well in a challenged market, achieving a 3% organic growth and taking share. Reflecting the development in the revenue, the EBITDA margin came in at 11%, mainly due to a negative operating leverage. Our cash flow was solid in the quarter, coming in at 410 million Danish kroner, excluding M&A, reflecting our earnings profile as well as a positive impact from working capital. Now let's move to the financial details on slide six. Despite direct impact from tariff in two out of three divisions, our gross margin remains strong at 54.4%, being only 0.4 percentage points below last year. As mentioned by Peter, this can be attributed to our effective price mitigating initiatives, strong pricing discipline, positive business mix, and group-wide synergies. Reported EBITDA margin ended at 11%, which was 2 percentage points below last year, reflecting the development in the revenue as well as provision, release and gaming in Q3 of last year. Moving to the cash flow, our strong earnings profile combined with our favorable development in our working capital resulted in a positive cash flow of 410 million in the quarter. Driven by the solid cash flow, our net bearing interest debt decreased to 9.4 billion Danish kroner, which equals a leverage of 4.0x. As we communicated already as part of Q2, we have now formally signed our new loan facilities, which means that we have extended our debt maturities while at the same time negotiating lower interest rates, which should start to kick in from Q4. With that, I'll hand you back the word to Peter for some financial highlights on hearing.