DGAP-News: GN Store Nord A/S: Interim Report Q1 2019: Strong start to 2019 with 19% organic revenue growth and 25% EPS increase in Q1

- GN delivered 19% organic revenue growth in Q1 2019. Revenue growth was 24% including around 3% impact from the development in foreign exchange rates and around 1% impact from M&A

- EBITA margin increased to 15.5% driven by strong operational execution

- EPS increased 25% compared to Q1 2018 and reached DKK 1.96

- The financial guidance for 2019 - upgraded on April 12, 2019 - is confirmed

- GN Hearing is off to a strong start to 2019 and delivered 8% organic revenue growth in Q1 2019. Revenue growth was 10% including around 2% impact from the development in foreign exchange rates

- EBITA increased 8% to DKK 282 million. The EBITA margin reached 18.7%, slightly lower than Q1 2018 driven by the strong gross margin increase but more than off-set by the development in foreign exchange rates

- Free cash flow excl. M&A was DKK (37) million in Q1 2019 impacted by traditional seasonality and higher level of trade receivables and inventories due to the successful ReSound LiNX Quattro

- As earlier reported, GN Audio delivered 36% organic revenue growth in Q1 2019 driven by very strong performance across the business. Revenue growth was 43% including around 5% impact from the development in foreign exchange rates and around 2% impact from M&

- EBITA increased 53% to DKK 193 million - after transaction related costs of DKK (45) million associated with the acquisition of Altia Systems. The EBITA margin increased 1.0 percentage points vs Q1 2018 and reached 14.5%, or 17.9% before transaction related costs

- Free cash flow excl. M&A was DKK 78 million in Q1 2019, translating into a cash conversion of 40%

- GN Audio upgraded the full year guidance on April 12, 2019

Quotes from the executive management
Jakob Gudbrand, CEO of GN Hearing: "With 8% organic revenue growth in Q1 2019, we see that GN Hearing's innovation strategy is working as planned. Audiologists and users really appreciate what they can accomplish with our new Premium-Plus hearing aid ReSound LiNX Quattro, and we also see continued strong performance by the full product family in ReSound LiNX 3D."

René Svendsen-Tune, CEO of GN Audio: "With 36% organic revenue growth in Q1, GN Audio started 2019 with continued very strong momentum. Our success formula for growth - constantly launching highly relevant, innovative and market leading products backed by flawless marketing and sales execution - has proven to be sustainable in both the professional and the consumer segment. With our upgraded guidance for the full year, we express our confidence that this positive development will continue."

Teleconference
GN will host a teleconference at 11.30 am CEST today. Please visit www.gn.com/investor to access the teleconference. Presentation material will be available on the website approximately one hour prior to the teleconference.

For further information please contact:

Peter Justesen
VP - Investor Relations & Treasury
GN Store Nord A/S
Tel: +45 45 75 87 16

or

Rune Sandager
Senior Manager Investor Relations
GN Store Nord A/S
Tel: +45 45 75 92 57