GN News met with Chairman of the Supervisory Board Per Wold-Olsen to talk about the past year and in particular about the key priorities for 2010.

Per Wold-Olsen, what do you see as the most important accomplishment for GN in 2009?

“That the ongoing operations have delivered on what we set out to do! Despite considerably lower revenue in 2009 compared to 2008, our cash flow improved dramatically and we managed to reduce our net interest-bearing debt considerably. Our major restructuring initiatives did not impact the capabilities of GN’s R&D efforts, and as a result, both GN Netcom and GN ReSound managed to develop and launch a number of new innovative products during 2009, with the most important products being launched late in the year. So GN entered 2010 with an upgraded, attractive product portfolio and also very importantly with a number of innovative new products in the pipeline for 2010 introductions.”

GN sent out a company announcement this February announcing a DKK 85 million provision due to “legacy-related” issues. Can you give any further details about these issues?

“We were made aware of certain legacy-related issues and accordingly we had to make a provision for defense and potential settlement costs. One of the issues identified is related to possible fraudulent actions committed by an employee. The employee has now been terminated and all appropriate legal actions have been initiated. Due to the nature of the legacy issues, I can’t comment any further at this point in time, and I can only say that these issues relate to the past and are not going to influence GN going forward.”

What is the main focus for GN this year?

“The main focus for 2010 is to maintain a strong focus on basics and cost control, culture and with selective measurable marketing initiatives. Conceptually GN’s growth over time will be driven by our ability to develop new, innovative products and our ability to commercialize these innovations. That is why we will add targeted resources to sales and marketing going forward. While restructuring in GN Netcom has been completed, we still have some way to go in GN ReSound. During 2010, we will focus on restructuring GN ReSound’s operations and global supply chain. We expect these changes to provide a significant, positive impact on EBITA in 2011.”

What makes you believe that GN now is in a position where the company can begin to focus on growth?

“As I said before, we have restructured both businesses and reduced costs significantly. We have introduced a number of innovative products and have more in the pipeline. We have improved our ability to commercialize our innovation. In 2010, we will put more focus on our sales and marketing effort by adding targeted resources to key projects in this area. I fundamentally believe that we are building a base that will drive growth in GN.”

Where do you see GN Store Nord as a company in three to five years from now? What is the long term vision for GN?

“This company should be all about innovation and commercialization of innovation – that should be our mantra if you will. 2009 was a year of restructuring, 2010 will be a year of consolidation and when we come to 2011, we have hopefully positioned our self to be in a situation where we provide a more specific long-term vision for GN Store Nord. Both GN Netcom and GN ReSound are innovation driven companies and our only option is to stay ahead in the innovation race and to be perceived in the market as a “first class innovator” within our field of operation. ”

The 2009 GN Store Nord Annual Report can be downloaded from http://www.gn.com/EN/INVESTOR/Pages/FinancialReports.aspx