SMART program to increase GN ReSound’s EBITA margin to 20%

In connection with the release of GN’s Annual Report 2011 on February 23, management also announced the SMART program for GN ReSound. The program is intended to help GN ReSound bring its earnings in line with the top-tier competitors in the industry and reach an EBITA margin of around 20% in 2013.

Jabra gets established in Latin America

In 2010, the management of GN Netcom decided to set up an office in Latin America to become a part of the powerful economic developments experienced by Brazil, Mexico and a number of other countries in South and Central America. Today, Lars Spaten, head of GN Netcom's CALA office (the Caribbean and Latin America) can look back on two years of overwhelming performance by GN Netcom and the Jabra brand.

Protracted dispute with TPSA finally ended

GN announced on January 12, 2012 that the partly-owned company DPTG had reached an agreement with Polish telecoms company TPSA, according to which TPSA agreed to pay EUR 550 million to DPTG.

Audiology reaches remote islands

GN ReSound is always happy to support brave initiatives that help those without a lot of resources to redeem their hearing and reconnect to the world. The hearing aid donations from GN ReSound have now reached as far afield as to the British Virgin Islands.

Jabra teams up with Craig Alexander

On January 9, 2012 Jabra announced a partnership with five-time Ironman World Champion, Craig “Crowie” Alexander, the biggest name in the multi-sport competition world. Jabra has teamed up with the world champion triathlete for a two-year agreement to support and serve as spokesperson for the Company’s recently launched sports product line.

GN ReSound maintains strong focus on tinnitus treatment

With the uniquely positioned ReSound Alera TS™ Tinnitus Solution presented at the German Audiology Fair EUHA 2011, GN ReSound underlined its position as the one manufacturer in the hearing aid industry truly dedicated to tinnitus management.

GN Store Nord joins Clinton Global Initiative and starts project in South Africa

GN joined the Clinton Global Initiative (CGI) in 2011, which was started by former US President Bill Clinton in 2005. Through CGI, members make commitments to action, which are concrete, measurable steps toward improving the lives of people all over the world.

GN ReSound increases presence in Korea

In the third quarter of 2011, GN ReSound acquired another 30% of the Korean hearing aid distributor GN ReSound Korea Ltd. and now owns 70% of the distributor. The remaining 30% is owned by the founder and CEO of the company, Mr. C. B. Lim.

New Senior Vice President and Head of Global Marketing in GN ReSound

On February 13, 2011 Gian Carlo Sciuchetti (45) came on board as GN ReSound’s new Senior Vice President and Head of Global Marketing. Gian Carlo has extensive experience in sales and marketing, including 15 years of international leadership experience from both Europe and the United States.

GN Netcom turns 25

What started out as an empty legal entity in 1987 has become a core strategic pillar of the GN family. Today, GN Netcom’s Jabra brand provides world-leading innovative headset solutions and has employees and sales offices around the world, and the company develops and markets a broad range of wireless headsets and in-car speakerphones for mobile users and both wireless and corded headsets for contact center and office-based users.

SMART program to increase GN ReSound’s EBITA margin to 20%

In connection with the release of GN’s Annual Report 2011 on February 23, management also announced the SMART program for GN ReSound. The program is intended to help GN ReSound bring its earnings in line with the top-tier competitors in the industry and reach an EBITA margin of around 20% in 2013.

CFO Anders Boyer is heading up the ambitious program for GN ReSound.

GN ReSound came out of 2011 with organic growth well above the market and a very innovative and unique product portfolio. Is this the right time to initiate a program like SMART?

“Yes, absolutely. A key focus area for 2011 was the supply chain transformation project in GN ReSound. While the supply chain project has simplified GN ReSound’s manufacturing and logistics set-up, it didn’t address some fundamental legacy issues preventing the company from operating as a truly global company - including in areas other than manufacturing and supply chain. Some of these legacy issues date back to the major acquisitions undertaken by GN ReSound in the past. In order to reduce complexity and eliminate legacy issues once and for all, we have decided to launch the SMART program.”

More specifically, what are the “legacy-related” issues you are referring to?

“They refer to the major acquisitions made several years ago, of ReSound, Beltone and Interton, among others. The supply chain project has taught us a truly global organization was never put in place following these acquisitions. In several areas, GN ReSound is still operating as a local company. That makes sense in many instances but there are certainly also areas that need to be managed using a global approach.”

A program like SMART does not come for free and you mention in the Annual Report 2011 that the costs associated with SMART will be up to DKK 200 million. Why not just build on the current good trends in GN ReSound and focus on bringing new, innovative products to the market?

“We will do both. To keep growing the top line and bringing new innovative technology and products to the market is the top priority. But that alone will not enable us to narrow the profitability gap versus the competition at the speed we would like and help us close in on the top-tier competitors by 2013. We have decided to launch the SMART program, because we see vast opportunities for further cost eliminations, so we can reach our 2013 targets.”

It looks like a very complex task you have ahead of you. Is it realistic to address so many areas within such a relatively short timeframe?

“You are absolutely right. We are targeting a very broad range of actions and a significant increase in profitability within a very short time frame. I am confident however that with the implementation of the SMART program we will deliver on the 2013 financial targets of growing above or in line with the market as well as expanding the EBITA margin from around 12% in 2011 to around 20% in 2013. Equally important, Management believes that with the implementation of the SMART program the fundamentally wrong and dysfunctional areas of the company never addressed properly in the past, will now be thoroughly addressed.”

In 2008 and 2009 you were one of the architects behind the FAST program in GN Netcom, a program that fundamentally changed the way GN Netcom does business and that turned the company into a very healthy business. Do you see any similarities between FAST and SMART?

“The FAST program carried out in GN Netcom during 2008 and 2009 was a remarkable achievement and the new business model established for GN Netcom is now firing on all cylinders. Essentially, in the SMART program we will repeat many of the things we did under the FAST program in GN Netcom – reducing complexity, staying focused on what is important and creating clear roles and responsibilities.”

Could you mention a few of the concrete things from FAST you will also be doing in the SMART program?

“As part of the FAST program we reduced the product portfolio significantly resulting in not only lower costs but also higher revenue as we focused on what really matters. We will also review the GN ReSound product portfolio in detail. Another similarity is putting stronger processes in place in order to manage all the details hidden in production costs – there are some very good upsides available here and that takes us to the thinking behind the “T” in SMART: Turn every stone.”

So, if market conditions do not change dramatically over the next two years, where do you see GN ReSound when 2013 comes to a close?

“The management team is confident that the SMART program together with GN ReSound’s well-established superior R&D capabilities will secure that GN ReSound is exceptionally well positioned to continue winning in the hearing aid market in the future. From a technological and product point of view, we are already a leading innovator in the hearing aid industry. The SMART program will ensure that also from a financial point of view, we will be among the top-tier players in the industry,” Anders Boyer concludes.

For further information, please refer to the sections, “Outlook for 2012” and “Financial targets” in the Annual Report 2011.

S - Simplify the way we do business
M - Mindset to win
A - Act as ONE company
R - Revenue growth
T - Turn every stone

Jabra setting up business in Latin America

In 2010, the management of GN Netcom decided to set up an office in Latin America to become a part of the powerful economic developments experienced by Brazil, Mexico and a number of other countries in South and Central America.

Today, Lars Spaten, head of GN Netcom's CALA office (the Caribbean and Latin America) can look back on two years of overwhelming performance by GN Netcom and the Jabra brand.

"Previously, the Central and South American markets for CC&O headsets were completely dominated by our largest competitor, but since we set up a presence in the region a couple of years ago, we've gained market share and today, we have agreements with several large enterprises, contact centres and distributors. In late 2011, for instance, we signed an agreement with one of Mexico's largest contact centre operators which has a total of around 20,000 call centre agents. Headset deployment is also booming in Brazil," says Lars Spaten.

An economic miracle

Over the past 10 years, Brazil has seen something of an economic miracle with more than 40 million people moving out of poverty and becoming a part of the group of consumers with purchasing power.

"We're seeing a large group of new consumers in Brazil who can suddenly afford mobile phones, who get credit cards, internet access, cable TV and many other modern consumer goods. Enterprises selling these kinds of products and services typically have employees ready to serve their many new customers over the phone. This is where we come in. We offer headsets in a quality and at a price that makes GN Netcom a very attractive business partner for such enterprises," says Lars Spaten.

GN Netcom's CALA office is located in the metropolis of Sao Paolo, Brazil, and this choice of location for GN Netcom's CALA office was no coincidence. Lars Spaten explains: "Sao Paulo is to Latin America what New York is to North America. Brazil is the largest market and Sao Paulo is the largest city and the main driver of the Brazilian economy."

Unified Communications

As in the more mature markets in Europe and the US, Unified Communications (UC) is also being rolled out in Latin America. For example, a large, global manufacturer of telecommunications equipment has set up operations in Brazil and this company has decided to roll out UC to its 4,000 or so employees in the region.

"Following lengthy preparations, we managed to convince the company that Jabra has the best headsets for UC. As a result, the company is going to invest in a large quantity of Jabra headsets during 2012. Our UC headsets are also attracting a lot of attention in countries like Colombia and Mexico and we've already landed several deals there," says Lars Spaten.

Distributor agreements essential for GN Netcom's success

GN Netcom operates an indirect business model, which means that headsets are sold via local distributors and business partners and not directly to headset users. For this reason, it is essential that GN Netcom has a network of distributors and business partners who are well-established in the individual markets and have access to the customers.

In this respect, signing an agreement with Westcon, one of the world's leading specialist distributors of advanced, technical communication solutions, including UC, was a milestone for GN Netcom in CALA. Lars Spaten explains: "Without a doubt, such an agreement is essential for our business and it shows how far we have progressed in CALA. When we started out in this region two years ago, it was very difficult to establish contact with the leading distributors, simply because they hadn't heard of us before. This has changed now as witnessed by the agreement with Westcon, which has a large team covering the entire region."

Huge expectations

There are huge expectations for GN Netcom’s business area in the CALA region for the years ahead. Strong annual market growth is expected and it is GN Netcom's ambition to be part of the developments.

"We're still working to expand our network in the region and identify the companies and areas offering opportunities for attractive deals. With our attractive portfolio of headsets in all price ranges and models, we have a great opportunity to win market share and gain an even stronger foothold in CALA going forward, says Lars Spaten.

Lengthy dispute with Polish telecoms company TPSA finally closed

GN announced on January 12, 2012 that the partly-owned company DPTG had reached an agreement with Polish telecoms company TPSA, according to which TPSA agreed to pay EUR 550 million to DPTG.

This marked the end of a dispute that lasted for more than ten years on the payment for data traffic transmitted via the fibre optical NSL telecoms system in Poland during the period 1994 to 2009. The NSL system was established in 1991 as a joint venture between the Danish company DPTG, of which TDC owns 25% and GN the remaining 75%, and the Polish telecoms authorities. According to the agreement with TPSA, DPTG was entitled to 14.8% of the profit generated by this system.

The payment from TPSA covers the period from 1994 to mid-2004, also known as Phase 1, as well as the remaining period from mid-2004 to 2009, Phase 2, during which the agreement between DPTG and TPSA expired. In addition, the amount that DPTG has now received also included interest and other costs. TPSA paid a total amount of EUR 550 million to DPTG and GN has received 75% of this amount, corresponding to around DKK 3,060 million.

DKK 2.5 billion after tax

The amount is liable to Danish corporate tax at a rate of 25%. As previously announced in connection with the arbitration award for Phase 1 in September 2010, GN has tax loss carry-forwards and for this reason, the cash effect of the settlement is expected to be around DKK 2.5 billion after tax and other associated costs not yet paid.

Per Wold-Olsen, Chairman of the Board of Directors of GN Store Nord, said in connection with the announcement of the agreement: "We are very pleased that the lengthy dispute has finally been settled and that we have a very favourable agreement. We have worked tirelessly to defend our shareholders' interests and the agreement is an important milestone for GN."

Comprehensive share buy-back programme

Immediately after receiving the amount from TPSA, GN initiated a comprehensive share buy-back programme worth DKK 1.3 billion. The share buy-back programme was initiated to reduce the company's share capital. The part of the amount not spent on share buy-backs has been used to repay GN's debts.

Anders Boyer, CFO of GN Store Nord, said: "With the repayment of GN's debt, we are now a rather well-consolidated company. However, our capital structure policy remains unchanged, which means that we will continue to apply a net debt of up to 2x EBITDA. In other words, we maintain our long-term policy of distributing excess liquidity to our shareholders."

Hectic legal activity

One of the driving forces behind the agreement with TPSA, Jesper Green Schou, VP and General Counsel of GN Store Nord, is very pleased with the outcome of the agreement and with the fact that it has finally been settled: "We have been working on this case almost around the clock for the past couple of years. We have released around 30 announcements to the stock exchange on this matter, which is a clear indication of the hectic legal activity that has been going on. Now, we can put it behind us and we're pleased that our promise to the shareholders that it was only a question of time before the money would be disbursed has now come true. DPTG's operations in Poland have now been completed and the company will be closed down as soon as legally possible," says Jesper Green Schou.

Audiology reaches remote islands

GN ReSound is always happy to support brave initiatives that help those without a lot of resources to redeem their hearing and reconnect to the world. The hearing aid donations from GN ReSound have now reached as far afield as to the British Virgin Islands.

The British Virgin Islands also known as just the Virgin Islands is a British overseas territory located in the Caribbean. The Virgin Islands consist of almost 60 islands and cays but with only 15 of the islands being inhabited and a population of about 22,000 there is no audiologist in the country. With the government providing no provision for neither audiological diagnosing and testing nor treatment, low income families dealing with hearing impaired family members are left with no option for treatment.

In 2011, a network of paraprofessionals and other health professionals identified 20 multihandicapped children as probably highly hearing impaired and another 90 for whom they had concerns. It was estimated that very likely, these people represent just a fraction of the actual hearing care need in the population. The network got in touch with Dr. Teri Hamill of Nova Southeastern University in Fort Lauderdale Florida, a university with a history of participating in outreach missions. Plans were made for starting a long-term partnership between the university and the people and government of the Virgin Islands. In March 2011, a team of audiologists, doctoral students and alumni travelled to the islands to set up a make-shift clinic at the island’s main hospital. Here they conducted advanced diagnostic hearing testing on 149 children, something that had never been done before.

GN ReSound audiologist secured donation of hearing aids

While the three doctors and the five students donated their labor and paid their own journey to the Virgin Islands and participation in the program, the Health Services Authority provided additional support and housing for the participants. This still left a gap in the mission’s program, because when the hearing impaired children had been diagnosed they would still need treatment, which in most cases would be a hearing aid.

The mission contacted their previous fellow student Jenny Nesgaard, a Nova Alumni who now works as an audiologist at GN ReSound. Through Global Audiology at GN ReSound Jenny secured a donation of some of the newest and most advanced hearing aids in the industry. The devices donated included ReSound Alera™ hearing aids along with ReSound Unite™ Mini Microphones for school teachers.

Dr. Teri Hamill, leader of the mission says, "We were told about the need for extra testing and hearing care for the kids of the Virgin Islands, so we arranged donations from GN ReSound in Denmark, and they gave us close to USD 100,000 worth of technology."

"We are now fitting the children with these state of the art hearing aids. They include hearing aids that go behind the ear and custom pieces that go in the ear, also donated by GN ReSound. We also have newly released teacher microphones which will pick up the teacher´s voice and stream to the child´s hearing aid so that in school, they are not handicapped by all of the background noise and bustle. So we are very, very happy to be here and to be able to contribute to this miracle of giving kids better hearing," Dr. Hamill says.

Heidi Mac Dowall got her hearing back

One of the most joyous events was witnessed when 9-year-old Heidi Mac Dowall, who hadn´t had the ability to hear since she was three years old, was fitted with her very own hearing aid and heard sounds for the first time in six years.

Dr. Teri Hamill says, "Once she was able to hear, Heidi smiled, she lit up! She and her mom were so pleased; we were just so happy to be able to do that for her." Her mother, Roxanne Ollivierre, explains, "Heidi wasn´t always deaf but when she started preschool, she got sick with a very high fever, and she was rushed to the hospital. Afterwards, I was told that Heidi could not hear or talk anymore. It was really, really, really devastating for me, because she was such a bright little girl."

When asked about how she is feeling now that her daughter can hear, Ollivierre, says, "It´s indescribable; I’m just so grateful that she can hear again, and I’m really looking forward to hearing her talk one day."

But the mission doesn’t end here. The university audiologists are ready to continue their mission, including, Gennell Bowen, a fourth-year student at Nova Southeastern University and a native of the Virgin Islands. She also took part in the project, and she will provide patient care whenever she comes home to visit her family. Gennell Bowen expects to graduate this summer, and she plans to return to the Islands to become the nation’s first audiologist.

Jabra teams up with five-time Ironman World Champion Craig “Crowie” Alexander

On January 9, 2012 Jabra announced a partnership with five-time Ironman World Champion, Craig “Crowie” Alexander, the biggest name in the multi-sport competition world. Jabra has teamed up with the world champion triathlete for a two-year agreement to support and serve as spokesperson for the Company’s recently launched sports product line. Under the new partnership, Alexander will also serve as a consultant for future product development.

“I am so happy to be teaming up with a company like Jabra that just gets it and creates awesome, durable products for athletes like myself,” says Alexander, reigning Ironman World Champion. “Between the countless hours of intense training getting ready for my next competition and the crazy travel schedule, Jabra’s products have really helped me stay connected with my friends and family and helped keep me motivated and entertained.”

Through the years, studies have shown that training while simultaneously listening to music is highly motivating and can increase the degree of effort an individual puts forth.* Although listening to music while exercising may not be a revolutionary concept, the Jabra sports category offers a unique set of products that combines durability with fantastic sound to ensure an easy and fun fitness session for athletes across varying levels.

Jabra’s sports category is led by the recently-launched Jabra SPORT, a tough wireless Bluetooth® stereo headset that streams music and phone calls. The perfect device for delivering great music for training sessions, workouts, or any other recreation and outdoor activity, the Jabra SPORT features a category-first built-in FM radio, A2DP technology, and powerful bass to help energize workout performance. And with a wind-shielded microphone and US Military Standard Rain, Dust and Shock Resistant certification, exercisers don’t need to hold back during their workouts on account of their headphones. For exercisers who have become accustomed to working out with traditional corded headphones, the Jabra SPORT-Corded offers the same features as the Bluetooth® version.

In addition to the new Jabra SPORT products, the Jabra portfolio includes the Jabra CLIPPER stereo headset which provides users with wireless stereo music and calls all with one cool little Bluetooth® clip for simple wearing during workouts, and the Jabra ACTIVE which allows exercisers to listen to music and train hard without ever having to adjust their ear buds.

Whether running or biking, Alexander is a fierce competitor who faces varying degrees of athletic challenges that test his strength and stamina. Tough, strong and durable – like the Ironman – Jabra products are light, comfortable and have a secure fit to get you through any challenge, hassle-free. Crisp and clear sound will further ensure you stay focused and motivated until you cross the finish line.

About Craig Alexander

Hot off his recent victory at the hardest one day endurance event in the world, the Ironman World Championship in Kailua-Kona, Hawaii, Alexander has an impressive athletic resume that earns him consideration by many of being one of the greatest male triathletes of all time. Among his many accomplishments, he is the first triathlete to ever win the Ironman 70.3 and Ironman World Championship in the same year, and he is also the oldest male to ever win The Ironman Hawaii. Ironman legend and six-time World Champion Dave Scott proclaims him “the first true men’s champion the sport has seen in years.”

*Research Study

British researchers asked survey participants to ride stationary bicycles while listening to music, when the music tempo was slowed, participants pedaling slowed as did their heart rate and distance pedaled. On the other hand, when the tempo increased ten percent, the participants covered more miles in the same period of time, their heart rates rose and they reported enjoying the same music 36 percent more. Researchers concluded that when listening to music, participants received a greater degree of effort and overall affect. Study conducted by the US National Library of Medicine, National Institute of Health, August 2010.

For further information on the company, please visit www.jabra.com

GN ReSound maintains strong focus on tinnitus treatment

With the uniquely positioned ReSound Alera TS™ Tinnitus Solution presented at the German Audiology Fair EUHA 2011, GN ReSound underlined its position as the one manufacturer in the hearing aid industry truly dedicated to tinnitus management.

Tinnitus is a problem that approximately 10-15% of the population experiences on a regular basis. About a quarter of these people suffer from a degree of tinnitus severe enough to warrant medical attention. These numbers are likely to increase since tinnitus affects about one third of the population over the age of 65 and considering the growing noise pollutants and the increasing average life span in the industrial countries.

Many types of tinnitus

There are many different types of tinnitus. Tinnitus can vary in the way it sounds, its severity, as well as how annoying it is. It is most commonly referred to as “ringing in the ears”. Individuals have reported anything from intermittent episodes that are not very bothersome to a constant noise that can negatively influence one’s daily life.

GN News met with audiologist and tinnitus expert Michael Piskosz of GN ReSound’s Global Audiology Group to learn more about the ReSound Alera TS™.

GN ReSound recently launched the ReSound Alera™ TS and prior to that had a successful product in the ReSound Live TS. How can people with tinnitus benefit from a product like ReSound Alera™ TS?

“First of all it’s important to remember that any tinnitus product should be a part of a greater tinnitus management program that also includes training, counseling, as well a positive state-of-mind from the tinnitus sufferer. As part of the tinnitus management plan, the array of ReSound TS products has proven to be very useful and effective in helping people manage their tinnitus.”

How does the solution actually work?

“ReSound Alera TS™ is truly the most flexible tinnitus product on the market today. The unit itself acts as a combination instrument, meaning it can address both hearing loss (if one is present) and tinnitus. For many tinnitus sufferers with a hearing loss, simply addressing their hearing loss by providing them with a device to amplify sound can be enough to also help alleviate their tinnitus. But for many it is not. For these people, the ReSound Alera TS™ has a built-in white noise generator that can be modified according to user preference. This white noise is intended to reduce the contrast of the background environment and the tinnitus itself, in turn having less of the tinnitus noticeable to the person, and therefore distracting their attention away from the tinnitus. One of the most wonderful features of ReSound Alera TS™ is the ability to wirelessly stream any sound into the hearing instruments, using any of ReSound Unite TV Streamer, Mini Microphone or Bluetooth® Bridge (i.e. phone clip). This flexibility allows ReSound Alera TS™ to accommodate any tinnitus management program, and thus help a wide variety of tinnitus sufferers.”

Can all people with tinnitus benefit from the solution?

“We can’t say that EVERYONE will benefit from one particular solution, as there are many factors at play in a tinnitus management plan, and some of them having little to do with the technology itself. Up until now, for many, the ReSound tinnitus products have proven to be effective tools within any tinnitus management plan. Theoretically, ReSound Alera TS™ could be used to help manage the majority of tinnitus sufferers, but there are always other factors that need to be considered. If these influences are considered and addressed, the technology becomes even more effective.”

The ReSound Alera™ TS solution has proven to be particularly suitable for the Veterans Affairs (VA) market in the US, as many of the end-users in the VA system have been exposed to sound environments that increase the risk of getting tinnitus. Does tinnitus typically come from exposure to loud sounds?

“There is a very strong connection between hearing loss and tinnitus. It is believed that upwards of 85% of all people who have tinnitus, also have a hearing loss of some kind. That being said, we know noise exposure is a common cause of hearing loss, and tinnitus can be, and oftentimes is, a byproduct of that. Then again, there are also other causes of tinnitus. Sometimes the onset of tinnitus is caused by a sudden traumatic event in a person’s life, perhaps due to a sudden increase in stress levels, for example caused by the loss of a loved one, or the loss of your job. It can also be provoked by health-related issues.”

Is there anything else people can do to reduce tinnitus apart from using a tinnitus solution?

“Yes. Since tinnitus is perceptual, there are many things that can be done to help reduce the perception of tinnitus. By keeping the mind occupied, for example, distract your brain from focusing on the tinnitus. Avoid complete silence. Most tinnitus sufferers report that their tinnitus gets worse in silent environments, since there is no background noise to mix with the tinnitus. Good dietary habits can also play a role. There are reports that the excessive intake of caffeine or sodium can increase the perception of tinnitus, and as always, exercise is a good way to help relieve stress in all parts of life. Very often, people suffering from tinnitus are also hypersensitive to loud sounds and may therefore wear ear protection at times when they shouldn’t, thus becoming more sensitive to their tinnitus. Ear protection should only be worn when people are exposed to hazardous or dangerous sound levels. And last, but not least, always remain positive. Severe tinnitus is extremely difficult to live with, but there are professionals out there that can help you. Together you can find a successful solution.”

Do you think technology will be able to cure or eliminate tinnitus completely within the next 10 years?

“That is a very interesting question, and it’s something I know many tinnitus sufferers are hoping for. The reality is, research is still being conducted to find the origin, or site of causality of tinnitus. In other words, we don’t yet know exactly what causes tinnitus. Personally, I don’t believe technology will be able to cure tinnitus altogether in the upcoming years, but future technology improvements will definitely play a vital role in helping many tinnitus sufferers live more enriched and active lives.”

What is the biggest challenge you see for the industry when it comes to tinnitus in the future?

“I think education about tinnitus is the key. There have been huge advances in the technology for treating tinnitus in the last couple of years, which is great to see with so many people affected. The professional community has certainly taken a stronger awareness to tinnitus in recent years, and I believe this trend will continue to grow. Unfortunately, there aren’t enough well-trained healthcare professionals to help manage the needs and concerns of the many tinnitus sufferers. Therefore, continually developing technology to help with tinnitus and initiatives that can help educate both the public and professional domains are essential in continuing to grow the knowledge about tinnitus and tinnitus management,” Michael Piskosz concludes.

GN Store Nord joins Clinton Global Initiative and starts project in South Africa

With courtesy of BroadReach Healthcare

Ever since GN was founded in 1869, the company has had a strong commitment to act in a responsible manner for the benefit of all stakeholders. In 2010, GN became a member of the United Nation’s Corporate Social Responsibility (CSR) initiative ‘Global Compact’ in order to further strengthen the company’s focus on CSR.

Moreover, GN joined the Clinton Global Initiative (CGI) in 2011, which was started by former US President Bill Clinton in 2005. Through CGI, members make commitments to action, which are concrete, measurable steps toward improving the lives of people all over the world.

“At GN we strongly believe that part of being a global citizen is taking responsibility. CGI is an opportunity to commit to improve the world and deliver on that commitment,” says Per Wold-Olsen, chairman of GN Store Nord’s Board of Directors.

The CGI mission is to inspire, connect, and empower a community of global leaders to find innovative solutions to the world's most pressing challenges. CGI is a marketplace that fosters partnerships, provides strategic advice, and drives resources toward effective ideas that maximize members’ efforts to increase access to healthcare and education, alleviate poverty, and create a cleaner environment (read more at www.clintonglobalinitiative.org)

Through CGI, GN has set up a public private partnership in South Africa in cooperation with BroadReach Healthcare, a South Africa-based global healthcare solutions company. The partnership will provide hearing aids free of charge to people who cannot afford them through other means. The project will not replace any public offerings; rather, it is a way to help deeply impoverished people.

“A hearing aid can make a profound difference to a person’s life. The GN-BroadReach partnership with the South African government to provide hearing aids to the most needy will not only transform the quality of life of thousands, it will also extend to the families and communities of these individuals as they will now have a chance to participate more effectively in the mainstream economy,” Ernest Darkoh, Director of Technical Assistance BroadReach Healthcare, explains.

The project is to be rolled out in the provinces of Gauteng and KwaZulu Natal during the first three quarters of 2012. In these provinces some people have spent several years on a waiting list to get a free hearing aid. They don’t know how hearing feels like, because they have never had a hearing aid.

“It’s important to us that this is a sustainable project. That is why we put so much effort into educating local people, so they can gain knowledge and build experience that will enable them to run the project themselves in the future,” says Per Wold-Olsen.

South Africa has a population of around 50 million people and it is estimated that about 1.1 million people are hearing impaired and 500,000 use sign language.

GN ReSound increases presence in Korea

In the third quarter of 2011, GN ReSound acquired another 30% of the Korean hearing aid distributor GN ReSound Korea Ltd. and now owns 70% of the distributor. The remaining 30% is owned by the founder and CEO of the company, Mr. C. B. Lim.

The around 50 employees of GN ReSound Korea Ltd. serve the clinical segment, primarily private ear-, nose-, throat specialists through the ReSound branded product portfolio and the company holds a strong share of this important segment. GN ReSound’s other brand, Beltone, is distributed through the GN ReSound Korea Ltd. subsidiary, Beltone Korea Ltd., and serves the dispenser segment in Korea. Through the two brands GN ReSound has a strong market share in the country. Consisting of about 85,000 hearing instruments per year, the Korean market currently is significantly underpenetrated and offers a good potential for future growth.

An attractive opportunity

GN ReSound’s President for Asia Pacific John Goltermann Lassen explains about the recent acquisition: “While significantly smaller than the markets in Japan and China, the Korean market represents an attractive opportunity for us. Being present in the market allows us to directly influence our product and service offerings thus creating an even stronger platform for future growth in this region.”

One of the main reasons the market is underpenetrated is a traditional reluctance to wear hearing aids and the stigma effect is also part of the reason. The stigma effect is seen commonly across all markets, particularly in Asian countries like Japan and Korea. One way to support further penetration in these markets is to bring hearing aids to the market that are invisible, rival natural sound and are easy to use, which is part of GN ReSounds mission. “GN ReSound’s continued efforts to develop cosmetically attractive, very small hearing aids with thin tube solutions as well as our continuing commitment to in-the-ear (ITE) form factors will enable us to contribute to a higher penetration rate in the future, as the hearing aids become virtually invisible which consequently removes the stigma, ” John Goltermann Lassen concludes.

New Senior Vice President and Head of Global Marketing in GN ReSound

On February 13, 2011 Gian Carlo Sciuchetti (45) came on board as GN ReSound’s new Senior Vice President and Head of Global Marketing. Gian Carlo has extensive experience in sales and marketing, including 15 years of international leadership experience from both Europe and the United States.

“Gian Carlo has comprehensive experience from the healthcare industry, which I’m confident will be a great asset to our Global Marketing organization in combination with his international leadership, sales and marketing experience,” GN ReSound’s CEO Lars Viksmoen said.

Congratulations on your new job, Gian Carlo. What made you accept the position with GN ReSound?

”Thank you. I have a great passion for healthcare and hearing aids is a fascinating segment with significant growth perspectives. It is a highly innovation-driven field, and having a key role working for one of the market leaders is a great opportunity.”

What are you bringing to GN ReSound from your previous jobs?

“I have lived and worked in several European countries and in the United States for quite a number of years, and during that time, I’ve held a number of different positions, including in sales and marketing. This has helped me develop a truly international perspective and an understanding of how important it is to work cross-functionally. I have overseen many product launches, both in global and local roles, and I believe working closely with stakeholders in the different markets is absolutely key. ”

What are your priorities for your first couple of months with GN ReSound?

”Obviously, getting to know my team and the people in our subsidiaries and at head office will be a key priority. Further, I intend to spend significant time with our customers in order to learn from them and make GN ReSound even better at addressing their specific needs.”

How is Global Marketing creating value to GN ReSound and its customers?

“I consider matching the right product with the right customer vital to the business. Therefore, I believe that market research is one of the important areas where Global Marketing creates value to the business. This really helps the business determine whether there is a need for a product. This of course has to be done in close co-operation with the local subsidiaries and R&D through a clear strategy. Also, Global Marketing plays a very important role in positioning the products in the marketplace as well as adding value to the products for the benefit of our business and our customers.”

What do you believe makes GN ReSound stand out from its competitors?

”GN ReSound is a great leader in innovation and technology. The company is clearly outgrowing most of the competition right now, and this is a good platform for even more success in the future. It is my impression that this is an ambitious company with an entrepreneurial spirit and an open culture, which is something I personally like a lot,” Gian Carlo Sciuchetti concludes.

GN Netcom turns 25

What started out as an empty legal entity in 1987 has become a core strategic pillar of the GN family.

Today, GN Netcom’s Jabra brand provides world-leading innovative headset solutions and has employees and sales offices around the world, and the company develops and markets a broad range of wireless headsets and in-car speakerphones for mobile users and both wireless and corded headsets for contact center and office-based users.

In the early 1980’s GN Store Nord acquired the Danish ‘office automation’ company, Netcom, from Rovsing A/S. Netcom turned out to be an unprofitable business and the operation was closed down in 1986 - leaving GN Store Nord with a shell company.

GN Netcom formed on January 1, 1987

Also in 1986, the board of GN Store Nord had concerns about the financial results of another GN company, GN Danavox, which at that time produced both hearing aids and headsets. The company was losing money, but the board was unable to determine which of the two operations was unprofitable. They decided to move the headset operations to Netcom, launching a new company under the name of GN Netcom on January 1, 1987.

Headsets were a relatively new thing in 1987 and GN Netcom only had one headset family at the time, the Stetomike 808, and the goal was to turn that into a global success. Today, GN Netcom’s Jabra products, which include the world’s bestselling Bluetooth® headsets, have become some of the most popular items in the industry.

Jabra is the name

GN Netcom has remained the legal name, but the brand name changed after GN acquired Jabra, then a leading manufacturer of hands-free devices for mobile phones in the United States, in 2000.

In 2011 Jabra took the leadership position based on value in the Bluetooth® segment globally. In the contact center and office segment, which also includes UC headset GN Netcom today holds a global market share of around 30%.

So, thanks to the innovative, enthusiastic and entrepreneurial spirit of its employees, what started out with a modest turnover of approximately DKK 100 million in 1987 has now become a very successful operation generating revenue of DKK 2.1 billion in 2011.