Hello, welcome all to GN's Q2 2022 conference call following our release last night. Thank you all for dialing in, it's great to have you on the call. Participating on the call is Gitte Aabo, Chief Executive Officer of GN Hearing, René Svendsen-Tune, Chief Executive Officer of GN Audio, Peter Gormsen, Chief Financial Officer of GN Store Nord, and myself, Henriette Wennicke, Head of Investor Relations and Treasury. Today's presentation, which you can find on gn.com, is expected to last about 20 minutes, after which we'll turn to the Q&A session. The agenda for the presentation itself is that Peter will start off with group highlights, then Gitte will provide an update on GN Hearing, René will provide an update on GN Audio, after which we'll go back to Peter for a financial update and financial guidance. After that, we hand over to Q&A with questions from the queue. With that very brief introduction, I'm happy to hand over to Peter. Thank you, Henriette. Good morning, everybody, and thanks for joining our Q2 call today. Starting on slide four and a snapshot of the performance in the quarter: In the quarter, we delivered revenue of DKK 4.9 billion, which is a sequential improvement of DKK 1 billion compared to Q1. This translated into an organic growth of 8%. Adjusted EBITDA ended at DKK 610 million, equal to an EBITDA margin of 12.6%. As a result of the recent M&A activities, the adjusted leverage ended at 5.7x in the quarter. A few days ago, we announced a new and exciting hearing aid platform, ReSound OMNIA, which, combined with an improving global supply chain situation, bodes well for the second half of the year for our hearing and enterprise business. However, due to the lower consumer sentiment and the recent buying patterns from leading consumer retailers, we now expect the consumer and gaming gear markets to decrease around 25% in 2022. Even though we are performing strongly on a relative basis, these market conditions impact GN Audio. As a result, we are adjusting our growth outlook for SteelSeries and for our consumer business. Furthermore, we have also seen a significant appreciating US dollar, and due to our FX exposure, this also has a negative impact on our EBITDA margin. Yesterday, we also confirmed the lower end of the range in GN Hearing organic revenue guidance to reflect a lower-than-expected market growth. Let me come back to the guidance later in the presentation. With this quick snapshot, I'm happy to hand over to Gitte for an update on GN Hearing. Thank you, Peter, and hello to all of you. The key messages I want to leave you with are. Our financial performance in Q2 was as planned, both in the core and emerging business if we disregard the lockdowns in China. We've now delivered five exciting product launches this year in line with our plan, and we are following our plan with regards to improving profitability. Let's start by looking at GN Hearing's Q2 2022 financial performance. GN Hearing delivered 4% organic revenue growth in the core business and 79% organic growth in the emerging business. Total revenue increased with 16%, reflecting the organic growth, the consolidation of Lively, and a tailwind from exchange rates. The gross margin was slightly down compared to last year, which was driven by the elevated freight market, the increasing material cost, as well as the development in the VA and Costco. The EBITDA margin in the core business ended at 7%. This is a reflection of the revenue growth and the gross margin impact, investment in launch activities, and a negative impact of more than 2 percentage points from foreign exchange rates. The EBITDA in the emerging business was DKK -49 million. Non-recurring items of DKK -43 million were booked in the quarter related to targeted redundancies. Free cash flow reflects investment into financial support arrangements related to expansion of share of wallet with selected ReSound partners and expansion of the Beltone network. In the quarter, we also invested in a European retailer, which we currently have in transition, similar to what we've done for years in Beltone. Our strategy related to hearing aid retail is unchanged, and GN refrains from forward integration. Occasionally, we will acquire retail when extraordinary circumstances exist. It is with the aim of finding new owners in the short to medium term. As Peter mentioned, we confirmed the lower end of the guidance range to reflect softer market condition, especially in the U.S., we confirmed the guidance for the EBITDA margin. With an adjusted EBITDA margin of 4.5% in the first half of 2022, we'll naturally need a stronger performance in the second half. Let me give you some building blocks for this. While we have an FX headwind of almost 2 percentage points in the first half, this will, everything else equal, turn to a positive impact of around 2 percentage points in the second half, which is equal to a total swing factor of 4 percentage points. We have been right-sizing the organization during the first six months, which will have a positive impact on OPEX in the second half. Finally, but important, we will see an even higher absolute revenue in the second half driven by the launch of our new products, not least ReSound OMNIA. This will also improve product mix, ASP, and thereby our gross margin. Beginning with, let's move to slide seven and some more color on the regional development in the quarter. Now, beginning with North America, we delivered -9% organic revenue growth in the quarter in a market that was soft due to consumer sentiment. We experienced solid performance in the independent market but offset by the development in the VA and the negative ASP development in Costco. Moving on to Europe, we delivered an organic revenue growth of 25% in the quarter. We saw, among others, a strong performance in Germany and Southern Europe. Furthermore, the growth was positively impacted by a larger-than-normal revenue from our key partner, Cochlear. In our rest-of-world region, the organic revenue growth ended at 9% compared to Q2 2021, despite COVID-19-related lockdowns in both China and Korea. Moving to slide eight and an update on our supply chain initiatives. To drive the EBITDA margin above 20% in 2024, we have a dedicated focus to digitalize, simplify, and automate our supply chain. In Q2, we've booked DKK 43 million in non-recurring costs related to targeted layoffs. We have streamlined our global, regional, and local organizational setup, especially in the rest-of-world region. We've also taken the decision to outsource our U.K. distribution site. Going forward, this will be served by a third party out of the Netherlands, just like the setup we have in GN Audio. The transition has already been initiated, and we expect operations to be fully in place by year-end. In order to further streamline the European setup, we've also consolidated the custom production from two GN sites into one. I'm very happy with the progress we are doing on the supply chain, and we'll continue to report as detailed as possible on these initiatives as we move forward. Let's turn to slide nine and the exciting new platform launch, ReSound OMNIA, which we announced on August 16th and will roll out globally from August 25th. As we had a separate session on this the other day, let me just briefly summarize the key messages on Slide 10. ReSound OMNIA sounds natural, feels natural, and connects you to the world naturally. With ReSound OMNIA, we bring an almost unbelievable 150% improvement to speech understanding in noisy environments compared to current hearing aids. It introduces natural-own voice perception, meaning that users are not distracted by how their own voice sounds. With a design for optimal comfort and the first-of-its-kind Check My Fit functionality, the user can forget they are wearing hearing aids and just hear. Whether users choose to stream phone calls or music, they can connect naturally and hear it all with the highest quality through ReSound OMNIA's connectivity solution. In the end, we know that beyond providing high-quality products and solutions, we also need to be the preferred partner to the hearing care professionals. This is why ReSound OMNIA is not only the best hearing aid. It also comes with an improved fitting software in order for the HCPs to fit faster and more accurately. All in all, ReSound OMNIA sets a new standard in hearing technology and improves how people interact with the world around them. Let's move to Slide 11 and our newly launched Custom made by ReSound. Launched in June, Custom made by ReSound brings our first rechargeable in-the-ear hearing aid, and this is the most advanced medical-grade technology in a smart, stylish design to the markets. It is molded to fit the individual's unique ear canal, and these hearing aids provide all-day comfort and streaming with outstanding sound quality, even in the toughest listening environments. With this important launch, we continue to combine expertise from the hearing and audio business to provide a best-in-class customer experience. I'm happy to say that the customer feedback is very encouraging. This leads me to Slide 12 and an overview of our refreshed product portfolio. This year, our R&D team has performed strongly and delivered a completely new lineup across all form factors. With the launch of ReSound OMNIA, our portfolio now offers industry-leading solutions for all users, whether you want uncompromised hearing, a reliable and robust hearing aid, an earbud experience, prefer discreet above all, or a solution for occasional use. I'm very proud that we've been able to bring this many industry-leading products to market this year, and I'm certain that this will fuel our growth in the coming quarters. This leads me to Slide 13 and the newly released OTC legislation. A few days ago, FDA finalized the long-awaited OTC legislation, which essentially means that the market will open by mid-October. We have been preparing for this for many years. Jabra Enhance Plus has been developed with the OTC in mind, and looking at the final regulations, this means that we would need to reduce output sound levels with just 1 dB. This is to be done via a simple software update. In other words, we are ready. We have for some time discussed the product and the new category with selected retailers, including Best Buy, who are ready to take on the product. During the coming weeks, we will formally seek to register the Jabra Enhance Plus technology as an OTC product. With that, I would like to hand over to René for an update on GN Audio. Thank you, Gitte, and hello to all of you. It's now my pleasure to take you through GN Audio's results for the second quarter of 2022. Let's move to Slide 15. Q2 of 2022 was the quarter when we returned to double-digit organic revenue growth in GN Audio, despite a challenging global supply chain situation. GN Audio delivered 10% organic revenue growth as a result of 18% organic growth in enterprise. The growth is still constrained by the global supply chain situation, which continues to be challenging, however steadily improving. The underlying demand for our enterprise products, which now accounts for more than 80% of the GN Audio organic business, continues to be strong. We are very happy with the inflow of orders across enterprise categories. The consumer organic business delivered negative 25% organic revenue growth, while SteelSeries delivered negative organic growth of 30%. This was partly driven by supply chain challenges, particularly in the premium side of SteelSeries, but very much driven by lower consumer sentiment towards the end of the quarter. Adjusted gross margin ended at 46.8%, which was almost 5 percentage points below Q2 of 2021, and can mainly be explained by three factors, the elevated freight market and material costs in general, the development in foreign exchange, especially the U.S.$, and the consolidation effect from SteelSeries. As earlier discussed, we have put in place pricing initiatives in the beginning of this year, but they had limited impact in the quarter due to the backlog situation. However, due to a strict focus on operational cost, the adjusted EBITDA margin ended at 18%. Non-recurring cost amounted to DKK 68 million following the SteelSeries acquisition and integration. The free cash flow reflects a continued inventory buildup of critical components and timing of trade receivables. Let's move to Slide 16 and the regional performance. In North America, we delivered a negative organic growth of 5%. In Europe, we delivered strong organic revenue growth of 22%. In the rest of the world, the growth was flat year-over-year. All of this comes on a high comparison base of 32% growth in the second quarter of last year. Let's move to slide 17 and the current supply situation. We have now showed this slide a few times. Here we illustrate the current status of the supply chain by splitting it into three elements, components, manufacturing capacity, and logistics. Let's start with the component situation. We have seen a gradual step-up in deliveries throughout Q2. Currently, we are seeing more and more volumes coming in. However, volumes are still running below demand, and we continue to experience an elevated order backlog. On the manufacturing side, we are not constrained by capacity in general. However, logistics remains volatile, unpredictable, and it comes with high costs. So all in all, the global supply chain situation is steadily improving, but we don't expect it to be resolved in Q3. It will likely remain a challenge for the rest of the year. With that, let's move to slide 18 and the current environment in the consumer and gaming gear space. Beginning with the supply side, especially for our premium gaming products supply, it's still a significant challenge. We expect this to gradually improve in the coming quarters, but we don't expect it to be fully resolved this year. On the demand side, I think we have all seen the news flow around inflation, lower consumer sentiment, and related spending. This has also impacted the sales of our consumer and gaming gear products late Q2. Retailers have generally been reducing their channel inventories to adapt to this new environment. In fact, we started to experience cancellation of orders by late Q2. This has resulted in a limited selling growth for manufacturers by the end of the quarter. We expect this trend to continue until channel inventories have been reset. To reflect the current supply and demand environment, we have updated our market growth expectations for our addressable gaming gear and consumer markets in 2022. We now expect these markets to decrease around 25% compared to last year. Consequently, we have lowered our internal expectations on SteelSeries and our consumer business to reflect these new market assumptions. We now expect SteelSeries organic growth to be better than -25% while continuing to gain market share. For the consumer business, which now accounts for less than 20% of the GN Audio organic business, we now expect it to decline significantly. We still believe that the medium-term market growth is intact, driven by several attractive megatrends, including structural growth in the numbers of gamers, the premiumization of the market, and further category expansions. Let's move to Slide 19 and an update on SteelSeries. I can say that the integration of SteelSeries is proceeding very well. Despite a challenging microenvironment, SteelSeries continued to capitalize on its portfolio strength with new exciting product introductions, which paved the way for significant market share gains in Q2. In the quarter, SteelSeries launched a number of exciting products, the Arctis Nova Pro headsets and the Apex Pro Mini keyboards. We are on track with further category expansion in the months to come. These innovative new products have landed very well in the market, and they have received outstanding reviews. We have sold everything we have had on stock. With that, I'm happy to hand over to Peter. Thank you, René. Moving to Slide 21 and the group financial highlights. At group level, GN delivered 8% organic revenue growth and an adjusted EBITDA margin of 12.6%. Total non-recurring items were DKK 111 million, driven by the SteelSeries integration as well as the supply chain initiatives in GN Hearing. Adjusted leverage ended at 5.7x. Let's move to Slide 22 and our cash flow for Q2, 2022. GN Hearing's negative cash flow was driven by FSA investments in growth opportunities. Excluding the FSA's free cash flow, excluding M&A, was negative DKK 98 million due to Lively and launch activities. In GN Audio, we saw strong development in operating profits, while the working capital was negatively impacted by deliberate inventory buildup of certain critical components and timing of trade receivables due to sequential revenue growth within the quarter. Let's move to Slide 23 and the capital structure. As mentioned, the adjusted leverage ended at 5.7x in Q2, which is slightly higher than Q1. The increase was driven by the recent M&A and FSA investments, as well as the mentioned negative development in working capital. The net interest-bearing debt ended at DKK 15 billion, while we had cash and cash equivalents of around DKK 0.6 billion. A long-term leverage target of between 1x and 2x net interest-bearing debt to EBITDA is confirmed. However, to reflect the lower consumer sentiment and current uncertainty, we now expect to deleverage and be back within our long-term target by end of 2024. Let's move to Slide 24 and an overview of our current debt maturity profile. Yesterday, we signed mandate documents with our commercial banking group for a three-year, EUR 520 million loan. This will cover the short-term funding requirements. GN continued to have ample sources of financing and a fully undrawn RCF of EUR 350 million. Let's turn to Slide 25 and the financial guidance for 2022. As mentioned earlier, we have revised our financial guidance for 2022 to reflect our updated assumptions to the market growth for gaming gear and the consumer business in 2022, as well as updated foreign exchange rate assumptions. Consequently, we are now guiding for an organic growth in GN Audio to be between 0%-5%. These adjustments reflect a confirmation of the strong performance and outlook in enterprise and a significantly lower expectation for our consumer business. Furthermore, we are now expecting an organic growth in SteelSeries that will be better than -25% for the year, reflecting continued market share gains for the year in a strongly declining market. The significant appreciating U.S.$ and the missing revenue from SteelSeries and our consumer business have led to an adjusted EBITDA margin of 17%-18%. Please bear in mind that we are currently expecting an FX headwind for the year of around 3 percentage points in GN Audio on the EBITDA margin. On a constant currency basis, we are continuing to see strong underlying margins. For GN Hearing, we are confirming the lower end of the organic growth guidance to 5%-8% for the year. Moreover, we are making a minor adjustment to the EBITDA of the emerging business due to the significantly appreciated US dollar. As a consequence of the adjustments, we are now expecting an EPS growth to be between negative 10% and 0% compared to last year. With this, I'm happy to hand back to Henriette. Thank you, Gitte, René, and Peter for the update. Just a few practical remarks before we move to Q&A. We will be hosting an investor and analyst meeting at EUHA in Hanover on the October 13th, where we will provide even more data and details on our exciting new platform, ReSound OMNIA. We hope to see many of you there. With that, I'm handing over to the operator for Q&A. Please, as always, limit your questions to two at a time. At this time, we will open the floor for questions. If you would like to ask a question, please press the star key followed by the one key on your touch-tone phone. If at any time you would like to remove yourself from the questioning queue, press star two. Again, to ask a question, please press star one. Our first question comes from Martin Parkhøi from SEB. Yes, Martin Parkhøi, SEB. Firstly, I think maybe a question for Peter. I'm just curious on the assumptions behind the lower gearing that you expect by the end of 2024 within the range of 1-2. What assumptions have you done on this? Because we can see that your debt is increasing from Q1- Q2 solely because you find growth opportunities within hearing. Have you also included such initiatives in the gearing guidance that you offer for late 2024? Then just to René on the enterprise segment, 18% in the first quarter. Two questions to that. What assumptions have you made for the enterprise segment to deliver the 12%-18% applied in the second half for GN Audio, including SteelSeries? And what have you seen on inventory changes on a channel level for the enterprise business in the second quarter? Hey, Martin. This is Peter. Assumptions behind leverage development: We have assumed that there will be M&A activities going on. Not transformational, significant large ones, but that there will be FSA investments, as we've seen historically also. René here on the enterprise side and the assumptions. I think three pieces too, three or four. One is that everything we see is that demand in general is intact. The hybrid way of working and the deployment of these UC tools and so forth is very much active out there, and large and small companies are adopting these technologies on the back of whatever happened through the pandemic. That's one. I think the second is that we do assume that we have a stable ability to supply. We have re-engineered quite a lot of products. We now have, if we can't get the original components, we can supply with alternative components. That started to have effect late second quarter and more and more is coming in. That has been, I would say, a very successful execution by our engineering teams. That's a second matter. Supply should be more predictable. We are not saying that we could supply fully to demand in the second half. Third, of course, is that we have price increases in the making. They are starting to kick in. We should see some effect of that, more so in the second half than in the first half. I guess these are the main building blocks for the set of assumptions. As always, we assume we take share. That's been the case quarter after quarter for a long time. The inventory levels in the channel? Apologies. I forgot that. The inventories, the reality is that the way the mix is now, so that our SKUs that we now have in stock, where we also have, to some extent, filled the channel. On a broad scale, we are still behind normal channel inventory levels. We have built some, but not a lot. We are not assuming we will recover all that in the second half. Our next question comes from Oliver Metzger from ODDO BHF. Yes. Good morning. Thanks a lot for taking my questions. The first one is on GN Hearing. I was a little bit surprised by the positive performance, in particular, in the second quarter in Europe. You named the 25% organic growth. It would be great if you can go more deeper into this regional performance. You mentioned this extra demand coming from Cochlear. It would be great just to see a little bit more details, in particular, as you were at the end of your platform cycle. The second question is on audio. In the second quarter at enterprise, there was also characterized by some pent-up demand from Q1. Also, how did your order book develop during the second quarter? Thank you. Thank you for that question. When we look at Europe, our performance and the 25% organic growth, we do see strong performance, especially in Germany, in Spain, in Italy, that really drive significant growth. In addition to that, we also have extraordinary high income from Cochlear that impacts both Europe and APAC. Actually, maybe to give a feel for the size of that, we also mention negative impact from COVID lockdowns in China. Actually, when we look at it at a global level, the extra income we get from Cochlear is leveled out by the negative impact in China. Overall, if you were to take a step back and look at GN, we would be delivering solid positive organic growth in second quarter. Yeah. One quick follow-up. Would it be fair to say 2%-3% was the tailwind coming from Cochlear, roughly? I think it's roughly in that size when you look at the numbers globally. Okay. Yeah, yeah. It was from a global scale. Thank you. Equally, we have headwind in that size from the lockdowns in China. Yeah, yeah. René here on the order backlog and order book. I think you can say that both Q1 and Q2 were sort of enabled by supply, meaning that the supply was dictating the revenues more than anything else. The demand is strong. In that sense, of course, there was a pent-up demand from Q1 into Q2, as there is from Q2 into Q3, as we are sort of carrying over an order backlog. We have reduced the order backlog some, perhaps not exactly as much as we want, because the reality is that if we can supply, all in all, more will go through the whole machinery, so we sell more. Yes, we did carry pent-up demand into Q2. We are carrying some forward into Q3 in terms of a significant order backlog. We have taken the backlog down a bit. Our next question comes from Martin Brenøe from Nordea. Hi. Thank you very much for taking my questions. I have two questions for a start. First of all, on SteelSeries, I would like to understand which signals you see that should suggest a sequential improvement in second half compared to first half, which is implied by your guidance. That would be very helpful. The second question is in terms of sort of the inventory levels that you are having. Is there any inventory that you might have to buy back from retailers out in the channel, from the consumer business? And is there any risk that you have to write down some of your inventory on the consumer products? That would also be very helpful. Thank you very much. Thanks for that question. I guess, on SteelSeries and the second half outlook, I think there are two things that will help us there. One is that we believe the supply will improve, but not be as strong as we want, but be better. Second is that, all in all, our competitive position is stronger. I mean, we have new headsets, best-class in the market. We have new keyboards, best in the market. Maybe soon, something else may happen. There's some category expansion to be expected. I think, so you can say, all I'm saying is that there is an assumption that in a down market, we will gain market share. We have everything ready to do that. We feel very confident on that side. On the consumer inventory, no, we have no indications that we would buy back any inventory from the channel. It's not overstocked in any way. What I said happened, and especially on the gaming side, but a little bit also on the consumer side, is that orders got canceled as retailers late in the second half of June, or June in the second half of June, started really aggressively taking down inventory. The sellout was stronger in Q2 than the sell-in, for sure. No ideas that we would buy anything back. It's not like we have inventories that we would have to write down. The inventories that we are building up are subsystems or components, because we are buying in ahead of the situation, so to speak. When we get the critical components, we are ready to build the product and ship it right away. That has elevated component inventories. That's very clear. Thank you very much, René. I'll jump back into queue. Thank you. Thanks. Our next question comes from Maja Pataki from Kepler. Yeah. Thank you very much for taking my question. I'll start with hearing. Gitte, we've seen yesterday the announcement from Best Buy that they're going to be selling hearing aids in 300 stores of their 1,000 stores, plus the online channel. But they've also stated that there are going to be 10 devices sold through the channel. So it looks like you have a great product, but you're going to be competing quite harshly in a new channel. What makes you comfortable or confident that you can actually successfully compete in that channel? Then my second question to audio. When we look at the indication on what you expect market growth to be for consumer and gaming, could you please just talk a bit to it why you've chosen the -25%? I mean, it could be anything. We could be standing there with a dart and just throw it somewhere. It could be -30%, -50%, -20%. Are there any steps behind it that get you to that number? Or is it just a best guess? Thank you. Thank you, Maja, for the question on OTC and competition. I mean, obviously, we are delighted to see the OTC regulation come out and the market opening up mid-end October. We are ready to launch Jabra Enhance Plus into that market. We actually believe that we have a very strong product offering, also from external reviews of Jabra Enhance Plus. I feel quite confident that we are ready to compete, because we really offer something unique with Jabra Enhance Plus. René here. Thanks for that question. Of course, it's a very good question. How do we know that the market will decline by 25%? The honest answer is, of course, no one knows, right? We have picked what we think is a conservative number. We have been looking into what's going on right now. We have been looking to what other players have said. We are talking to the channel and so forth. In that sense, we think 25% down is a conservative number, which we can work with. Could it be worse? I don't know. Maybe so. Could it be better? I hope so. At least we will try to beat this best we can. Of course, for us, most important is actually that we send a signal to ourselves and to our partners and the investors that we understand the situation. We are acting on it. Also, we are giving you somehow at least the framework that we operate in. I think, personally, 25% is, with everything we can read and listen to, is a good conservative number. We are working from that. Okay. Thank you very much. I'll go back into the queue. Our next question comes from Christian Rom from Danske Bank. Good morning. Thank you for taking my questions. I have two as well. First one, actually, continuing on this theme, on the downgrade for your expectations in consumer and SteelSeries, can you sort of give us a rough understanding of how much of this downgrade can be attributed to, say, channel clearing? This fact that we've seen sell-in being significantly lower than sell-out, how big do you expect that effect to be on a full-year basis? Or have you assumed it to be on a full-year basis? Then the second question is to the gross margin development in GN Audio as we look into the second half of the year. How should we think about that compared to the around 47% underlying gross margin that you reported here in Q2? Maybe, if I can, just squeeze quickly in a quick question on the outlook for SteelSeries EBITDA margin for the full year. How should we expect that to develop relative to the roughly 13.5% SteelSeries achieved last year? Thank you. Thanks for these questions. I think, first, on the channel clearing, of course, this is something that will not continue. I mean, it will set itself up at a new level at some point of time. If the sell-out continues, sooner or later, the channel will have to start buying again. You will get a new sort of sell-in, sell-out balance. I would assume that a lot of that has happened. Exactly how long it goes on, we have not guided for that. We have not sort of any because there's, of course, also a competitive matter here on how you play this whole channel play. There has been channel clearing going on. How much more, we have to see. We have a view on that, basically. It's inside our perspective. On the gross margin, I mean, I think Peter talked to the U.S. dollar effect of that, which is significant. Of course, if this doesn't change, it's something we have to repair over time. For now, it is significant. I think, in the other direction, if you look at Q2, and we had negative impact from the U.S.$, from transport negatively, and then you can say we had a positive mix effect. We had these drivers took us down. Then we had a product-driven gross margin improvement effect in that. In the second half, of course, we have certain impacts from pricing. We also will have an effect on the mix. You can say the mix is not optimal as with the supply we have been able to deliver in Q2 and Q1. It is expected to improve. I guess I cannot give you sort of a lot more than that. Prices mix will offset, to some extent, the effects we have just talked about from a lower business. Great. Thank you. Just on SteelSeries, should we expect sort of similar margin decline at the EBITDA level for that as for the overall GN Audio business? Is that a fair assumption? I think SteelSeries, of course, as we are investing in this business and we are moving it forward with all the ecosystem investments and so on and so forth, of course, it has a lot to do with the volume. We are somehow now managing this in a way where we get a meaningful result out. I don't have a guidance for SteelSeries EBITDA as such. You have to assume that this is becoming, as we own it and as we somehow consolidate we have already consolidated the whole back end, it is becoming a more profitable business. The more volume we can drive, even more so. Great. Thank you very much. Our next question comes from Christoph Gretler from Credit Suisse. Thank you, Operator. Good morning, team. I have two questions. First, on this new EUR 500 million loan you secured, EUR 520 million loan, could you actually disclose what are the terms of that, particularly relative to what is going to be refinanced against, so that we get a sense about the impact, the likely impact on financial expenses? The second question is sorry, it was a bit of a crowded day on Tuesday, but maybe I missed it. On this OMNIA, could you actually discuss the pricing strategy relative to the ReSound ONE before? Thank you. Yeah. Hey, this is Pete. The loan is a standardized commercial banking loan. It's a three-year loan, no covenants. I think it's under the current circumstances, we are quite pleased with the loan. I think that has certainly improved the short-term profile quite significantly. Of course, we still have our convertible bond. We have the RCF, as also said, available unused. I think we have, as we have talked about, a fairly strong funding profile overall. The terms, I don't think we disclose the exact details. Of course, we're in the low single-digit range. In terms of interest rates, low single-digit. Correct. Thank you. Thank you. You asked about our pricing strategy on ReSound OMNIA. Maybe, first off, I just want to underline that, as we've done in previous launches, we launch in the higher price points first, and obviously in our core markets, starting out in the U.S. and Canada. In addition to that, we take the opportunity, as we have also done with previous launches, to take a price increase compared to, in this case, compared to ReSound ONE. That's also why I earlier talked about how the new ones will both help drive more sales, but also improve our mix and ASP. There is no quantification, then, I understand. No. Thanks. Our next question comes from Mattias Häggblom from Handelsbanken. Yeah. Good morning. Mattias Häggblom, Handelsbanken. Questions, please. Firstly, for Gitte, we'd be interested to hear maybe an expansion of your thoughts about launching a new innovative platform into a market that is currently showing the weakness, in particular driven by consumer in the U.S., but also in certain pockets of Asia Pacific as well, driven by the pandemic. Secondly, for René, what I'm not much for regrets, I'd still be interested to go back and expand on your reflections on the SteelSeries acquisitions in terms of timing. How do you feel about the integration process? Perhaps, in particular, talk about combined product development between the GN Audio and SteelSeries team. Thanks so much. I think that with ReSound OMNIA, we bring a new strong platform into the market that, on many parameters, is competitive to other offerings in the market. Therefore, I clearly expect that, with this new product, we will take a share. That applies also in a softer U.S. market. Obviously, with a competitive offering and our ability to take share, that is an attractive place to be launching into. In Asia Pacific and, more specifically, China, we actually see much less impact of lockdowns right now. I think the market has normalized in that regard. We look forward to launching. It will be a while, though, before ReSound OMNIA reaches China, because it's a long homologation process in China. ReSound OMNIA will not reach the Chinese market in 2022. We will be launching in Japan. There, markets are normalized. René here on SteelSeries. Thanks for that question. Let me first say that SteelSeries was a strategic investment. We closed the deal in October of last year after a long time of looking for a solution to this. Everything we have seen after confirms that we did the right decision. It's a very solid company, very well positioned in the market, strong capabilities, and also the innovation power we have acquired this way is as good or better than we have expected. On the integration side, we started on the back end, the operations. We have now combined the sourcing, most of the logistics interface to several of contract manufacturers, and so on and so forth. The back end ecosystem is under integration. It's proceeding exactly as we had planned it to do. It is also starting to deliver the first savings as we have been looking for. In a similar way, we are now sort of integrating on the finance, Human Resource, and common platforms, and so forth. We'll take a little longer because we need to get it right. That is progressing exactly as we had hoped for. Very solid contribution, I think, from both sides. Then, of course, there are two big tickets left. One is the whole brand and marketing and so forth. Here, we are taking no steps to integrate at this point of time. There may be some sourcing later and so on. We are following the plans on the SteelSeries side and the plans on the Jabra side completely and executing on that side. On the go-to-market behind that, of course, there are opportunities we can exploit. We're doing that softly, let me put it like that. No hurry. Then, finally, to your question, of course, on the product creation side and the technology side, I think what we have said all the time is that whatever would come out of SteelSeries now and next year is something that's already ongoing. Therefore, of course, there is a limited effect from the technology side from GN Audio. In a similar way, the other way around, that GN Audio will need some time to take over technologies from SteelSeries. Work is in progress. Roadmapping is happening. Opportunities are there. I would say probably the tech people are more eager than me on the speed here. There is a lot we can do. It will take some time, because we need to get the real and the right products out of the technology we have on both sides. It will happen. Great. Thanks so much. Our next question comes from Niels Granholm-Leth from Carnegie. Thank you. Two questions for GN Hearing. Regarding the acquisition of a European retailer, could you just tell us how long should we anticipate this retailer to remain in your books, just to get our revenue correct? How much of quarterly revenue would that business contribute? The second question on the Costco contracts. Did you tender for the Costco contract? Have you any information if it has been placed with any of the manufacturers? Thank you. Thank you for those questions. In terms of the financial impact of the acquisition of the retailer, the way to think about that is that, in Europe, we have 11% impact from M&A activities in the quarter. That is due to the retailer. Now, as I also alluded to, this is obviously extraordinary that we acquired this retailer. We did that because it's a longstanding partner with us. We have 100% share of wallet. We obviously want to keep that. Our aim is to find a new owner for that retailer sooner rather than later. As soon as we have found a good new owner, we will pass it on. Our strategy on retail is the same. We don't want to own retail. In terms of Costco, I'm sure you appreciate that I cannot go into details on our relationship with Costco. Maybe just state that I'm very pleased with our position in the branded segment. Great. Can you just mention which country this retailer is placed in? Yes. Portugal. Great. Thank you. Our next question comes from Martin Parkhøi from SEB. Excellent. Martin Parkhøi, SEB. Just, Pete, or René, or whoever of you can comment on you blame the reduction in the adjusted EBITDA margin on FX. That is, of course, also clearly a significant headwind. Two things. Can you maybe say what will be the additional spillover effect on 2023 on the margin, since, I guess, you have had some hedging gains this year? Secondly, on your aspirations of delivering more than 25% sorry, more than 20% EBITDA margin in Audio, is this still intact in the current FX environment? Just to Gitte, with respect to European growth and the market you mentioned, some of them are of course also larger Amplifon markets. Have you had extraordinary deliveries to Amplifon in the quarter? Hey, Martin. It's Pete. As René said, and you're absolutely right, we have a significant FX impact this year. Of course, no one knows how currencies develop. An assumption could be between 1%-2% impact next year. Then, on the EBITDA margin rolling in, it's certainly still our ambition to be in the 20% range. On Amplifon is an important partner of ours. Therefore, also important business in the second quarter. Nothing out of the extraordinary. I guess nothing out of the ordinary was what I meant. Sorry about that. Business as usual. Okay. Pete, can I just come back to the market? Because let's assume that the downgrade to margin is a 2 percentage point driven by FX this year and maybe additional 1%-2% next year. It is a major underlying upgrade to your targets, if you still believe 20%. Can you try to explain that? Yeah. I think why we remain confident, Martin, is that, of course, there is a lot of leverage in the business. There will be mixed impacts. René talked about SteelSeries synergies and the integration efforts we have in that area. We have raised prices. We have not ruled out that there might be further to come. We're not saying anything about that. That's what gives us the confidence. If I may address that, I mean, you can also look back and see when volumes were even higher. I mean, sort of when we were accelerating the volumes, also, the leverage was there. Of course, that phenomenon still exists. Thank you. Our last question comes from Maja Pataki from Kepler. Yeah. Thank you very much for taking my follow-up question. Very quickly, Gitte on Hearing, we had all your peers profit warned this week and, you know, cut guidance. Some of the outlooks are fairly bearish. I wonder why you didn't take the opportunity to give yourself a bit more room to maneuver in what appears to be, once again, a challenging market. Can you maybe talk a bit about July and August? Whether there is something that makes you feel very comfortable about your guidance, about the lower end of the guidance? Or, you know, what was the reason why you didn't? Just give yourself a bit more room to breathe. On Audio, can you talk a bit about your video business? You know, what have the trends been there? Has huddle room been doing well? The PanaCast 20? Just some color on that would be very helpful. Thank you. Thank you for that question, Maja. I think the reason why we feel confident of still delivering organic growth above the market, so in the range 5%-8%, is due to our new product launches. I mean, we've brought five stellar products to the market now, including a completely new platform, ReSound OMNIA. We also have brought rechargeable custom products, rechargeable BTE. We have a new, completely in the canal, a hearing aid, if you want, a really discrete solution. We also have Jabra Enhance Plus. Now, we can finally launch it under the OTC regulation. I really believe we have an extremely strong product lineup that makes us capable of taking market share in the second half of the market. That's why we keep the guidance as is. We have taken the top of the guidance. If you're not precise, that we will come in on the lower end of the guiding range. That's obviously to reflect the market conditions. We obviously also see what our competitors are talking about. Fair point, Gitte. In reality, nobody really knows what's going to happen for the rest of the year. Could you maybe, in that context, talk to what kind of tailwinds you expect from the price cut annualization at Costco? Maybe a bit on how you think VA will contribute to growth? Obviously, as you alluded to, our comparison on Costco will change here in the second half, because we lowered our prices last year in June. We have a different comparison base as we move forward in Costco. In general, we obviously also see an impact from our price increases. That is in the low single digit that impacts. In terms of VA, we will bring our new products, and especially ReSound OMNIA and our rechargeable custom products, into the channel as of 1 November. Again, I think we've seen rechargeable custom actually be quite an interesting product category in the channel. I believe, and so does external review, confirm that we actually have the strongest offering in that form factor. I also think our new product platform with ReSound OMNIA is extremely strong and competitive, both in terms of the product but also in terms of the fitting software. Therefore, again, I think that will also be relevant for VA. I feel we'll be in a strong position. René here. On the video side, thanks for that question. We're very happy to talk about that. I think, first of all, we have two products in the market: the PanaCast 50, the plug-and-play room device. We have two new products in the market. We have PanaCast 20, a very high-end personal camera. Of course, we have the Jabra PanaCast, which we have had for a couple of years now. I think if we start with the PanaCast 50 and the way we have taken that to market, we have actually now proven that we have a very powerful video audio bar there. We are building software with, especially Microsoft, but also Zoom, that we have so the so-called gallery view that is being marketed extensively by Microsoft. We are the first ones in the market who can bring that. We can see that because we have a very powerful AI-driven engine in this camera. A lot of things working with that. The problem we have had is, as you know, is that we have had supply challenges, more so in the video space than elsewhere. These are easing. We are selling significant volumes through this quarter. More will come out in Q4. Yesterday, we actually launched a room systems package together with Lenovo, where we bring out our camera there, so-called MTR Microsoft Teams Room, and the necessary control panel in one package from us. Of course, that's something where we are very confident we'll get more impact in the channel. This is something that is heavily backed by Microsoft with their Teams ambitions and so forth. We are investing heavily in the roadmap. I cannot tell you exactly what's next and so forth. It's clear that a lot of investments are going this way. This is our strongest upside, really, both in terms of being able to ship in sufficient volumes but, of course, also get more products into the market. I think our strategy is working very well. Technology is solid. The acquisition of Altia Systems time back was exactly the right one. It's still early days in terms of market share because of supply. I think we have everything lined up to actually be increasingly successful month by month and quarter by quarter. Great. Can you just put that maybe a bit more into perspective compared to the overall enterprise growth? Like, you know, significantly above and just any wording around that. What about you talked about now the room systems. What about the uptake or the perception of your personal video, the PanaCast 20, I think? Sorry, I lost the first part of the question. The growth. The growth. Yeah. I apologize. Now, I got it. I mean, it's clear that we're coming from a small market share. It is probably the highest growth space in the whole accessible market for us. We are out there to take market share. Of course, not only are we looking into a high-growth market but also, if we do as we intend to do, it will be the strongest growth driver from a percentage point of view. Of course, the reality is it will take some time before it matches the volumes we get out of our office headsets, where we are absolutely leading the market. Of course, it's a high volume but with a little bit lower growth in the market. Anticipated to be a strong growth driver, and percentage-wise, from a small base, higher than anything else. The PanaCast 20 is a market-making exercise. It is a very highly rated new camera we have out there. It gets fantastic reviews. It will take time for us to break through and get the volumes that you can get in a little bit lower price points. We think there is a clear room in the market for a high-end personal camera for many parts of the market. That's also the feedback we get from customers. Here, we are sort of, I can't tell you exactly what we're shipping. Here, we are sort of in a little bit better shape. We are actually now able to ship against the market. Thank you very much for that. That concludes the Q&A session. I will now turn the program back over to our speakers for any additional or closing remarks. Thank you very much, Operator. Thank you, everybody on the call. With that, we appreciate your time today. We will see you on the road. Thank you very much.