Jacob Kruse, Equity Research Analyst, Autonomous Research and Rune Sandager, Head of Investor Relation, GN Store Nord, discussed high leverage and risk assessment from analysts’ point of view and investor side on working capital, dividends and valuation.

Jakob Kruse: “Once the rates start coming down, people will look for those companies that are either more protected because they’re hedged, say the UK banks, or more sensitive because they don’t have hedges and they haven’t built a deposit base. I think if this were to signal a whole new paradigm for rate, then maybe people would have to redo the numbers. “

Rune Sandager on his learnings for IR in lights on GN’s 8 bn DKK acquisition of the gamer company Steelseries just few weeks prior to Russia’s war with Ukraine began with booming inflation and increased interest rates came along in the wake:

“Zero procent interest rates doesn’t exist anymore. We need to think about irritating hedge fund guys sitting over in the corner that can get less warning. So, what are we doing communicating if that less warning happens? Even though there have been a period where it couldn’t happen, we need to think about that. IR-wise we need to be a bit more at the risk picture. Also, the ups and downs, not only the highest probability, but also look if something happens”.

Throughout the day, we used Slido to pose different polls to the guest:

The first question was: To what extent have changes to the level of interest rates been part of you conversation with investors?

To a greater degree that a year ago: 52 percent

No difference: 29 percent

To a lesser degree than a year ago: 19 percent

Link to on-demand streaming of the session