Goldman Sachs Annual European Medtech and Healthcare Services Conference

Anders Hedegaard, CEO & President GN Hearing

London, 5 September 2018
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The GN group at a glance

149 years of innovation has created industry leading sound brands...

GN Hearing GN Audio

Innovation leader creating best-in-class Leading position in growing CC&O market

hearing aid technology
Sales DKK 5,615m Sales DKK 3,970m
(% of total) (59%) (% of total) (41%)
EBITA DKK 1,153m EBITA DKK 721m
(margin) (20.5%) (margin) (18.2%)

… and a world class organisation

Markets hearing aids and headsets in Sales: DKK 9,585m. EBITA(1): DKK
~ 6,000 employees
100 countries across the world 1,744m (margin: 18.2%)

Source: Company information

Note: Financials refer to FY 2017
(1) Includes Group Shared Services
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We have delivered strongly… and will deliver again

2017 – 2019

”Hear more, do more,

2008 - 2009 2010 - 2013 2014 - 2016 be more”

 • Innovation excellence
• Commercial excellence
“Innovation • People excellence
 & Growth”

“SMART”

 Operations

“FAST”
R&D focus
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GN Hearing’s strategic focus areas 2017 – 2019

Hear more,
Do more,
Be more
Leading the industry

Growing our company

Innovation Commercial People

excellence excellence excellence

Developing our organization

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GN Hearing’s journey towards more natural hearing…

6th generation New chipset – brilliant sound experience: unprecedented Layers of Sound™
ReSound LiNX Quattro 2018 and world’s most advanced rechargeable solution

5th generation Unprecedented benefits across three key dimensions – Sound Quality, efficient
ReSound LiNX 3D 2016 and convenient fitting and groundbreaking remote fine-tuning

4th generation Surround Sound by ReSound upgraded with Spatial Sense, helping the user
ReSound LiNX2 2015 hear where sounds are coming from, leading to more natural sound experience

3rd generation The world’s first Made for iPhone hearing aid
ReSound LiNX 2014

2nd generation World’s first 2.4 GHz based ear-to-ear data exchange, Binaural Directionality,
ReSound Verso 2012 enables users to decide which sound to focus on

1st generation World's first 2.4 GHz wireless system

ReSound Alera 2010
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….resulting in 8 years of consecutive market share gains

Hearing organic growth development 2010 – 2018*

GN12%

10%

8%

6%

Average annual market

growth4%
of ~4% (value)

2%

0%

2010 2011 2012 2013 2014 2015 2016 2017 2018*

* Financial guidance of >6%

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GN’s heritage as industry pioneer

• GN Hearing is pioneering and defining the new

industry leading audiological solutions

• “Sound quality” – more than just two words –

comprises GN’s expertise in engineering,
audiology and continuous scientific research
that has defined multiple industry
breakthroughs

• ReSound’s audiological philosophy has always

1992 1996 2008 2013 been to move the needle towards a fuller,
1st DSP used in a 1st Fully Digital 1st Asymmetric 1st Made for Apple
Hearing Aid Hearing Aid Directionality Hearing Aid clearer and richer sound experience
1988 1993 2003 2010 2017
1st WDRC used 1stDFS used in 1st Open Mini BTE 1st2.4GHz 1st RFT
in a Hearing Aid a Hearing Aid Hearing Aid Hearing Aid
1st BD
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New chip platform enables real

improvements in audio capabilities

30% 100%
More Increased
Computing Memory
Power

New chip,
with 6th
gen 2.4
GHz tech
25%
100% Reduced
Increased Power
Speed Consumption
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GN Hearing introduces world’s first Premium-Plus hearing aid:

ReSound LiNX Quattro™

Unprecedented Layers of Sound™

&

The world’s most advanced rechargeable solution

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Premium-Plus
ReSound LiNX Quattro™ defines a
new category in hearing aids
Powered by new technology, including a new chip
platform, ReSound LiNX Quattro™ offers a combination
of unmatched sound quality and rechargeability, while
further expanding GN Hearing’s leadership within 2.4
GHz connectivity and remote fine-tuning:
• Sound quality: Highest input dynamic range available
and extended high frequencies
✓ Sounds are processed in increased detail at all
input levels
✓ Superior sound quality where softer sounds are
clearer and louder sounds are fuller and distortion-
free
• Rechargeability: Longest rechargeable battery life
available
✓ 24 hours of use even when streaming 50% of the
time
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Layers of Sound™
brilliant sound experience beyond
compare with access to the finer
details

• The dynamic input range of a hearing aid has a

crucial impact on the sound quality of music

• While the primary goal of hearing aids is to hear

and communicate with others, the hearing aid’s
ability to faithfully reproduce music is the
ultimate test of sound quality

• Resulting in a brilliant sound experience with

Layers of Sound™ and access to the finer ReSound LiNX Quattro™
details
95% Other premium hearing aids
ReSound LiNX Quattro™ is preferred for music
listening, compared to other premium hearing aids

Jespersen et al., 2018

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ReSound LiNX Quattro™ is the world’s

most advanced rechargeable solution

• ReSound LiNX Quattro™ is the smallest & longest

lasting 2.4 GHz integrated Li-ion rechargeable hearing
aid in the market – with the smallest portable charger
available, holding 3 extra charges

Quick and long-lasting power – full confidence:

HOURS OF
CHARGING TIME
BATTERY LIFE

The most intuitive Li-ion rechargeable hearing aid in the market:

<30 8 out of 10 users are able to set up and use the charger in less 30
secs than 30 seconds without instructions, which is twice as many as 3 hours =
for other rechargeable hearing aids 24 With 50% of
streaming time

Groth, 2018 10 minutes = 2.7

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Premium-Plus
ReSound LiNX Quattro™, and Beltone
Amaze™, will be rolled out starting end
of August 2018

Products will be launched in a new Premium-Plus price

point in RIE (receiver in the ear) form factor as

• Rechargeable

• Replaceable battery solution

The ReSound LiNX 3D™ product family – launched in

May 2017 – continues to be available as a premium
choice
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ReSound product range in Premium-Plus and Premium categories

Premium-Plus
ReSound LiNX Quattro

Premium
ReSound LiNX 3D
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ReSound LiNX Quattro™ target group

• Designed and engineered to go beyond the basics

• Designed and engineered to give people with

hearing loss a higher degree of confidence

• Designed and engineered for people who want the

very best that technology has to offer

» A Premium-Plus solution for people who in social

and professional settings desire great speech
intelligibility in noisy situations and demand a
brilliant sound experience with access to
Layers of Sound™
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Another industry first: Direct streaming from Android phones to hearing aids

• GN Hearing is expected to be the first

manufacturer to enable a full spectrum of
direct audio streaming from Android
devices to hearing aids
• Comprehensive work done on the new
chipset in order to include the new Andoid
connection

• Based on Bluetooth Low Energy –

maximum streaming ability without
compromising the battery
• To be available in ReSound LiNX Quattro
and Beltone Amaze
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Financial guidance for 2018

Revenue (DKKm)1) EBITA margin

Organic growth +6% +6% >6% +0.3%p (0.1)%p
• GN Hearing 5,156 5,615
20.3% 20.6% 20.5% >20%
4,526

• Unchanged guidance
2015 2016 2017 2018 2015 2016 2017 2018

• GN Audio Revenue (DKKm) EBITA margin

Organic growth +7% +10% 16-19% +0.4%p +1.1%p
• Organic growth guidance
3,970 16.7% 17.1% 18.2% >18%
upgraded to “16-19” from “up to 3,229 3,495

15%” following strong

performance in Q2 2018
2015 2016 2017 2018 2015 2016 2017 2018
• Unchanged EBITA margin
guidance Tax rate (%)1)2)
(4)%p +3%p
26% 25%
22% ~22%

• GN Store Nord
• Unchanged guidance
2015 2016 2017 2018
US tax reform net of related items (3.1%pts)

1) Excluding Otometrics 2) Including “Other”

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Q&A