Gn Store Nord A/s · OMXCOP:GN
Gn Store Nord A/s — Investor Presentation (April 2017)
58 slides from Gn Store Nord A/s's investor presentation, Apr 6, 2017
Slide 1: GN Store Nord — Investor and analyst meeting
GN Store Nord — Investor and analyst meeting ~ ™ = ~ “nr . eee ~ . m2 “ - AudiologyNOW! April 6, 2017 GN Making Life Sound Better pean
Slide 2: Slide 2
Slide 3: Video 1
Video 1 GN Making Life Sound Better
Slide 4: Agenda
Agenda Strategy and product update Anders Hedegaard, CEO Introducing ReSound LiNX 3D™ Laurel Christensen, Chief Audiology Officer Financial update Marcus Desimoni, CFO Recap and Q&A
Slide 5: Strategy and product update
ReSound &N Strategy and product update Anders Hedegaard Making Life Sound Better
Slide 6: Strategy 2017 - 2019
Strategy 2017 - 2019 Next step in GN Hearing’s successful evolution 2010 - 2013 Y “SMART” + Restructuring phase — resulting in peer level profitability 2008 — 2009 “FAST” + Key strategic decision not to own retail + New structured R&D approach — innovating new standard with a 2.4 GHz in 2010 2008 a
Slide 7: GN Hearing's strategic focus areas 2017-2019
GN Hearing’s strategic focus areas 2017-2019 Innovation Excellence Second to none focus on user needs and improving life through superior sound quality and services Core technology Focus on core technology to deliver superior sound quality with increasing software capabilities needed Time to market
Slide 8: Launching 5th gen. 2.4 GHz and 3rd gen. binaural directionality
Launching 5" gen. 2.4 GHz and 3% gen. binaural directionality 3"4 generation 2"4 generation Binaural Directional 1 generation GN Making Life Sound Better 2017 Strongly imprc sound quali ReSound 1 ™ Better situational LINX 3D awareness 2015 New Launch Better spatial hearing ReSound 2014 LiNX2™ Better
Slide 9: Most advanced innovation in hearing care
ReSound LiNX 3D — Most advanced innovation in hearing care ReSound LiNX 3D New generation premium Smart Hearing aids — allowing users to hear more, do more and be more, anywhere in life ReSound GN Making Life Sound Better
Slide 10: Introducing ReSound LiNX 3D — The experience
Introducing — The ReSound LiNX 3D experience Hear more than you ever thought possible Enhanced hearing and fitting experience Hearing care wherever you are ReSound GN GN Making Life Sound Better 40
Slide 11: More than just another hearing aid
"1 ReSound LiNX 3D — More than just another hearing aid « 5t generation 2.4GHz ¢ 3'4 generation binaural directionality * 34 generation ReSound App ¢ First cloud based hearing solution ov Excellent sound quality ¢ Improved fitting experience Unique remote fine-tuning S The ReSound LiNX 3D experience
Slide 12: The new hearing care experience – multiple industry firsts
12 The new hearing care experience – Leveraging multiple industry firsts 2.4 GHz wireless connectivity World’s first (2010) Binaural Directionality World’s first (2012) Made for iPhone (MFi) World’s first (2013) Cloud based remote fine-tuning World’s first (2017)
Slide 13: Hear more than you ever thought possible
Making Life Sound Better ReSound LiNX 3D ° — Hear more than you ever thought possible New strong audiological benefits: Superior sound quality Most advanced surround sound Best speech recognition in noise Studies comparing ReSound LiNX 3D with other premium hearing aids: Up to better at identifying
Slide 14: ReSound Smart Fit
ReSound Smart Fit " — Enhanced hearing and fitting experience Efficient and intuitive fitting software: * Fast, easy to use * New ReSound Smart 3D™ App * On-the-go personalization ¢ Easy control of programs and sound ¢ Available on Android and iOS incl. Apple Watch
Slide 15: ReSound Assist — Hearing care wherever you are
ReSound Assist — Hearing care wherever you are Remote fine-tuning: ¢ Modern new cloud based technology ¢ Enabling unprecedented remote fine-tuning and overall hearing care * Provides for remote care comparable to that offered in clinic ¢ Flexibility, ease and convenience for both user and HCP: - Opt
Slide 16: Today's hearing care needs more efficient solutions
Today’s hearing care needs more efficient solutions GN Making Life Sound Better Currently, users need 4-7 revisits to their dispenser’s clinic to fit their hearing aids Hearing care Client professional ReSound SN 16
Slide 17: Users demand newest technology including remote healthcare options
Users demand newest technology including remote healthcare options Hearing aid users are online Remote healthcare is a driver of users’ Survey of healthcare decision 1,000 people making with a hearing loss shows clear trends* Users expect health professionals to be flexible and on the forefront of t
Slide 18: Hearing care wherever you are
ReSound LiNX 3D — Hearing care wherever you are Users’ benefits: Cloud * More efficient fitting fo a process — with ff \ intuitive, on-the-go if ReSound Vi fine-tuning capabilities Better fit and consequently better sound quality cs tL enrelen Client Hearing care professional GN Making Life Sound Be
Slide 19: Global launch of ReSound LiNX 3D
19 Global launch of ReSound LiNX 3D • ReSound LiNX 3D is being launched globally in all primary markets • ReSound LiNX 3D is launched as a full product family • ReSound LiNX 3D is launched in Top and Plus performance levels
Slide 20: ReSound LiNX 3D – Unparalleled Smart Hearing
20 ReSound LiNX 3D – Unparalleled Smart Hearing Hear more Hear more than you ever thought possible Do more Enhanced hearing and fitting experience Be more Hearing care wherever you are
Slide 21: Video 2
Video 2 GN Making Life Sound Better 21
Slide 22: The future of Smart Hearing
= reorererauiiig ReSound LiNX 3D — The future of Smart Hearing Laurel Christensen GN Making Life Sound Better
Slide 23: Full ecosystem
ReSound LiNX 3D — Full ecosystem eG ob COEF iPod iphone Clipe | Made for iPhone ReSound Res. 8s ReSound —_ ReSound nl ReSound Micro Mult ific Phone Chp+ Remote Gonttol2. TV Skeamer2-—-ReSound Smart 3D GN Making Life Sound Better ReSound Relief ReSound Control 23
Slide 24: Cloud integration
ReSound LiNX 3D — Cloud integration GN Online Services or Client GN Making Life Sound Better Hearing care professional 000 ReSound GN 24
Slide 25: Hear more than you ever thought possible
25 Hear more than you ever thought possible Our commitment since 2009, Surround Sound by Resound harnesses advanced technologies to emulate the human ear, taking advantage of the brain’s natural ability to recognize and localize sounds while maintaining an open sound picture Surround Sound by ReSoun
Slide 26: Further enhanced sound quality and hearing in noise with Binaural Directionality III
26 Further enhanced sound quality and hearing in noise with Binaural Directionality III 17 Band Warp Binaural Spatial Sense SoftSwitching™ Compression Directionality III™ Environmental Music Mode™ Optimizer™II DFS Ultra™ II Noise Tracker™ II Severe-Profound Windguard™ Sound Shaper™ Expansion Fitting
Slide 27: ReSound Binaural Directionality III
27 ReSound Binaural Directionality III ReSound Binaural Directionality – A binaural listening strategy using 2.4GHz device-to-device signal processing The 3rd generation binaural directionality provides: • 360-degree audibility and awareness in quiet and speech-only situations • Improved hearing in
Slide 28: But, people look at who they want to listen to, right?
28 But, people look at who they want to listen to, right?… % • Significant portion of active 100 listening is not from in front 80 32% of active listening time 60 • Hearing aid signal processing 40 cannot predict the signal the 20 listener desires to hear 0 Front Back Right Left Multi Distribution o
Slide 29: Traditional Directionality — Tunnel hearing
Traditional Directionality — Tunnel hearing
Slide 30: Binaural Directionality
Binaural Directionality Life Sound Better
Slide 31: ReSound Binaural Directionality
ReSound Binaural Directionality GN Making Life Sound Better ReSound GN 31
Slide 32: Binaural Auditory System — Awareness strategy
Binaural Auditory System — Awareness strategy GN Making Life Sound Better
Slide 33: Binaural Auditory System — Better ear strategy
Binaural Auditory System — Better ear strategy GN Making Life Sound Better 33
Slide 34: Binaural Directionality III — Optimizing surround audibility
Binaural Directionality Ill — Optimizing surround audibility Binaural Directionality II Binaural Directionality III Qos A ReSound GN GN Making Life Sound Better
Slide 35: Hear more than you ever thought possible
Hear more than you ever thought possible ReSound LiNX 3D is up to 50% better at identifying speech in various environments* users can: 3 Because us te - Hear up to 80% more of the sounds around them** Understand 40% more speech in noise** Making Life Sound Better
Slide 36: ReSound LiNX 3D is up to 50% better at identifying speech in various environments
36 ReSound LiNX 3D is up to 50% better at identifying speech in various environments • ReSound LiNX 3D and premium hearing aids from 5 other manufacturers were exposed to a conversation between a male and a female speaker in different kinds of noisy environments (party, train station, grocery store,
Slide 37: Effect of Binaural Directionality III – Clinical research
37 Effect of Binaural Directionality III – Clinical research Three listening situations were evaluated with noise, multiple location speech maskers and a speech stimuli target Devices evaluated: • ReSound LiNX 3D with Binaural Directionality III • Two premium hearing aids with binaural beamforming d
Slide 38: Test condition – Talker front
38 Test condition – Talker front Speech Reception Threshold (dB SNR) 35 30 25 20 15 10 5.6* 5 3.6* 1.6* 0 ReSound LiNX 3D Hearing aid A Hearing aid B Target Masker Noise * Lower values are best
Slide 39: Test condition — Talker left
Test condition — Talker left GN Making Life Sound Better Speech Reception Threshold (dB SNR) 35 30 25 7.6* ReSound LiNX 3D * Lower values are best 22.5* Hearing aid A 26.2* Hearing aid B
Slide 40: Test condition – Talker behind
40 Test condition – Talker behind Speech Reception Threshold (dB SNR) 35 30 29.9* 25 26.4* 20 15 15.3* 10 5 0 ReSound LiNX 3D Hearing aid A Hearing aid B Target Masker Noise * Lower values are best
Slide 41: Users of ReSound LiNX 3D hear up to 80% more of the sounds around them
41 Users of ReSound LiNX 3D hear up to 80% more of the sounds around them Mean SRTs with target talker to the left • Depending on the direction of the speech, Speech Reception Threshold (dB SNR) listeners performed at SNRs up to 19 dB better 26.2 22.5 with ReSound than the other hearing aids 7.6 • C
Slide 42: Users of ReSound LiNX 3D understand up to 40% more speech in noise
42 Users of ReSound LiNX 3D understand up to 40% more speech in noise • Where the target speech was in front of the listener • In this condition, the binaural beamformer solutions gave a small advantage over LiNX3D, Speech Reception Threshold (SRT) Mean SRTs with target talker in front however, when
Slide 43: ReSound Smart Fit
ReSound Smart Fit GN Making Life Sound Better Enhance the fittings experience Designed together with audiologists More time for support and guidance 43
Slide 44: ReSound Smart 3D app
ReSound Smart 3D app Enhance the One-tap access to hearing experience all primary functions Quick buttons for easy sound personalization GN Making Life Sound Better
Slide 45: ReSound Smart 3D app
ReSound Smart 3D app ory HEARING AID LEARNING Guided onboarding and use Optimization anywhere with ReSound Assist GN Making Life Sound Better Enhance the hearing experience
Slide 46: Hearing care wherever you are
Hearing care wherever you are Easy access for the users directly from the ReSound Smart 3D app GN Online Services a ro aan To Requcot accstance x ‘aa ee DEFINE YOUR PROBLEM Please mark the problem(s} you're cxperencing. You can add your own description onthe last page © mois @ soso © Muttied,unetear
Slide 47: Hearing care wherever you are
Hearing care wherever you are GN Online Services Client Hearing care professional GN Making Life Sound Better Any fine-tuning can be done remotely FILE EDIT Patient Instruments Fitting Summary VIEW INSTRUMENT FITTING HELP Profile Re Data Logging Education 2017 : = Assistance Request - 01:43 PM 47
Slide 48: Hearing care wherever you are
Hearing care wherever you are That way the HCP can spend less time scheduling appointments and GN Online ; more time supporting the users Services A . oe oT Request assistance x Client Hearing care professional Close GN Making Life Sound Better
Slide 49: ReSound Assist is the only cloud based hearing care solution
49 ReSound LiNX 3D is the only cloud based hearing care solution Pioneering a novel innovative hearing care experience ReSound Assist is superior to any other tele-audiology solution! + Enabled by GN’s proprietary and secure cloud solution and fully integrated in the ReSound Smart Fit software Re no
Slide 50: ReSound Assist advantages
ReSound Assist advantages + Seamless transfer via 2.4 GHz Bluetooth Smart * HCP access to hearing aid settings in fitting software + Data on hearing aid use after fitting available for HCP * Hearing aid is permanently cloud-connected via app + Hearing aid and fitting software always synchronized + S
Slide 51: Live demo – Transatlantic remote fine-tuning
51 Live demo – Transatlantic remote fine-tuning
Slide 52: Financial update
Financial update Marcus Desimoni Making Life Sound Better
Slide 53: We have delivered on the 2016 guidance
We have delivered on the 2016 guidance GN Hearing (oxen ee Ae) 1082 ¢ Strong revenue growth of 14%. 6% organic growth 921 GAB — within financial guidance 455 SD + EBITA increased 15% to DKK 1,062 million — | | vom within financial guidance 1 2015, 2016 2015 2016 GN Audio (oxKm) sass fn) ay +11% * So
Slide 54: Creating shareholder value through efficient capital structure
Creating shareholder value through efficient capital structure * During 2016, GN has distributed DKK 1.4 billion to shareholders via share buybacks and dividends for the year + At the end of 2016, the net interest bearing debt ratio was 1.9x EBITDA, before closing of divestment of Otometrics, in lin
Slide 55: Financial guidance for 2017
55 Financial guidance for 2017 • GN Hearing expects continued solid revenue growth again in 2017, in line with the 2017 – 2019 strategy: - The 2017 guidance already included the ReSound LiNX 3D launch - Reflecting scheduled product launches during the year, GN Hearing expects organic growth rates an
Slide 56: Recap and Q&A
Recap and Q&A GN Making Life Sound Better
Slide 57: ReSound LiNX 3D – Unparalleled Smart Hearing
57 ReSound LiNX 3D – Unparalleled Smart Hearing Hear more Hear more than you ever thought possible Do more Enhanced hearing and fitting experience Be more Hearing care wherever you are
Slide 58: Q&A
Q&A www.gn.com E-mail: investor@gn.com Making Life Sound Better