Turtle Beach Corporation · NASDAQ:TBCH

Turtle Beach — Investor Presentation (April 2016)

26 slides from Turtle Beach's investor presentation, Apr 11, 2016

  1. Slide 1: Breakthrough in Audio Technology: HyperSound Overview

    Breakthrough in Audio Technology HyperSound Overview April 2016

  2. Slide 2: Important Cautions Regarding Forward Looking Statements

    NASDAQ:HEAR Important Cautions Regarding Forward Looking Statements This presentation includes “forward-looking statements” within the meaning of the federal securities laws. These forward-looking statements are statements that are not historical facts including statements about our beliefs and expe

  3. Slide 3: HyperSound Overview

    NASDAQ:HEAR HyperSound Overview  HyperSound is a breakthrough audio technology that enables directed sound  Addressable markets include healthcare, commercial, consumer and licensing  Launched first HyperSound Hearing Healthcare Product - HyperSound Clear™ 500P - into the $5 billion hearing care

  4. Slide 4: HyperSound Technology

    NASDAQ:HEAR HyperSound Technology 3 New Sound Delivery Mechanism - Thin panels generate ultrasound beam - Audio is injected into the ultrasound beam - Sound is created in the air along the beam - Fundamentally new and different approach to audio Multiple, Unique Benefits - Highly controlled directio

  5. Slide 5: How HyperSound generates an audio beam

    NASDAQ:HEAR  First, an audio signal is processed and modulated onto an ultrasonic carrier, amplified, and then sent to the HyperSound emitter. At this point, the emitted ultrasonic wave is inaudible.  As the ultrasonic wave is emitted into the air, the ultrasonic signal is demodulated as a result

  6. Slide 6: What Makes HyperSound Unique and Proprietary?

    NASDAQ:HEAR Proprietary Emitters • Broke size barrier for thin film • Innovation in back-plate configuration • Designed for mass production • Transparency Benefits  Lower cost  Improved audio output & performance  Smaller size  Diverse applications What Makes HyperSound Unique and Proprietary? 5

  7. Slide 7: Strong & Rapidly Growing Patent Portfolio

    NASDAQ:HEAR 26 28 35 59 20 68 86 108 Jan 2013 Jan 2014 Jan 2015 Mar 2016² Pending Issued  HyperSound innovations:  Emitter construction  Ultrasound and emitter electronics  Digital signal processing techniques  Headset innovations:  Audio processing  Gaming specific features 121 96 46 167 6 1

  8. Slide 8: HyperSound Target Markets

    NASDAQ:HEAR HyperSound Target Markets 7 Commercial Enables retailers and retail display manufacturers to add focused zone of audio to large array of retail displays (22M digital displays, 17M retail kiosks, 3M interactive displays) • 1st-gen product done and selling since 2011 • Commercial solution

  9. Slide 9: HyperSound Healthcare Market Strategy

    NASDAQ:HEAR HyperSound Healthcare Market Strategy  Hire Leader: Former president/CEO of two large hearing aid companies hired in 2014 to lead HyperSound  Get Clearance for Medical Device: FDA 510(k) clearance in Feb 2014 allows us to market the product “to improve clarity and comprehension of soun

  10. Slide 10: HyperSound Clear 500P – Entering a $5 Billion Hearing Health Market

    NASDAQ:HEAR HyperSound Clear 500P improves the listening experience and speech intelligibility for individuals with hearing loss HyperSound Clear 500P – Entering a $5 Billion Hearing Health Market 9 1) Johns Hopkins School of Medicine, Nov 2011. World Health Organization, 2013. 2) The Hearing Review

  11. Slide 11: Large Unmet Need For Better TV Solution

    NASDAQ:HEAR Large Unmet Need For Better TV Solution 10 360 MILLION 5-7 YEARS 80% Want to hear the TV better² and TV represents over 50% of leisure time for ages 55 and up³ Typical delay between initial hearing care office visit & first hearing aid purchase5 Don’t use hearing aids⁴ Hearing loss suffe

  12. Slide 12: 2015 Patient Preference Study

    NASDAQ:HEAR No Improvement 3% Some Improvement 3% Improvement 14% Marked Improvement 37% Tremendous Improvement (Heard Every Word) 16% Does HyperSound improve your speech recognition ability? 2015 Patient Preference Study  Study: Surveyed 58 adults exposed to two minute demonstration of HyperSound

  13. Slide 13: HyperSound Clear 500P Home Audio System

    NASDAQ:HEAR HyperSound Clear 500P Home Audio System HyperSound Clear 500P TV audio solution improves the listening experience and speech intelligibility for individuals with hearing loss  Connects to existing living room TV or audio system  Targets single listener with HyperSound beam  Normal aud

  14. Slide 14: HyperSound Clear 500P Consumer Benefits

    NASDAQ:HEAR  No need to wear headphones: Crystal clear sound beamed directly to the listener  Everyone benefits: Improved sound clarity and speech intelligibility for targeted listener while everyone else hears normal TV volumes  Easy-to-use: Simple set-up and compatible with most existing TV spe

  15. Slide 15: Additional Potential Application: Tinnitus

    NASDAQ:HEAR Preliminary Clinical Results  11 adults with chronic tinnitus tested  Initial results below indicate impressive reductions and suggest that directed HyperSound audio may be able to help people manage chronic tinnitus Additional Potential Application: Tinnitus  Tinnitus is the percepti

  16. Slide 16: U.S. Hearing Health Market Structure & Channel Approach

    NASDAQ:HEAR 1) Approximate units of hearing aids sold via this channel. Channel Landscape Market Size (est.) Retail Channel U.S. Hearing Health Market Structure & Channel Approach 15 Independent & Buying Groups Retail Store Front Veterans Admin. Direct to Consumer 8,000 POS (Points of Sale) 1.2M Uni

  17. Slide 17: European Market Structure & Channel Approach

    NASDAQ:HEAR Channel Landscape Market Size 1) Approximate units of hearing aids sold via this channel Retail Channel Independent & Buying Groups Retail Store Front NHS (UK) 9,500 Points of Sale (POS) 1.5M Units¹ 8,500 POS 1.65m Units¹ 1.2M Units¹ Launched in Europe late Q1-16 European Market Structur

  18. Slide 18: Value Proposition to Hearing Healthcare Providers

    NASDAQ:HEAR  Simple demo process and customer messaging with demo systems and kiosks  Improve patient experience in order to grow patient traffic, referrals and hearing aid volume  Potentially shorten 5-7 year decision to purchase (sell more hearing aids)  Help build patient trust and strengthen

  19. Slide 19: Partnered with ~45% of Hearing Health Locations Across the U.S.

    NASDAQ:HEAR We’re Partnered with ~45% of the Hearing Health Locations Across the U.S. Launch Approach and Cadence  Secured channel relationships with 5,600+ hearing health offices and retail locations in the U.S. (~45% of total distribution points) and several large European players  First months

  20. Slide 20: HyperSound Clear 500P Initial User Feedback

    NASDAQ:HEAR 19 (4.6/5) Improvement in Speech Clarity (4.7/5) Ease of Use (4.7/5) Overall Satisfaction 90% 90% Of owners surveyed report an improved or significantly improved TV viewing experience¹ Of these same owners would recommend to a friend¹ “The system is very easy to use and has improved spee

  21. Slide 21: HyperSound Clear 500P Initial Feedback

    NASDAQ:HEAR 0 50 100 150 200 250 Nov Dec Jan Feb Mar Forecast Apr Forecast # of Off ic es Fully Active Stocked HyperSound Clear 500P Initial Feedback  We are in early stage of rollout to hearing healthcare offices, pursuing careful approach to ensure success  Offices require training and multiple

  22. Slide 22: Commercial Potential: Growth Opportunities for HyperSound Technology

    NASDAQ:HEAR Commercial Potential Growth Opportunities for HyperSound Technology 21 1) POPAI | HyperSound In-Store Research Report, Jun. 2015. 2) BUNN Research, Jan. 2014. 3) Self-Service Markets: ATMs, Kiosks, Vending Machines, BCC Research, Mar. 2011.  Pre-defined sound zones for in-store promotio

  23. Slide 23: HyperSound Commercial Pipeline Sample

    NASDAQ:HEAR HyperSound Commercial Pipeline Sample 22  Partnerships with six major retail display manufacturers:  WestRock  POP Displays  Hughes Network Systems  Four Winds Interactive  22 Miles Wayfinding  Inception Visual  Strong pipeline of projects and proposals:  Grocery and Check-Out a

  24. Slide 24: HyperSound Commercial Pro Audio: Case Study

    NASDAQ:HEAR 1% 28% Ave. P-O-P HyperSound GDES Performance POPAI HyperSound Commercial Pro Audio: Case Study In-Store Situation  Shoppers conduct their shopping on “auto pilot,” relying on in-store cues to trigger “manual control”  The check-out is a significant opportunity for display  Shoppers a

  25. Slide 25: Key Takeaways

    NASDAQ:HEAR $0.0M $1.0M $2.0M $3.0M $4.0M $5.0M $6.0M $7.0M $8.0M $9.0M Q1-15 Q2-15 Q3-15 Q4-15 2016E¹ Key Takeaways  HyperSound is a disruptive innovation in audio technology  Recent launch of HyperSound Clear 500P into the $5 billion hearing health category represents a major growth opportunity

  26. Slide 26: Contact Information

    NASDAQ:HEAR Contact Information Investor Relations: Media Contact: Cody Slach Maclean Marshall Liolios Turtle Beach Corporation 949.574.3860 858.914.5093 HEAR@Liolios.com Maclean.Marshall@turtlebeach.com www.turtlebeach.com www.hypersound.com C O M PA N Y W E B S I T E S www.turtlebeachcorp.com Cont

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