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GN Making Life Sound Better

The most focused hearing instruments manufacturer in the world S Focus on core capabilities within hearing instruments... 15% Growth Hearing instruments (Retail) Wholesale USD hearing instruments ~5bn Bone anchored hearing systems Cochlear implants Hearing instruments (Wholesale) USD -5bn Hearing diagnostics 960 %0 5% Profitability Size (market value) GN Making Life Sound Better 30% 22 22 ...and strategic partnerships in the distribution channel Component manufacturers ReSound GN • Maintain high margins • Ensure channel access Manufacturers • Consolidated market with two main component suppliers (Sonion and Knowles) • Five main manufacturers • of hearing instruments Competing for market access 000 Distributors / buying groups Top buying groups include Audigy, Elite, and AHAA • Many distributors across the world-highly • fragmented Retailers Traditional hearing instrument dispensers, ENTS and online retailers Largest retail player is Amplifon, but manufacturers are catching-up Profit pool (margin) (20-30%) Profit pool (margin) (20-25%) Profit pool (margin) (10-15%) Profit pool (margin) (5-15%) Competitors Retail networks add complexity, limits agility and are investment/cost heavy Verticals (Implants) divert attention (few synergies) GN
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