GN Making Life Sound Better

The hearing aid market remains very attractive and robust in the mid to long term 01 ~4-6% expected unit CAGR in coming years¹ Global hearing aids market growth1 (unit growth) ~4-6% '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22E GDP growth (annual %)² 0% GDP growth 1) ASP decline of 1-2%. Based on company estimates, industry association EHIMA 2) World bank 02 Room for penetration growth Penetration still low, especially for less Profound Severe severe hearing loss Moderately severe Moderate Mild Degree of penetration Source: MarkeTrak, EuroTrak, GN estimates GN Making Life Sound Better 03 Multiple attractive megatrends driving market growth • . 65+ population expected to grow significantly in the years to come Baby boomers generation reaching retirement age Increasing noise pollution drives prevalence of hearing loss Increasing wealth among larger middle class 04 High barriers to entry to the market Regulations • FDA regulations (Medical . Class II devices) Increasing requirements from the EU Medical Device Regulation • Extensive investments needed into quality management systems Technology • 75+ years of knowhow in the • hearing aid space . Significant investments required into R&D • Extensive intellectual property rights in the hearing aid space 12 • Distribution Users of hearing aids tend to choose hearing aids based on inputs from their hearing care professional Sticky distribution as hearing care professionals tend to partner with same manufactures GN

View entire presentation