GN Store Nord A/S : Q2 2022 pre-close brief

Pre-close brief

June 17, 2022

Pre-close brief Q2 2022

Ahead of the upcoming Q2 2022 Interim Report, we would like to highlight the following:

GN Store Nord

• The ongoing COVID-19 pandemic and the global supply situation is continuously impacting GN's operational performance, predictability and visibility across markets, channels, and supply chain
• GN has suspended all sales to Russia and Belarus as a response to the war between Russia and Ukraine. The direct impact on the business is limited with around 1% of group sales related to Russia, Belarus, and Ukraine
• Following the acquisition of Lively and SteelSeries, GN's financial leverage is currently above the long-term capital structure policy of NIBD to EBITDA of 1-2x
• GN continues to expect to de-leverage within a couple of years. GN has ample sources of financing options to meet current as well as non-current financial liabilities

GN Audio

• GN Audio continues to experience solid underlying demand, but is currently negatively impacted by the global supply situation resulting in a historically high order backlog
• Certain components remain in global shortage impacting many different industries, but the overall supply situation has been gradually improving during Q2, as also earlier expected. The component situation is still expected to further ease in the coming quarters, as also stated in connection with the communication of the Q1 report
• The global logistic situation remains volatile, primarily due to the COVID-19 situation in China, while manufacturing capacity is in general available
• Due to the COVID-19 related lockdown in China in Q1 2022 and the negative impact on the manufacturing and logistics capacity in March 2022, approximately one week of revenue were pushed into April 2022
• To mitigate the component shortage situation several initiatives continue to be executed, including re-engineering of certain high-volume products to ensure more flexibility on available components. The first re-engineered products will already be launched in late Q2, and we continue to expect seeing the benefits of those from H2 2022
• The impact from freight and production costs due to the global supply and logistic situation continues to be elevated in Q2 2022. Gross margin will also be impacted due the consolidation of SteelSeries and the FX development
• Price increases were initiated by February 1, 2022, across the Enterprise portfolio in order to mitigate the impact from increasing input costs. The effective impact from the increase will have some impact in Q2 2022, but the full impact will be realized from Q3 2022
• The SteelSeries acquisition closed in the beginning of January and the integration is well on track. The new high-end gaming headset series of Arctis Novo Pro were launched in May 2022

GN Store Nord A/S | Lautrupbjerg 7 | 2750 Ballerup | [phone]
Co. Reg. no. 24257843 | [e-mail] | www.gn.com	Page 1 of 3

Pre-close brief

June 17, 2022

GN Hearing

• The hearing aid markets have in general recovered, but still with differences across regions and countries due to the impact and related restrictions from the omicron variant of COVID-19 especially across China and to a smaller extent Korea
• VA: GN Hearing market share development (value):

	Mar-21Apr-21	May-21	...	Oct-21Nov-21Dec-21	Jan-22Feb-22Mar-22	Apr-22May-22
GN Hearing	10.8%	10.3%	8.9%	...	10.2%	8.8%	8.6%	8.5%	8.5%	8.6%	8.7%	8.5%

• By late February 2022, GN Hearing started shipment of Jabra Enhance Plus and ReSound ONE BTE with strong initial feedback
• On June 16, 2022, GN Hearing announced the introduction of Custom by ReSound, a rechargeable line-up of custom hearing aids. Shipment to start in the US on June 29, 2022
• A new product platform is expected to be launched in Q3 2022, as earlier communicated
• Compared to prior years, the gross margin is in general negatively impacted by the divestment of Beltone retail shops (as retail in general includes higher gross margins than wholesale), as well as the continued penetration of rechargeable hearing aids in our product portfolio
• Certain components remain in global shortage impacting many different industries. Relevant components are secured with suppliers to deliver on the growth ambition, but the situation continues to be challenging
• GN Hearing continues to take prudent measures to manage costs while investing in launch activities

Financial guidance 2022 (as communicated on February 10, 2022)

Financial guidance 2022

	Organic revenue	Adjusted EBITA	Non-recurring items	Growth in
	growth	margin4)	(DKK million) 5)	adjusted EPS6)
GN Hearing
- Core business organic	5-10%	~14%	~ -150
- Emerging Business1) (DKK million)		~ -190
GN Audio2) 3)		~20%	~ -400
- GN Audio organic	>5%
- SteelSeries	>10%
Other (DKK million)		~ -190
GN Store Nord				>10%

Note 1) Emerging Business mainly includes the Lively acquisition

Note 2) The SteelSeries organic revenue growth will be reported as M&A growth for GN Audio

Note 3) GN Audio and SteelSeries organic revenue growth constrained by the current global supply chain situation Note 4) Excluding non-recurring items

Note 5) Non-recurring items in GN Hearing primarily related to supply chain investments (DKK ~ -150m) and in GN Audio related to transaction and integration costs (DKK ~ -200m) as well as non-cash PPAs (DKK ~ -200m), associated with SteelSeries

Note 6) Compared to 2021 adjusted EPS (excluding non-recurring items and amortization and impairment of acquired intangible assets) of DKK 15.29

Based on foreign exchange rates as of May 5, 2022

GN Store Nord A/S | Lautrupbjerg 7 | 2750 Ballerup | [phone]
Co. Reg. no. 24257843 | [e-mail] | www.gn.com	Page 2 of 3

Pre-close brief

June 17, 2022

Primary risk factors in relation to the financial guidance

Due to the ongoing COVID-19 pandemic and the global supply situation - which impacts GN in many ways - it must be stressed that the basic assumptions behind the guidance remain more uncertain than normal. The situation is impacting GN's operational performance, predictability and visibility across markets, channels and supply chain. The financial guidance is contingent on no new significant local restrictions due to COVID-19 and an ease of the supply chain situation in H2 2022

Foreign exchange rates

• Impact on revenue - In Q2 2022, the USD trades at a higher level compared to the average of Q2 2021 (Average Q2 2021 USD/DKK was 618)
• Impact on EBITA - the following table shows the sensitivity on EBITA (from 5% increase in currency) excluding any impact from hedging (Annual Report 2021 page 47):

DKKm	GN Hearing	GN Audio	GN Store Nord
USD/DKK	38	-92	-54
GBP/DKK	5	31	19
JPY/DKK	6	13	19
AUD/DKK	1	22	23

For further information, please contact:

Henriette Wennicke

Vice President - Investor Relations & Treasury

Tel: [phone]

Or

Rune Sandager

Director - Investor Relations & Treasury

Tel: [phone]

Forward-looking statements

The forward-looking statements in this report reflect the management's current expectations of certain future events and financial results. Statements regarding the future are, naturally, subject to risks and uncertainties, which may result in considerable deviations from the outlook set forth. Furthermore, some of these expectations are based on assumptions regarding future events, which may prove incorrect. Changes to such expectation and assumptions will not be disclosed on an ongoing basis, unless required pursuant to general disclosure obligations to which GN is subject.

Factors that may cause actual results to deviate materially from expectations include - but are not limited to - general economic developments and developments in the financial markets, technological developments, changes and amendments to legislation and regulations governing GN's markets, changes in the demand for GN's products, competition, fluctuations in sub-contractor supplies and developments in ongoing litigation (including but not limited to class action and patent infringement litigation in the United States).

For more information, see the "Management's report" and "Risk management" elsewhere in this Annual Report. This brief should not be considered an offer to sell securities in GN.

GN Store Nord A/S | Lautrupbjerg 7 | 2750 Ballerup | [phone]
Co. Reg. no. 24257843 | [e-mail] | www.gn.com	Page 3 of 3