GN Store Nord A/S : Q4 2021 pre-close brief

Pre-close brief

December 21, 2021

Pre-close brief Q4 2021

Ahead of the upcoming Annual Report 2021, we would like to highlight the following:

GN Store Nord

• The COVID-19 situation is strongly impacting GN's operational performance, and is also impacting predictability and visibility across GN's markets, channels and supply chain
• On October 6, GN announced a signed agreement to acquire SteelSeries. Closing of the transaction is expected in the beginning of 2022, and the closing process is on track with no observed significant challenges. Transaction related costs of around DKK 150 million is still expected (with DKK 14 million already booked in Q3 2021 in G&A in GN Audio)
• On December 14, GN Hearing announced the acquisition of Lively - a leading online hearing care and digital marketing platform, enabling consumers to explore, purchase and receive hearing care from licensed hearing care professionals in the U.S. all from the comfort of their home

GN Audio

• GN Audio experience continued solid underlying demand across enterprise and consumer
• Certain components remain in global shortage impacting many different industries, and the situation has not improved during the quarter. The component supply situation and the global logistic situation has proven to be increasingly volatile and challenging
• To mitigate the component shortage situation a number of initiatives have been started, including reengineering of certain high-volume products to deliver more flexibility on available components. These initiatives are on track
• The impact from additional freight and production costs due to COVID-19 continues to be elevated in Q4 2021, like was the case in Q3 2021. Traditional seasonality on gross margin in Q4 due to traditional strong consumer quarter. Gross margin continues to be impacted by tariffs (tariffs impacted gross margin negatively with around 1%p in 2020), but the impact year-over- year is annualized
• As part of our guidance for 2021, we will continue to increase investments into future growth opportunities year-over-year across OPEX, particular into R&D, IT, marketing and branding
• Production ramp-up of Jabra Panacast 50 and Jabra Panacast 20 are still below original expectations and demand. Full ramp-up is currently expected in H1 2022

GN Store Nord A/S | Lautrupbjerg 7 | 2750 Ballerup | [phone]
Co. Reg. no. 24257843 | [e-mail] | www.gn.com	Page 1 of 4

Pre-close brief

December 21, 2021

GN Hearing

• GN Hearing and the overall hearing aid market continue to be impacted by COVID-19
• The market recovery continues to vary significantly across regions and countries with especially US continuing to see good recovery with volumes above 2019 levels. Many countries across Europe and Rest of the World continue to struggle with COVID-19 restrictions
• VA: GN Hearing market share development (value):

	Sep-20	Oct-20Nov-20	...	Apr-21May-21Jun-21	Jul-21Aug-21Sep-21	Oct-21Nov-21
GN Hearing	12.5%	12.1%	13.1%	...	10.3%	8.9%	8.8%	8.5%	8.5%	8.6%	10.2%	8.8%

• We continue to believe that the inability to visit the VA clinics due to COVID-19 restrictions combined with the fact that the VA channel is still operating with reduced capacity and backlog of patients, is the main reason for the market share decline. Latest communication from VA continues to be that physical meeting with sales reps will be allowed again from January 2022
• We continue to be very confident on the performance and market share development of ReSound ONE
• As previously communicated, our supply chain is set up to reflect the resilient nature of the business and currently approximately 75% of our production costs are variable, impacting the gross margin in the short term
• Compared to prior years, the gross margin is also 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
• GN Hearing continues to take prudent measures to the cost management
• Certain components remain in global shortage impacting many different industries. Relevant components are secured with suppliers to deliver on the current financial guidance, but the situation continues to be challenging

Financial guidance 2021 (as of December 21, 2021) - as communicated on October 29, 2021

COVID-19 risks

Due to the ongoing COVID-19 pandemic - which impacts GN in many ways - it must be stressed that the basic assumptions behind the guidance remain significantly more uncertain than normal. The COVID-19 situation has and will not only strongly impact GN's operational performance in 2021, but it is also impacting predictability and visibility across GN's markets, channels and supply chain. Certain components remain in global shortage impacting many different industries. GN has commitment from component suppliers to deliver on the guidance. This is based on an assumption that the GN suppliers will not face new unexpected reductions in access to raw materials. The financial guidance is contingent on no new significant local restrictions due to COVID-19 and no new major disruptions in the supply chain.

GN Hearing

For full year 2021, GN Hearing expects an organic revenue growth of around 16% and an EBITA margin of more than 12%.

GN Store Nord A/S | Lautrupbjerg 7 | 2750 Ballerup | [phone]
Co. Reg. no. 24257843 | [e-mail] | www.gn.com	Page 2 of 4

Pre-close brief

December 21, 2021

GN Audio

For full year 2021, GN Audio expects organic revenue growth of 22-25% and an EBITA margin of more than 21%, excluding transaction related costs of around DKK 150 million associated with the acquisition of SteelSeries.

Other and EPS

For full year 2021, EBITA in "Other" is expected to be around DKK -185 million

GN Store Nord expects a growth in EPS of more than 40% for full year 2021, excluding transaction related costs of around DKK 150 million associated with the acquisition of SteelSeries

Foreign exchange rates

• Impact on revenue - In Q4 2021, the USD trades at a slightly higher level compared to the average of Q4 2020 (Average Q4 2020 USD/DKK was 624)
• Impact on EBITA - the following table shows the sensitivity on EBITA (from 5% increase in currency) excluding any impact from hedging (Annual Report 2020 page 42):

DKKm	GN Hearing	GN Audio	GN Store Nord
USD/DKK	65	-61	4
GBP/DKK	3	36	39
JPY/DKK	9	14	23
AUD/DKK	0	19	20

• Impact on financial items - the following table shows the sensitivity on financial items (from revaluations of balance sheet items) from a 5% increase in USD/DKK (as of the year-end balance sheet - ref Annual Report page 90):

DKKm	2020	2019
Financial items	18	-93

For further information, please contact:

Henriette Wennicke

Vice President - Investor Relations & Treasury

Tel: [phone]

Or

Rune Sandager

Director - Investor Relations & Treasury

Tel: [phone]

GN Store Nord A/S | Lautrupbjerg 7 | 2750 Ballerup | [phone]
Co. Reg. no. 24257843 | [e-mail] | www.gn.com	Page 3 of 4

Pre-close brief

December 21, 2021

Forward-looking statements

The forward-looking statements in this document 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.

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).

Due to the COVID-19 situation - which impacts the company in many different ways - it must be stressed that the basic assumptions behind the guidance remain significantly more uncertain than normal.

GN Store Nord A/S | Lautrupbjerg 7 | 2750 Ballerup | [phone]
Co. Reg. no. 24257843 | [e-mail] | www.gn.com	Page 4 of 4