GN ReSound EUHA CEO GN ReSound Mike van der Wallen October 22, 2009

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1 GN ReSound EUHA 2009 CEO GN ReSound Mike van der Wallen October 22, 2009

2 Safe Harbour Statement The forward-looking statements in this presentation reflect management's current expectations of certain future events and financial results. Statements regarding 2009 are, of course, subject to risks and uncertainties which may result in material 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, developments in class action and patent infringement litigation in the United States, and the integration of company acquisitions. This presentation should not be considered an offer to sell or buy securities in GN Store Nord. 2 Slide 2

3 GN Store Nord GN Store Nord GN Netcom GN ReSound Listed company Supervisory Board Equally ranked CEO s GN Netcom and GN ReSound Contact Center & Office Headsets, Mobile Headsets Hearing Instruments and Audiologic Diagnostics Equip. Outlook 2009: EBITA DKK ~(30)m Outlook 2009: Revenue DKK ~2bn EBITA DKK ~(100)m Outlook 2009: Revenue DKK ~3bn EBITA DKK ~200m 3 Slide 3

4 Presentation Today Hearing instrument market Drivers Growth GN ReSound Structure and brands Transforming GN ReSound - changes and results Strategy how we are living the strategy Product introduction Portfolio benefits for dispensers and users Products and technology Demo Questions and answers 4 Slide 4

5 Attractive Hearing Instrument Industry Market volume drivers World HI market Ageing population Higher prevalence Improving adoption rates Improving binaural fitting rates Additional replacements cycle Developing countries potential Million units Solid long-term market growth rates expected Slide 5

Current Growth Trends in the Industry US growth H1 2009: 4.5% including VA Europe under pressure from decline in key markets North America 2.8 million units Europe 2.9 million units APAC 1.

6 Current Growth Trends in the Industry US growth H1 2009: 4.5% including VA Europe under pressure from decline in key markets North America 2.8 million units Europe 2.9 million units APAC 1.7 million units Rest of World 1.6 million units Emerging markets experience solid growth rates Long-term growth expectations remain solid, however, short-term market conditions still remain soft: Overall hearing instrument unit growth is modest Customers currently trading down US growth driven by public sector (VA) Solid unit growth in emerging markets 6 6

7 Presentation Today Hearing instrument market Drivers Growth GN ReSound Structure and brands Transforming GN ReSound - changes and results Strategy how we are living the strategy Product introduction Portfolio benefits for dispensers and users Products and technology Demo Questions and answers 7 Slide 7

Denmark, GN ReSound employs approximately 3,450 employees in 22 countries, and markets its products in more than 90 countries

8 GN ReSound Structure and Brands The GN ReSound Group is one of the world s largest providers of hearing instruments and diagnostic audiological instrumentation GN ReSound sales totaled DKK 3,178 million (EUR 427 million) in 2008 With headquarters in Denmark, GN ReSound employs approximately 3,450 employees in 22 countries, and markets its products in more than 90 countries Hearing aids Instrumentation Premium full line wholesale brand World s leading retail brand Wholesale guerrilla World leading brands 8 Slide 8

9 Restructuring Program Initiated Q Target Status 1 Optimize for current business Re-align organization to new economy and save cash Positions reduced by more than Explore and exploit efficiencies Review of current business procedures with regards to cost and terms Business reviewed Consolidation and focus throughout value chain Subsidiaries focus on sales HQ relocation 3 Long term efficient structure Transformation of organization Rethinking structure and competitive levers Functions consolidated New more lean and commercially oriented organization defined 9

10 Transformation of Organization on Track R&D Operations Marketing Sales Increased focus on platforms means faster time to market at lower development cost Increased focus on end user as well as dispenser needs New SVP and global organization Consolidation of operational activities and cost Increased efficiency and leverage of China capabilities New SVP and organization Focus on life cycle management Increased efficiency in marketing products Reorganization to increase sales and customer focus Global Commercial Excellence Transfer and consolidation of local manufacturing Finance, HR and IT Resized and customer focused 10 Slide 10

11 First Results of Transformation Showing Cash impact from working capital reductions H1 > DKK 100 million Headcount reduced from ~ 3,775 end of 2008 to ~3,450 end Q209 Annual cost base in 2010 reduced by > DKK 200 million vs Increased efficiency in R&D Global launch of two new product families on track 11 Slide 11

12 Current Strategic Focus Customer focused Key accounts & tenders Emerging markets Germany and France Market innovation Regain position in top end Launch effectiveness Meeting needs for end-users and dispensers Efficient Execution excellence / Reducing costs End to end supply chain Culture Performance driven culture 12 Slide 12

Recent Results of Strategic Focus Customer focused Key accounts Emerging markets Germany and France Market innovation Regain position in top end Launch effectiveness Meeting needs of

focused sales force setup in Germany and France Current launch the most complete so far Positive initial results and feedback Head of KIND Hörgeräte: GN has a convincing product roadmap

13 Recent Results of Strategic Focus Customer focused Key accounts Emerging markets Germany and France Market innovation Regain position in top end Launch effectiveness Meeting needs of end users Expanded strategic partnership with Amplifon New partnership with KIND Hörgeräte Complete ReSound portfolio on VA contract New management with more cost efficient and customer focused sales force setup in Germany and France Current launch the most complete so far Positive initial results and feedback Head of KIND Hörgeräte: GN has a convincing product roadmap and a full-line product offering. Furthermore the 3-brand strategy includes suitable product lines for all markets in which KIND is present with its more than 550 retail 13 shops. Slide 13

14 The Outlook for GN ReSound Key value drivers Challenging environment Solid long term market growth Company transformation on track to harvest profitability upside Reduced headcount, working capital and cost base Improved cash flow, efficiency and market focus Significant new partnerships and tenders won Innovative pipeline focused on regaining position in top end and with key accounts Leading position in emerging markets, which are growing double digit Customers trading down during economic downturn Short term negative volume growth in some markets Competitors and chains buying retail aggressively Shorter product life cycles 14 Slide 14

15 Presentation Today Hearing instrument market Drivers Growth GN ReSound Structure and brands Transforming GN ReSound - changes and results Strategy how we are living the strategy Product introduction Portfolio benefits for dispensers and users Products and technology Demo Questions and answers 15 Slide 15

16 Comprehensive Renewal of the ReSound Portfolio 16

17 What Do Users Want? Speech in noise Better sound quality Less whistle/buzzing Lower price More soft sounds Longer lasting batteries Work better on telephone Loud sounds less painful Speech in quiet Better fit & comfort Should have VC Longer money back guarantee Less costly to repair % highly desirable Source: Kochkin, MarkeTrak VI, 2005: Incremental improvements in these areas will drive improvements in overall user satisfaction. 17

Two Families Based on the Same Platform For

users who primarily value invisibility and

18 Two Families Based on the Same Platform For users that primarily values options, flexibility and control the solution that covers all hearing needs and losses For users who primarily value invisibility and complete automization the wear and forget solution 18

Market Responds Well to ReSound Live High user satisfaction with Live vs own hearing aid Good scores on key features; Improved Hearing, Reduced Feedback and

19 Market Responds Well to ReSound Live High user satisfaction with Live vs own hearing aid Good scores on key features; Improved Hearing, Reduced Feedback and Clarity of sound * Initial market response from US in line with expectations Own hearing aid ReSound Live 19 * Source : Market test survey by ReSound Slide 19

20 Introduction of John Nelson Vice President & Head of Brand Audiology PhD in Speech and Hearing Sciences from the University of Iowa Responsible for input to products, audiological training materials and audiological communications 20

21 Speech Understanding and Sound Quality Trade Off with Current Solutions Directionality programs are the only proven method to provide better speech understanding in noise Still, 2 of 3 users prefer omni programs over directionality programs, because*: Loss of awareness and localization cues Loss of full / natural sound quality Over-amplification of wind and internal noise Unfamiliar with programs and confusions when to switch or Automatic program changes doesn t always shift correctly Loss of low frequencies Loss of localization cues More wind noise More microphone noise Tinny, weak sound quality Surround sound by ReSound delivers speech understanding in noise without these drawbacks! Source: *Walden et al (2004). Predicting hearing aid microphone preference in everyday listening. J Am Acad Audiol 15:

22 INTRODUCING SURROUND SOUND BY RESOUND 22

23 Why Do You Go to the Movies? Film makers use state of the art microphones to capture environmental sounds and speech signals independently. For the final sound track they blend these independent inputs together in the perfect mix to create a full, rich sound quality, that gives you a spatial awareness and sense of direction without compromising intelligibility. 23

24 How Does Surround Sound Apply to Hearing Aids? Traditional directionality eliminates all sounds outside the beam The result is a loss of low frequency signals that contribute to richness, vibrancy and a sense of awareness Surround Sound retains these low frequency inputs both inside and outside the directional beam and blends them with the high frequency speech cues 24

Surround Sound Is Natural Sound Processing Like with surround sound the normal unaided ear processes bass and treble frequencies differently, because of the

The natural ear response pattern match the omni-directional pattern of a hearing instrument.

25 Surround Sound Is Natural Sound Processing Like with surround sound the normal unaided ear processes bass and treble frequencies differently, because of the way sound waves travels around the head Right ear Front Bass (low frequencies) enters the human ear directly, creating a full richness of sounds. The natural ear response pattern match the omni-directional pattern of a hearing instrument. Treble (high frequencies) are shaped by the outer ear, to produce a directional effect that gives better speech understanding and localization. The natural ear responserate is the model for directionality patterns in hearing aids 25

The Unique Surround Sound Processors Makes it Possible At the core of the surround sound by ReSound technology package is the unique surround sound processor, that like the natural ear processes the

26 The Unique Surround Sound Processors Makes it Possible At the core of the surround sound by ReSound technology package is the unique surround sound processor, that like the natural ear processes the low frequencies with an omni-directional response and the high frequencies with a directional response db Traditional directionality with bass roll off Low frequency equalization or bass boost compensation Separate omni processing for bass frequencies Personalized blending point Omni Directional The benefits: Superior sound richness and awareness without distortion, noise, and feedback Combined with improved speech understanding and ability to locate sounds Hz Hz 26...no trade off or compensation

27 Improved Sound Quality for Speech Classic directionality On the left you will notice the speech is missing the low frequencies On the right side you hear a much fuller, richer and natural sound quality Click on the spectrogram to hear the sound 28

28 Improved Sound Quality for Music Classic directionality On the left you will notice the music is missing the low frequencies On the right side you hear a much fuller, richer and natural sound quality Click on the spectrogram to hear the sound 29

Surround sound 35 % 65 % 41 % 59 % 30 % 70 % Omni Surround sound 30 Source: Lessius

29 Clear User Preference for Surround Sound User preferences Traditional directionality with low-frequency equalization Omni Traditional directionality with low-frequency equalization Surround sound 35 % 65 % 41 % 59 % 30 % 70 % Omni Surround sound 30 Source: Lessius University in Antwerp, Belgium, A double blind study of sound quality for different directional schemes

30 Other Key Features of the Surround Sound Package Sound Quality Warp signal processing for fast and distortion free sound NoiseTracker the best noise reduction in the industry Dual stabilizer DFS feedback cancellation without gain reduction NEW: WhistleControl feedback emergency brake 31

31 Other Key Features of the Surround Sound Package Speech understanding Natural directionality II for optimal spatial awareness without compromise in speech understandign or Adaptive directionality with Autoscope for best speech understanding in noise when the speaker is in front 32

32 ReSound Live Fully Featured Elegant Design Available in 4 new exciting form factors!! BTE Silhouette Smallest power BTE on the market Fully featured RIE RIE with telecoil, program button and volume control The innovative remote microphone model now with surround sound by ReSound inside Custom New smaller CIC 33

33 dot 2 by ReSound Same successful small, light and invisible design Now with program button and surround sound by ReSound inside for increased performance and flexibility 35

experience A very different animal refering back

34 New Master Brand Identity More Focus on Long Term Brand Building Give your hearing a surround sound experience A very different animal refering back to the successful can you spot the dot campaign 37

35 Large-scale US Market Test of ReSound Live ,500 38

36 So Far Very Positive Market Feedback The Surround Sound technology makes complete sense and to have a blending point suited to the loss is ideal UK customer My first impression was that they were more comfortable to wear; maybe thinner or lighter. But the important thing was that the sound was so natural! And the new directionality really works. US patient The live 70 is the best looking RIC I have seen, it s so slim, it s so slim, it s so slim... UK customer Our pre-launch event went really well we sold more than expected General manager Italy Oh god, I can t remember half the products on the market these days, there are so many. Families are defiantly the way forward, your products are now simply dot, Live and be. UK customer On our San Francisco Launch event we sold 70% more units than we planned! SVP North America 39

37 Thank You Q&A

GN Store Nord Goldman Sachs European Medtech and Healthcare Services Conference. CEO GN ReSound, Mike van der Wallen September 3, 2008

GN Store Nord Goldman Sachs European Medtech and Healthcare Services Conference CEO GN ReSound, Mike van der Wallen September 3, 2008 GN Store Nord A/S GN GN Store Store Nord Nord Listed Listed company