AudiologyNOW! ! 2017 6 Apri ril l 2017 Sren Nielsen, President - PowerPoint PPT Presentation

Management Presentatio ion AudiologyNOW! ! 2017 6 Apri ril l 2017 Søren Nielsen, President & CEO Jes Olsen, President of Oticon Medical

Agenda • Management • General update • Hearing Devices • Hearing Implants • Diagnostic Instruments • Q&A 2

Management

Søren Nielsen President & CEO of William Demant Holding as of 1 April 2017 • Executive Board consists of Søren Nielsen and René Schneider (CFO) • Continues as President of Oticon Curriculum vitae Board positions • Born in 1970 • Sennheiser Communications • M.Sc. in Industrial Management and Product Development, (board member) Technical University of Denmark (DTU) • COO and Deputy CEO since 2015 • President of Oticon since 2008 • Employed with William Demant since 1995 4

Executive Board and Management High seniority and lots of industry insights .... Søren Nielsen René Schneider President & CEO CFO Arne Boye Nielsen Niels Wagner Svend Thomsen Diagnostics Retail Finance 5

General update

Highlights 2016 13% 13% Strong revenue growth of 13% with organic growth of 6% Oticon Opn and retail activities drove strong growth US retail and Hearing Implants performed below expectations Growth in Diagnostic Instruments in line with estimated market growth Execution on strategic initiatives on track 12% 12% EBIT increased by 12% to a record-high DKK 2,130 million before restructuring costs 7

Outlook 2017 We expect a unit growth rate of 4-6% with a low, single- digit decline in the market’s average wholesale price due to competition and possible mix effects. In terms of value, we thus expect the wholesale market to grow by 1-3% in 2017 as was also the case in 2016. We expect to generate growth in sales in all the Group’s three business activities: Hearing Devices, Hearing Implants and Diagnostic Instruments. Based on exchange rates in early 2017 and including the impact of exchange rate hedging, we expect a positive exchange rate impact on revenue of around 1% in 2017. Acquisitions made in 2016 will also impact consolidated revenue by approximately 1% in 2017. We aim at a target gearing multiple of 1.5-2.0x measured as net interest-bearing debt (NIBD) relative to EBITDA. Oper erati ting g profit (E (EBIT) of of DK DKK 2.2 .2-2.5 billi illion before e th the e announced res estructuring cos osts of of around DK DKK 200 milli illion. 8

Hearing Devices

Oticon Opn ™ The open sound paradigm continues to expand

Opening up the world 11 Oticon Opn - The open sound paradigm continues to expand

The Open Sound Experience The result of a winning formula of Oticon technology The open sound experience OpenSound Navigator™ Spatial Sound™ LX

BrainHearing ™ Open access 1 support to all speakers In 5 key areas Rapid 2 noise reduction 3 Localisation of sounds 4 Speech clarity 5 A personalised listening experience 13 Oticon Opn - The open sound paradigm continues to expand

Opn ™ is now rechargeable! 14 Oticon Opn - The open sound paradigm continues to expand

Opn miniRITE – Convenient and Easy to Use Battery life for a full day’s use REASSURING UPGRADABLE CONVENIENT EASY TO USE 15 Oticon Opn - The open sound paradigm continues to expand

Opn miniRITE – A Powerful Combination The only rechargeable hearing aid with an open sound experience The world’s first rechargeable hearing aid with 2.4 GHz direct streaming Existing Opn install-base can be retrofitted to become rechargeable Hybrid battery technology for maximum flexibility – powered by ZPower 16 Oticon Opn - The open sound paradigm continues to expand

Introducing new styles Even more open sound opportunities miniRITE miniRITE-T BTE13 PP 17 Oticon Opn - The open sound paradigm continues to expand

miniRITE-T Brand new design Small and discreet 7 colours IP 68 miniFit receivers Double push button miniFit earpieces T-coil Battery 312 18 Oticon Opn - The open sound paradigm continues to expand

Open up to more power Power options for miniRITE and miniRITE-T Speaker 100 Power Flex mould 19 Oticon Opn - The open sound paradigm continues to expand

Introducing BTE13 PP The perfect balance between size, user friendliness and power 20 Oticon Opn - The open sound paradigm continues to expand

BTE13 PP A powerful offering for the power user T-coil Hook Double push button Two colour LED light Locator nub miniFit earpieces for Corda miniFit Power Corda miniFit Power Battery 13 7 colours IP 68 21 Oticon Opn - The open sound paradigm continues to expand

Oticon Opn with Speech Rescue ™ Open sound with high-frequency audibility Also available to existing Opn users 22 Oticon Opn - The open sound paradigm continues to expand

Frequency lowering with Speech Rescue ™ Making increased sounds available -10  Speech has less energy at high 0 10 frequencies 20 sth f  Hearing loss is often larger at high z v 30 Hearing Level, dB HL p frequencies j m d b i a h g k 40 n ch o r sh ng e u l 50  By taking the high frequency energy and 60 moving it down to frequencies where g 70 sh there is less hearing loss – it is easier to k 80 th sth make it audible f f 90 s 100 110 120 250 500 1000 2000 4000 8000 Frequency, Hertz 23 Oticon Opn - The open sound paradigm continues to expand

Speech Rescue LX and other features A three-step process to deliver the best audibility Remove noise, Make increased Amplify clean signal sounds available (frequency lowering) Step 2 Step 1 Step 3 360° Speech Speech OpenSound Guard ™ LX Navigator ™ Rescue LX sound Hearing aid processing Speech Rescue LX is more effective with OpenSound Navigator because it receives a better signal 24 Oticon Opn - The open sound paradigm continues to expand

Speech Rescue with OpenSound Navigator guests el - bow each other over the smoked sal mon  Time/frequency representation of speech in noise 8300 5950 4700 3650 2800 16 channels 2200 Frequency [Hz] 1700 1400 1250 1100 950 800 650 450 300 100 0 0.5 1 1.5 2 2.5 Time [seconds] 25 Oticon Opn - The open sound paradigm continues to expand

Speech Rescue with OpenSound Navigator  Analysis and subsequent labelling of speech and noise in OpenSound Navigator 16 channels 26 Oticon Opn - The open sound paradigm continues to expand

Speech Rescue with OpenSound Navigator guests el - bow each other over the smoked sal mon  Speech in noise signal after removal of detected noise 8300 5950 4700 3650 2800 16 channels 2200 Frequency [Hz] 1700 1400 1250 1100 950 800 650 450 300 100 0 0.5 1 1.5 2 2.5 Time [seconds] 27 Oticon Opn - The open sound paradigm continues to expand

Speech Rescue with OpenSound Navigator guests el - bow each other over the smoked sal mon  Comparison to speech in noise signal without OpenSound Navigator 8300 5950 4700 3650 2800 16 channels 2200 Frequency [Hz] 1700 1400 1250 1100 950 800 650 450 300 100 0 0.5 1 1.5 2 2.5 Time [seconds] 28 Oticon Opn - The open sound paradigm continues to expand

Oticon Opn with Tinnitus SoundSupport ™ A winning combination of tinnitus relief and open sound Also available to existing Opn users 29 Oticon Opn - The open sound paradigm continues to expand

The complete tinnitus solution What makes the Oticon solution unique Tinnitus SoundSupport TM Opn combination device with Tinnitus SoundSupport and OpenSound Navigator OpenSound Tinnitus Navigator TM Easy fitting Treatment Intuitive and easy for Professionals fitting tool in Genie 2 Counselling and support tools Counselling tools ON App for both clinician and patient Clinician support 30 Oticon Opn - The open sound paradigm continues to expand

Opn – now also for teens  Introducing Desired Sensation Level (DSL) rationale for fitting of children and teens  Fits teens with assurance that best practice guidelines are followed  Confident listening both in classrooms and in complex listening environments common in a teen’s life 31 Oticon Opn - The open sound paradigm continues to expand

Positive product mix effects from Opn  Opn 1 still leads positive product mix effect  Very positive momentum continues  Added to VA contract in November 2016  Still best-selling Opn product  Opn 2 and 3 also having positive product mix effect  Launched in the upper mid-priced and the mid-priced segments in late November 2016  Now rolled out in all major markets  No material cannibalization on Opn 1 32 Oticon Opn - The open sound paradigm continues to expand

The open sound paradigm continues to expand  Now addressing even larger part of the market with our open sound paradigm  Opn is now a rechargeable solution, including current install-base  BTE13 PP addressing severe to profound hearing losses  Addressing more types of hearing loss profiles with Speech Rescue ™ in all styles and price points  Tinnitus treatment feature in all styles and price points  T-coil in ultra compact design  Strong concept for teens  Available from end of Q2 2017 33 Oticon Opn - The open sound paradigm continues to expand