MAY 18 2021

ASX ANNOUNCEMENT

Audeara Ltd Raises $7m via IPO to Fund Domestic and International Expansion

HIGHLIGHTS

Emerging health technology Company Audeara Ltd commences trading on the ASX today;
Audeara raised $7 million via an oversubscribed IPO, fully underwritten by Morgans Corporate Ltd and capitalising the Company at $21 million;
Audeara has developed a hearing profile algorithm used to personalise sound output to the needs of the individual based on the user’s unique hearing profile.
Audeara has commercialised the A01 personalised headphones primarily through audiology clinics that are authorised to utilise government funding so that the end user pays no out of pocket expense;
Capital raised will allow Audeara to capture the remaining audiology clinics in Australia and to accelerate expansion into overseas markets;

BUSINESS UPDATE

Audeara Ltd (ASX: AUA) (‘Audeara or ‘the Company’) is pleased to advise that after a six-year journey, the Company is now listed on the ASX, after raising $7 million through a fully underwritten offer with Morgans Corporate Ltd, and commences trading with a market capitalisation of $21 million.

“I would like to thank the Board, our seed investors and our Lead Manager, Morgans Corporate Ltd for making our IPO a success. In particular, I would like to welcome our new shareholders to the Company and also thank them for their support” said Dr James Fielding, Founder, CEO and Managing Director.

“In 2015, Dr Chris Jeffrey, Alex Afflick and I founded the Company to offer superior sound performance and promote the Importance of hearing health for our customers. With funding now secured, Audeara is free to continue to evolve our technology platform, expand our relationships with audiologists in Australia and deliver new products to the market. While Australia is our immediate focus, we have embarked on an international growth plan by hiring our US Sales Manager to leverage off our distribution agreement with Westone, which has access to over 16,000 audiologist clinics in the US. This is further supported by the official granting of our first US patent.”

audeara.com

Dr Fielding also advises that since the last company update, refer attached, the Company has:

Unaudited revenue up year on year, bolstered by March 2021 which was the strongest single month of sales through our audiology partners.
Released “Audassist”, an application which streamlines programming of headphones using existing hearing tests in the hearing clinics.
Well advanced the recruitment process for the Australian National Sales Manager and National Marketing Manager to bolster our sales.
Audeara’s next generation headphones, the A02 on schedule for release in Q3 CY21. The genesis of the A02 followed feedback from audiology clinics which identified key aspects of the headphones which have been enhanced.

IPO SUMMARY

Audeara Ltd commences trading today after raising $7 million via a fully underwritten Initial Public Offer (IPO) of 35 million shares at 20c. The market capitalisation at the Offer Price is $21 million with 105 million shares on issue. There was no sell down by existing shareholders as part of the transaction. The Company is debt free.

The Company’s Founders, Drs James Fielding and Chris Jeffery, as well as Chief Technical Officer, Alex Afflick retain a combined 21.77% stake in Audeara at listing, while the Company’s Chairman and seed investor, David Trimboli will be the single largest shareholder, owning 14.51% post the IPO. Incoming shareholders will own 33.33% of the Company and approximately 45% of the Company’s Issued Capital will be escrowed.

The IPO funds will provide Audeara with working capital to support the growth of Audeara’s reseller network in Australia and grow that network internationally, particularly the US. The funding will also allow expansion of the Company’s product range, increased production capacity and growth in Audeara’s sales and marketing capabilities.

audeara.com

Authorised for release by the Audeara Board

To learn more please visit: www.audeara.com

Media Enquiries

M&C Partners Melissa Hamilton [email protected]

Investor Enquiries

M&C Partners Ben Henri [email protected]

ABOUT AUDEARA

Audeara makes Perfect Sound, Always. Audeara’s algorithm allows customers to personalise sound for their unique hearing profile. We offer a superior sound experience and quality, while promoting the importance of their hearing health.

audeara.com

ASX Investor Presentation May 2021

DISCLAIMER - IMPORTANT INFORMATION

This presentation (Presentation) contains summary information about Audeara Limited and its subsidiaries (the Company or Audeara) which is current as at 18 May 2021. By attending an investor presentation or briefing, or accepting, accessing or reviewing this Presentation, you acknowledge and agree to the terms set out below.

Summary information: This Presentation has been prepared for information purposes only and is a summary only. It should be read in conjunction with Audeara’s most recent financial report and other periodic and continuous disclosure information lodged with the Australian Securities Exchange (ASX), which is available at www.asx.com.au. Reliance should not be placed on information or opinions contained in this Presentation and, subject only to any legal obligation to do so, the Company does not have any obligation to correct or update the content of this Presentation.

Not financial product advice: This Presentation does not, and does not purport to, contain all information necessary to make an investment decision, is not intended as investment or financial advice (nor tax, accounting or legal advice) and must not be relied upon as such. This Presentation does not take into account the investment objectives, financial situation or needs of any particular investor. Investors are encouraged to seek independent professional advice when deciding if an investment in the Company is appropriate. The Company is not licensed to provide financial product advice in respect of its own securities. This Presentation is not a prospectus, product disclosure statement or other offering document under Australian law (or any other law). It is not, and does not constitute, an invitation or offer of securities for subscription, purchase or sale in any jurisdiction.

Investment risk and past performance: An investment in Audeara shares is subject to known and unknown risks, some of which are beyond the control of the Company and its directors. The Company does not guarantee any particular rate of return or the performance of Audeara. Past performance is not, and should not be relied on as being, indicative of future performance. Future performance and forward-looking statements: This Presentation includes forward looking statements, which can generally be identified by the use of words such as “may”, “will”, “expect”, “intend”, “plan”, “estimate”, “anticipate”, “outlook”, “forecast” and “guidance”, or other similar words. They may include, without limitation, statements regarding plans, strategies and objectives and anticipated business developments.

Forward-looking statements inherently involve known and unknown risks, uncertainties and other factors that may cause Audeara’s actual results, performance and achievements to differ materially from statements in this Presentation. Forward-looking statements are based on the Company’s good faith assumptions as to the financial, market, regulatory and other relevant environments that will exist and affect Audeara’s business and operations in the future. The Company does not give any assurance that the assumptions will prove to be correct. There may be other factors that could cause actual results or events not to be as anticipated, and may events are beyond the reasonable control of the Company. Readers are cautioned not to place undue reliance on forward-looking statements, particularly in the current economic climate and given the significant volatility, uncertainty and disruption caused by the COVID-19 pandemic. Forward-looking statements in this Presentation are only made as at the date of this Presentation and the Company does not undertake any obligation to publicly update or revise any of the forward-looking statements or to advise of any change in assumptions on which any such statement is based.

Industry data and third party information: Industry data and third party information used in this Presentation may have been obtained from research, surveys, reports or studies conducted by third parties, including industry or general publications. Neither Audeara nor its representatives have independently verified any such market or industry data. Financial information: This Presentation contains historical financial information based on the Company’s results for the period ending 31 December 2020 (HY2021). This information is disclosed was lodged with ASX on 14 May 2021 and is available on www.asx.com.au. All financial information disclosed in this Presentation is presented in Australian dollars unless otherwise noted. Any discrepancies between totals and sums of components in tables and figures contained in this Presentation are due to rounding.

Disclaimer: To the maximum extent permitted by law, Audeara and its officers, directors, employees, agents and advisers: (1) disclaim all responsibility and liability (including, without limitation, any liability arising from fault, negligence or negligent misstatement) for any loss arising from this Presentation or reliance on anything contained in or omitted from it or otherwise arising in connection with this Presentation; (2) disclaim any obligation or undertaking to release any update or revision to the information in this Presentation to reflect any change in expectations or assumptions; and (3) do not make any representation or warranty, express or implied, as to the accuracy, reliability, completeness of the information in this Presentation or that this Presentation contains all material information about Audeara or that a prospectus investor or purchaser may require in evaluating a possible investment in Audeara or acquisition of shares, or the likelihood of fulfilment of any forward-looking statement.

WHO IS AUDEARA?

Audeara is a hearing health technology company that has developed a hearing profile algorithm based on gold standard testing methodology used to personalise sound output to the needs of the individual.

==> picture [38 x 38] intentionally omitted <==

==> picture [36 x 41] intentionally omitted <==

==> picture [47 x 41] intentionally omitted <==

WHAT

WHY

MISSION

AIM

Premium audio processing that enhances music, entertainment and communication by focusing on what really matters - what you can hear.

Ensure all people have the best possible sound experience regardless of their hearing ability and can monitor their hearing health.

‘Perfect sound, always’

Perfect sound for your individual needs, safe without sacrificing sound quality to avoid damage, adapts with your hearing over time.

To become the globally recognised ‘healthy headphones’

WHO ARE WE TARGETING

PRIMARY

Someone who is already experiencing some degree of hearing loss or impairment.

SECONDARY

Someone who is aware of the repercussions of, or is at risk of damaged hearing health, and is motivated to take action.

Audeara headphones are not a medical device.

INTRODUCING AUDEARA

==> picture [44 x 39] intentionally omitted <==

NOW & BEYOND

Today Tomorrow Audiology Clinics in Australia Audiology Clinics in USA/UK/Rest of World Direct to target customers Musicians Kids/Schools Gaming

Australian Clinics Stocking Audeara

There are 1581 permanent audiology locations in Australia.[1]

==> picture [266 x 130] intentionally omitted <==

----- Start of picture text -----

800
600
400
200
0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
19 19 19 19 20 20 20 20
----- End of picture text -----

==> picture [37 x 38] intentionally omitted <==

==> picture [43 x 36] intentionally omitted <==

==> picture [40 x 39] intentionally omitted <==

GLOBAL SCALE

PROVEN TRACK RECORD

THE PEOPLE

Australia is the foundation – Major international hearing health partners all present, small volume but respected in international markets with strong barriers to entry.

Strong growth in Australia and expansion into international markets underpinned by customer/clinic service and high quality, validated product.

Experienced Board and Management team with background in Medicine, Audiology, Engineering, Finance and Sales.

USA through distribution with Westone and clinic partners 2021

UK EU through distribution and clinic partners 2021

Headphone sales to date: 12,000

==> picture [47 x 45] intentionally omitted <==

==> picture [51 x 27] intentionally omitted <==

==> picture [59 x 15] intentionally omitted <==

==> picture [68 x 33] intentionally omitted <==

==> picture [70 x 30] intentionally omitted <==

==> picture [50 x 22] intentionally omitted <==

==> picture [70 x 20] intentionally omitted <==

hearingservices.gov.au - Annual Program Statistics June 30 2020

PROBLEM WE’RE SOLVING: HEARING LOSS

Medical doctors, Audiologists and Engineers striving to address the growing issue of hearing loss and reduce the impacts on our society

HEARING LOSS IS A PROBLEM BEING WORSENED BY:

an ageing population

behavioural noise induced hearing loss in young people

industrial hearing loss from occupational hazards

NUMBER OF PEOPLE SUFFERING FROM HEARING LOSS[1]

BY AGE GROUP

BY LOCATION

==> picture [72 x 32] intentionally omitted <==

==> picture [42 x 32] intentionally omitted <==

==> picture [498 x 162] intentionally omitted <==

----- Start of picture text -----

1 in 5 1 in 3 50%
teenagers over the age of 65 over the age of 75
6% 17% 15%
of the global population of Australia of the USA
(499 Million people) (4.3 Million people) (50 Million people)
----- End of picture text -----

ADDITIONALLY:

Hearing loss is the most common service-related disability for military veterans in the USA : 2.7 million veterans.[1]

9% of Dementia cases are linked to preventable hearing loss.[2]

1 billion young adults are at risk of permanent, avoidable hearing loss due to unsafe listening practices.[1]
Frost & Sullivan - Market Report: The Headphones Market March 2021
thelancet.com - Dementia prevention, intervention, and care: 2020

OUR SOLUTION

CURRENT PRODUCT A-01

User generates a hearing profile using the Audeara App

Software adjusts left & right ear independently using the hearing profile

Profile is stored in the headphone and sound is personalized for user (Music, TV, Phone, Videocalls, Gaming)

==> picture [345 x 181] intentionally omitted <==

==> picture [327 x 137] intentionally omitted <==

----- Start of picture text -----

Every person hears differently and
1. Measure
your left ear hears differently to your right.
Your Audeara headphones tailor
2. Tailor
the audio to your individual hearing.
Find new parts in your favourite song.
3. Experience
Hear notes you didn’t know were missing.
----- End of picture text -----

WHAT MAKES US DIFFERENT

==> picture [42 x 34] intentionally omitted <==

==> picture [48 x 33] intentionally omitted <==

Hearing profile accurate regardless of interface device[ 1]

Proprietary firmware, software and hardware which can be placed into any audio system

Not for the purpose of diagnostics

WHO BUYS AUDEARA PRODUCTS?

==> picture [34 x 35] intentionally omitted <==

CONSUMERS

End Users - Providing personalised sound to users to optimise their listening experience.

Primary

People who have a known hearing loss

Secondary

People who know they need a personalised solution and are health consicous

==> picture [62 x 40] intentionally omitted <==

CUSTOMERS

Hearing Health Clinics (90% current revenue) Why Hearing Clinics Choose Us

Why Audeara Chooses Hearing Clinics

Increase the lifetime value of their clients

Increases Audeara primary customer reach by:

Reduce time to client first purchase

Increase customer conversion rates

Provide revenue above ‘only hearing aids’ Drive traffic to their locations

being available where people in need are seeking a solution
offering simple setup for ageing population who are tech averse
utilising government and insurance reimbursement

Industry recognition and validation

Strong global growth opportunities through international groups

Future product development with industry input

COMPANY TIMELINE

COMPANY TIMELINE	COMPANY TIMELINE	COMPANY TIMELINE	COMPANY TIMELINE	COMPANY TIMELINE	COMPANY TIMELINE
$600,000 $400,000 $200,000 2015 - 2017 2018 2019 2020 2021 THE BEGINNING CONSUMER FOCUS HEALTH FOCUS CLINIC GROWTH GROWTH 2015 - The Beginning 2016 - R&D Research + Brand 2017 - Pre Sale Campaign 3000 Orders 60+ Countries Amazon AU/UK/US JD.com - China Focus on Audiology Sector First Clinic Sales Hearing Australia NDIS/DVA/HSP AUSTRALIA Strong and Consistent $ through COVID 200 600/1581 Clinics 3/5 ‘Big Five’ Clinic Groups AUSTRALIA Setup to onboard remaining clinics USA Westone Distribution ~~H2~~ H1 H2 H1 H2 TOTAL SALES - HALF YEAR (WHOLESALE VS. RETAIL) Retail Wholesale
	2015 - 2017	2018	2019	2020	2021
	THE BEGINNING	CONSUMER FOCUS	HEALTH FOCUS	CLINIC GROWTH	GROWTH
	2015 - The Beginning 2016 - R&D Research + Brand 2017 - Pre Sale Campaign	3000 Orders 60+ Countries Amazon AU/UK/US JD.com - China	Focus on Audiology Sector First Clinic Sales Hearing Australia NDIS/DVA/HSP	AUSTRALIA Strong and Consistent $ through COVID 200 600/1581 Clinics 3/5 ‘Big Five’ Clinic Groups	AUSTRALIA Setup to onboard remaining clinics USA Westone Distribution

INDUSTRY OVERVIEW - ASSISTIVE LISTENING HEADPHONES[1]

PROJECTED CONSUMER HEADPHONES MARKET 2025 Assistive Listening Headphones $5.7 Billion USD
1 Total Consumer Headphones $30.1 Billion USD
1. Frost & Sullivan - Market Report, The Headphone Market March 2021

MARKET OPPORTUNITY – ASSISTIVE LISTENING HEADPHONES

Percentage of individuals in the population with hearing loss as a segment of the total consumer headphones market.

A percentage of 17% has been used for 2018 (reflecting the proportion in Australia), and this is forecast to increase to 19% by 2025.

This potential market opportunity calculation excludes any sales to users who, whilst they do not currently suffer from hearing loss, are concerned to protect their hearing whilst using headphones (Secondary).

MARKET DRIVERS

A number of factors are likely to drive the market opportunity for assisted listening headphones, including:

Strong growth in the overall use of headphones:

driven by increased usage of mobile devices,

rapidly growing consumption of music and AV streaming services; and

technology developments such as wireless making use of headphones more convenient Rapidly growing incidence of hearing loss, with its associated social and economic impacts: 431 Million people to 554 Million people from 2015 to 2025 (Primary)

Growing concern to protect hearing health in both work and recreational settings, and growing awareness of the potential of personal audio devices to contribute to hearing loss (Secondary)

INDUSTRY OVERVIEW - CLINICS

AUDIOLOGY CLINICS

A group of international audiology clinics traditionally dominate the Hearing Health retail industry, namely Amplifon, WIlliam Demant, Sonova Group AG, WSA, GN Resound and Starkey Hearing Technologies. Large optical chains like Specsavers and Fielmann are also moving into the Audiology industry and thus become opportunities for Audeara growth.

Australia is a well respected market for international brands due to the quality of the healthcare industry, the quality of the education sector and clinicians and the similarity in consumer demographics to larger Western regions such us US and EU.

Leading Hearing Health Providers and Locations per Company, Australia and Global, 2021

==> picture [364 x 152] intentionally omitted <==

----- Start of picture text -----

Number of Locations Number of Locations
(Australia) [1] (Global) [1]
Amplifon 300+ ~11,000
Demant 400+ ~2,500
Sonova 130+ 3,300+
Specsavers 330 2,111
----- End of picture text -----

INTERNATIONAL FOOTPRINT OF EXAMPLE HEARING HEALTH PROVIDER: AMPLIFON

~11000 Points of Sale

==> picture [575 x 197] intentionally omitted <==

----- Start of picture text -----

6920
263
3600
100
300+
----- End of picture text -----

==> picture [197 x 7] intentionally omitted <==

----- Start of picture text -----

1. Frost & Sullivan - Market Report, The Headphone Market March 2021
----- End of picture text -----

PARTICIPANTS IN GOVERNMENT PROGRAMMES AUSTRALIA, 2021

==> picture [756 x 161] intentionally omitted <==

----- Start of picture text -----

Eligible participants [1]
DVA Gold Card holders 115,905
NDIS active participants with hearing loss as the primary impairment 21,079
HSP Clients fitted with an ALD 3,385
NDIS total active paticipants (excluding hearing loss) 411,570
----- End of picture text -----

Frost & Sullivan - Market Report, The Headphone Market March 2021

AUSTRALIAN SALES BY COHORT

TOTAL SALES - HALF YEAR[1]

$600,000

==> picture [51 x 10] intentionally omitted <==

----- Start of picture text -----

H2 2020
----- End of picture text -----

==> picture [86 x 56] intentionally omitted <==

==> picture [713 x 290] intentionally omitted <==

----- Start of picture text -----

$400,000 H1 2020
H2 2019
$200,000
H1 2019
Direct to Target Distributors Globally Owned Clinics Australian Owned Clinics
----- End of picture text -----

These figures are unaudited management prepared accounts for the purpose of discussing Audeara’s customer mix in Australia

INDUSTRY OVERVIEW - US HEALTH MARKET[1]

The top 10 hearing aid retailers have a combined market share of approximately 48%

==> picture [79 x 41] intentionally omitted <==

----- Start of picture text -----

Independents &
Small Chains
26%
----- End of picture text -----

Frost & Sullivan - Market Report, The Headphone Market March 2021

SALES AND DISTRIBUTION

International Hearing Health companies have a strong foundation in Australia- success in Australia will lead to global expansion

Audeara is currently available for sale in over 600 of the available 1581 hearing health clinics in Australia, including three international groups

New product offerings are being developed alongside our customers to increase adoption and grow market share

Government certification achieved to optimise relationships with Australian clinics

Beachhead distribution agreements signed for key target markets for activation in 2021

==> picture [516 x 135] intentionally omitted <==

----- Start of picture text -----

Partner UK/EU [1] USA [1] APAC [1]
Quinta 4000
Large Global Optical Retailer 2000
Westone 16000
AsiaPac 3000
----- End of picture text -----

Impacted by COVID. Pending first Purchase Order for confirmation of available retail sites being serviced by these distributors. The figures provided are not to be relied on as a representation of the intended sales capacity or a financial forecast of any nature.

VERTICALS

CURRENT OPPORTUNITIES

==> picture [758 x 381] intentionally omitted <==

----- Start of picture text -----

Audiology Clinics Direct To Target Customers Healthy Musicians Healthy Kids Healthy Gaming
Current - Launched 2019 Current - Accelerate 2021 R&D Underway R&D Underway Potential
Foundation of Audeara Health conscious consumers Hearing Protection that Prevention is better than Compensate for a known
current revenue generation seeing the benefit of doesn’t sacrifice sound cure – get in early in the life hearing loss
personalised sound quality journey to educate about the
Strong barriers to entry Health conscious gamers (or
importance of hearing health
NDIS parents of gamers)
Preferred supplier
Volume limited headphones
arrangements Health Aligned
that don’t sacrifice sound
Provides validation of hearing Veterans Groups
quality by using Audeara
health foundation
personalisation platform
Provide a solution that others
can’t (Less competition)
Ready access to end users
who know they need our
solution
Less education required for
sale
Use of government funds
90% of 2020 Calendar Year 10% of 2020 Calendar Year
Revenue Revenue
----- End of picture text -----

PRODUCT ROADMAP

CURRENT RANGE

A-01

==> picture [106 x 99] intentionally omitted <==

The original Audeara product, incorporating the proprietary personalisation algorithm and packaged in a high quality, Bluetooth noise cancelling, over the ear headphone.

BT-01

==> picture [149 x 54] intentionally omitted <==

A sleek and compact Bluetooth audio transceiver that streams Hi-Fi digital audio wirelessly from your TV or wired music system to your favourite pair of Bluetooth headphones or speakers.

2021 RANGE

A-02

==> picture [106 x 99] intentionally omitted <==

The next generation in Audeara headphones, taking consumer feedback to refine for the target market. Everything great from the A - 01 in a new design and enhanced functionality.

BT-02

==> picture [131 x 69] intentionally omitted <==

A sleek and compact Bluetooth audio transmitter that streams Hi-Fi digital audio wirelessly from your TV or wired music system with an updated, simplified pairing for two headphones at once using a digital display.

FUTURE POTENTIAL

KIDS

MUSICIANS

GAMING

Volume limited headphones that don’t sacrifice sound quality by using Audeara personalisation platform.

An ear-worn, headphone style device that attenuates sound to a comfortable level while maintaining a very high fidelity signal.

Enhance every gaming session with personalised wireless audio.

HOW WE GROW

GROWTH IN CURRENT MARKETS

==> picture [758 x 160] intentionally omitted <==

----- Start of picture text -----

Invest To Scale Research Validation + Certification Inventory
Expand Australian hearing health marketshare ISO certification to expand government funding Supply to meet growing demand
Staff: Sales/Marketing + Account Management Unlock additional medical device opportunities Streamline inventory management accross
multiple locations
Expand geographically in hearing health
UK + USA + ASIA PACIFIC
Staff: Sales leads + account management
----- End of picture text -----

EXPANSION INTO NEW TARGET MARKETS

==> picture [506 x 109] intentionally omitted <==

----- Start of picture text -----

Product Development Market Development
Healthy Musicians + Kids + Gaming Build business units around each new vertical
Staff: Firmware engineers + software engineers
----- End of picture text -----

INVESTMENT HIGHLIGHTS

==> picture [41 x 32] intentionally omitted <==

PRODUCT

APPROVALS

Developed & successfully launched personalised high quality, noise cancelling headphones (including simple and accurate hearing analysis)

Australian Government Reimbursement Approved (Hearing Services Program Government Certified, Department of Veterans Affairs Certified and National Disability Insurance Scheme Certified

==> picture [48 x 39] intentionally omitted <==

==> picture [35 x 37] intentionally omitted <==

RETAILERS

OPPORTUNITY

Existing Australian retail partnerships in place (600+ outlets across seven of Australia’s leading hearing health retailers), with international partnerships advanced

Substantial global growth opportunity providing quality product to an under-serviced market.

Growth through additional territories and additional market segments.

Significant additional product roll-out opportunities for hardware and tech license (gaming, education, etc)