Demant — Annual Report (ESEF) 2025

Feb 3, 2026

Demant A/S Annual Report 2025 Demant A/S Kongebakken 9 2765 Smørum , Denmark CVR no. 71186911 1 January – 31 December 2025 Overview Market and strategy Financial performance Corporate governance Demant Annual Report 2025 2 We are pleased to present Demant’s Annual Re- port 2025, prepared as an integrated report in ac- cordance with the reporting framework of the In- ternational Financial Reporting Standards (IFRS) and the EU Corporate Sustainability Reporting Di- rective (CSRD) and its European Sustainability Reporting Standards (ESRS). It encompasses both financial and sustainability performance for the full calendar year 2025 presented in our Man- agement statement, Sustainability statement and Financial statements. Annual Report 2025 addresses how we create value for all our stakeholders as a leading hearing healthcare company and the impact we have on the environment and society. It provides a com- prehensive overview of our strategy and business model, the risks and opportunities we face as well as our financial, environmental, social and govern- ance performance. All information related to the ESRS disclosure re- quirements is provided with the corresponding ESRS reference throughout Annual Report 2025. You can find an overview of all the disclosure re- quirements included and their location on pages 106-114. You can find the auditor’s reports in the Signa- tures section on page 199. In the Document library of our News and media section on www.demant.com, we provide access to all our reports, including our Remuneration Re- port, which offers an overview of the remuneration of the Executive Board and the Board of Directors in 2025, and the Corporate Governance Report, which includes information on the company’s management structure and a review on how we address corporate governance pursuant to section 107b of the Danish Financial Statements Act and the Nordic Main Market Rulebook for Issuers of Shares prepared by Nasdaq. Thank you for your interest in this Annual Report 2025. We hope it provides valuable insights and that you enjoy reading it. About this report www.demant.com/reports -2025/remuneration - report-2025 www.demant.com/reports -2025/corporate - governance-report-2025 Overview Market and strategy Financial performance Corporate governance Demant Annual Report 2025 3 Overview 5 Market and strategy 14 Financial performance 20 Corporate governance 35 Sustainability in Demant 51 Environment 63 Social 79 Governance 97 Additional information 102 Consolidated financial statements 115 Parent financial statements 175 Statement by management 193 Independent auditor’s reports 195 Independent auditor’s limited assurance report on the sustainability statement 199 Table of contents Management's review comprises the Management statement and the Sustainability statement. Overview Market and strategy Financial performance Corporate governance Demant Annual Report 2025 4 Management statement Overview Market and strategy Financial performance Corporate governance Demant Annual Report 2025 5 Performance highlights 6 CEO letter 7 This is Demant 11 Event highlights in 2025 13 Overview Overview Market and strategy Financial performance Corporate governance Demant Annual Report 2025 6 We are guided by our purpose and strategic ambi- tion to create life-changing differences through hearing health. In 2025 we continued to impact millions of people living with hearing loss, to de- liver strong cash flow and to further improve our sustainability metrics. Performance highlights Millions of lives improved Scope 1 and 2 GHG emissions Gender balance in leadership Code of Conduct training (Million) 2030 16 million (Share of CO 2 e reduced) 2030 46% (Share of under-represented gender) 2030 35% (Share of relevant employees trained) 2030 100% 2030 target: More than 16 million lives improved 2 2030 target: 46% reduction in scope 1 and 2 green- house gas (GHG) emissions vs. 2019 3 2030 target: Increase gender balance in top-level management to 35/65% (female/male) 4 2030 target: Code of Conduct training to reach 100% of highly exposed employees 1 Comparative figures for 2023 have been restated to exclude Communications. 2 This represents the number of people who benefit from hearing aids from Demant. 3 The target for reduction in scope 1 and 2 market-based GHG emissions is calculated vs. the 2019 baseline of 31,980 tonnes of CO 2 e. 4 Actions to achieve gender representation targets will be implemented where permitted by applicable local laws and regulations. Revenue 1 (DKK billion) Medium- to long-term target: Growth of 8-10% p.a. in local currencies EBIT before special items 1 (DKK million) Medium - to long-term target: Incremental EBIT margin expansion in constant currencies Share buy-backs (DKK million) Medium - to long-term target: Excess free cash flow after acquisitions to be used for share buy-backs 19.7 21.6 22.4 23.0 0 5 10 15 20 25 2022 2023 2024 2025 3,207 4,506 4,404 3,960 0 1,000 2,000 3,000 4,000 5,000 2022 2023 2024 2025 1,840 846 2,301 582 0 500 1,000 1,500 2,000 2,500 2022 2023 2024 2025 Overview Market and strategy Financial performance Corporate governance Demant Annual Report 2025 7 2025 has been a challenging year for the global hearing healthcare market, which continued to be impacted by macroeconomic uncertainties. These dynamics have, unfortunately, reduced the willing- ness to invest and resulted in delayed purchases. In turn, this led to lower-than-normal growth in the hearing healthcare market, especially in the US, and thus intense competition. Being one of the market leaders, we were influ- enced by these market dynamics in 2025. The Group saw organic revenue growth of 2% and an operating profit before special items of DKK 3.96 billion. Our Hearing Care business area saw par- ticularly good performance with revenue growth of 10% in local currencies. We are pleased that the Group delivered results in line with our updated expectations and maintained industry-leading margins. However, we cannot be fully satisfied with a year where we had to revise our outlook downward twice. Against the backdrop of a disappointing 2025, we have therefore pre- sented an ambitious plan for 2026 for Demant to improve profitability in the coming years. I will get back to this plan below but let me first share high- lights on how we delivered on our strategy through consistent execution in 2025. Fundamentals intact Even windy conditions do not change our view of the fundamentals of our industry – a growing need for hearing healthcare driven by increasing elderly populations all over the world. Our business is based on a long-term and well-defined demand for state-of-the-art hearing aids, diagnostic solu- tions and personalised care. Our strategy is clear: We want to become the leading hearing healthcare company, driven by our ambition to im- prove as many lives as possible and a purpose of creating life-changing hearing health. Our strategy to become the leader in hearing healthcare guided our choices and decisions throughout the year. We achieved significant mile- stones. Largest expansion in our history We proudly announced and finalised the acquisi- tion of KIND, one of the world’s leading retailers of hearing aids. This – our largest-ever – expansion of our global network of hearing care clinics com- plements our long-term aspirations of helping more people with hearing loss through personal- ised care. The KIND acquisition makes Demant a leading re- tailer in Germany and will increase the Group’s revenue by almost 10%. Acquiring KIND is yet an- other strategic step for us to further consolidate and grow our Hearing Care business. By adding a broad national clinic network and a very strong brand in Germany, we are now closer to even more users. Combined with Demant’s existing global clinic footprint, we now have more than 4,500 clinics globally. With this transaction, I am delighted to have welcomed more than 3,000 new employees to the Demant Group, now totalling ap- proximately 26,000 life-changers. Even though numbers speak volumes, they do not necessarily tell the full story. By combining De- mant’s innovative hearing aid technology and di- agnostic equipment with professionalised hearing care, we cover the entire journey – from diagnosis and acceptance of hearing loss to getting a hear- ing aid – helping more people, faster and better. Helping more people is also about working to lower the age threshold for starting hearing treat- ment, meeting people physically and making hear- ing treatment easy and accessible. CEO letter In an eventful year, Demant delivered results in line with our revised ex- pectations, driven by strong performance in Hearing Care. We achieved key strategic milestones with the acquisition of KIND and the launch of the hearing aid sensation, Oticon Zeal. The year ended on a positive note and, looking into 2026, we remain committed to our strategy, “leading hearing healthcare”. In a global hearing healthcare market that remains characterised by high macroeconomic uncertainties and intense competi- tion, we have solid plans to strengthen Demant for the future. Overview Market and strategy Financial performance Corporate governance Demant Annual Report 2025 8 Unprecedented innovation In 2025, we stayed on course by offering a clear and focused hearing aid portfolio. We expanded our AI-driven product range with even more styles, including a truly compelling new product. Few moments capture our purpose as clearly as the launch of Oticon Zeal. The unseen in-ear hearing aid unites discretion with full functionality and directly addresses a classic barrier for first- time hearing aid users. People with hearing loss want discreet solutions, but not at the expense of sound quality, reliability, rechargeability or connectivity. Bringing AI-driven sound processing, modern rechargeability and broad smartphone connectivity together in a small and ultra discreet device, Oticon Zeal is an “addic- tive” first encounter. In addition to Oticon’s activities, our other hearing aid brands, Bernafon and Philips, also launched products during the year. Hearing Aids generated organic revenue growth of 2% in 2025, and we ex- pect the business area to see improvements in 2026. This will be driven by Oticon Zeal and addi- tional new products to be launched during the year, as we prepare for an intense competitive en- vironment where everyone will fight even harder to compensate for the soft market. Strengthening Diagnostics The macroeconomic uncertainties also impacted performance in our Diagnostics business area. Despite a flat market, we managed to deliver or- ganic revenue growth of 1% due to good commer- cial performance in the fourth quarter. We also saw strong tender wins and growth in service and consumables during the year. Throughout 2025, we have worked to solidify Di- agnostics global leadership position through a multi-brand strategy and key account wins. We have implemented structural changes in the or- ganisation to enable scale and efficiency, position- ing the business area to further growth. This in- cludes a sharpening of our distribution activities and innovative product portfolio. Focused on hearing healthcare The year stood out as significant in terms of our transition into a focused hearing healthcare com- pany. We signed an agreement to sell Oticon Medical in the fourth quarter, a transaction which is expected to close in the beginning of 2026. It has been a key priority to find a good new owner of the business, ensuring that patients will also be supported going forward. I am very happy that we have succeeded in doing so. In late December, we wrapped up our divestment activities in 2025 when we signed an agreement to sell our audio and headset business, EPOS. Lives improved Why is it important to be focused? In addition to strengthening our core business, helping people with hearing loss return to life-changing conversa- tions and interaction with family, colleagues and friends is what drives us. In 2025, 1.6 million people were tested for hearing loss in our clinics, and we improved more than 12.1 million lives with Demant’s hearing aids. Thanks to higher unit sales in Hearing Aids and supported by our acquisition of KIND, we are on track to deliver on our impact targets: By 2030, we want to improve more than 16 million lives and raise awareness about hearing loss by testing more than 2 million people in our clinics. As we deliver on our core commitment to society, creating life-changing hearing health, we also take pride in making progress on our targets for the broader ESG areas (Environment, Society, Gov- ernance). In 2025, we thus reached an important emissions milestone: We used 53% renewable electricity, thus delivering on our target of 50% re- newable electricity in own operations by 2025. We also made good progress on our gender balance target for the Group, reaching a female/male ratio of 33%/67%, respectively, in our top manage- ment. An even stronger future Also in 2025, we continued building the foundation for an even stronger Demant for the benefit of our customers, employees and shareholders. Ensuring cost-effective best practices and scala- ble solutions across the business is vital for oper- ating the Demant Group even more effectively, as we continue to grow. This brings me back to our plan for 2026: While we remain optimistic about the underlying need for hearing treatment, we expect no signs of changes to the soft global hearing healthcare mar- ket and intense competition. In line with our strat- egy and financial goals, we are executing a com- pany‑wide initiative that will make Demant more effective and lower cost growth in the coming years. By optimising and tightly prioritising our cost base, we will improve profitability in an ex- panding business. And we will be keeping cus- tomer focus and service high while continuing to deliver innovative new solutions. These will be key topics for 2026 in order for De- mant to be able to create long-term value for all our stakeholders, who put their faith in our com- pany. Thank you to our customers, users and share- holders, for your trust throughout the year. And thank you to our employees for your continued en- gagement and dedication to delivering life-chang- ing hearing healthcare. Søren Nielsen With the largest acquisition in our history, the launch of a remarkable new hearing aid, Oticon Zeal, as well as a clear direction for the future, we are building an even stronger De- mant. We are committed to becoming the leader in hearing healthcare and improving more lives through better hearing. Overview Market and strategy Financial performance Corporate governance Demant Annual Report 2025 9 Key figures and financial ratios – year (DKK million) 2025 2024 2023 2022 2021 Income statement Revenue 22,971 22,419 21,601 19,705 17,905 Organic growth 2% 2% 14% 4% 27% Gross profit 17,371 17,090 16,320 14,669 13,458 EBITDA 5,351 5,963 5,799 4,383 4,730 Operating profit before special items 3,960 4,404 4,506 3,207 3,663 Special items -128 124 - - - Operating profit (EBIT) 3,832 4,528 4,506 3,207 3,663 Net financial items -731 -812 -761 -280 -202 Profit after tax – continuing operations 2,367 2,892 2,823 2,276 2,711 Profit after tax – discontinued operations -823 -504 -1,025 -192 -183 Profit for the year 1,544 2,388 1,798 2,084 2,528 Cash flow statement Cash flow from operating activities (CFFO) 3,852 4,080 4,458 2,622 3,593 Acquisition of enterprises, participating interests and activities -6,285 -1,234 -935 -2,323 -708 Investment in property, plant and equipment, net -605 -545 -621 -630 -547 Free cash flow (FCF) 3,094 3,486 3,622 1,617 2,838 Share buy -backs -582 -2,301 -846 -1,840 -3,200 Balance sheet Equity 9,919 9,644 9,338 8,562 7,981 Total assets 39,074 32,450 30,546 29,857 24,860 Net interest -bearing debt (NIBD) 18,742 13,545 12,280 12,711 9,150 Net working capital (NWC) 3,387 3,289 3,630 3,648 3,025 Financial ratios Gross margin 75.6% 76.2% 75.6% 74.4% 75.2% EBIT before special items margin 17.2% 19.6% 20.9% 16.3% 20.5% Effective tax rate 23.7% 22.2% 24.6% 22.2% 21.7% Gearing multiple 3.4 2.3 2.1 2.9 1.9 The Communications business has been reported as discontinued operations since 2024, and comparative figures for 2023 in the income statement and cash flow statement as well as related key figures and financial ratios excluding organic growth have been res tated. The Hearing Implant business has been reported as discontinued operations since 2022, and comparative figures for 2021 in the inc ome statement and cash flow statement as well as related key figures and financial ratios excluding organic growth were restated. 2025 2024 2023 2022 2021 Sustainability impacts Number of lives improved (million) 12.1 10.9 10.3 9.4 8.8 Number of people tested (million) 1.6 1.5 n.a. n.a. n.a. Environment Scope 1 and 2 market -based GHG emissions (tonnes of CO 2 e)¹ 26,781 29,426 33,103 37,136 34,288 Scope 1 and 2 location -based GHG emissions (tonnes of CO 2 e)¹ 35,401 33,686 33,323 31,224 29,258 Scope 3 GHG emissions (tonnes of CO 2 e)² 194,976 209,282 231,282 217,096 182,547 Renewable electricity share 53% 35% 21% n.a. n.a. Social Gender balance, top -level management (female/male) 33/67% 31/69% 29/71% 23/77% 22/78% Gender balance, all managers (female/male) 51/49% 50/50% 48/52% 44/56% 43/57% Inclusion score (1 -5) 4.30 4.27 4.26 n.a n.a Engagement score (1 -5) 4.16 4.13 4.11 4.08 4.02 Average number of full -time employees 22,248 21,381 20,690 19,239 16,866 All employees (headcounts) 26,704 22,639 22,240 n.a. n.a. Governance Code of Conduct training to highly exposed employees 99% 76% n.a. n.a. n.a. Whistleblower reports 126 87 90 47 48 Share ratios Adjusted earnings per share (adjusted EPS), DKK 11.74 12.74 12.64 10.06 11.48 Earnings per share (EPS), DKK – continuing operations 11.20 13.31 12.64 10.06 11.48 Earnings per share (EPS), DKK 7.31 10.99 8.04 9.21 10.70 Share price, end of period, DKK 215.20 264.20 296.00 192.55 335.10 We refer to Note 1.1 for a description of the accounting policies for key figures and financial ratios. ¹2023 -2021 numbers are restated due to methodological improvement. ²2024 -2021 numbers are restated due to methodological improvement. Overview Market and strategy Financial performance Corporate governance Demant Annual Report 2025 10 Key figures and financial ratios – half-year (DKK million) H2 2025 H1 2025 H2 2024 H1 2024 H2 2023 Income statement Revenue 11,718 11,253 11,332 11,087 10,907 Organic growth 4% 0% 2% 3% 13% Gross profit 8,824 8,547 8,580 8,510 8,303 EBITDA 2,758 2,593 3,066 2,897 3,010 Operating profit before special items 2,111 1,849 2,336 2,068 2,344 Special items -128 - - 124 - Operating profit (EBIT) 1,983 1,849 2,336 2,192 2,344 Net financial items -346 -385 -402 -410 -399 Profit after tax – continuing operations 1,237 1,130 1,538 1,354 1,452 Profit after tax – discontinued operations -810 -13 -350 -154 -236 Profit for the period 427 1,117 1,188 1,200 1,216 Cash flow statement Cash flow from operating activities (CFFO) 2,339 1,513 2,589 1,491 2,540 Acquisition of enterprises, participating interests and activities -5,436 -849 -471 -763 -622 Investment in property, plant and equipment, net -298 -307 -259 -286 -320 Free cash flow (FCF) 1,968 1,126 2,329 1,157 2,071 Share buy -backs - -582 -1,164 -1,137 -829 Balance sheet Equity 9,919 9,475 9,644 9,522 9,338 Total assets 39,074 32,640 32,450 32,390 30,546 Net interest -bearing debt (NIBD) 18,742 14,099 13,545 13,853 12,280 Net working capital (NWC) 3,387 3,198 3,289 3,546 3,630 Financial ratios Gross margin 75.3% 76.0% 75.7% 76.8% 76.1% EBIT before special items margin 18.0% 16.4% 20.6% 18.7% 21.5% Effective tax rate 24.4% 22.8% 20.5% 24.0% 25.3% Gearing multiple 3.4 2.5 2.3 2.3 2.1 H2 2025 H1 2025 H2 2024 H1 2024 H2 2023 Sustainability impacts Number of lives improved (million) 12.1 11.2 10.9 10.6 10.3 Number of people tested (million) 0.8 0.8 n.a. n.a. n.a. Environment Scope 1 and 2 market -based GHG emissions (tonnes of CO 2 e)¹ 13,553 13,228 15,571 13,855 16,322 Scope 1 and 2 location -based GHG emissions (tonnes of CO 2 e)¹ 18,166 17,235 17,328 16,358 16,451 Renewable electricity share 51% 55% 32% 38% 20% Social Gender balance, top -level management (female/male) 33/67% 31/69% 31/69% 30/70% 29/71% Gender balance, all managers (female/male) 51/49% 50/50% 50/50% 49/51% 48/52% Average number of full -time employees 22,719 21,777 21,389 21,373 21,413 Share ratios Adjusted earnings per share (adjusted EPS), DKK 6.40 5.34 7.13 5.61 6.50 Earnings per share (EPS), DKK – continuing operations 5.86 5.34 7.13 6.18 6.50 Earnings per share (EPS), DKK 2.03 5.28 5.52 5.47 5.44 Share price, end of period, DKK 215.20 264.20 264.20 301.40 296.00 Comparative figures for the Communications business for 2023 in the income statement and cash flow statement as well as relat ed key figures and financial ratios excluding organic growth have been restated. We refer to Note 1.1 for a description of the accounting policies for key figures and financial ratios. ¹2023 numbers are restated due to methodological improvement. Overview Market and strategy Financial performance Corporate governance Demant Annual Report 2025 11 Global HQ Direct sales markets Research & Development Distributor markets Manufacturing and service This is Demant Our purpose Life -changing hearing health More than 26,000 people are employed globally 1.6 million people were hearing-tested in 2025 12.1 million lives were improved in 2025 Research and development Innovation is a n integral part of Demant’s strategy, and we con stantly strive for technological advance- ments in our R&D activities. Our main R&D sites are located in Denmark, Poland and Malaysia, and we also have a few smaller R&D sites in other countries . Manufacturing and service Demant has a strong manufacturing set-up with two main locations in Poland where we manufac- tur e hearing aids and diagnostic equipment for global markets . We also have a site in Mexico, primarily for custom devices and servicing of our American markets . Sales and distribution Demant serves customers in more than 130 countries. In over 30 countries, we sell our prod- ucts through our local sales companies to hear- ing care professionals and through our own hear- ing care clinics to hearing impaired people. Re- maining markets are serviced by distributors. Overview Market and strategy Financial performance Corporate governance Demant Annual Report 2025 12 The Demant Group develops, manufactures and sells products and equipment that help people with hearing loss connect and communicate with the world around them. We operate a focused hearing healthcare com- pany, consisting of three business areas: Hearing Aids, Hearing Care and Diagnostics. The business areas operate through separate or- ganisations and offer multiple brands to best serve their individual markets and channels. How- ever, the business areas also collaborate exten- sively across the entire value chain – from pur- chasing and manufacturing to technological devel- opment, distribution and global infrastructure. Our approach to hearing healthcare and innova- tion, combined with the synergies obtained be- tween our business areas, thus enables us to cre- ate life-changing differences through hearing health, thereby helping millions of people experi- ence the joy of hearing – now and in the future. For more details on our strategy and operating model, please refer to Our strategy on page 17. Business areas Hearing Aids Hearing Care Diagnostics The Hearing Aids business area engages in de- velopment, manufacture and wholesale of hearing aids in addition to support and service to our cus- tomers. We develop leading technological solu- tions that create life -changing hearing health for users every day , which is made possible through a strong commitment to investing in research and d evelopment. The business area offers multiple brands to best serve different channels and customers across more than 130 countries through own local sales organisations and external distributors. The Hearing Care business area comprises the Group’s global retail operations, providing person- alised hearing care to users all over the world through selected strong, local brands. Expanding access to hearing care globally is an essential pillar in Demant’s strategy, which is achieved through bolt -on and strategic acquisi- tions as well as greenfield clinic openings in Hear- ing Care . As a result of these efforts and initia- tives, Demant now owns and operates more than 4,500 hearing care clinics across more than 25 countries worldwide. The Diagnostics business area consists of a group of international companies. Major product areas are audiometers and hearing instrument fitting solutions . In recent years, we have also ex- panded into other areas, including balance prod- ucts . In addition to manufacturing and selling diag- nostic instruments, consumables and service of devices also contribute to sales. The combined Diagnostics business area is the global market leader in hearing and balance assessment solutions used by audiologists, ENT doctors and balance clinics worldwide. EXTERNAL REVENUE IN 2025 9,841 DKK MILLION REVENUE IN 2025 10,724 DKK MILLION REVENUE IN 2025 2,406 DKK MILLION ESRS 2 SBM-1. This page is part of limited assurance. Overview Market and strategy Financial performance Corporate governance Demant Annual Report 2025 13 Read more at demant.com/about/latest-news Event highlights in 2025 31 January Demant adds 77 clinics to the Group’s network of hearing care clinics by acquiring the Ohrwerk Group in Germany 22 October and 20 December Wrap-up of divestment activities: Demant signed agreements to sell Oticon Medical and EPOS, respectively 9 April Interacoustics introduces a game- changing audiometry solution: Equinox Evo and Touch Keyboard 11 June Demant signed an agreement to acquire KIND and significantly expands the Group’s hearing care footprint with around 650 clinics 1 September Demant eliminates 51 tonnes of plastic from production 22 October Oticon introduces the world’s most discreet and complete hearing aid, Oticon Zeal Overview Market and strategy Financial performance Corporate governance Demant Annual Report 2025 14 The societal implications of hearing loss 15 Market trends and developments 16 Our strategy 17 Market and strategy Overview Market and strategy Financial performance Corporate governance Demant Annual Report 2025 15 The World Health Organization (WHO) estimates that one in five people live with some degree of hearing loss and that, due to increasing life expec- tancy, this number is growing. Out of the total number of people living with hearing loss, over 400 million people have a moderate to severe hearing loss and would benefit from treatment. However, less than 20% of people, who would benefit from using a hearing aid, receive treat- ment. This low number is particularly driven by re- gions and countries that lack hearing health infra- structure. Furthermore, barriers, such as lack of awareness and stigmatisation, continue to limit the wider adoption of hearing aids globally. If left untreated, hearing loss impacts many as- pects of life for the individual, from preventing ac- tive participation in education and employment to reducing interaction with family and friends, which can potentially impact the individual’s physical and mental health. Hearing loss has a considerable economic impact on society, beyond the financial challenges it can present for the individual. The WHO estimates that the global annual cost for society is USD 980 billion, consisting of healthcare costs incurred, if hearing loss is not treated, as well as the costs of educational support and loss of productivity due to unemployment and premature retirement. At Demant, we believe that alleviating hearing loss starts with the hearing care professional, who delivers personalised care by diagnosing and fit- ting hearing aids based on a person’s needs. Through best-in-class customer experience and innovative solutions, we can help more people live life to the fullest and thus contribute to creating a better society. The societal implications of hearing loss Source: World report on hearing, World Health Organi zation, 2021 ESTIMATED ANNUAL GLOBAL COST 980 USD BILLION INCLUDING 34 MILLION CHILDREN OVER 400 MILLION LIVING WITH A M ODERATE TO SEVERE HEARING LOSS Overview Market and strategy Financial performance Corporate governance Demant Annual Report 2025 16 1 Source: EHIMA statistics and Demant’s own estimates. Hearing aid market The global hearing aid market is characterised by stable and resilient growth drivers, as people with hearing loss have a need for treatment, which must be addressed at some point. For the last ten years, the market has grown at an average annual growth rate of around 6% in units, which is at the high end of the long-term structural growth rate of 4-6% p.a. If we look at the future long-term structural growth rate, roughly half of this market growth is expected to be driven by de- mographic developments, including increasing life expectancy, and the other half by increased ac- cess to hearing aids for the hearing impaired. Besides unit growth, the industry has historically seen flattish development in the average selling price (ASP), a trend that we expect to continue. Continuously improving technology supports in- creasing prices over time. However, this trend is offset by a generally competitive environment and negative impact of geography and channel mix. When combining unit growth and ASP develop- ments, we expect long-term growth in the hearing aid market to be 4-6% p.a. in value terms. In 2025, the hearing aid market grew at a slower pace than normal, which we attribute to general macroeconomic uncertainty. We have not seen any changes to the structural growth drivers of the hearing aid market and continue to expect the market to return to value growth of 4-6% p.a. in the medium- to long-term. Market size and structure We estimate that approximately 13 million people were fitted with around 23 million hearing aids worldwide in 2025. The value of the wholesale hearing aid market is estimated to be roughly USD 7 billion p.a., while the retail value, excluding government channels, is estimated to be roughly USD 20 billion p.a. The wholesale market consists of highly special- ised players competing in very product-driven markets, where significant R&D initiatives under- pin market positions. In the highly fragmented re- tail market, the majority of hearing aid clinics glob- ally are independently owned and operated, lead- ing to competitive markets, where strong market positions are important for customer awareness. Distribution channels Distribution channels of hearing aids are broadly categorised as either offering full reimbursement or some level of reimbursement, supplemented by out-of-pocket expenditures by the user. Channels offering full reimbursement include gov- ernment programmes, such as the National Health Service (NHS) in the UK and Veterans Af- fairs (VA) in the US. In addition, many countries offer a level of reimbursement when purchasing hearing aids through privately owned hearing clin- ics, and in some countries, such as France and Germany, it is also possible to get a fully reim- bursed hearing aid in a private clinic. The private category typically allows for greater flexibility and customisation based on the user’s specific needs and preferences with the possibility to opt for more advanced technology. This cate- gory includes independent audiologists or larger chains and where individuals pay some or all of the expenses for hearing aids out-of-pocket. Current trends Increasingly sophisticated products Hearing aids are getting increasingly more ad- vanced, which increases the complexity of their development and requires increasing investments in R&D. The most advanced hearing aids feature deep neural networks (DNNs) and use artificial in- telligence (AI) to understand the sound scene, providing users with a clearer sound picture. De- spite significant progress in this area, these fea- tures still have considerable untapped potential for improving the users’ audiological experience. Counselling is crucial Effective counselling and information are crucial. Different people have different types of hearing loss, and as technology advances, the service of a hearing healthcare professional is essential not only to determine what the best treatment is and fitting a hearing aid, but also to ensure that the user gets the most out of the increasingly powerful features provided by the devices. Continuous sup- port and counselling are of paramount importance in supporting users in their treatment. Consolidating distribution In retail, larger chains benefit from economies of scale, giving them greater purchasing power and operating leverage. For many years, distribution has been consolidating through larger players’ ac- quisitions of smaller chains and independent clin- ics. Acquisitions by manufacturers offer the further benefit of increasing the manufacturer’s market share. Diagnostic market The diagnostic markets where Demant operates cover a range of product categories related to hearing. Major product areas are audiometers and hearing instrument fitting solutions, but other prod- uct areas, such as auditory brainstem response (ABR) testing, otoacoustic emission (OAE) testing and impedance equipment, are also important. Balance testing has in recent years increased in relevance. In addition to diagnostic instruments, consumables and instrument servicing, including calibration, also contribute to market value. Distri- bution channels are diverse and are both govern- ment-funded and private and include not only hearing care professionals, but also schools, large hospitals and specialised clinics. Like the hearing aid market, the market for diag- nostic instruments was also impacted by macroe- conomic uncertainties in 2025, despite generally being characterised by stability and long-term structural growth trends. We expect the market to return to historical growth patterns supported by an increasing, global, installed instrument base driving growth in services and consumables. In value terms, the long-term structural growth rate in the market for diagnostic instruments and ser- vices is 4-6% p.a., with the global market size es- timated to be roughly USD 0.7 billion p.a. Market trends and developments ESRS 2 SBM -1. This page is part of limited assurance. Global hearing aid unit sales 1 ( million) 0 5 10 15 20 25 2010 2012 2014 2016 2018 2020 2022 2024 Overview Market and strategy Financial performance Corporate governance Demant Annual Report 2025 17 Our strategy focuses on creating value by growing our business at a rate exceeding the market growth rate, while improving our profitability through economies of scale and efficiency. Our strategy comprises three choices and three ena- blers, all of which are considered key for Demant in order to create value: Fuel innovation and core technology development An important organic growth driver is to bring su- perior technological solutions to the market in a timely manner and in high quality. We are there- fore firmly focused on investing in R&D in both Hearing Aids and Diagnostics, aiming to make fur- ther technological advances in our R&D pro- gramme. Participate in consolidation of distribution and leverage commercial position Another key growth driver is the acquisition and integration of hearing care clinics worldwide into our existing network. We believe in the benefits of specialised care and high-quality equipment. By continuously expanding our network, we can reach more people with our products and ser- vices, thus delivering specialised hearing care. In addition, our growing presence allows us to fur- ther raise awareness about hearing loss and to treat even more users in our clinics in the future. Grow across geographies and channels and in adjacent business activities To enable future growth, we focus strongly on growing sales in our existing markets as well as in new markets and channels across the three busi- ness areas. The aim is to deliver profitable growth through market share gains, as we expand our ac- tivities with both existing and new customers. Leverage scalability and increase business resilience We leverage our size and ensure efficiency in everything we do to increase profitability across the Group. A continuing effort, as set out in our strategy, is to optimise our operations and supply chain to drive up the EBIT margin. Other im- portant elements include ensuring that the Group benefits from economies of scale through our Group Services functions and investing in and im- plementing global standard business processes and applications to support further scalability. Continuously drive a culture of inclusion and engagement to a higher level Demant is a global employer with more than 26,000 employees worldwide, all dedicated to cre- ating life-changing differences through hearing health. Our employees are our most valuable re- source, as they are critical to Demant’s future suc- cess. Therefore, it is essential that Demant is a great company to work for and that we drive a strong culture of inclusion and engagement. We want to ensure that everyone can contribute with their strengths, regardless of their background. Our key focus is thus to further develop and en- gage our employees and leaders. Drive responsible and sustainable business practices We are committed to adding value responsibly and sustainably, not only to meet requirements and comply with increasing regulations in this area, but also to align with the purpose and ambi- tion of Demant. As part of our strategy, we have ambitious 2030 targets for our core impact and ESG focus areas to ensure that we continuously apply responsible and sustainable business prac- tices. Please refer to our sustainability strategy model on page 53. Medium- to long-term outlook Our ambition and strategy are also reflected in our medium- to long-term financial outlook. Please note that the outlook contains forward-looking statements that reflect Demant’s expectations of future events and financial performance. Please refer to Outlook for 2026 on page 34. Revenue outlook: 8-10% growth p.a. in local currencies This assumes 6-8% organic growth based on an assumed market growth rate of around 5% and an acquisitive growth rate of approximately 2%. EBIT margin outlook: Incremental margin expansion This assumes constant foreign exchange rates. Capital allocation outlook: Excess free cash flow after acquisitions used for share buy-backs This is subject to our long-term gearing multiple target of 2.0-2.5. Our strategy Our Group strategy – leading hearing healthcare – reflects our ambition as the leading hearing healthcare company to improve as many lives as possible. In doing so, we contribute to building a more sustainable world and enable more people to enjoy life to the fullest. Medium- to long-term outlook REVENUE 8-10% GROWTH P.A. IN LOCAL CURRENCIES EBIT MARGIN INCREMENTAL EBIT MARGIN EXPANSION CAPITAL ALLOCATION EXCESS FREE CASH FLOW AFTER ACQUISITIONS USED FOR SHARE BUY-BACKS Overview Market and strategy Financial performance Corporate governance Demant Annual Report 2025 18 Our Group strategy – leading hearing healthcare – continues to guide our priorities and decisions. Our PURPOSE is to create life-changing differences through hearing health Our AMBITION is, as the leading hearing healthcare company, to improve as many lives as possible Our PRIORITISATION is to support the entire journey towards better hearing by focusing on personalised care and innovative solutions Our COMMITMENT Customers Deliver a world-class customer and user experi- ence that exceeds expectations Employees Pursue an engaging, inclusive and innovative work culture, enabling employees to develop and grow Investors Drive attractive financial returns and growth based on a resilient business model Our CHOICES and ENABLERS support sustainable growth CHOICES Fuel innovation and core technology develop- ment to ensure strong customer value generation Participate in consolidation of distribution and leverage commercial position Grow across geographies and channels and in adjacent business activities ENABLERS Leverage scalability and increase business resilience Continuously drive a culture of inclusion and engagement Drive responsible and sustainable business practices Overview Market and strategy Financial performance Corporate governance Demant Annual Report 2025 19 Operating model Our operating model is designed to help us oper- ate our three business areas, Hearing Aids, Hear- ing Care and Diagnostics, in a set-up that ensures that we remain focused on excelling in each busi- ness area, while leveraging synergies across the Group through strong collaboration. This enables each business area to adopt a customer-centric approach and to deliver on their specific strategy, thereby enabling the Group to create life-changing solutions that complement each other. Innovation With our business areas’ common understanding of technology, innovation is at the core of our op- erating model. We will continue to focus on value- adding collaboration between the R&D functions of our individual business areas. Furthermore, our resilient manufacturing set-up across the value chain within R&D, production and distribution en- sures supply chain agility and resilience. Infrastructure Our operating model is founded on a robust inter- nal infrastructure, covering IT, HR, Finance, Com- munication & Sustainability, Group Legal & Com- pliance as well as Corporate Functions. This strong backbone, which we call Group Services, supports business growth, ensures efficiency and enables economies of scale in a sustainable and responsible way. Distribution With sales companies and hearing care clinics all over the world, the Group benefits from a strong global distribution set-up, which enables us to continuously increase our reach to a variety of countries, markets and customer segments, thereby expanding our business. This global net- work ensures that we can raise awareness and make our diagnostic equipment, hearing aids and personalised hearing care and treatments acces- sible to those in need, thereby enhancing patient care and improving lives. How we create value Input • Employing 26,000+ people. • More than DKK 1.4 billion invested annu- ally in R&D. • Growing portfolio of 2,600+ patents and designs as well as a portfolio of 1,200+ registered trademarks. • Global distribution network, comprising 4,500+ hearing care clinics, distribution of hearing aids to 130+ countries and a com- prehensive distribution set-up of diagnostic products, spanning around 100 countries. • Core expertise within audiology with a strong understanding of the difficulties faced by people living with hearing loss. • Strong brand value across our multi-brand set-up, enabling the Group to strategically position itself across many markets and channels, thereby effectively addressing various customer needs. • Strong relationships with component sup- pliers. Demant’s operating model Output • Diagnostic equipment, increasing the quality of patient care. • High-quality hearing aid solutions. • Personal and individualised treatment, offering the highest level of expertise in audiology. Outcome We create life-changing differences through hearing health by helping people overcome hearing loss and improving their lives sup- ported by innovative solutions and hearing care. • Customers: We deliver a user experience that exceeds expectations by providing life-changing hearing health through inno- vative, state-of-the-art products. This ben- efits both individuals and society, improv- ing the lives of 12.1 million people in 2025. • Employees: We are a great place to work with engaged employees who feel in- cluded and empowered to develop, grow and do what they do best. In 2025, our en- gagement score increased to 4.16 from 4.13 the year before. • Investors: We deliver attractive financial returns and growth based on a resilient business model and a strategy that fo- cuses on value-creating growth. ESRS 2 SBM-1. This page is part of limited assurance. Overview Market and strategy Financial performance Corporate governance Demant Annual Report 2025 20 Group performance 21 Hearing Aids 27 Hearing Care 30 Diagnostics 32 Financial outlook 34 Financial performance Overview Market and strategy Financial performance Corporate governance Demant Annual Report 2025 21 Group performance Income statement H1 H2 FY (DKK million) 2025 2024 Growth 2025 2024 Growth 2025 2024 Growth Revenue 11,253 11,087 1% 11,718 11,332 3% 22,971 22,419 2% Production costs -2,706 -2,577 5% -2,894 -2,752 5% -5,600 -5,329 5% Gross profit 8,547 8,510 0% 8,824 8,580 3% 17,371 17,090 2% Gross margin 76.0% 76.8% 75.3% 75.7% 75.6% 76.2% R&D costs -730 -733 0% -671 -661 2% -1,401 -1,394 1% Distribution costs -5,386 -5,154 5% -5,481 -5,092 8% -10,867 -10,246 6% Administrative expenses -596 -586 2% -583 -559 4% -1,179 -1,145 3% Share of profit after tax, associates and joint ventures 14 31 -55% 22 68 -68% 36 99 -64% Operating profit (EBIT) before special items 1,849 2,068 -11% 2,111 2,336 -10% 3,960 4,404 -10% Operating profit (EBIT) margin before special items 16.4% 18.7% 18.0% 20.6% 17.2% 19.6% Special items - 124 n.a. -128 - n.a. -128 124 n.a. Operating profit (EBIT) 1,849 2,192 -16% 1,983 2,336 -15% 3,832 4,528 -15% Overview Market and strategy Financial performance Corporate governance Demant Annual Report 2025 22 Introduction In 2025, Demant entered into agreements to sell Oticon Medical, the former Hearing Implants busi- ness area, and EPOS, the former Communica- tions business area. These businesses were al- ready recognised as discontinued operations as reflected in the comparative figures in the income statement and cash flow statement for 2023 and 2024. Comparative figures for 2021-2022 exclude Hearing Implants but include Communications. Revenue The Group’s full-year revenue amounted to DKK 22,971 million, corresponding to a growth rate of 5% in local currencies. Organic growth was 2%, which is in line with our revised expectations for 2025. Acquisitive growth was 3%, and exchange rates impacted revenue by -2%, which includes the effect of exchange rate hedging. Total re- ported growth for 2025 was 2%. Revenue in H2 Revenue for H2 amounted to DKK 11,718 million, corresponding to a growth rate of 7% in local cur- rencies. Organic growth was 4% and growth from acquisitions 3%. Exchange rates impacted revenue by -4%, predominantly due to the US dol- lar, and total reported growth for H2 was 3%. Organic growth in H2 was broad-based with solid performance in Hearing Care despite market weakness. Reported growth was further sup- ported meaningfully by acquisitions, including the KIND acquisition, which was closed in Q4. Hear- ing Aids saw improved growth in H2, despite lower sales to a large US retailer following an in- crease in the number of suppliers to this customer in H1. Diagnostics saw an improvement in organic growth towards the end of the year, particularly in Q4. Revenue by geography in H2 Driven by Hearing Care, Europe delivered good organic growth in H2, particularly in Poland and France. Hearing Aids also saw good growth in both France and the UK. Acquisitions, primarily in Germany, continued to contribute to growth. In North America, organic growth was positive in H2, driven by Diagnostics and Hearing Care. However, in the US, growth was negative and im- pacted by weak market developments and by a loss of market share, primarily due to lower sales to a large retailer. Five -year revenue (DKK million) 17,905 19,705 21,601 22,419 22,971 0% 5% 10% 15% 20% 10,000 14,000 18,000 22,000 26,000 2021 2022 2023 2024 2025 Organic growth Revenue by business area Growth (DKK million) H2 2025 H2 2024 Org. Acq. LCY FX Rep. Hearing Aids, total revenue 6,252 6,183 4% 0% 4% -3% 1% Hearing Aids, internal revenue -1,325 -1,183 9% 5% 14% -2% 12% Hearing Aids, external revenue 4,927 5,000 3% -1% 2% -3% -1% Hearing Care 5,575 5,098 4% 9% 13% -4% 9% Diagnostics 1,216 1,234 3% 0% 3% -5% -1% Group 11,718 11,332 4% 3% 7% -4% 3% Growth (DKK million) FY 2025 FY 2024 Org. Acq. LCY FX Rep. Hearing Aids, total revenue 12,473 12,413 2% 1% 2% -2% 0% Hearing Aids, internal revenue -2,632 -2,391 7% 4% 11% -1% 10% Hearing Aids, external revenue 9,841 10,022 0% 0% 0% -2% -2% Hearing Care 10,724 9,932 3% 7% 10% -2% 8% Diagnostics 2,406 2,465 1% 0% 1% -3% -2% Group 22,971 22,419 2% 3% 5% -2% 2% Overview Market and strategy Financial performance Corporate governance Demant Annual Report 2025 23 Organic growth in Asia was positive in H2, which was primarily driven by Japan. China delivered good performance in Hearing Care, but the Group saw flat growth in the country, reflecting continu- ously challenging market dynamics, which also impacted Diagnostics negatively. In the Pacific region, good organic growth was driven by Australia. In our Rest of world region, we realised strong organic growth fuelled by sev- eral markets in South America. Gross profit The Group’s gross profit increased by 2% to DKK 17,371 million in 2025, corresponding to a gross margin of 75.6%. This is a decline of 0.6 percent- age points compared to 2024, primarily driven by weak market growth, particularly in the US, and by ASP headwinds in Hearing Aids from geography and channel mix changes. Increasing costs due to a higher share of rechargeable devices also had a negative impact on the Group’s gross margin. For H2, the Group’s gross profit amounted to DKK 8,824 million, leading to a gross margin of 75.3%, which is a decline of 0.4 percentage points com- pared to H2 2024. Despite a positive impact from business mix, the decline was primarily driven by geography and channel mix changes in Hearing Aids and by our Diagnostics business, where the gross margin was negatively impacted by tariffs. Foreign exchange rates also had a slightly nega- tive impact on the gross margin. Operating expenses (OPEX) For the full year, OPEX increased by 7% in local currencies of which only 3 percentage points re- late to organic growth and 4 percentage points to acquisitive growth. In H2, reported OPEX saw flat sequential devel- opment compared to H1 2025, which is in line with our expectations and reflects a continued focus on cost management. Distribution costs were the main driver of the increase in absolute terms driven by acquisitions in Hearing Care. Due to ef- forts to control costs in H2 2024, organic OPEX growth was 5%, and we saw an additional impact of acquisitions of 5 percentage points. Foreign ex- change rates reduced OPEX by 4%, primarily due to a decline in the US dollar. Five -year gross profit (DKK million) Five-year OPEX (DKK million) 13,458 14,669 16,320 17,090 17,371 73% 75% 77% 79% 4,000 9,000 14,000 19,000 2021 2022 2023 2024 2025 Margin 10,014 11,584 11,882 12,785 13,447 6,000 9,000 12,000 2021 2022 2023 2024 2025 Revenue by geographic region Growth (DKK million) H2 2025 H2 2024 Org. Acq. Rep. Europe 5,362 4,733 6% 8% 13% North America 4,428 4,622 2% 0% -4% Asia 1,034 1,088 2% 0% -5% Pacific region 551 560 4% 2% -2% Rest of world 343 329 12% -6% 4% Total 11,718 11,332 4% 3% 3% OPEX by function Growth (DKK million) H2 2025 H2 2024 Org. Acq. Rep. R&D costs 671 661 2% 0% 2% Distribution costs 5,481 5,092 5% 6% 8% Administrative expenses 583 559 10% 0% 4% Total 6,735 6,312 5% 5% 7% Revenue by geographic region FY2025 Europe 44% North America 39% Asia 9% Pacific region 5% Rest of world 3% Overview Market and strategy Financial performance Corporate governance Demant Annual Report 2025 24 Share of profit after tax from associates For the full year, the share of profit after tax from associates amounted to DKK 36 million compared to DKK 99 million in 2024. In H2, the share of profit after tax from associates amounted to DKK 22 million. Operating profit (EBIT) before special items In line with our updated expectations, the Group’s EBIT before special items amounted to DKK 3,960 million in 2025, corresponding to an EBIT margin before special items of 17.2%. In H2, EBIT before special items was DKK 2,111 million. The EBIT margin before special items was 18.0%, a contraction of 2.6 percentage points compared to H2 2024. EBIT before special items was negatively impacted by exchange rates and by lower operating leverage in Hearing Aids, driven by weaker-than-normal growth in the hear- ing aid market and by a loss of market share in the US. In 2025, we did not recognise any fair value ad- justments of non-controlling interests in step ac- quisitions, contingent considerations etc. to EBIT before special items (DKK 13 million in 2024). Please refer to Financial statements, Note 7.1, for more details. Special items In 2025, we recognised special items of DKK -128 million, which exclusively relate to H2. The special items partly relate to acquisition costs associated with the acquisition of KIND, as announced on 1 December 2025, and partly to a non-cash adjust- ment of a previously recognised step-up gain on FUEL Medical Group in 2024. Please refer to Fi- nancial statements, Note 2.8, for further details. Operating profit (EBIT) For the full year, reported EBIT amounted to DKK 3,832 million, corresponding to an EBIT margin of 16.7%. In H2, reported EBIT amounted to DKK 1,983 million, corresponding to an EBIT margin of 16.9% due to the special items mentioned above. Financial items For the full year, net financial items amounted to DKK -731 million, a decrease of DKK 81 million compared to 2024. The decrease primarily relates to lower interest expenses following a lower aver- age interest rate level in 2025. In H2, net financial items totalled DKK -346 million, a decrease of DKK 56 million versus H2 2024. Profit for the year – continuing operations Reported profit before tax from continuing opera- tions amounted to DKK 3,101 million in 2025, which is a decrease of 17% compared to 2024, due to the lower reported EBIT and special items. Tax amounted to DKK 734 million, resulting in an effective tax rate of 23.7%. This is slightly higher than expected and entirely due to the adjustment of the step-up gain recognised under special items, which is not tax deductible. For H2, profit before tax from continuing operations was DKK 1,637 million, and tax amounted to DKK 400 mil- lion. For the full year, reported net profit for continuing operations was DKK 2,367 million, resulting in ad- justed earnings per share (EPS) of DKK 11.74. In H2, the reported net profit for continuing opera- tions was DKK 1,237 million, corresponding to an adjusted EPS of DKK 6.40. Please refer to Finan- cial statements, Note 1.1, for our definition of ad- justed EPS. Profit for the year – discontinued operations Profit after tax from discontinued operations, which comprise Communications and Hearing Im- plants, amounted to DKK -823 million in 2025, which was slightly better than expected. In H2, profit after tax from discontinued operations amounted to DKK -810 million. The loss in H2 is primarily related to various non- cash charges in respect of balance sheet adjust- ments following the agreement to sell EPOS and to provisions for future services and deliverables according to the agreement to sell Oticon Medical. Profit for the year For the Group as a whole, profit after tax in 2025 amounted to DKK 1,544 million, which is in line with our expectations. This corresponds to an EPS of DKK 7.31. In H2, net profit after tax was DKK 427 million, with an EPS of DKK 2.03. At the annual general meeting, the Board of Direc- tors will propose that the entire profit for the year will be retained and transferred to the company’s reserves. Half -year EBIT before special items (DKK million) Adjusted earnings per share ( adjusted EPS) (DKK per share) Five-year EBIT before special items (DKK million) 2,162 2,344 2,068 2,336 1,849 2,111 0% 10% 20% 30% 0 1,000 2,000 3,000 H1 2023 H2 2023 H1 2024 H2 2024 H1 2025 H2 2025 Margin 11.48 10.06 12.64 12.74 11.74 0.00 2.00 4.00 6.00 8.00 10.00 12.00 14.00 2021 2022 2023 2024 2025 3,663 3,207 4,506 4,404 3,960 0% 10% 20% 30% 0 2,000 4,000 6,000 2021 2022 2023 2024 2025 Margin Overview Market and strategy Financial performance Corporate governance Demant Annual Report 2025 25 Cash flow statement The Group continues to be very cash-generative, and 2025 was another year of strong cash flow generation. Cash flow from operating activities (CFFO) amounted to DKK 3,852 million, which is a decrease of 6%, driven by the lower operating profit and higher tax payments. CFFO was also strong in H2, amounting to DKK 2,339 million. In 2025, our net investments in property, plant and equipment and intangible assets (CAPEX) amounted to DKK 810 million. CAPEX relative to revenue was 4%, which is in line with our me- dium- to long-term ambition of 4%. In H2, CAPEX Full -year cash flow (DKK million) H2 cash flow (DKK million) was DKK 409 million, an increase of 10% on the same period in 2024, primarily due to slightly higher investments in production facilities. Net investments in other non-current assets, which comprise customer loans and loans to as- sociates, amounted to a positive impact of DKK 52 million. Net investments thus totalled DKK 758 million in 2025. For H2, net investments in other non-current assets amounted to a positive impact of DKK 38 million, resulting in total net invest- ments of DKK 371 million. Free cash flow Following strong cash flow generation but also higher investments, the free cash flow before ac- quisitions and divestments decreased by 11% to DKK 3,094 million for the full year. In H2, the free cash flow decreased by 16% to DKK 1,968 mil- lion. Acquisitions of enterprises Net cash flow relating to acquisitions and divest- ments totalled an outflow of DKK 6,285 million for the year. The significant increase was driven by the acquisition of KIND, a leading retailer in Ger- many. In H2, when closing of the KIND acquisition took place, the cash flow from acquisitions and di- vestments amounted to an outflow of DKK 5,436 million, relating entirely to acquisitions in Hearing Care. Share buy-backs In 2025, the Group bought back a total of 2,272,349 shares worth DKK 582 million under the share buy-back programme, until it was sus- pended on 11 June 2025 following the announce- ment to acquire KIND. The shares were bought at an average price of DKK 255.97. In H2, the Group did not purchase any shares under the share buy- back programme. Cash flow from discontinued operations Driven by positive cash flows in both Communica- tions and Hearing Implants, the net cash flow from discontinued operations was DKK 121 million for the full year and DKK 117 million in H2. Please re- fer to Financial statements, Note 7.2, for more de- tails. 5,351 -758 -985 -660 146 3,094 0 1,000 2,000 3,000 4,000 5,000 6,000 2,758 -371 -356 -313 250 1,968 1,500 1,700 1,900 2,100 2,300 2,500 2,700 2,900 1 Other contains non-cash items, working capital and provisions . CFFO (DKK million) CAPEX (DKK million) 3,593 2,622 4,458 4,080 3,852 0 2,000 4,000 6,000 2021 2022 2023 2024 2025 711 908 813 748 810 0% 2% 4% 6% 0 200 400 600 800 1,000 2021 2022 2023 2024 2025 CAPEX % of revenue Overview Market and strategy Financial performance Corporate governance Demant Annual Report 2025 26 Balance sheet As at 31 December 2025, the Group’s total assets amounted to DKK 39,074 million. This is an in- crease of 20% compared to 31 December 2024, entirely driven by acquisitions, which added 25 percentage points. The total balance sheet amount includes DKK 699 million relating to Com- munications and Hearing Implants, which are rec- ognised as assets held for sale, pending closing of the agreements to sell the businesses. The increase in total assets is primarily due to an increase in goodwill related to acquisitions. Due to the consolidation of KIND following closing of the acquisition on 1 December 2025, this is also the case if we look at the development from 30 June 2025. Net working capital Net working capital (NWC) increased by 3% rela- tive to the end of 2024, amounting to DKK 3,387 million, while the NWC-to-revenue ratio was flat at 15%. The increase in NWC is primarily the result of acquisitions made towards the end of 2025, leading to a higher level of inventory and trade re- ceivables. If we adjust for the impact of the KIND acquisition, net working capital would have de- clined slightly compared to the end of 2024. Please refer to Financial statements, Note 1.1, for our definition of NWC. Net interest-bearing debt Net interest-bearing debt (NIBD) increased by 38% in 2025 and thus amounted to DKK 18,742 million as at 31 December 2025. The full-year in- crease is primarily due to an extraordinarily high spend on acquisitions during the year, including the acquisition of KIND. As a result of the increase in NIBD, our gearing multiple increased from 2.3 at the end of 2024 to 3.4 at the end of 2025, which is, as expected, above our medium- to long-term gearing target of 2.0-2.5. Equity Total equity for the full year increased by 3% to DKK 9,919 million of which DKK 78 million is at- tributable to non-controlling interests and DKK 9,841 million to the shareholders of Demant A/S. The development was positively impacted by profit but was somewhat offset by share buy- backs and currency translation. In H2, total equity increased by 5% compared to 30 June, mainly be- cause of profit generated by the Group. Employees As at 31 December 2025, the Group had 26,704 employees compared to 22,639 at the end of 2024, an increase of 18%. The increase is mainly due to an increase in the number of employees from acquisitions, with the acquisition of KIND alone adding more than 3,000 employees to the Group. Hedging activities The material forward exchange contracts in place as at 31 December 2025 to hedge against the Group’s exposure to movements in exchange rates are shown in the table below. Hedging activities Currency Hedging period Average hedging rate USD 18 months 658 JPY 10 months 4.47 AUD 10 months 413 GBP 11 months 813 CAD 11 months 466 PLN 11 months 171 Events after the balance sheet date On 30 January 2026, the transaction to sell EPOS closed, cf. the investor news published that day. Apart from the above, no events have occurred af- ter the reporting date of importance to the consoli- dated financial statements. Five-year NWC (DKK million) 1 Other contains exchange rate adjustments in subsidiaries, hedging, defined benefit plans, share-based compensation etc. Five-year NIBD (DKK million) Equity (DKK million) 3,025 3,648 3,630 3,289 3,387 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 0 1,000 2,000 3,000 4,000 5,000 2021 2022 2023 2024 2025 NWC/revenue 9,150 12,711 12,280 13,545 18,742 0.0 1.0 2.0 3.0 4.0 5.0 0 5,000 10,000 15,000 20,000 2021 2022 2023 2024 2025 Gearing multiple 9,644 1,544 -582 -687 9,919 1.1. 2025 Profit Share buy-backs Other¹ 31.12. 2025 7,000 7,500 8,000 8,500 9,000 9,500 10,000 10,500 11,000 11,500 Overview Market and strategy Financial performance Corporate governance Demant Annual Report 2025 27 Hearing Aids EXTERNAL GROWTH 0% IN LOCAL CURRENCIES EXTERNAL REVENUE 9,841 DKK MILLION Oticon Zeal TM Overview Market and strategy Financial performance Corporate governance Demant Annual Report 2025 28 Market developments Based on available market statistics, covering around two-thirds of the market, and on our own assumptions, we estimate that the global hearing aid market saw unit growth of 3% in 2025. This is below both our expectations at the beginning of the year and the structural growth rate of 4-6% due to general macroeconomic uncertainties. Growth in 2025 was primarily driven by Europe, with France – as expected – delivering high sin- gle-digit unit growth. The Rest of world region was also a driver of market growth during the year, while North America was a drag on growth in 2025. Driven by the factors mentioned here, we estimate that geography and channel mix changes resulted in an ASP development of around -1%, leading to estimated growth in value of around 2%. Q4 market update We estimate that unit growth in the global market was 4% in Q4. Growth was thus at the lower end of the normal 4-6% growth range, though an im- provement relative to Q3, primarily driven by the NHS in the UK. As a result of geography and channel mix developments, we estimate that the global hearing aid market saw negative ASP de- velopment in Q4. In terms of geography and compared to the same period last year, we estimate that unit growth in Europe was 8% in Q4. Growth was driven by the NHS in the UK and by France, which continued to contribute to growth due to the four-year anniver- sary of the hearing healthcare reform imple- mented in 2021. Excluding the NHS and France, growth in Europe would have been 3%. In Ger- many, growth was negative, which is partly due to strong comparative figures in Q4 2024. In addition to the previously mentioned markets, we estimate that several of the smaller European markets saw good growth in the period. Growth in North America was 0% in Q4, as we saw a continuously weak market and tough com- parative figures. The US commercial market deliv- ered flat growth, as negative growth in managed care was offset by slight growth in the private-pay market. Growth in Veterans Affairs (VA) ended on a soft note with -1% growth. Looking beyond North America and Europe, we estimate that unit growth in our Rest of world re- gion was 3% in Q4. Growth in China improved se- quentially, leading to growth in Q4, despite contin- uously challenging market dynamics. Growth in Australia was positive and in Japan, the market saw slight growth. Outside of those markets, we estimate that several emerging markets saw good growth in Q4. Business update In 2025, total revenue in Hearing Aids amounted to DKK 12,473 million, corresponding to an or- ganic growth rate of 2% (Q4: 5%). Acquisitive growth of 1% (Q4: 0%) relates to the acquisition in Q2 2024 of a value-added distributor. We saw an impact of -2% (Q4: -3%) of changes in foreign ex- change rates, which primarily relate to the US dol- lar. Internal revenue from sales to our Hearing Care business accounted for 21% of total revenue. Un- less otherwise specified, our commentary below focuses on total revenue, including revenue from sales through our own retail clinics, and thus co- vers our total wholesale activities. However, inter- nal revenue is eliminated from reported revenue for the Group. In 2025, Hearing Aids delivered growth below our original expectations. This was mainly due to weak market developments, particularly in the US, and to a loss of market share in the US, primarily due to lower sales to a large retailer. Despite this, we saw improving growth throughout the year, which was also supported by our position in man- aged care. Unit growth was 4%, but we saw a drag from ASP developments of -2% due to unfavourable geography and channel mix changes, including a flat US market. In H2, growth in units improved significantly, reflecting year-over-year market share gains across a number of important coun- tries. This growth should be seen against the backdrop of a lower ASP due to continued weak- ness in the US commercial market and the devel- opment in our channel mix. Growth in units and ASP (LCY) H1 2025 H2 2025 FY 2025 Units 3% 6% 4% ASP -2% -2% -2% Total 1% 4% 2% Hearing Aids , total revenue (DKK million) Q1 2025 Q2 2025 Q3 2025 Q4 2025 FY 2025 Revenue 3,148 3,073 3,012 3,240 12,473 Growth Organic -1% 0% 3% 5% 2% Acquisitions 2% 1% 0% 0% 1% Local currencies 1% 1% 3% 5% 2% FX 1% -2% -3% -3% -2% Total 1% -2% 0% 2% 0% Estimated market unit growth in 2025 by region (vs. 202 4) Q1 Q2 Q3 Q4 FY Europe 4% 3% 4% 8% 5% North America -3% 2% 2% 0% 1% US (commercial) -5% 4% 2% 0% 0% US (VA) -1% 1% 4% -1% 1% Rest of world 4% 5% 4% 3% 4% Global 2% 3% 3% 4% 3% Overview Market and strategy Financial performance Corporate governance Demant Annual Report 2025 29 Oticon Zeal Q4 business update When we look at Q4, growth to external custom- ers was 2% in local currencies of which organic growth accounted for 4 percentage points and ac- quisitive growth for -1 percentage point. Growth improved sequentially despite continued market weakness and lower sales in the US. We also launched Oticon Zeal™ in a number of European countries, where the product has created excite- ment amongst hearing care professionals. How- ever, the impact on Q4 was small due to the phased launch. In Europe, external revenue growth was strong, driven by both market share gains and good mar- ket growth across the region. In France, we con- tinued to see a positive effect of the four-year an- niversary of the hearing healthcare reform imple- mented in 2021, resulting in high unit growth. In the UK, growth was very strong, driven by the NHS, and we also saw good growth in many of our medium-sized markets. In North America, we continue to see the weaker- than-normal hearing aid market having a signifi- cant negative impact on our business. In addition, we also saw loss of market share in the US com- pared to last year, primarily due to lower sales to a large retailer. In the important VA channel, our market share in units was 18.9% in Q4, which is a slight decrease compared to last year due to com- petitive launches, but roughly in line with Q3 2025. In Canada, growth was strong, partly driven by easier comparative figures. Sales growth in Asia was positive in Q4, driven by broad-based growth outside of China, where we continue to see challenging market dynamics. Due to Australia, growth in the Pacific region was negative. In our Rest of world region, mostly com- prising emerging markets, we saw good growth, particularly in South America. Product update At the German hearing aid congress EUHA in Oc- tober 2025, we announced and launched Oticon Zeal™, a new, groundbreaking hearing aid. Oti- con Zeal™ unites a discreet design, cutting-edge connectivity, rechargeability and exceptional sound quality. All this is combined with AI sound processing and flexible fitting options, which has created excitement among hearing care profes- sionals, with feedback so far being very positive. The product was initially launched in Denmark, the UK and Switzerland and to a minor degree in Germany in Q4 2025. The launch continues with a global roll-out in H1 2026, including in the US where it became available for sale in January. In Q1 2026, we will further expand our portfolio of solutions with additional form factors to reach even more people with our latest generation of hearing aid technology. This is exemplified by the release of Oticon Verit™, a hearing aid for users who prefer disposable batteries. In H1, our portfo- lio of hearing aids with disposable batteries will also be expanded to our other hearing aid brands, Bernafon and Philips. In addition to these re- leases, Oticon will expand its latest Sirius platform to a new family of paediatric products, Oticon Play SI. All releases in Q1 will be featuring our indus- try-leading connectivity with Auracast™ and Google Fast Pair™. Revenue and growth Growth (DKK million) Q4 2025 Q4 2024 Org. Acq. LCY FX Rep. Hearing Aids, total revenue 3,240 3,179 5% 0% 5% -3% 2% Hearing Aids, internal revenue¹ -663 -583 11% 5% 16% -2% 14% Hearing Aids, external revenue 2,577 2,596 4% -1% 2% -3% -1% Growth (DKK million) FY 2025 FY 2024 Org. Acq. LCY FX Rep. Hearing Aids, total revenue 12,473 12,413 2% 1% 2% -2% 0% Hearing Aids, internal revenue¹ -2,632 -2,391 7% 4% 11% -1% 10% Hearing Aids, external revenue 9,841 10,022 0% 0% 0% -2% -2% ¹Revenue from internal sales to Hearing Care is eliminated from the reported revenue for the Group, i.e. we only include reve nue from external customers. The pricing used in internal transactions is determined on an arm’s length basis and thus reflects nor mal commercial terms. Overview Market and strategy Financial performance Corporate governance Demant Annual Report 2025 30 Hearing Care REVENUE 10,724 DKK MILLION KIND Fitting in a clinic GROWTH 10% IN LOCAL CURRENCIES Overview Market and strategy Financial performance Corporate governance Demant Annual Report 2025 31 Counselling in a clinic Market developments Please refer to the Hearing Aids section above for details on developments in the hearing aid market in 2025, but note that our Hearing Care business is not present in many emerging markets or in government channels. Overall, we estimate that the growth rate in the part of the market where Hearing Care is active was roughly in line with the global market growth rate in units of around 3% in 2025. Business update Hearing Care delivered a solid performance in a weaker-than-normal hearing aid market in 2025. Revenue in Hearing Care amounted to DKK 10,724 million. We delivered organic growth of 3% (Q4: 5%), driven by strong growth in Poland, France and several of our medium-sized markets. Acquisitions added 7% (Q4: 12%), with Germany as the most significant contributor. In December 2025, we completed the acquisition of KIND, one of the world’s leading retailers of hearing aids with around 650 hearing care clinics. This acquisition also had an impact on growth in Q4. Demant’s largest-ever acquisition, KIND has expanded our global Hearing Care business to now comprise more than 4,500 clinics worldwide. Acquisitions help elevate our business to a stronger commercial position and further increase profita- bility in the respective countries. Growth in Europe was good, driven by strong de- velopment in our existing network and by green- field openings. Following an expected slow start to the year, we delivered strong unit growth in France due to the four-year anniversary of the French hearing healthcare reform. The strong unit growth was, however, somewhat offset by product mix changes, leading to negative ASP develop- ment. As a result, organic growth in France was in the mid-single digits. In addition, several of our medium-sized markets continue to contribute to good growth in Europe. In North America, organic growth was slightly pos- itive, driven by the US despite a weak US com- mercial market, which saw flat growth in 2025. For our total Hearing Care business, growth was mainly driven by unit sales, but we also saw a positive ASP development, driven by favourable product mix changes and despite negative geog- raphy mix changes. Q4 business update In Q4, organic growth was 5%, reflecting continu- ously solid business momentum in many medium- sized as well as large markets. In North America, we saw improving sequential growth in Q4 com- pared to Q3, despite a somewhat weaker underly- ing market development. In absolute terms, Europe was the largest growth driver in Q4, with particularly strong performance in Poland. In France, the four-year anniversary of the French hearing healthcare reform continues to drive strong unit growth, and although the ASP development was negative due to product mix changes, we delivered good growth in the country. Several other medium-sized markets also performed well. In North America, the US delivered good organic growth in Q4, but this was partially offset by nega- tive organic growth in Canada. Australia saw good growth in Q4, continuing the improved momentum from Q3 compared to H1. In China, we delivered good organic growth driven by ASP tailwind due to positive product mix changes. Hearing Care (DKK million) Q1 2025 Q2 2025 Q3 2025 Q4 2025 FY 2025 Revenue 2,547 2,602 2,537 3,038 10,724 Growth Organic 4% 1% 4% 5% 3% Acquisitions 5% 5% 5% 12% 7% Local currencies 9% 6% 9% 17% 10% FX 1% -2% -3% -4% -2% Total 10% 3% 6% 13% 8% Overview Market and strategy Financial performance Corporate governance Demant Annual Report 2025 32 Diagnostics REVENUE 2,406 DKK MILLION GROWTH 1% IN LOCAL CURRENCIES Interacoustics Equinox Evo Overview Market and strategy Financial performance Corporate governance Demant Annual Report 2025 33 Interacoustics Equinox Evo Market developments We estimate that the market for diagnostic instru- ments and services saw flat growth in 2025, but growth dynamics improved somewhat towards the end of the year. This is due to macroeconomic un- certainties, particularly in the US, resulting in re- duced investments in clinical and hospital equip- ment. Despite improvements throughout the year, headwinds in the Chinese market also continued to be a drag on growth. The service and consumables market saw growth but not sufficiently to offset negative growth in the instrument market, resulting in a growth rate in the total market for diagnostic equipment well below the structural market growth rate of 4-6% per year. Business update Diagnostics generated revenue of DKK 2,406 mil- lion in 2025 with organic growth of 1% (Q4: 8%), which is lower than our original expectations for the year. The market for diagnostic instruments saw a soft start to the year, and in light of these soft market developments, we estimate that our organic growth rate was roughly in line with the market growth rate in 2025. During the year, our strong position in the service and consumables business helped us maintain our market position. Overall, organic growth in 2025 was impacted by challenging market dynamics in North America, mainly in the US due to increased macroeconomic uncertainties. In China, we made good progress in achieving several regulatory approvals, giving us access to public markets, and we expect to con- tinue this work in the coming year. Despite these efforts, adverse market developments in China had a negative impact on growth. Organic growth in Europe was, however, positive and thus offset some of the drag from Asia and North America. Q4 business update Organic growth was 8% in Q4, a strong accelera- tion compared to Q3, fuelled by our service and consumables business, but our diagnostic instru- ments business also performed well. The develop- ment in Q4 was driven by strong growth in Europe and North America, the latter being our largest re- gion. In North America, both the US and Canada saw strong growth, driven by our service and consum- ables business. In Q4, we realised strong growth in Europe, partic- ularly in the UK and Germany and across some of our medium-sized markets. However, this growth was partially offset by negative growth in a num- ber of other European markets. Australia delivered very strong growth in Q4, pri- marily driven by instrument sales. The lack of mo- mentum in China continued to be a drag on growth in Asia, which was also negatively im- pacted by general market weakness and our lim- ited access to public markets. Thus, growth re- mained negative. Diagnostics (DKK million) Q1 2025 Q2 2025 Q3 2025 Q4 2025 FY 2025 Revenue 603 587 567 649 2,406 Growth Organic 0% -4% -1% 8% 1% Acquisitions 0% 0% 0% 0% 0% Local currencies 0% -4% -1% 8% 1% FX 1% -4% -4% -6% -3% Total 1% -7% -5% 2% -2% Overview Market and strategy Financial performance Corporate governance Demant Annual Report 2025 34 Forward-looking statements This report contains forward-looking statements that reflect Demant’s current expectations regard- ing future events and financial performance. Forward-looking statements are statements other than historical facts and include, without limitation, statements that may predict, forecast, indicate or imply future events, results, performance or achievements and may include words such as “believe”, “expect”, “anticipate”, “intend”, “plan”, “estimate”, “project”, “will”, “may”, “could” or simi- lar expressions. These statements are based on assumptions, estimates and predictions that may prove incorrect and are subject to risks, uncertain- ties and other factors that could cause actual re- sults to differ materially from those expressed or implied. Factors that may affect future results include, but are not limited to, risks associated with the hear- ing healthcare industry and Demant’s operations as described in this Annual Report and other pub- licly available materials. Accordingly, undue reli- ance should not be placed on these forward-look- ing statements. Except as required by applicable law or regula- tion, Demant undertakes no obligation to update any forward-looking statements to reflect changes in actual results, expectations or events. Financial outlook Our outlook for 202 6 is summarised in the table below: Organic growth 3 -6% EBIT before special items DKK 4,100-4,500 million Share buy -backs None The outlook is based on a number of key assumptions as described below: • Due to general macroeconomic uncertainty, we expect the value growth rate in the global hearing aid market to be 2-4% in 2026, which is a conservative assumption temporarily below our medium- to long-term assumption. • We expect a limited impact of tariffs on the Group, but we include an impact of around DKK - 25 million of tariffs in 2026 on our Diagnostics business area based on currently implemented tariffs in the US. • We have launched a company-wide initiative for Demant to improve profitability, which is expected to lead to cost reductions, positively impacting EBIT before special items of around DKK 250 million in 2026. The majority of the impact is expected to materialise in H2, leading to an EBIT before special items being skewed towards H2. • Due to exchange rate movements during 2025, we expect an impact of exchange rates on EBIT be- fore special items of around DKK -200 million compared to 2025 with the split expected to be evenly distributed between H1 and H2. • We expect KIND to contribute approximately DKK 300 million to the Group’s EBIT before special items in 2026. • We expect to incur costs recognised as special items totalling DKK 325 million. These costs relate to previously communicated transaction and integration costs following the acquisition of KIND amount- ing to approximately DKK 125 million. In addition, the announced organisational and structural changes to the Group will entail one-off costs of an additional DKK 200 million primarily related to sev- erance payments and cost related to the announced measures. For modelling purposes, we provide further assumptions for 202 6 below: Acquisitive growth 8 % based on revenue from acquisitions completed as at 2 February 202 6 FX growth - 2% based on exchange rates as at 2 February 2026, including the im- pact of hedging Special items DKK -325 million Effective tax rate Around 23% Outlook for 2026 Philips Overview Market and strategy Financial performance Corporate governance Demant Annual Report 2025 35 Risks and risk management 36 Governance framework 40 Shareholder information 43 Board of Directors 46 Executive Leadership Team 48 Corporate governance Overview Market and strategy Financial performance Corporate governance Demant Annual Report 2025 36 Risk management activities in the Demant Group include a variety of risk areas, many of which may impact the performance and reputation of the Group. The overall responsibility for risk manage- ment lies with the Executive Leadership Team, but risk management activities are carried out throughout the organisation on a day-to-day basis. Risk management is an integral part of the man- agement of the Demant Group. Risks to which business areas, markets and operations are ex- posed are identified, monitored and mitigated at all management levels. Through frequent and transparent reporting, these measures ensure that key risks are escalated to the business area lead- ership, to functional boards, to the Executive Leadership Team and, if relevant, to the audit committee and ultimately the Board of Directors. We have established a number of functional boards to ensure focus on governance, develop- ment and risk management in key areas globally, i.e. IT, Finance, HR, Sustainability & Communica- tion and Legal & Compliance. The functional boards are responsible for risk management in their respective areas and for ensuring that poli- cies, guidelines and processes are established to monitor risks and new legislation. The audit committee oversees the risk manage- ment processes related to financial risks, including sufficient and efficient internal controls. The audit committee has assessed the Group’s existing control environment and concluded that it is ade- quate. Business ethics is an integral part of conducting business in a global world with many stakehold- ers. We continuously expand and improve the Group’s business ethics programme to reflect our all-important commitment to a high level of busi- ness ethics, including our Code of Conduct, a global whistleblower scheme as well as global pol- icies and guidelines on business ethics. For more information, please refer to the Sustainability statement on page 99. Innovation risks We operate in highly product-driven markets where significant R&D initiatives help underpin our market position. It is vital for us to maintain our in- novative edge. We leverage the latest technologies in our prod- ucts and services, such as AI and Deep Neural Networks. This drives the continuous develop- ment of new innovative solutions, enhancing the user experience of our offerings. We protect and maintain patents for our own groundbreaking technology, while ensuring that we do not infringe the rights of others. We must continue to attract the most competent employees in key areas. A key way to achieve this is to maintain our strong company culture and high employee engagement. Our investments in people development, leadership training and infor- mation-sharing platforms are key to achieving this objective. Product requirement risks As a major player in the hearing healthcare mar- ket, Demant is exposed to certain regulatory risks in terms of changes to product requirements. We adhere to regulatory requirements applying to our products and services to ensure that our products are safe and effective to use and meet the re- quirements and needs of our users. We continuously engage with customers, healthcare practitioners and other stakeholders to ensure that we meet their needs when developing innovative products. We incorporate the require- ments of international standards and regulations into the design and development of our products to ensure compliance with regulations and product safety. All processes in our quality management systems (QMS) contribute to ensuring that our products are effective and safe for our users. Notified bod- ies and various national health authorities inspect our QMS on a yearly basis. Demant works contin- uously to improve these systems. As a general principle, our products are designed and marketed in compliance with risk management guidelines under ISO 14971 to ensure the safety of our us- ers. In case of an unexpected incident, we act fast and decisively, following our processes and main- taining a transparent dialogue with relevant stake- holders. For more information on how we manage product quality and safety, please refer to page 94. Supply chain risks Stability in sourcing and delivering high-quality manufactured goods on time are crucial for us to fulfil the commitments we have made to our cus- tomers. Risks and risk management • Risk management is an integral part of the management of the Demant Group. • Risks are identified, monitored and miti- gated at all management levels. • Functional boards exist to ensure focus on governance, development and risk management. • The audit committee oversees financial risks and internal controls. • We are committed to a high level of busi- ness ethics. Organisation and governance Innovation and operations Overview Market and strategy Financial performance Corporate governance Demant Annual Report 2025 37 Supply disruptions may result in delayed deliver- ies or inefficient production set-ups. Lockdowns and other restrictions may also affect the global supply chain and thus increase the risk of sudden changes. We have business and contingency plans in place to ensure service to our customers in the best possible way in any given situation. We closely monitor our supply situation and aim to maintain adequate safety stocks to counter poten- tial interruptions in our production. Our main pro- duction facilities in Poland and Mexico are in close proximity to our largest markets, which is im- portant for us to be able to quickly and efficiently serve our customers in case of dynamic changes in the supply chain. We continuously evaluate our production footprint and dependency on key suppliers to strike a sound balance between flexibility, exposure and costs. We collaborate closely with our highly spe- cialised suppliers and ensuring sufficient inventory levels. In our supply chain and throughout our organisa- tion, we actively work to ensure a safe and engag- ing working environment. For more information on how we manage poten- tially negative impacts on our employees and peo- ple in our supply chain as well as potential risks linked to these, please refer to pages 81-90. Sustainability risks For information about sustainability-related risks, please refer to the Sustainability statement on pages 56-60. The hearing healthcare market consists of highly specialised players that operate in an extremely competitive market. While navigating current mar- ket conditions, we monitor potential shifts in the competitive landscape to ensure that we respond swiftly and effectively to changes in the market. Macroeconomic impacts on markets Historically, the hearing healthcare market has seen stable growth driven by demographic changes. The current macroeconomic uncertainties may have an adverse effect on the demand for hearing healthcare solutions in some regions. Further- more, higher inflation rates are impacting econo- mies in some markets. In case of macroeconomic or geopolitical headwinds, we seek to adapt our organisation, activities and costs accordingly to mitigate financial impacts in the affected markets. Although the demand for hearing aids continues to grow due to an increasing elderly population, it may decline if consumer contact is limited, as a significant part of our sales is based on in-person counselling of individuals with hearing difficulties. Such limitations may result from weather condi- tions, travel restrictions, pandemics etc., but are usually local in nature. Regulatory risks in the markets The Group is exposed to a high number of regula- tory risks related to reimbursement schemes and public tenders in the markets where we operate. In most markets, the current regulatory landscape is considered stable, so for the time being, we do not expect significant changes in the regulatory environment. Regulatory and commercial risks may overlap, if the level of reimbursement changes, or if the method of distribution in a mar- ket changes. While regulatory changes are an intrinsic part of the hearing healthcare market, we feel well posi- tioned to respond to such changes in the commer- cial environment. We continue to monitor changes to the regulatory landscape and engage in dia- logues with regulators as part of our business planning. Regulation and Sanction-related risks The Group is subject to regulations governing the export of products from our production sites and their import into markets where they are sold. Changes in import regulations or tariffs may lead to additional costs. To mitigate such risks, we con- tinuously monitor regulatory developments and evaluate alternative production locations and sup- ply chain configurations where feasible. In addition, the Group operates in markets that may be subject to EU or US sanctions, including financial sanctions, trade/export controls, and re- strictions on entities and individuals. To ensure compliance, distributors and business partners in these regions undergo sanction checks, and firm actions are taken when necessary. Geopolitical developments may increase the scope of sanc- tions, potentially resulting in a complete halt of trade in certain markets, as experienced with Rus- sia and Belarus. The Group continues to closely monitor evolving legislation and strengthen systems and processes to maintain robust controls and documentation for compliance. Innovation and operations – continued Market and customer risks • We operate in highly product-driven mar- kets. • We protect and maintain our technology through patents. • We leverage the latest technologies in our products and services. • We continuously engage with customers, healthcare practitioners and other stake- holders to ensure that we meet their needs when developing innovative prod- ucts. • We have business and contingency plans in place to ensure service to our custom- ers in the best possible way in any given situation. • We continuously evaluate our production footprint and dependency on key suppli- ers to strike a sound balance between flexibility, exposure and costs. We collab- orate closely with our highly specialised suppliers. Overview Market and strategy Financial performance Corporate governance Demant Annual Report 2025 38 Go-to-market risks Market developments in recent years have con- firmed our belief in the importance of providing a combination of personal counselling, individual fit- ting, life-long service and highly advanced tech- nology. In the US market, a large part of hearing aid pur- chases continues to be covered by insurance companies. The prevalence of large managed care organisations poses a risk to average selling prices in the hearing aid market, as volumes are increasingly consolidated among fewer players. This may also impact customer loyalty and the general level of fitting fees in hearing aid clinics. Aside from the dynamics of managed care, new channels have emerged in recent years, including over-the-counter hearing aids, which have been publicly available since 2022. While these devices increase general access to treating hearing loss, their impact on the prescription hearing aid market in the US remains limited. Recently, new form fac- tors have also entered the over-the-counter hear- ing aid market, and while this may increase awareness of hearing loss and expand the pene- tration of hearing healthcare solutions to new us- ers, it could pose a risk to the prescription hearing aid market, if successful. As our Group becomes increasingly digitalised, more devices and control systems are connected online, resulting in a broader interface across our IT infrastructure that could potentially be compro- mised. As a large, global organisation, we are dependent on numerous IT systems and the general IT infra- structure to operate efficiently across our value chain. This carries an inherent risk of system er- rors, human errors, data breaches or other inter- ruptions that may impact the Group financially. In addition, we may be exposed to attempts to ac- cess or steal information, computer viruses, denial of service and other digital security breaches. Since 2020, Demant has performed annual ma- turity assessments based on the Cyber Security Framework (CSF) of the National Institute of Standards and Technology (NIST). Starting in 2025, the audit committee is responsible for re- viewing these assessments to ensure our continu- ous focus on relevant parameters. The assess- ment for 2025 was conducted internally. Confirming our commitment to protect client data and continuously improve cybersecurity, we have obtained ISO 27001 certification. We train and educate our employees in IT-related topics on an ongoing basis to limit any IT-related incidents caused by human errors. We regularly revise policies to ensure that they are up-to-date and reflect the current environment. Demant is entrusted with personal data on em- ployees, customers, users and business partners, which are collected and processed in accordance with applicable laws and regulations. As our busi- ness continues to grow, the complexity of manag- ing customers’ data increases. We remain com- mitted to protecting personal data, and failure to do so could have serious consequences for the people whose data we possess as well as for the Group. We have a global Data Ethics Policy, and it is mandatory for all employees to comply with the Policy. The Policy covers all processing of data, including personal and non-personal, and goes beyond compliance, as we already work dili- gently to ensure that personal data is processed in accordance with regulatory frameworks. For more information on how we manage personal data to protect our users’ right to privacy, please refer to page 96 and our Data Ethics Policy. • We monitor potential changes to the competitive landscape to ensure that we respond swiftly. • We seek to adapt our organisation, activi- ties and costs to mitigate the financial im- pacts of macroeconomic uncertainties. • We adapt our operating model when we see changes to reimbursement schemes in markets where we operate. • We continue to monitor changes in the regulatory landscape and engage in dia- logues with regulators. • We are committed to complying with leg- islation regarding financial sanctions, ex- port controls and other types of sanc- tions. • We continuously assess our IT maturity and remain focused on ensuring proper IT security. • We train and educate our employees in IT-related topics. • We ensure an adequate response and timely reporting in case of an IT security incident. • We remain committed to protecting per- sonal data. Market and customer risks – continued Data and IT security Overview Market and strategy Financial performance Corporate governance Demant Annual Report 2025 39 Financial risk management focuses on identifying risks related to changes in the financial markets and to customers’ propensity to pay for products and services. The Executive Leadership Team monitors the management of financial risks and risks relating to counterparties of the company to ensure that these remain well-balanced. Financial risks are managed centrally by Group Treasury, which is responsible for securing attractive funding under the prevailing market conditions and for monitor- ing and mitigating risks related to liquidity, interest rates and exchange rates. Risks related to coun- terparties are managed in the individual markets. Capital structure, funding and liquidity The Group remains highly cash-generating from operating activities with a strong balance sheet. The Group continuously adapts its capital struc- ture to the prevailing market conditions to secure attractive financing. Demant secures funding based on a strong commitment by our core banks to provide longer-term bank facilities. To mitigate potential liquidity and refinancing risks, the Group has secured considerable undrawn committed credit facilities from its core banking relations. In relation to R&D, Demant obtains financing from the Nordic Investment Bank and the European In- vestment Bank, which include covenants with which Demant fully complies. To minimise financing risks, Demant aims for more than 50% of its credit facilities to be commit- ted with long-term maturity. Group Treasury moni- tors market conditions on an ongoing basis and plans and executes refinancing when deemed ap- propriate to mitigate maturity risks. Driven by the KIND acquisition, Demant’s financial gearing mul- tiple is currently above the communicated target range of 2.0-2.5. The Group will prioritise deleveraging and expects to return to its medium- to long-term gearing target within 18-24 months after closing of the KIND transaction. Interest rate risks Despite an increasing debt level, the financial ex- penses decreased in 2025, largely driven by de- creasing interest rates during the year as well as reduced credit margins. Currently, around 50% of the Group’s next-twelve- months interest expenses on its debt is funded through fixed-rate facilities or hedged through fi- nancial instruments that limit interest rate risk. The Group seeks to maintain a balanced mix be- tween fixed- and floating-rate debt. Exchange rate risks The Group is exposed to exchange rate risks, as it trades with counterparties in a number of coun- tries, and as it has cash flows in different curren- cies. It is therefore important to adequately bal- ance foreign exchange rate risks to avoid unex- pected adverse impacts on the Group’s financial performance. The majority of Group companies transact mainly in local currencies and are therefore exposed to limited exchange rate risks. The Group does not hedge translation risks result- ing from the consolidation of Group accounts into Danish kroner. Most Group companies are in- voiced by the Danish production entities. Around two-thirds of the invoices out of Denmark are is- sued in currencies other than Danish kroner or eu- ros. To reduce our exchange rate exposure, we continuously seek to balance incoming and out- going cash flows in our main trading currencies as much as possible. To ensure predictability in terms of net profit, we hedge expected future net cash flows, mainly through forward exchange con- tracts with a horizon of up to 18 months. In addition, the Group seeks to balance our on- balance net exposure in our main trading curren- cies and to hedge this exposure, where relevant. It is the Group’s policy to hedge only financial risks arising from our commercial activities and not to undertake any financial transactions of a speculative nature. Credit risks From a commercial point of view, the Group is ex- posed to credit risks if our customers fail to pay for products and services provided. Such risks mainly relate to trade receivables and loans to customers or business partners, and failure to adequately manage credit risks may adversely impact the Group. To minimise the risk of suffering losses on cus- tomers, the Group monitors its credit risks on an ongoing basis. The Group generally has a diversi- fied customer base, and in 2025, the accumulated revenue from our ten largest customers ac- counted for approximately 11% of total consoli- dated revenue. We regularly adjust our financial accounts to reflect the current credit risks. When granting loans to business partners, we re- quire our counterparties to provide security in their business. We estimate that, in general, the risk relative to our total credit exposure is well-bal- anced at Group level, and historically, we have only incurred limited credit-related losses. The credit risk on cash is managed in accordance with the Group’s policy by selecting core banking partners, all with strong credit ratings. Due to its global presence and operations, the Group holds some cash balances. However, these are distributed across multiple banks and locations, thus minimising the associated credit risk. Please refer to Financial statements, Note 4.1. • To mitigate potential liquidity and refi- nancing risks, the Group has secured ac- cess to considerable undrawn committed credit facilities. • We limit interest rate risks by hedging part of our exposure. • We continuously seek to balance and, if relevant, to hedge our foreign exchange rate exposure. • We monitor the credit risks related to business partners on an ongoing basis. Financial risks Overview Market and strategy Financial performance Corporate governance Demant Annual Report 2025 40 Maintaining appropriate corporate governance is an ongoing focus area for the Board of Directors and Executive Board in Demant. Once a year, the Board of Directors and Executive Board review the company’s corporate govern- ance principles, including principles that derive from legislation, recommendations and good prac- tices. We are committed to developing and main- taining a transparent corporate governance struc- ture that promotes responsible business behav- iour and long-term value creation. Recommendations issued by the Danish Commit- tee on Corporate Governance and adopted by Nasdaq Copenhagen are best-practice guidelines for the governance of companies admitted to trad- ing on a regulated market in Denmark. When reporting on corporate governance, we fol- low the ‘comply or explain’ principle. Demant com- plies with 38 of the 40 recommendations. In the two cases where we have chosen to deviate from a recommendation, we provide well-founded ex- planations and explain what we do instead. To fur- ther increase transparency, we provide supple- mentary and relevant information, even when we comply with the recommendations. Corporate Governance Report 2025 provides a complete presentation of the recommendations and how we comply with them. The report as well as the financial reporting process and internal control described in Risk management activities in this Annual Report 2025 constitute Demant’s statement on corporate governance, cf. section 107b of the Danish Financial Statements Act. Governance structure 1 In accordance with Danish legislation, Demant has a two-tier management system, comprising the Board of Directors and the Executive Board. No individual is a member of both. The division of responsibilities between the Board of Directors and the Executive Board is clearly outlined and described in the Rules of Procedure for the Board of Directors and in the Instructions for the Execu- tive Board. The Board of Directors is responsible for the over- all strategic management and the financial and managerial supervision of the company, the ulti- mate goal being to ensure long-term value crea- tion. The Board of Directors supervises the work of the Executive Board. The Executive Board is responsible for the daily operations and develop- ment of the business in accordance with the stra- tegic direction. The members of the Executive Board are the CEO, CFO and the President of Hearing Care, who are registered with the Danish Business Authority. The Executive Board has formed a wider Execu- tive Leadership Team, consisting of the Presi- dents of the three business areas (Hearing Aids, Hearing Care and Diagnostics) and the President of Group Services. The CEO is also President of Hearing Aids, and the CFO is President of Group Services. Composition of the Board of Directors Since the annual general meeting in March 2025, the Board of Directors has consisted of eight members: five members elected by the sharehold- ers at the annual general meeting and three mem- bers elected by staff in Denmark. Shareholders elect Board members for a term of one year, and staff elect Board members for a term of four years. Staff-elected members are elected in ac- cordance with the provisions of the Danish Com- panies Act. Niels B. Christiansen, Chair of the Board of Directors of Demant since 2017, has in- formed Demant’s Board of Directors that he has decided not to stand for re-election to the Board of Directors of Demant at the annual general meet- ing on 5 March 2026. Although the Board members elected by the shareholders at the annual general meeting are up for election every year, the individual Board members are traditionally re-elected and sit on the Board for an extended number of years. This en- sures consistency and maximum insight into the conditions prevailing in the company and the in- dustry. Such consistency and insight are consid- ered important in order for the Board members to bring value to the company. Three of the five Board members presently elected by the shareholders at the annual general meeting are considered independent. Four Board members stand for re-election at the annual gen- eral meeting in March 2026. The Board is composed to ensure the right combi- nation of competencies and experience, with ex- tensive international managerial experience, board experience from major listed companies and diversity traits carrying particular weight. On our website, www.demant.com/about/manage- ment-and-governance, we describe the compe- tencies and qualifications that the Board of Direc- tors deems necessary to have at its overall dis- posal in order to perform its tasks for the com- pany. Governance framework 1 ESRS 2 GOV-1. All sections below this header are part of limited assurance. Shareholders Board of Directors Executive Leadership Team Hearing Aids Hearing Care Diagnostics Group Services Functional Boards Executive Board Overview Market and strategy Financial performance Corporate governance Demant Annual Report 2025 41 Board meeting at Headquarters Diversity In Demant, we work to foster respect for diversity, and we strive to treat all employees fairly. The Global Policy on Human Resources has two dis- tinct drivers related to equal treatment: belonging and personal awareness. The overview of Demant’s compliance with sus- tainability and ESG reporting requirements, in- cluding diversity metrics for the Group and for the legal entity Demant A/S, can be found in the Sus- tainability Statement. Furthermore, the sections below outline the com- position, diversity and qualifications of the Board of Directors and the Executive Leadership Team. Evaluation of the performance of the Board of Directors Once a year, the Board of Directors performs an evaluation of the Board’s work. The evaluation is performed either through personal, individual in- terviews with the Chair and each of the Board members or by means of a questionnaire to be filled out by the individual Board members. In both instances, the findings of the evaluation are pre- sented and discussed at the subsequent Board meeting. At least every third year, the evaluation is performed with external assistance. In 2025, the evaluation was performed by means of a questionnaire. Overall, the evaluation con- firmed that the Board is satisfied with its govern- ance structures and furthermore confirmed that the interaction between the Board members works well. The Board of Directors is keen to keep focus on and allocate time to the long-term strategic de- velopment of the company to continuously ensure that the company’s potential is fully exploited. The Board is content with its structure and committee work. Particularly, separating the audit committee meetings from the ordinary Board meetings and integrating the work of the IT security committee into the audit committee has worked well, as it makes it possible to focus on more in-depth dis- cussions on the relevant topics. The collaboration between the Board of Directors and the Executive Board works well, and there is an open and trustful working atmosphere. The work performed by the Board of Directors takes its starting point in the annual wheel, which is regu- larly refined and updated and ensures the Board’s commitment and immersion into relevant areas. Overview Market and strategy Financial performance Corporate governance Demant Annual Report 2025 42 Board committees In 2025, the company had three Board commit- tees: an audit, a nomination and a remuneration committee. The audit committee has been engaged in the acquisition of KIND announced in June, including financing of the acquisition. Other topics for the committee have been the divestments of Oticon Medical and EPOS and efforts to continue to bal- ance the level of reporting pursuant to the Corpo- rate Sustainability Reporting Directive. In 2025, the committee assumed oversight of the com- pany’s IT security from the IT security committee that was dissolved. Furthermore, the committee receives reports from the Group Data Privacy Of- ficer on a regular basis. The nomination committee has been engaged in activities in relation to its normal tasks pursuant to the committee charter. At the beginning of 2025, the committee proposed Katrin Pucknat as new member of the Board. She was subsequently elected to the Board. The Chair has decided not to stand for re-election at the upcoming general meeting. The committee has therefore been en- gaged in making proposals for the future composi- tion of the Board. The remuneration committee has been engaged in supervising the remuneration structure, includ- ing an annual review of the Remuneration Policy. The remuneration committee has prepared a pro- posal for a revised Remuneration Policy, which by legal provision is subject to shareholder approval at the annual general meeting every four years, cf. below. The Remuneration Policy will be proposed for adoption at the annual general meeting on 5 March 2026. Board of Directors’ and Executive Board’s remuneration Demant has a Remuneration Policy and publishes a Remuneration Report. The committee is satisfied with the current Policy, which aims to align the Executive Board’s focus and value creation on important parameters. How- ever, as the Policy is subject to shareholder ap- proval at the upcoming general meeting, an edito- rial review has been made. The Remuneration Policy remains materially un- changed. However, it has undergone targeted clarifications and editorial adjustments to improve readability, making its core principles and provi- sions more transparent and easier to navigate. Please refer to Remuneration Report 2025 on our website for further details. The Report will be submitted for advisory vote at the annual general meeting in March 2026. Independence and meeting attendance overview Meeting attendance Name Role Independence Board of Directors Audit committee Nomination committee Remuneration committee Niels B. Christiansen Chair, chair of remunera- tion and nomination com- mittees Not independent 8/8 6/6 4/4 Niels Jacobsen Vice Chair Not independent 8/8 3/3 6/6 4/4 Thomas Duer Staff-elected member N/A 8/8 Heidir Hørby Staff-elected member N/A 8/8 Katrin Pucknat 1 Member Independent 6/6 Sisse Fjelsted Rasmussen Member, chair of audit committee Independent 8/8 3/3 Anders Højsgaard Thomsen Staff-elected member N/A 8/8 Kristian Villumsen Member Independent 7/8 3/3 Lars Nørby Johansen Chair of Board of Directors of William Demant Foun- dation N/A 6/6 Søren Nielsen President & CEO N/A 6/6 1 In 2025, Katrin Pucknat was elected to the Board of Directors at the annual general meeting. Overview Market and strategy Financial performance Corporate governance Demant Annual Report 2025 43 Share price development The price of Demant shares decreased by 18.5% in 2025, and on 31 December 2025, the share price was DKK 215.2. This corresponds to a mar- ket capitalisation of DKK 45.4 billion (excluding treasury shares). The average daily trading turno- ver in 2025 was DKK 66 million. The company is a constituent of the OMX Copenhagen 25 Index (C25), which covers the 25 largest and most fre- quently traded shares on Nasdaq Copenhagen. The C25 Index increased by 2.7% during the year. Ownership William Demant Foundation is the majority share- holder in Demant through its investment company William Demant Invest and has previously com- municated its intention to maintain an ownership interest of 55-60% of Demant’s share capital. As at 31 December 2025, William Demant Founda- tion held – either directly or indirectly – approxi- mately 59% of the share capital, excluding treas- ury shares. No other shareholders had flagged an ownership interest of 5% or more as at 31 December 2025. Demant had approximately 34,000 individual in- vestors as at 31 December 2025. Excluding shares held by William Demant Foundation, we estimate approximately 40% of the share capital is registered in Denmark and 25% is registered in North America. The remaining 35% of the share capital is estimated to be split between the re- maining geographies, but is predominantly regis- tered in Europe. As at 31 December 2025, the company held 2,896,054 treasury shares, corresponding to 1.4% of the share capital. Shareholder information Share information (DKK 1,000) 2025 2024 2023 2022 2021 Share capital at 1 January 44,218 44,788 46,076 48,025 48,138 Capital reduction -1,459 -570 -1,288 -1,950 -113 Share capital at 31 December 42,759 44,218 44,788 46,076 48,025 Nominal value per share, DKK 0.2 0.2 0.2 0.2 0.2 Total number of shares, thousand 213,795 221,090 223,939 230,378 240,127 Highest share price, DKK 293.4 371.0 312.3 339.3 394.7 Lowest share price, DKK 209.6 249.4 190.0 173.1 219.6 Share price, year -end, DKK 215.2 264.2 296.0 192.6 335.1 Market capitalisation at 31 December, DKK million¹ 45,385 56,278 65,284 42,977 77,117 Average daily trading turnover, DKK million¹ ² 65.8 93.6 85.6 76.2 111.0 Average number of shares, million¹ 211.3 217.2 223.1 226.0 234.8 Number of shares at 31 December, million¹ 210.9 213.0 220.5 223.2 230.1 Number of treasury shares at 31 December, million 2.9 8.1 3.4 7.2 10.0 ¹Excluding treasury shares ²Average daily trading turnover on Nasdaq Shareholder structure as at 31 December 202 5 (excluding treasury shares) William Demant Foundation 59% Free float 41% Overview Market and strategy Financial performance Corporate governance Demant Annual Report 2025 44 Share capital As at 31 December 2025, Demant’s nominal share capital was DKK 42,758,932.60 divided into 213,794,663 shares of DKK 0.20 each. All shares are the same class and carry one vote each. The change compared to the year before is due to the cancellation of treasury shares amount- ing to DKK 1,459,025.80, which was approved at the annual general meeting on 6 March 2025. The Board of Directors is authorised to increase the company’s share capital by a total nominal value of up to DKK 4,800,000. This increase may consist of no more than DKK 4,800,000 of the share capital with pre-emptive rights for existing shareholders and of no more than DKK 4,800,000 of the share capital without pre-emptive rights for existing shareholders. The company’s share capi- tal can also be increased through a combination of share capital with and without pre-emptive rights, but it cannot exceed a total nominal value of DKK 4,800,000. Furthermore, the Board of Di- rectors is authorised to increase the share capital by an additional nominal value of up to DKK 2,500,000 from shares offered to employees. All authorisations have been decided by the annual general meeting and are valid until 1 March 2026. Capital allocation The company follows the principles of its capital allocation policy and uses its cash flow from oper- ating activities for value-adding investments and acquisitions. Subject to Demant’s targeted gearing multiple of 2.0-2.5 measured as net interest-bear- ing debt relative to EBITDA before special items, any excess liquidity is distributed back to share- holders through share buy-backs. Until the next annual general meeting in March 2026, the Board of Directors has been authorised to let the company buy back shares at a nominal value of up to 10% of the share capital. The pur- chase price may not deviate by more than 10% from the price quoted on Nasdaq Copenhagen. Investor Relations (IR) Demant strives to ensure a steady and consistent flow of information to IR stakeholders in order to promote the basis for a fair pricing of the com- pany’s shares – pricing that will at any time reflect the company’s strategies, financial capabilities and outlook for the future. The flow of information contributes to a reduction of the company-specific risk associated with investing in Demant shares, leading to a reduction of the company’s cost of capital. We aim to reach this goal by continuously provid- ing relevant, correct, adequate and timely infor- mation in our company announcements. In the course of the year, we publish an annual report, an interim report as well as interim management statements pertaining to Q1 and Q3, all of which contain updates on the Group and its financial po- sition and results in relation to the full-year out- look, including updates on important events and transactions in the period under review. We strive to maintain an active and open dialogue with analysts and with current and potential inves- tors, which helps the company stay updated on the views, interests and opinions of the company’s various stakeholders. At our annual general meet- ing and through presentations, individual meet- ings, participation in investor conferences, webcasts, capital markets days etc., we aim to maintain an ongoing dialogue with a broad spec- trum of stakeholders. In 2025, we held around 400 investor meetings and presentations. We also use our website, www.demant.com, as a means of communication with our stakeholders. At the end of 2025, 23 equity analysts were cover- ing Demant. We refer to our website for a full list of analyst coverage. Demant has a three-week quiet period prior to publication of annual reports, interim reports and interim management statements during which time communication with IR stakeholders on the current market development is restricted. Five-year development in share price 100 150 200 250 300 350 400 Jan-21 Jul-21 Jan-22 Jul-22 Jan-23 Jul-23 Jan-24 Jul-24 Jan-25 Jul-25 Share price (DKK) Demant OMX C25 (Rebased) Overview Market and strategy Financial performance Corporate governance Demant Annual Report 2025 45 Annual general meeting 2026 The annual general meeting will be held on Thurs- day, 5 March 2026, at 3:00 p.m. Shareholders can attend the meeting physically at the company’s headquarters. The meeting will also be webcast live on our shareholder portal, and the webcast will be accessible on our website afterwards. Contact information for investors and analysts Phone: +45 3917 7300 E-mail: info@demant.com Company announcements and investor news in 2025 10 Jan Transactions with Demant shares by managers and closely related parties 5 Feb Annual Report 2024 5 Feb Notice of Annual General Meeting 6 Mar Decisions of Annual General Meeting 2 Apr Transactions with Demant shares by managers and closely related parties 4 Apr Completion of capital reduction 6 May Revised financial outlook for 2025 and Interim Management Statement for Q1 2025 11 Jun Demant to acquire KIND and significantly expand the Group’s hearing care footprint 12 Aug Revised financial outlook for 2025 and Interim Report 2025 12 Aug Interim Report 2025 9 Oct Niels B. Christiansen, Chair of the Board of Demant, will not stand for re-election 22 Oct Demant to sell Oticon Medical to Impilo 22 Oct Demant-owned Oticon announces the launch of Oticon Zeal TM 4 Nov Interim Management Statement for Q3 2025 19 Nov Demant obtains regulatory approval for the acquisition of KIND 1 Dec Demant closes the acquisition of KIND 3 Dec Financial calendar 2026 20 Dec Demant sells EPOS to ACCO Brands Peter Pudselykke Head of Investor Relations Gustav Høegh Investor Relations Officer Financial calendar 2026 21 Jan Deadline for submission of items for the agenda of annual general meeting 3 Feb Annual Report 2025 5 Mar Annual general meeting 5 May Interim Management Statement for Q1 2026 11 Aug Interim Report 2026 3 Nov Interim Management Statement for Q3 2026 Overview Market and strategy Financial performance Corporate governance Demant Annual Report 2025 46 Board of Directors Katrin Pucknat ( female) Born 19 76 Nationality: German No shares Sisse Fjelsted Rasmussen ( female) Born 1967 Nationality: Danish 1,475 shares ( unchanged) Joined the Board in 2025 Considered independent: Yes P ositions: ResMed Inc. (Chief Marketing Officer) and Consumer Sleep Solutions LLC (M) Education: Holds a BSc in Business Marketing from University of Phoenix, USA Competences: International marketing and gen- eral leadership experience from the MedTech in- dustry as well as extensive management experi- ence in sale s, product innovation and digital busi- ness transformation 1 Joined the Board in 2021 Chair of the audit committee Considered independent: Yes Positions: Conscia A/S (M), Dades A/S (M), Hempel Foundation (M), (chair of Audit Com- mitee ), Kirk Kapital A/S (M) and Schouw & Co (M), ( chair of Audit Commitee) Education: Holds an MSc in Business Administration and Auditing from Copenhagen Business School (CBS) and is a state-authorised public accountant Competences: International leadership experience from the areas of finance and account- ing, including board and CFO experience from listed companies as well as in -depth insights into value creation, change management, M&A and sustainability/ESG 1 1 ESRS 2 GOV-1. Competences are part of limited assur- ance. Abbreviations C = Chair, VC = Vice Chair, M = Member Niels B. Christiansen ( male) Chair Born 1966 Nationality: Danish 8,060 shares ( unchanged) Niels Jacobsen ( male) Vice Chair Born 1957 Nationality: Danish 8 01,340 shares ( unchanged) Joined the Board in 2008 Chair since 2017 Chair of the nomination and remuneration committees Considered independent: No P ositions: LEGO A/S (CEO & President), LEGO Holding (CEO), Coloplast A/S (M), K2 Fonden af 2023 (M) , William Demant Foundation (VC), Wil- liam Demant Invest A/S (M), Tetra Laval S.A. (M) and Committee on Business Policy under the Con- federation of Danish Industry ( M) Education : Holds an MSc in Engineering from the Technical University of Denmark and an MBA from INSEAD Competences : International leadership experience from major, global, industrial , consumer goods and high -tech companies, business management and board experience as well as strong insights into industrial policy and sustainability/ESG 1 Joined the Board in 2017 Vice Chair since 2017 Member of the audit, nomination and remunera- tion committees Considered independent: No P ositions: William Demant Invest A/S (CEO), Thomas B. Thrige Foundation (C) , Central Board of the Confederation of Danish Industry (M) and Federation of Industrial Employers in Denmark ( C). Related to William Demant Invest: Embla Medical hf. (C) , Jeudan A/S (C) and Vision RT Ltd. (C) Education: Holds an MSc in Economics from Aarhus University Competences: International leadership experience from major, global companies in the global healthcare and MedTech industry, business management and board experience as well as in -depth insights into financial matters, accounting, tax, risk management and M&A 1 Overview Market and strategy Financial performance Corporate governance Demant Annual Report 2025 47 Heidir Hørby ( female) Born 1974 Nationality: Danish 662 shares ( +71) Anders Højsgaard Thomsen ( male) Born 1977 Nationality: Danish 2 ,346 shares ( +637) Staff-elected Board member since 2023 Considered independent: N/A P ositions: Demant facility in Ballerup, Denmark, Quality Systems Engineer Has been with the Demant Group since 1994 Education : N/A Staff-elected Board member since 2024 Joined the Board of Directors as an alternate in 2024 Considered independent: N/A P ositions: Demant, Director, Audiological Solutions, R&D Has been with the Demant Group since 2002 Education : Holds an MSc in Engineering from the Technical University of Denmark Kristian Villumsen ( male) Born 1970 Nationality: Danish 4,130 shares ( unchanged) Thomas Duer ( male) Born 1973 Nationality: Danish 1,335 shares ( unchanged) Joined the Board in 2021 Member of the audit committee Considered independent: Yes Positions: Evido ApS (C) and UV Medico A/S (VC) Education: Holds an MSc in Political Science from Aarhus University and a Master in Public Policy from Harvard University , USA Competences: International leadership experience from the global MedTech industry, management experience from such areas as innovation, sales, strategy deployment and commercial excellence 1 Staff -elected Board member in 2015 Re joined the Board of Directors as an alternate in 2023 Considered independent: N/A P ositions: Demant, Director, Audiological Solutions , R&D Has been with the Demant Group since 2002 Education: Holds an MSc in Electrical Engineer- ing from the Technical University of Denmark 1 ESRS 2 GOV-1. Competences are part of limited as- surance. Abbreviations C = Chair, VC = Vice Chair, M = Member Overview Market and strategy Financial performance Corporate governance Demant Annual Report 2025 48 Executive Leadership Team Søren Nielsen 1 ( male) President & CEO Born 1970 Nationality: Danish 44 ,114 shares (+ 2,746) René Schneider 1 ( male) CFO Born 1973 Nationality: Danish 23 ,835 shares (+ 1,337) Niels Wagner 1 ( male) President Born 1971 Nationality: Danish 33 ,224 shares (+ 3,284) Anne-Karen Hunt ( female) President Born 19 77 Nationality: German No Shares Joined the company in 1995 Education: Holds an MSc in Engineering from the Technical University of Denmark Competences: Broad business and leadership experience from various management positions in the Group, including the commercial area, product innovation, quality and strategic devel- opment. International board experience, strong insights into the MedTech industry as wel l as a wide network in the global hearing healthcare community Other positions: HIMPP A/S (VC), HIMSA II A/S (C), EHIMA (M), Vision RT Ltd. (M), DOVISTA A/S ( VC), Committee on Business Policy under the Confederation of Danish Indus- try (M), Central Board of the Confederation of Danish Industry (M) and Life Science Board un- der the Confederation of Danish Industry (C) Area of responsibility: President of the Hearing Aids business area Joined the company in 2015 Education: Holds an MSc in Economics from Aarhus University Competences: Broad business and financial leadership experience from various manage- ment positions with major listed companies, including international experience in such areas as streamlining and re -establishing companies, completing M&A and driving value creation Areas of responsibility: President of Group Services , i.e. Finance, HR, IT and Corporate Functions Joined the company in 2007 (also employed with the company 1996-2003) Education: Holds an MSc in Economics from Aarhus University Competences: Broad business and leadership experience from various management positions in the Group, including M&A, and head of the Group’s many hearing aid clinics operating under various brands Area of responsibility: President of the Hearing Care business area Joined the company in 2024 Education : Holds a BSc in Marketing and Econom- ics from the University of Bayreuth and an MSc in Business Administration (MBA) from the University of Düsseldorf , Germany Competences: In-depth business and leadership experience from major, global healthcare compa- nies , including strong international experience in such areas as marketing and sales with focus on driv ing value creation Area of responsibility : President of the Diagnostics business area 1 Registered with the Danish Business Authority as member of the Executive Board Abbreviations C = Chair, VC = Vice Chair, M = Member Sustainability in Demant Environment Social Governance Additional information Demant Annual Report 2025 49 Sustainability statement Sustainability in Demant Environment Social Governance Additional information Demant Annual Report 2025 50 ESRS 2 BP-1 Framework and scope The Sustainability statement has been prepared in accordance with the Corporate Sustainability Re- porting Directive (CSRD), including the European Sustainability Reporting Standards (ESRS). The Sustainability statement has been prepared on a consolidated basis and includes all entities under Demant’s control as defined by the scope of consolidation used in our financial reporting, in- cluding acquired entities, in the reporting period. Any exclusions are clearly indicated and justified in the specific disclosure requirement sections. The Sustainability statement covers Demant’s own operations as well as upstream and down- stream value chains, where applicable, depending on the impacts, risks and opportunities identified in the double materiality assessment. Independent auditors are engaged to provide lim- ited assurance on our sustainability information. The scope and conclusions of the limited assur- ance process are disclosed in the Independent auditor’s limited assurance report on the Sustaina- bility statement on page 199. Time horizons Time horizons used in this Sustainability state- ment are as defined in the ESRS: Short term rep- resents one year, medium term spans from more than one year up to five years, and long term is more than five years. Acquisitions In December 2025, Demant acquired KIND. KIND is currently excluded from this year’s environmen- tal metrics (energy consumption, GHG emissions and resource use), as it was deemed immaterial to account for the one month ownership. This al- lows for proper data integration in 2026. We antic- ipate that KIND will significantly impact our Scope 1 and 2 emissions. For point-in-time metrics, such as employee characteristics, KIND is included as of 31 December. KIND is not covered by De- mant’s policies and the described actions and mit- igation activities in 2025. We will fully incorporate KIND into Demant’s policies in 2026. Discontinued business The Communications business area (EPOS) is in the process of being sold and was considered a discontinued operation for the entire 2025. EPOS is excluded from all metrics in the Sustainability statement due to the immaterial nature of its con- tribution, except for scope 3 GHG emissions. Therefore, scope 3 GHG emissions related to EPOS are separately disclosed in the accounting policy on page 73. Application of estimates and judgements The reporting of certain data points requires as- sessment, which includes estimates and/or judgements. The general assumptions are based on Demant’s assumption that the Demant Group’s averages can be applied across the different ar- eas as a leverage to estimate other metrics and extrapolate existing information to ensure com- pleteness of the data. These assumptions relate to: • Scope 1 emissions under E1-5 • Scope 3 emissions under E1-6 • Resource inflow under E5-4 • Characteristics of the undertaking’s employ- ees under S1-6 • Age distribution of employees under S1-9 • Health and safety under S1-14 We regularly review and update these estimates and judgements based on our experience, ad- vancements in ESG reporting and various other factors. Any changes in estimates are recognised in the period during which they are revised. Addi- tionally, we apply judgements, when implementing accounting policies. For more details on the key estimates, judge- ments and assumptions used, please refer to the pages containing quantitative ESG data tables. Incorporation by reference Certain disclosure requirements are disclosed in other publicly available documents. When incor- poration by reference is used, it is clearly indi- cated. Disclosures referenced outside the Sustainability statement clearly refer to the appli- cable disclosure requirements of the ESRS regu- lations. The tables on pages 108-110 summarise the dis- closures required by the ESRS, which are refer- enced outside the Sustainability statement. Restatement of comparative figures As part of the natural ESG data maturing process, we have restated and will continue to restate the baseline and comparative figures, as we obtain more accurate and reliable data. For energy data, including GHG emissions, our threshold for restat- ing is a non-organic development of +/- 5% in the current year. In 2025, we have restated compara- tive figures for scope 3 (E1-6) and resource inflow (E5-4). Comparative figures for Employee turno- ver, S1-6 have also been restated due to method- ology improvements. Furthermore, a few minor re- statements and rounding of numbers was made for 2024.For further information and justification, please refer to the accounting policies applying to the specific metrics. Comparative figures for prior years Comparative figures for historical years, other than 2024, which are not covered by limited as- surance, are clearly marked with footnotes in the Sustainability statement. Reporting scope and disclosure requirements Sustainability in Demant Environment Social Governance Additional information Demant Annual Report 2025 51 Sustainability strategy and governance 52 Material impacts, risks and opportunities 56 Stakeholder views and interests 62 Sustainability in Demant Sustainability in Demant Environment Social Governance Additional information Demant Annual Report 2025 52 Sustainability strategy and governance Our PURPOSE is to create life- changing differences through hearing health Core impact: Improving lives Our core sustainability contribution is to improve lives, thereby contributing to building a more sus- tainable world. Being a leader in hearing health means that we have an obligation to inspire the industry to con- tinue innovating and applying new ways of think- ing. We want to stay ahead of the game and be at the forefront in our core impact ambition – creating life-changing differences through hearing health. Drive responsible and sustainable business practices ESG ambitions E: Respect for the planet Caring for people goes hand in hand with caring for the environment, and, although our impact is relatively low compared to the impact of other in- dustries, we take a proactive approach to lowering our footprint and negative impact on the environ- ment. S: Caring for people To be a leader in terms of creating a positive so- cial impact on society requires us to be a leading employer capable of attracting the brightest minds for the benefit of people with hearing loss. Our more than 26,000 employees are the most valua- ble part of our business. G: Performing with integrity We take a proactive approach to business ethics to ensure our actions are in line with our values as well as global standards and local legislation. Our AMBITION is, as the leading hearing healthcare company, to improve as many lives as possible Social ambition Our core commitment to society is to help people overcome hearing loss and to improve their qual- ity of life through innovative solutions and person- alised hearing care. Read more about Demant’s strategy on pages 17 to 19. Sustainability intrinsic to strategy Sustainability in Demant Environment Social Governance Additional information Demant Annual Report 2025 53 Sustainability strategy Sustainability ambition Core impact: Improving lives through life-changing hearing health Our roots are in hearing health, and our purpose is to create life-changing differences through hearing health, thereby contributing to building a more sustainable world where people have the opportunity to enjoy life. Caring for people’s health and well-being goes hand in hand with caring for our employees, society and the planet ESG ambition We will drive responsible and sustainable business practices Environment Social Governance • Decouple GHG emissions from growth • Strive for ambitious GHG emissions reductions • Work with environmental optimisa- tion • Help people overcome hearing loss through awareness • Improve their quality of life through innovative solutions and personal care • Have a positive impact on health • Ensure our employees’ well-being, safety, engagement and development • Drive an inclusive culture and ensure equal opportunities • Strive for high ethical standards • Conduct business with integrity and honesty ESG priorities Respect for the planet Caring for people Performing with integrity Material topics • Climate change mitigation • Resource use • Providing life-changing hearing health • Product quality and safety • Right to privacy • Working conditions for own workforce • Equal treatment • Working conditions for value chain workers • Corruption and bribery • Advocacy for hearing health Targets E 2025: 50% renewable electricity 2030: 100% renewable electricity 2030: 46% reduction in scope 1 and 2 GHG emissions 2030: 46% reduction in scope 3 GHG emissions 2050: Net-zero GHG emissions Impact targets 2030: More than 16 million lives improved 2030: Increase awareness by hearing-test- ing more than 2 million people S 2030: Increase gender balance in top- level management to 35/65% (fe- male/male) * 2030: Take employees’ experience of in- clusion to the top -third level of Gallup in- dex 2030 : Take employee engagement to the top -third level of Gallup index G 2030: Increase excellence in business conduct through Code of Conduct training to reach 100% highly exposed employees Actions to achieve gender representation targets will be implemented in accordance with applicable local laws and regulations. Sustainability in Demant Environment Social Governance Additional information Demant Annual Report 2025 54 E1-2, E5-1, S1-1, S2-1, S4-1 Our Sustainability Policy provides guidance on sustainability and ESG ambitions and priorities across Demant and ensures transparency in sus- tainability governance in Demant. In addition, the Policy outlines our commitments and priorities in terms of climate, environment and human rights. Demant’s Vice President of Corporate Communi- cation & Sustainability is responsible for imple- menting the Policy. All business areas and func- tions in Demant are expected to adhere to the Policy and integrate sustainability into their busi- ness operations with guidance from their leader- ship and the Group’s Sustainability team. The Pol- icy is publicly available on www.demant.com. Commitments We are committed to the objectives of the Paris Agreement, aiming to limit global temperature rise to 1.5°C above pre-industrial levels. Therefore, we have set targets to reduce our climate impact, which have been approved by the Science Based Targets initiative. Further, we recognise the critical importance of transitioning towards a circular economy, and our Policy defines specific actions to minimise the environmental impact, resource consumption and waste generation and to maxim- ise resource efficiency. Read more about how we manage environmental impacts on pages 64-77. We are committed to respecting all universally recognised human rights as laid out in the Univer- sal Declaration of Human Rights. These include core labour rights, such as freedom of association and the right to collective bargaining, standards on working conditions and the right not to be sub- ject to forced labour, child labour or discrimination in respect of employment and occupation. Demant adheres to the United Nations Guiding Principles (UNGP) on Business and Human Rights, the International Labor Organization (ILO) Declaration on Fundamental Principles and Rights at Work and the OECD Guidelines for Multina- tional Enterprises, ensuring that our policies, oper- ations as well as activities in our upstream and downstream value chain are in accordance with these principles. Our human rights commitment refers to the human rights of any person who may be adversely impacted by Demant’s activities and business relationships, including customers, em- ployees, people who work in our value chains, community members and any other potentially af- fected rightsholders. Read more about how we manage impacts on people across the value chain on pages 80 to 96. Sustainability policy Sustainability in Demant Environment Social Governance Additional information Demant Annual Report 2025 55 ESRS 2 GOV-1, GOV-2 and MDR-T Our governance model for sustainability ensures centralised oversight and accountability as well as deployment of our ESG priorities across our busi- ness areas. The Board of Directors evaluates progress on our sustainability ambition and ESG priorities twice a year and has final oversight. The audit committee oversees sustainability reporting. Demant’s Sustainability Board comprises De- mant’s Executive Leadership Team and sets the overall strategic direction for sustainability. All Group targets are approved by Demant’s Execu- tive Leadership Team and endorsed by the Board of Directors. Demant’s Executive Leadership Team represents all business areas and functions on the Sustaina- bility Board to ensure that decisions made by the Sustainability Board are communicated and imple- mented across their respective business areas and the Group Services Leadership teams. The Sustainability Board meets five times a year. Group Sustainability has global functional respon- sibility for sustainability and for setting the Group’s strategic direction and executing major initiatives. Demant ensures that relevant employees across the Group have the skills required to meaningfully contribute to our sustainability objectives and im- plement actions to meet our commitments. Read more about the composition, diversity and expertise of our Board of Directors and Executive Leadership Team on pages 46-48 and in the S1-9 section on page 87. Employee engagement is part of the performance criteria in the remuneration scheme for the Execu- tive Board. Read more about sustainability-related performance in incentive schemes in the Remu- neration Report. Sustainability governance Board of Directors Group Sustainability Executive Leadership Team Audit committee Hearing Aids Hearing Care Diagnostics Group Services Sustainability Board Executive Board Sustainability in Demant Environment Social Governance Additional information Demant Annual Report 2025 56 ESRS 2 SBM-3 and SBM-1 Our annual assessment of materiality of sustaina- bility topics informs strategic decisions and guides our external reporting. When we assess sustaina- bility topics, we consider both the impacts of our business on society and the environment (impact materiality) and how sustainability topics affect Demant’s financial performance in the form of business risks and opportunities (financial materi- ality). We have identified material impacts, risks and op- portunities (IROs) across six topical standards as illustrated in the overview on this page. They con- sist of one positive impact, 11 negative impacts, six risks and three opportunities and are de- scribed on the following pages. Managing impacts is part of our day-to-day opera- tions. It is embedded in policies, guidelines and in- structions that guide our actions. All identified IROs are integral to our business model, and based on our assessment, they do not require any major changes to our strategy or operations be- yond ongoing adjustments and continuous im- provements. In the model on page 53, we illustrate the interac- tion between the material topics and our strategy. The methodology and process used to identify the material IROs are described on page 61. Material impacts, risks and opportunities Financially material Talent attraction and retention Product quality and safety Corruption and bribery Advocacy for hearing health Double material GHG emissions (scope 1, 2 and 3) Resource consumption Non-circular economy practices Providing life-changing hearing health Right to privacy for end-users European Sustainability Reporting Standard topics Not material We have not identified any IROs within the topical standards E2 pollution, E3 biodiversity, E4 water and S3 affected communities. Impact material Use of packaging Healthy and safe working environment Working time Discrimination and harassment Equal opportunities Equal pay for work of equal value Working conditions for value chain workers Climate change Resource use and circular economy Own workforce Workers in the value chain Customers and end-users Business conduct Impact material Financially material G1 G1 S4 S1 S4 S4 E5 E5 E1 S2 S1 S1 S1 S1 S1 E5 G1 S4 S2 S1 E5 E1 Sustainability in Demant Environment Social Governance Additional information Demant Annual Report 2025 57 Raw materials Purchase of raw materials by suppliers Component manufacturing Conversion of raw materials into components Logistics Transportation of components to Demant’s production sites Retail Counselling, fitting and dispensing of hearing aids to users by own hearing care professionals Logistics Transportation of hearing aids and diagnostic equipment to external customers End of life Disposal of products according to local waste legislation IROs Value chain GHG emissions (scope 1, 2 and 3) Non-circular economy practices Healthy and safe working environment Working time Corruption and bribery Product circularity Talent attraction and retention Discrimination and harasment Equal opportunities Product circularity Equal pay for work of equal value Product quality and safety Advocacy for hearing health Resource consumption Upstream DownstreamOwn operations Use of packaging Providing life-changing hearing health Right to privacy for end-users Return, service and repair Own Hearing Clinic IROs in our value chain Sustainability in Demant Environment Social Governance Additional information Demant Annual Report 2025 58 Our IROs On the following pages, we outline the IROs that were identified and assessed as material during the double materiality assessment . Resource use and circular economy (E5) IRO Value chain Time horizon Resource inflows, including resource use Resource consumption The quantities and sourcing of the different materials that we require for our operations have negative impacts on the environment related to resource extraction, such as pollution and ecosystem impacts, and on the potential depletion of non-renewable resources. UP Short The risk is related to the scarcity and availability of the resources De- mant needs. If Demant cannot access key materials, it will disrupt our ability to produce and deliver products. There is an increased financial risk when demand for these resources increases, while supply re- mains constrained, leading to price increases and higher production costs for Demant and, consequently, lower profits. OO Medium Use of packaging We require packaging for transportation, protection and delivery of our products to users, which adds pressure on the market for the use and extraction of resources, such as paper, cardboard and plastics. The environmental impact of packaging is defined by the packaging de- sign, the amount and type of material used and sourcing of such mate- rials. UP Short Resource outflows related to products and services Non-circular economy practices Demant’s current product design and process follow a linear economy model, meaning that once a product is no longer used, its materials are not reused or recycled. The lack of component recovery and recy- cling increases the use of new materials and thus has a negative im- pact on the environment. UP OO DO Medium Long If Demant introduces circular actions to reincorporate materials and components into production, this can reduce material dependency on new components and the need for virgin materials and potentially re- duce costs for purchasing materials and components. OO Medium Long Impact, risk or opportunity = Negative impact = Positive impact = Risk = Opportunity Value chain UP = Upstream OO = Own operations DO = Downstream Time horizon Short (1 year) Medium (2-5 years) Long (More than 5 years) N R N N O Climate change (E1) IRO Value chain Time horizon Climate change mitigation GHG emissions (scope 1, 2 and 3) Demant’s direct and indirect greenhouse gas emissions have a nega- tive impact on climate change. Most greenhouse gas emissions are scope 3 emissions stemming from suppliers’ operations and from ma- terials and components that are difficult to replace. UP OO DO Short Medium Long There is a risk that Demant will face commercial disadvantages, if we do not address our climate change impact, e.g. through established and publicly disclosed targets and action plans to reduce our green- house gas (GHG) emissions. OO Long N R O P R N Sustainability in Demant Environment Social Governance Additional information Demant Annual Report 2025 59 Own workforce (S1) IRO Value chain Time horizon Working conditions Healthy and safe working environment Physical health and safety incidents occur across Demant’s sites. These, along with cases of stress leave, can negatively impact our employees’ health and well-being. OO Short Medium Working time Excessive overtime can sometimes be a problem across the Demant Group and have a negative impact on employees’ well-being and af- fect their work-life balance, if they do not get the rest they need. OO Short Talent attraction and retention There is a risk related to the availability of skilled personnel, to our ability to attract the right talent and to high turnover rates in some em- ployment areas, which could mean high expenses for the recruitment, onboarding and training of new staff. OO Short Equal treatment and opportunities for all Discrimination and harassment Cases of discrimination and harassment that can, among others, be based on gender, nationality or ethnicity sometimes occur in the global multicultural workforce. This can lead to negative impact on own em- ployees. There is a higher likelihood of negative impacts in some re- gions and in relation to minorities in more homogenous populations. OO Short Medium Equal opportunities Some employee groups may encounter barriers to professional ad- vancement due to their personal demographics. This can have nega- tive impacts on those employees’ professional development and thus their wellbeing and engagement in the workplace. OO Short Medium Equal pay for work of equal value Demant may have a negative impact on employees’ right to equal pay for equal work. A documented systemic pay gap still exists between genders in many societies. This can affect employees’ standard of liv- ing as well as their wellbeing and engagement in the workplace. OO Short Medium Workers in the value chain (S2) IRO Value chain Time horizon Working conditions Working conditions for value chain workers Demant operates a long and complex value chain, engaging with sup- pliers that operate in countries and industries, where workers’ rights to a fair and safe working environment may not be observed. Known se- vere impacts include forced and child labour in the electronics manu- facturing sector and related supply chain, which is part of Demant’s supply chain. UP Short Consumers and end-users (S4) IROs Value chain Time horizon Social inclusion of consumers and end-users Providing life-changing hearing health Through our products, Demant positively impacts people living with hearing loss, our users, by enhancing their engagement in life and cre- ating a positive ripple effect on their surroundings, including their fami- lies, colleagues and friends. DO Short Medium Long The enhancement of people’s quality of life through hearing health so- lutions is the core of our business and a key driving force behind reve- nue growth and market expansion. OO Short Medium Safety of consumers Product quality and safety In case of lack of quality or non-compliance with medical device regu- lations, the company’s licence to operate and its ability to bring prod- ucts to market are at risk. Any product recalls would also have nega- tive financial effects on Demant. OO Short Information-related impacts for consumers and/or end-users Right to privacy for end-users Due to the nature of our business, we have access to patients’ and us- ers’ sensitive personal data, which means that if such data is compro- mised, the impact will potentially be negative. DO Short Under GDPR, Demant may face penalties if we fail to adequately pro- tect user privacy. OO Short N N R N N N N P O R N R Sustainability in Demant Environment Social Governance Additional information Demant Annual Report 2025 60 There are few changes in IROs compared to our 2024 reporting. Enabled by a more granular and objective assessment, we have: • Assessed climate change adaptation not to be material • Disaggregated ‘product circularity’ into three distinct IROs: resource consumption, non-cir- cular economy practices and packaging • Disaggregated ‘working conditions’ into two distinct IROs: safe and healthy working condi- tions and working time • Disaggregated ‘diversity, equity and inclusion’ into three distinct IROs: discrimination and harassment, equal opportunities and equal pay for work of equal value • Integrated ‘hearing health awareness’ into the IRO ‘life-changing hearing health’ More information on each IRO, including how we manage them through polices, actions and tar- gets, is provided in the topical Environment, So- cial and Governance sections. Business conduct (G1) IRO Value chain Time horizon Corruption and bribery Corruption and bribery Demant operates in countries with risks of corruption and bribery, ex- posing our commercial departments to these risks. Corruption inci- dents may lead to fines and reputational damage and thereby affect Demant’s ability to win public tenders. We also work with distributors who operate in countries where these risks are higher than in the countries where Demant operates directly. OO Short Medium Political influence and lobbying activities Advocacy for hearing health Engaging with governments and local authorities to raise awareness about the importance of hearing health by testing more people and ultimately treating their hearing loss represents an opportunity for Demant, since the level of reimbursement in individual countries affects the penetration rate and thus impacts markets. OO Medium Long R O Sustainability in Demant Environment Social Governance Additional information Demant Annual Report 2025 61 ESRS 2 IRO-1, GOV-4, SBM-2, IRO-1 E1 and E5 Impact assessment To enable a more granular and objective identifi- cation of impacts, we initiated a corporate-wide sustainability due diligence mapping process in 2025, which is aligned to best practices in the OECD Guidelines and the UNGPs. The process builds on the human rights assessment and envi- ronmental analysis conducted in 2024. The objective of the due diligence mapping pro- cess was to assess the adverse impacts that De- mant has or may have on defined human rights and in environmental and governance areas. The assessments focused on the more likely impacts, not all imaginable impacts, as well as on areas where Demant may cause or contribute to ad- verse impacts. To assess impacts that Demant is linked to, we defined value chain scope as ‘known severe impacts’ based on desktop research. The starting point for this process was a thorough value chain mapping, defining own operations as entities with operational control. This enabled con- sideration of geographies with elevated risk of po- tential impact as well as alignment on our core ac- tivities. Please refer to This is Demant on page 11 and the value chain model on page 57. The sup- ply chain mapping focused on the main tier-one suppliers’ activities as well as their most important component and material value chains. The identification and assessment of impacts were initially informed by desktop research, using sources, such as established risk indices for country and sector risks and expert articles from NGOs and academia. Engagement with internal stakeholders further qualified the identification and scoring of impacts, also leveraging external stake- holders’ perspectives based on internal knowledge from existing stakeholder engagement processes. Read more about how Demant en- gages with stakeholders on page 62. The due diligence process incorporated assess- ment of materiality through a scoring methodology that included the following parameters: scale, scope and irremediability to assess impact sever- ity, and likelihood. For scoring of potential nega- tive human rights impacts, severity took prece- dence over likelihood. Disclosures in this section (page 56-61) and in the topical sections (page 64-101) map how we apply the main aspects and steps of due diligence in re- lation to embedding due diligence in governance and strategy, engaging stakeholders, preventing and mitigating negative impacts and tracking ef- fectiveness. To assess the materiality of climate change, we started by examining our own greenhouse gas emissions (GHG) accounting. We assessed our emissions performance against our climate tar- gets and our general emissions trend to determine materiality. In relation to circular economy, the identification and assessment of impacts were based on our own business understanding and current business model practices. No material IROs were identified for pollution, wa- ter and biodiversity. We conducted a two‑step en- vironmental assessment of our main locations evaluating the geographic context with the WWF Risk Tool and site-specific activities through envi- ronmental questionnaires completed by on-site employees. Financial assessment The starting point for the financial assessment of sustainability matters was the identified impacts. We further assessed what dependencies Demant has in relation to the business model and whether these lead to any risks or opportunities. We assessed financial materiality through a scor- ing methodology that included the following pa- rameters: size of financial effect, likelihood, and impact on reputation. In 2025, we matured our approach to financial as- sessment through increased use of quantitative measures to support our conclusions on material- ity. We engaged internal risk management and commercial operations specialists from our key business areas to qualify the assessment ap- proach for each risk and opportunity that the core project team had initially identified. We also con- sulted our Investor Relations team and our Fi- nance department to ensure that the perspectives of investors and lenders, whom we define as the primary users of our annual reports, were consid- ered. To assess climate-related transition risks, i.e. risks that arise from technological, market and legal shifts toward a low-carbon economy, Demant identified relevant transition events under scenar- ios limiting global warming by the end of the cen- tury to 1.5°C with minimal overshoot. In the as- sessment, we considered different types of transi- tion events, influencing our own operations and those of the supply chain within a 2050 horizon. Climate-related physical risks across key loca- tions, such as headquarters, manufacturing sites and the sites of our main suppliers, were as- sessed, using IPCC scenarios (RCP2.6, RCP4.5, RCP8.5) with a 2065 horizon. Based on the most granular secondary data available, the analysis covered climate-related hazards, such as wildfires and droughts. Based on the results, we deter- mined that climate-related physical risks were not financially material to Demant. To identify material risks and opportunities related to circular economy, we conducted a qualitative assessment of the key materials used in produc- tion and how these are sourced. Based on sec- ondary information from the electronics industry, the assessment considered criteria, such as the percentage of materials not recycled at the end of a product’s life. Qualification and validation Subject matter owners were engaged through the whole process to qualify and validate final scoring, yielding a final list of material IROs ranked over the internally aligned quantitative materiality threshold on either impact, financial effect or both. Alignment on the threshold ensured consistency across all topics, while allowing subject matter ex- perts and owners to provide sound qualitative ar- guments to inform the final materiality assessment in those cases where the quantitative assessment was very close to the threshold. The material IROs were then discussed and vali- dated in the forum of the Sustainability Board, which is ultimately accountable for the assess- ment and management of material IROs. The au- dit committee also provided their validation of ma- terial IROs, ensuring that sustainability-related im- pacts and risks are considered appropriately alongside other types of risks and are integrated into the continuous risk management processes of the Group’s business areas and functions. Double materiality assessment Building on a strong foundation, we matured our due diligence mapping and our financial assessment processes in 2025. Sustainability in Demant Environment Social Governance Additional information Demant Annual Report 2025 62 ESRS 2 SBM-2 We engage with our stakeholders on a continuous basis to understand their expectations. Ongoing stakeholder engagement is anchored in relevant functions across the organisation where input di- rectly informs how we conduct our business. This includes relevant sustainability-related impacts. The interests and views of key stakeholders are shared with and discussed by our functional boards and business area leadership teams. Read more about our sustainability governance model on page 55 and corporate governance framework on page 40. Stakeholder views and interests Stakeholder engagement is crucial to Demant’s ability to increase its positive impact on hearing health and create value for our stakehold- ers. Key stakeholders Engagement Outcome of engagement Employees Ongoing employee engagement is ensured through em- ployee surveys, performance and development manage- ment processes as well as health and safety processes. Read more on pages 80-88. A healthy and safe working environment that is informed by em- ployee perspectives Engaged and motivated employees Hearing aid users We engage daily with hearing aid users in our clinics. User quality surveys and customer service platforms further en- sure ongoing user engagement. Read more on pages 92 and 94. Understanding users’ needs Building trust among users Product innovation that meets user needs for better hearing Business customers We engage with our customers, such as national health or- ganisations, hospitals and hearing care clinics, through the daily operations of our commercial teams. We continu- ously collect insights through customer surveys. Providing optimal hearing health technology, service and treat- ment Monitoring and understanding market developments and cus- tomer needs Building trust with customers Suppliers We continuously engage with suppliers on an operational basis and through supplier due diligence processes. Read more on page 90. Ensuring compliance with Demant’s Third Party Compliance Code Close and stable relations with critical suppliers Shareholders We engage with existing shareholders and potential new investors through meetings, investor calls and/or capital markets events. Read more on pages 43-45. Communicating on our performance and understanding inves- tors' views and expectations for the company and its ESG devel- opment Regulators and authorities We closely follow updates from regulators and other public authorities, continuously aligning practices. We engage in advocacy through industry organisations and interest groups or in collaboration with peers. Read more on page 101. Ensuring compliance with all relevant legislation in the markets where we operate Mitigating business and impact risks Advancing positive impacts for people living with hearing loss Industry organisations and interest groups We are an active player in selected industry organisations and collaborate with relevant patient associations and in- terest groups on a continuous basis. Advancing the hearing healthcare industry and positive impacts for people living with hearing loss Including the views of interest groups into our business pro- cesses Academia We keep up with the high pace of primary scientific and technology research and base our solutions on significant research enabled through close collaboration with aca- demic experts. Accessing relevant research to develop innovative solutions Significantly enhancing user benefits in future hearing care through continuous audiological discoveries Sustainability in Demant Environment Social Governance Additional information Demant Annual Report 2025 63 E1 Climate change 64 E5 Resource use and circular economy 74 EU taxonomy regulation disclosure 78 Environment Sustainability in Demant Environment Social Governance Additional information Demant Annual Report 2025 64 IROs Value chain Upstream 2019 baseline 2025 2030 46% reduction DownstreamOwn operations R Progress against targets 16% Scope 3 GHG emissions Scope 1 and 2 GHG emissions 2030 46% reduction 24% N Own Hearing Clinic Caring for people’s health and well-being goes hand in hand with caring for the environment and, though we are not in a greenhouse-gas-intensive industry , we take a proactive approach to lowering our climate impact. E1 Climate change Sustainability in Demant Environment Social Governance Additional information Demant Annual Report 2025 65 ESRS 2 SBM-3 E1 We have identified one actual impact and a risk related to climate change: • Demant’s direct and indirect greenhouse gas emissions have a negative impact on climate change. Most greenhouse gas emissions are scope 3 emissions. • There is a risk of experiencing commercial disadvantages if we do not adequately ad- dress climate change mitigation. Resilience analysis Demant’s resilience analysis assesses our strat- egy and business model and their ability to cope with the identified material climate risk. The as- sessment concludes that Demant is resilient to this risk and has implemented measures to mini- mise their materialisation. The resilience analysis builds on the double mate- riality assessment, where physical and transition risks were considered. However, the resilience analysis only considers the material risks. The re- silience analysis uses a 2050 timeframe for the scenario analysis, aligning with Demant’s net-zero targets (2050). The transition risks were identified under a 1.5°C global temperature increase limit at the end of the century scenario. This is a thresh- old recognised by climate science and the interna- tional community, through the United Nations’ Paris Agreement, as a critical requirement in the fight against climate change. The identification of physical risks considered scenarios with tempera- ture increases beyond the 1.5°C, as the risk of physical climate-related hazards increase under these conditions. Please refer to page 66 for addi- tional details. Uncertainties in the resilience analysis relate mainly to the use of secondary data in the double materiality assessment, which is not specific to Demant or our industry, but is rather based on global trends and the energy sector. As Demant continues to strengthen its double materiality as- sessment process, these uncertainties are ex- pected to decrease over time. Policies that guide our behaviour E1-2 Our Sustainability Policy, as further described on page 54, sets the direction for climate change mit- igation for all Demant entities and describes roles, responsibilities and focus areas to tackle GHG emissions. In this Policy, all GHG scopes for cli- mate change mitigation are addressed, and the Policy covers topics, such as energy efficiency, deployment of renewable electricity, fleet electrifi- cation and value chain emissions. Climate change mitigation We act to mitigate our material climate-related impact and risk across our value chain. Sustainability in Demant Environment Social Governance Additional information Demant Annual Report 2025 66 E1-1 Demant’s transition plan is a dynamic framework that consolidates the climate initiatives set by the Group to reduce the GHG emissions and reach our climate targets. The plan currently focuses on Demant’s near-term climate targets for 2030. Demant’s climate targets are validated by the Sci- ence Based Targets initiative (SBTi) as science- based and aligned with limiting global warming to 1.5°C above pre-industrial levels by the end of the century. Please see E1-4 for target information. The transition plan, which was approved by the Sustainability Board in 2024, consists of the six decarbonisation levers, all global in scope, shown to the right and are further described on the fol- lowing pages. In 2025, we continued improving our scope 3 un- derstanding, which led us to strengthen our scope 3 accounting and will allow us to improve current decarbonisation levers and set additional ones for the future. While no locked-in emissions are expected to compromise the achievement of our 2030 targets, addressing these emissions will be essential to meet our 2050 climate targets. Further analyses will be required to quantify and address these emissions. Demant is not excluded from the ‘Paris-aligned benchmarks’ established by the European Com- mission. The benchmarks provide a roadmap to ensure that company activities are consistent with the Paris Agreement’s objectives, particularly the goal of limiting the global temperature rise to 1.5°C above pre-industrial levels Scope 3 Supplier engagement programme Mitigation actions: • Set supplier specific targets for improving the environmental performance of purchased goods and services Time horizon From short to medium term. Decarbonisation of our transportation Mitigation actions: • Shift from air freight transportation to less climate-intensive transportation modes • Improve transportation logistics across up- stream and downstream supply chain activi- ties. These activities are reported as upstream transportation and distribution under the GHG Protocol. Time horizon From short to long term. Scope 1 and 2 Energy consumption reduction and efficiency in own operations Mitigation actions: • Decrease energy consumption • Increase energy efficiency Time horizon From short to long term. Renewable electricity for own operations Mitigation actions: • Use on-site renewable electricity • Use off-site renewable electricity Time horizon From short to medium term. Vehicle fleet electrification Mitigation actions: • Transition to electric vehicles for already exist- ing fleet in six prioritised European countries • Transition to electric vehicles for fleets in remaining countries Time horizon From short to long term. Scope 3 Decarbonisation through product design Mitigation actions: • Reduce the climate intensity of new equipment Time horizon From medium to long term. Transition plan Value chain Upstream Own operations Own Hearing Clinic Sustainability in Demant Environment Social Governance Additional information Demant Annual Report 2025 67 Actions and results through our decarbonisation levers E1-3 Energy consumption reduction and efficiency in own operations Energy consumption reduction and efficiency ef- forts are recurrent and locally managed, allowing each site to tailor initiatives to its specific context, as this lever focuses particularly on manufacturing sites and high-consumption entities. Therefore, no specific global mitigation potential is defined for this lever. Example of actions implemented this year are im- provements to the heating and ventilation systems (both physical and technological changes) and technological improvements to reduce manufac- turing-related energy consumption. Renewable electricity in own operations Demant aims for 100% renewable electricity in our own operations by 2030 to reduce all GHG emis- sions associated with our own global electricity consumption. In 2025, we achieved our interim target of using 50% renewable electricity, exceed- ing the target by 3 percentage points. We continue using different sources of renewable electricity, such as on-site generated solar power, green tariffs (supplier agreements) and Energy At- tribute Certificates, while exploring the incorpora- tion of new alternatives, such as power purchase agreements (PPAs). In 2025, GHG emissions from electricity repre- sented 76% of scope 2 GHG emissions and 31% of scope 1 and 2 GHG emissions combined. De- mant consumed 1,226 MWh of on-site renewable electricity, which reduced our market-based GHG emissions by 580 tonnes CO 2 e in Mexico, Denmark, Poland, South Africa, Australia, France and Italy. Demant consumed 28,363 MWh off-site renewa- ble electricity, with a further reduction of 15,479 tonnes market-based CO 2 e emissions. Vehicle fleet electrification The use of electrical vehicles over internal com- bustion engine vehicles across our global fleet will allow us to reduce our GHG scope 1 emissions associated with the use of fossil fuels, e.g. diesel and petrol. In 2025, we began implementing phase one of our fleet electrification plan from 2024. In phase one, our local entities across six specific European countries must reach a defined electric vehicle share in their fleet by 2030. In 2025, the entities defined their individual fleet electrification roadmaps and started implementing them accord- ingly. Considering fleet size and behaviour, phase one is expected to avoid the consumption of petrol and diesel equivalent to a reduction of 3,556 tonnes CO 2 e in our 2030 fleet. Demant encourages all its entities, no matter which phase of the fleet electrification plan they are in, to switch to electrical vehicles, when feasi- ble. Supplier engagement programme In 2024, our Hearing Aids business area launched Sustain, a supplier engagement programme de- signed to better understand and improve the envi- ronmental performance of our suppliers, which will impact our scope 3 GHG emissions performance. For the selected suppliers, the programme is structured in two phases: Phase one (2024-2025) focuses on collecting pri- mary environmental data from selected goods suppliers to be used for our emissions quantifica- tion and understanding. Phase two (expected to begin in 2026) aims to establish decarbonisation commitments with those goods suppliers, driving GHG emissions reductions across our scope 3 purchased goods and services. Once decarbonisation commitments are agreed, the mitigation potential of this lever will be quanti- fied. The environmental impact of the Sustain pro- gramme, as well as its duration, will grow over time as additional suppliers are onboarded. Decarbonisation of our transportation Reducing emissions from transportation requires continuous assessment of our global approach to transportation, while considering our business needs, routes and locations compatible with the decarbonisation. Our Diagnostics business area is reducing the number of internal shipments and handling in Eu- rope through its newly introduced Direct Delivery concept. As a result of the actions under this lever, Diagnostics’ transportation emissions inten- sity per DKK spent in 2025 remained fairly stable, increasing from 0.11 to 0.13 kg CO 2 e/DKK com- pared to 2024. The medium- and long-term miti- gation potential associated with this lever is yet to be determined. Decarbonisation through product design Defined in 2025 and specific to our Diagnostics business area, this lever will be implemented in 2026, when all newly designed equipment will un- dergo a design assessment to evaluate their as- sociated GHG emissions. This assessment, known as a life cycle assessment (LCA), will iden- tify the primary sources of emissions across the materials, components and life stages of the equipment. The insights gained will enable our R&D teams in Denmark and Poland to explore al- ternative design choices aimed at reducing the overall GHG impact of the equipment. To support this lever development, we have initi- ated collaborations with our suppliers to gather relevant data and, ultimately, to work together to decarbonise our equipment. The reduction poten- tial associated with this lever is yet to be defined. As a first step towards this, our Hearing Aids busi- ness area is performing a life cycle assessment to identify the GHG emissions hotspots associated with one of our 2024 hearing aid models. Looking ahead Demant’s transition plan currently addresses the main emissions sources and categories and is fur- ther developed on a continuous basis. Over time, we expect to continue gaining deeper understand- ing of the decarbonisation potential of our current levers and identify new ones. As more data and insights become available, we will enhance the alignment of our transition plan with our climate targets , particularly those related to scope 3 emis- sions. The financial resources required for the imple- mentation of the decarbonisation levers and their relation to the financial statements are yet to be determined, as this depends on further defining the decarbonisation levers and their reduction po- tential. Sustainability in Demant Environment Social Governance Additional information Demant Annual Report 2025 68 Targets and metrics E1-4 Demant’s climate targets were validated by the SBTi in 2023 and are aligned with the Paris Agreement’s goal of limiting the global tempera- ture increase to 1.5°C by the end of the century. Near-term targets Demant commits to reducing absolute scope 1 and 2 GHG emissions by 46% by 2030 from a 2019 baseline year. Demant also commits to re- ducing absolute scope 3 GHG emissions by 46% within the same timeframe. Long-term targets Demant commits to reducing absolute scope 1 and 2 GHG emissions by 90% by 2050 from a 2019 baseline year. Demant also commits to re- ducing absolute scope 3 GHG emissions by 90% within the same timeframe. Overall net-zero targets As a further step in our efforts towards climate change mitigation, Demant commits to reaching net-zero GHG emissions across the value chain by 2050 from a 2019 baseline year. This means that we will neutralise the remaining 10% of our GHG emissions, which cannot be reduced, through carbon removal. Target setting methodology The targets, which cover 100% of our GHG emis- sions, follow the operational control approach for setting Demant’s organisational boundary. As it is allowed in the target-setting methodology under the SBTi Corporate Net-Zero standard V1.0, our target-setting process followed the absolute con- traction approach, and we used a cross-sector pathway and market-based accounting approach when setting the target. Demant submitted its climate targets for validation to the SBTi in 2023, using 2019 as the baseline year, since it provided the latest available data be- fore Covid-19 disrupted business operations. De- mant does not consider GHG emissions removals, carbon credits and avoided GHG emissions as means of achieving our near- or long-term targets. Aligned with the Greenhouse Gas Protocol, the GHGs considered in the targets are: • Carbon dioxide – CO 2 • Methane – CH 4 • Nitrous oxide – N 2 O • Hydrofluorocarbons – HFCs • Perfluorocarbons – PFCs • Sulphur hexafluoride – SF 6 • Nitrogen trifluoride – NF 3 Link between our climate targets and our climate efforts For our near-term scope 1 and 2 targets, the re- quired emissions reductions will be achieved through the levers ‘Energy consumption reduction and efficiency in own operations’ and ‘Renewable electricity for own operations’. We will use the for- mer to decrease our energy needs and the latter to reduce the GHG emissions associated with our electricity consumption. Though we expect to achieve the desired reduc- tion level through our renewable electricity lever, the ‘Vehicle fleet electrification’ lever has a com- plimentary role to ensure that the emissions asso- ciated with our fleet are reduced as early as possi- ble and do not jeopardise the achievement of our scope 1 and 2 near-term target. The near-term scope 3 target is currently ad- dressed through the levers ‘Supplier engagement programme’, ‘Decarbonisation of our transporta- tion’ and ‘Decarbonisation through product de- sign’. While the extent to which these levers will achieve the required emissions reductions is still being defined, they collectively cover all major sources of our scope 3 emissions stated in the transition plan. Solar cells on new Diagnostics building in Rosówek Poland Sustainability in Demant Environment Social Governance Additional information Demant Annual Report 2025 69 E1-5 Energy Compared to 2024, Demant’s total energy con- sumption increased by 10%, from 121,209 MWh in 2024 to 133,595 MWh in 2025. Most of the in- crease is attributable to electricity and heating, due to the constant growth of our Hearing Care business area, and higher usage of fuel by our ve- hicle fleet. In 2025, Demant’s total use of energy from fossil sources was 103,902 MWh of which 26,363 MWh relates to the consumption of non-renewable elec- tricity. Compared to consumption of 102,721 MWh in 2024, Demant’s consumption of energy from fossil sources increased by 1% in 2025. Despite the overall increase in energy consump- tion, many of our energy-intensive entities suc- cessfully reduced their use of non-renewable en- ergy and increased their use of renewable sources, resulting in an increase of 7 percentage points in the Group’s renewable energy share from 2024 to 2025. Currently, electricity is our only source of renewa- ble energy. Our energy intensity increased in 2025 compared to 2024 as a result of a higher increase in our en- ergy consumption than in our revenue. It went from 5.41 MWh to 5.82 MWh per DKK million rev- enue. Renewable electricity In 2025, 53% of the Group’s electricity consump- tion was sourced from renewable energy, mainly through Energy Attribute Certificates and green tariffs (supplier agreements). From our renewable electricity, 4% is generated on-site, entirely from solar installations across specific locations in Poland, Mexico, Denmark, South Africa, Italy, Australia and France. The re- maining 96% is generated off-site and acquired through different market mechanisms. Of this, 59% relates to Energy Attribute Certificates as- signed to the consumption in specific EU coun- tries and China. The remaining 41% off-site elec- tricity relates to the use of green tariffs in France, Italy, Poland and the US. E1-6 Scope 1 and 2 Demant reduced its scope 1 and 2 market-based GHG emissions by 9% in 2025 compared to 2024, mostly driven by our transition to renewable elec- tricity. When compared to our 2019 baseline, we have reduced our emissions by 16%, continuing our steady progress towards our 2030 target. Both electricity and fuel used for our fleet remain key sources of our scope 1 and 2 emissions, which is why our mitigation efforts focus on these sources. Together, these emissions represented 69% of our scope 1 and 2 emissions in 2025. Scope 3 In 2025, our scope 3 GHG emissions decreased by 7% compared to 2024 and increased by 24% compared to our 2019 baseline. From the de- crease in the emissions, 85% of it relates to pur- chased goods and services, followed by a smaller reduction of 10% linked to the transportation cate- gories. Energy consumption mix (MWh) Renewable electricity by source (MWh) Renewable energy of total energy consumption Renewable electricity of total electricity consumption 52,688 27,637 16,579 14,096 9,693 390 126 55,952 30,095 17,724 13,594 15,242 885 103 - 10,000 20,000 30,000 40,000 50,000 60,000 Electricity Petrol Natural gas Diesel District heating Coal Liquefied petroleum gas 2024 2025 6,778 10,339 1,245 16,689 11,674 1,226 - 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 Energy Attribute Certificates Green tarrifs On-site self generated 2024 2025 15% 22% 0% 5% 10% 15% 20% 25% 2024 2025 35% 53% 0% 10% 20% 30% 40% 50% 60% 2024 2025 Sustainability in Demant Environment Social Governance Additional information Demant Annual Report 2025 70 The emissions associated to our purchased goods and services are highly dependent on our busi- ness activities, influenced by our inventory levels and buying decisions. For example, when under- standing the reason behind the emissions de- crease in 2025 compared to 2024, despite a rela- tively stable spending associated to our pur- chased goods and services in both years, the de- crease is attributed to a different purchasing be- haviour. The goods acquired in 2025, had lower associated GHG emissions than those purchased in 2024. The emissions of capital goods are highly depend- ent on specific operational decisions. The high in- crease in this type of emissions in 2025 compared to 2024 relates to the purchase of machinery for production purposes. 93% of our scope 3 emissions are concentrated on four categories: purchased goods and services (69%), upstream transportation (12%), capital goods (8%) and fuel- and energy-related services (4%). Thus, our decarbonisation efforts focus on these categories. Through our supplier engage- ment programme decarbonisation through product design and decarbonisation of our transportation we address the GHG emissions associated with purchased goods and services as well as up- stream transportation and distribution. Through our scope 1 and 2 levers, we indirectly address the emissions associated with our fuel- and en- ergy-related services category. Although recent improvements indicate progress in the right direction, we have yet to succeed in re- ducing scope 3 emissions compared to our base- line. To align our progress with our targets, we continue to improve the accuracy and complete- ness of our scope 3 data and our understanding of the decarbonisation levers. We also continue to assess additional levers to reduce emissions over time. Included scope 3 categories Scope 3 categories included in our GHG emis- sions inventory are the following eleven: Category 1: Purchased goods and services Category 2: Capital goods Category 3: Fuel and energy-related activities not included in scope 1 or 2 Category 4: Upstream transportation and distribu- tion Category 5: Waste in operations Category 6: Business travel Category 7: Employee commuting Category 9: Downstream transportation and distri- bution Category 11: Use of sold products Category 12: End-of-life treatment Category 15: Investments Scope 1 and 2 market-based GHG emissions (tonnes CO 2 e) Scope 3 GHG emissions (tonnes CO 2 e) 11,206 9,432 12,765 14,904 14,645 15,893 20,774 24,856 24,371 18,199 14,781 10,888 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 2019 (baseline) 2021¹ ² 2022² 2023² 2024 2025 Scope 1 Scope 2 156,794 182,547 217,096 231,113 209,282 194,976 - 50,000 100,000 150,000 200,000 250,000 2019 (baseline) 2021¹ ² 2022¹ ² 2023² 2024 2025 ¹2021 was impacted by lower activity due to Covid-19. 2 Not covered by the Independent Auditor’s limited assurance report Excluded scope 3 categories Category Justification 8 Upstream leased assets Demant’s leased assets are under its operational control and therefore included in scope 1 and 2 accounting. 10 Processing of sold products Demant focuses on providing final products, accessories and consumables. 13 Downstream leased assets Demant does not own or lease assets to external parties. 14 Franchises Demant does not own or operate franchises. Sustainability in Demant Environment Social Governance Additional information Demant Annual Report 2025 71 Total GHG emissions Year Target (tonnes CO 2 e) Baseline 2019 2025 2024 % vs. LY % vs. Baseline 2030 Annual % target/ Baseline¹ Scope 1 GHG emissions Gross scope 1 GHG emissions 11,206 15,893 14,645 9% 42% 6,029 4% Scope 2 GHG emissions Gross scope 2 location -based GHG emissions² 17,996 19,508 19,041 2% 8% Gross scope 2 market -based GHG emissions² 20,774 10,888 14,781 -26% -48% 11,176 4% Total scope 1 emissions and scope 2 market -based emissions 31,980 26,781 29,426 -11% -16% 17,205 4% Scope 3 GHG emissions Total Gross indirect (scope 3) GHG emissions 156,794 194,976 209,282 -7% 24% 84,355 4% 1: Purchased goods and services 3, 4 112,551 133,712 155,952 -14% 2: Capital goods 3 8,219 16,126 5,181 211% 3: Fuel and energy related activities 7,253 7,876 7,253 9% 4: Upstream transportation and distribution 3 17,999 22,916 25,248 -9% 5: Waste in operations 1,151 895 2,026 -56% 6: Business travel 2,741 2,794 2,741 2% 7: Employee commuting 4 1,973 2,710 2,621 3% 9: Downstream transportation and distribution 3 871 884 1,243 -29% 11:Use of sold products 2,125 3,889 3,991 -3% 12:End of life treatment 4 1,733 2,475 2,397 3% 15:Investments 178 699 629 11% Total Scope 1, 2 and 3 GHG emissions Total location -based GHG emissions 185,996 230,377 242,968 -5% 24% Total market -based GHG emissions 188,774 221,757 238,708 -7% 17% GHG Intensity based on net revenue Total GHG emissions (location -based) per net revenue 12 10 11 -19% Total GHG emissions (market -based) per net revenue 13 10 11 -24% ¹Annual reduction in percentages from the baseline year 2019 required to reach the 2030 target. ²GHG accounting for electricity applies two methodologies based on the type of emissions factors to use: location - and market-based emissions. Location-based emissions consider the average emission intensity of the power grid where the consumption takes place but disregard the use of off -site renewable electricity. Market-based emissions consider the specific type of electricity consumed and the associated specific emission intensity in the emissions calculations. Please refer to the Greenhouse Gas Protocol scope 2 guidance for additional information. 3 Compared to 2024, these categories are reported separately. 4 Comparative figures for these categories are restated to methodology improvements, please see accounting policies for more details. Sustainability in Demant Environment Social Governance Additional information Demant Annual Report 2025 72 Accounting policy Energy consumption Energy consumption includes both primary data and estimated usage of electricity, district heating, natural gas, diesel, petrol, coal and liquefied pe- troleum gas. Energy consumption is recorded, us- ing different units (e.g. litres, kWh, kg), and is later consolidated in megawatt hours (MWh). The share of renewable energy represents the amount of renewable energy used by Demant in our operations. It is calculated by dividing the en- ergy consumed from renewable sources by the to- tal energy consumed by the Group. Refrigerants are not included in the energy con- sumption, as they account for less than 0.1% of the total energy consumption. Energy intensity Energy intensity is reported as the total energy consumption divided by the total revenue. Accord- ing to ESRS definitions, all of Demant’s business is classified as belonging to a high-climate impact sector. The revenue used as the denominator is the total revenue generated by the Group. Please refer to the Financial statements, Note 2.1, on page 128. Greenhouse gas accounting Demant’s carbon accounting adheres to the Greenhouse Gas Protocol’s Corporate Accounting and Reporting Standard defined by the World Re- sources Institute and World Business Council for Sustainable Development in line with the recom- mendation of the ESRS. Our consolidated GHG emissions data encompasses all entities under Demant’s operational control, including leased fa- cilities, with GHG emissions quantified in carbon dioxide equivalent (CO 2 e). Demant’s Inventory Management Plan (IMP) sets the framework for defining, compiling and report- ing Group GHG emissions across all scopes of GHG emissions based on the Greenhouse Gas Protocol. The IMP specifies that baseline recalcu- lations may occur under the conditions defined in the publicly available Baseline Recalculation Pol- icy. Scope 1 and 2 GHG emissions Scope 1 emissions consist of direct GHG emis- sions that arise from the actual and estimated consumption of natural gas, liquefied petroleum gas, coal, petrol, diesel and refrigerants (fugitive emissions). Scope 2 emissions consist of indirect GHG emis- sions that arise from the actual and estimated consumption of electricity and district heating. The calculation of scope 1 and scope 2 GHG emissions is fully automated within our energy management system, utilising GHG emissions factors provided by the UK Department for Envi- ronment, Food & Rural Affairs (DEFRA), the US Environmental Protection Agency and the Interna- tional Energy Agency. Location- and market-based GHG emissions For scope 2, we calculate location- and market- based GHG emissions and use the latter to benchmark Demant’s performance against our cli- mate targets in accordance with our SBTi ac- counting approach. Scope 3 GHG emissions Demant’s business areas have different needs for data for the accounting of scope 3 GHG emis- sions. Therefore, we have decided to use different methodologies according to the data availability and needs of each business area. Demant employs two different methodologies for scope 3 accounting of categories 1, 2, 4, 5, 8 and 12: one tailored for the Diagnostics business area and another for the Hearing Aids and Hearing Care business areas. Both methodologies align with the scope 3 GHG Protocol standard and fol- low a combined approach, using hybrid- and spend-based methods for the calculation of GHG emissions. The remaining categories (3, 6, 7 and 15) are quantified, using the same methodology across the business areas. Category 1: Purchased goods and services is cal- culated, using three different alternatives, all of which are multiplied by the appropriate emissions factors to quantify the GHG emissions: 1) spend- based approach for a variety of goods and ser- vices 2) mass-balance approach for goods based on the type of materials and quantities purchased and 3) primary data provided directly by goods suppliers. Category 2: Capital goods includes goods pur- chased during the year, which have an expected lifetime that exceeds the reporting period. They are calculated, using spend data or the amount of capital goods purchased, and are later multiplied by relevant emissions factors. Category 3: Fuel- and energy-related services are calculated, using actual fuel and energy consump- tion data captured through scope 1 and 2 report- ing, and are multiplied by the relevant emissions factors. Category 4: Upstream transportation and distribu- tion and category 9: Downstream transportation and distribution are calculated, using a combina- tion of primary data obtained directly from our car- riers, spend-based calculations or own calcula- tions, considering our own distances and trans- ported freight. Currently under category 9, we ac- count exclusively for service and return ship- ments. Category 5: Waste in operations is calculated, us- ing actual waste data multiplied by relevant GHG emissions factors. Category 6: Business travel is calculated, using available primary air travel data multiplied by rele- vant spend-based GHG emissions factors. Category 7: Employee commuting is calculated, using secondary information from EU passenger mobility statistics and our number of employees, and is multiplied by the relevant emissions factors. Category 11: Use of sold products is calculated by multiplying the relevant GHG emissions factors, the number of sold products and the internal data collected by in-house experts on product design, functionality and typical usage patterns. This ena- bles us to determine the energy consumption as- sociated with each product. Category 12: End-of-life treatment is calculated, using sales numbers, categorised by product type, material composition and the geographical loca- tion of the sold products. The numbers are then multiplied by relevant GHG emissions factors. Category 15: Investments are estimated, using an average GHG emissions intensity based on De- mant’s emissions and revenue multiplied by De- mant’s revenue share of the investments. The GHG emissions factors used for the calcula- tions are from renowned sources, such as US EPA, DEFRA, the Danish Environmental Protec- tion Agency database and the Ecoinvent data- base. Where needed, consumption and GHG emissions have been extrapolated to account for the whole Group. Sustainability in Demant Environment Social Governance Additional information Demant Annual Report 2025 73 GHG intensity based on revenue GHG intensity is reported as the total GHG emis- sions of the Group divided by the Group’s total revenue for the period. The revenue used as the denominator is the total revenue generated by the Group. Please refer to the Financial statements, Note 2.1, on page 128. Biogenic emissions Aligned with the GHG Protocol, biogenic emis- sions are not considered in our GHG scope 1, 2 and 3 accounting. Demant has not identified biogenic emissions from our scope 1 energy sources. For scope 2, the emissions factors used neither disaggregate nor exclude biomass content in the local energy mix. This limitation is acknowledged to ensure transparency and alignment with the GHG Proto- col guidance. Demant is aware that biogenic emissions may oc- cur within our supply chain (scope 3 emission). These types of emissions may be relevant for our transportation; yet we have not agreed with our carriers to use of biofuels, and we do not request this type of information from them. Moreover, we are aware that our use of biomass related to pack- aging, e.g. cardboard and paper, generates bio- genic emissions. Considering the latter biogenic scope 3 emissions sources, our biogenic emission is not considered material, as it represents less than 2% of our scope 3 GHG emissions and is therefore not disclosed. Change in accounting policy and restatement In 2025, we changed our scope 3 accounting pol- icy by applying a new, more accurate method as we were able to collect data with better quality. In 2025 we introduced primary data into our scope 3 accounting for category 1, purchased goods and services, and where possible expanded the use of primary data. External primary data was obtained in close collaboration with suppliers. Moreover we reviewed the categorization of the purchased goods and services which also led to improving the data quality in 2025. In 2025 we performed life cycle assessment (LCA’s) and incorporated those emission factors into our calculations as well. As part of the LCA process we have identified sig- nificant changes between spend based emission factor and the emission calculated in the LCA pro- cess, demonstrating the relevance to move away from spend based emissions. We are aware that we have a high share of emis- sions with spend-based approach and work to continuously improve our GHG accounting. In 2025, we changed emission factor database for Hearing Aids and Hearing Care from the Danish Environmental Protection Agency to US EPA. The change gives us more granularity to map each spend category to a more specific emission factor compared to the applied method in 2024. The comparative and baseline figures have been adjusted accordingly. For 2024, the total effect of the change in accounting policy is estimated to be approximately 250,000 tonnes (55%) lower CO 2 e compared to the previous method. The baseline is also recalculated, resulting in a reduction of ap- proximately 198,000 tonnes (56%) compared to Annual Report 2024. For 2025 11% of the emis- sions in our scope 3 category 1 is primary data coming directly from our suppliers as part of the supplier engagement program. We have adjusted for the use of PCF data and the emission factor changes in the historical figures to ensure con- sistency of the methodology and comparability of our annual performances and not claiming reduc- tions due to methodology changes. A systematic error was identified for category 7 employee commuting, which is why we, in 2025, restated our performance for the 2019 and 2024 values in this category as well as in the total scope 3 value in the Scope 3 GHG emissions fig- ure. The restatement of the 2019 baseline in- creases the emission with 1,900 tonnes CO 2 e and for the 2024 comparison figures the restatement increases 2,500 tonnes CO 2 e compared to the an- nual report for 2024. For category 12, we improved our data quality in 2025, which has resulted in an impact of 1,097 tonnes CO 2 e in the comparison figures to ensure comparability. Use of estimates and judgements Scope 3 calculation involves judgement and esti- mates to provide the necessary information that Demant does not have access to. This includes the use of generic emissions factors. The majority of our scope 3 emissions are calculated, using the spend-based method. We map our suppliers ac- cording to the type of goods or services we pri- marily purchase from them. Where data is not available, figures were extrapo- lated using financial data to account for entities not included in our invoice management system. Extrapolation was based on each entity’s revenue share relative to the Group’s reported revenue for 2025. Exclusion of Communications The Communications business area has been dis- continued, as Demant announced the sale of EPOS, 20 December 2025. Therefore, the energy consumption and GHG emissions presented above exclude EPOS, as this business is no longer reflected in our continued activities. Even though we are in the process of the divest- ment, we still own it as of December 2025. If we were to account for the scope 3 emissions associated with EPOS, we estimate that these ac- counted for 12% of the Group’s total scope 3 greenhouse gas emissions in 2025 based on our 2019 baseline and using the previous accounting principles. Based on a high-level recalculation, using reve- nue from EPOS, please refer to Note 7.2 in the Fi- nancial statements, the Group’s total scope 3 GHG emissions would be: 2025: 218,373 tonnes CO 2 e 2024: 234,396 tonnes CO 2 e 2023: 258,847 tonnes CO 2 e 2019 (baseline): 175,609 tonnes CO 2 e Total GHG intensity based on net revenue for 2025, including Communications, is estimated to be 10. Sustainability in Demant Environment Social Governance Additional information Demant Annual Report 2025 74 IROs Value chain Resource consumptionResource consumption Use of packaging Non-circular economy practice Upstream DownstreamOwn operations R O N N N Own Hearing Clinic E5 Resource use and circular economy We recognise the critical importance of the transition towards a circular economy to minimise resource consumption , foster future resource availa- bility and maximise resource value conservation. Sustainability in Demant Environment Social Governance Additional information Demant Annual Report 2025 75 ESRS 2 SBM-3 E5 We have identified two actual impacts, one poten- tial impact, one risk and one opportunity related to resource use and circular economy: • Our business operations consume natural re- sources for products and packaging, leading to higher resource depletion. • Reliance on linear economy practices limits the optimisation of resource consumption, re- sulting in additional pressure on the environ- ment. • The risk is a scenario in which our access to raw materials is limited by their availability and price increases. • There is an opportunity to reduce costs re- lated to the purchase of materials and compo- nents by introducing more circular economy practices. Policies that guide our behaviour E5-1 Demant’s Code of Conduct encourages all em- ployees to use natural resources efficiently. Build- ing on this foundation, our Sustainability Policy addresses our commitment to resource use and circular economy. It requires all business areas to integrate circular economy principles, reduce re- source use and minimise the environmental im- pact of our products, packaging and general oper- ations. Our Third Party Compliance Code urges business partners to work systematically to pre- vent, minimise and remedy the adverse environ- mental impact of their activities, products and ser- vices. Actions and results E5-2 Resource consumption We implemented the following actions to address the impacts associated with resource consump- tion in our products and packaging. Optimised resource use in hearing aid packaging Packaging is an area we continuously work to im- prove. In continuation of efforts initiated in 2022, we avoided the use of 93 tonnes of virgin fossil- sourced plastic due to the use of at least 50% re- cycled plastic in our hearing aid blisters, in our hearing aid dome blisters and in the hearing aid carrying cases in 2025. Optimised battery for longer-term performance With the launch of the Oticon Intent rechargeable hearing aids in 2024 and together with our global hearing aid battery partners, we have introduced enhancements to Intent’s battery to prolong its du- rability and capacity stability. We have also im- proved the power efficiency in our Intent model to reduce its overall energy consumption. Together, these enhancements mean that the rechargeable battery will last for the full product lifetime without needing to be replaced. Use of secondary raw materials in Diagnostics’ equipment Since 2014, our largest Diagnostics’ supplier of plastic has integrated up to 10% plastic waste from its own operations into our equipment manu- facturing process. In 2025, this action avoided the use of 2.9 tonnes of virgin fossil-sourced plastic. Use of secondary raw materials in packaging for diagnostic equipment Continuing our efforts initiated in 2022, we are re- ducing our pressure on the extraction of virgin ma- terials by incorporating recycled materials into our packaging. By using at least 50% recycled poly- ethylene in our plastic bags, we avoided the use of 529 kg of virgin plastic. In our cardboard boxes, 98% of the cardboard was recycled material, avoiding the use of 50.7 tonnes of virgin material. Circular economy practices The remaining actions address the principle of cir- cularity. By implementing these actions, we de- creased our reliance on linear economy practices, thereby reducing our resource use, and fostered the reuse and repairability of our hearing aids and diagnostic equipment. Expanded portfolio of hearing aids designed for reuse during the users’ trial period We expanded the concept of the Demoflex to in- clude additional models, which means that we now have a total of 33 Demoflex alternatives. While meeting medical device regulations and hy- giene standards, the Demoflex is a hearing aid designed for demonstration purpose for multi-us- ers, which was first introduced in 2024. The De- moflex models mirror existing models in our port- folio and are now available in 35 countries world- wide. Each device can be used by up to 50 differ- ent individuals during their trial period. Maintenance and repair of hearing aids and diagnostic equipment We design our products to be as reliable as possi- ble. Yet, sometimes they require maintenance or repair to ensure continued proper function. To prolong the use of our hearing aids and diagnostic equipment, we offer maintenance and repair ser- vices to ensure their continued functionality. Maintenance services provided to our customers ensure that normal wear and tear neither affects the usability nor the quality of our devices, while repairs aim at restoring the functionality of our in- struments. In the Hearing Aids business area, our services are available globally for all hearing aid models and brands for up to five years after a model has been discontinued. Depending on the complexity of the repair, services are provided either by our hearing clinics or at dedicated service facilities. In 2025, we performed over 1,545,000 repairs at our service facilities. For the Diagnostics business area, maintenance services performed either at the customer’s loca- tion or in local in-house workshops. Repairs are handled by our sales companies or by central re- pair facilities located in Poland and the US. To en- sure long-term support, we guarantee the availa- bility of spare parts for up to seven years from the date of purchase as well as support for minimum seven years. In 2025, we performed maintenance or repair of 182,868 instruments in addition to the repairs performed under warranty. Looking ahead The manufacture of hearing aids and diagnostic equipment requires the use of material inputs. We recognise that the scope of the identified impacts, risks and opportunities extends beyond the scope of the current actions, which is why we will con- tinue to assess and implement additional actions to address these topics, as deemed feasible. Resource use We are committed to continuous optimisation of our use of resources, al- ways aligning with the applicable regulations that may impose limitations on our product design and other circular practices. Sustainability in Demant Environment Social Governance Additional information Demant Annual Report 2025 76 Tracking effectiveness and metrics ESRS 2 MDR-T and E5-3 Circular initiatives are driven by individual busi- ness areas and focus on specific topics that may not apply to the whole Group. For this reason, we have not yet established Group targets. We con- tinue building our understanding of what circular economy means for Demant and assessing the relevance of setting Group targets in the future. E5-4 The table below outlines the materials used for manufacturing hearing aids and diagnostic equip- ment in Demant’s own operations and upstream value chain. In 2025, the resource inflow decreased by 7% tonnes compared to 2024, mainly due to a reduc- tion in the acquisition of electronic components and plastic. E5-5 Durability The expected durability of our products is specific to our business areas and can be defined in differ- ent ways, e.g. based on the design lifetime of the product or the users’ average usage time. For our hearing aids, the durability is five years, which is based on the tests we perform on all items that constitute a hearing aid. Our Diagnostics business area has a broad pro- duct portfolio, covering both hearing and balance assessment solutions. Based on over 20 years of service records regarding equipment that has been retired by our customers, on average our equipment remained in use for 6.5 years on aver- age. Repairability Throughout both the design and use phases, our business areas actively work to ensure that both our hearing aids and our hearing and balance as- sessment solutions are repairable. In alignment with medical device regulations and our quality standards, we design our products to enable dis- assembly and the replacement of specific compo- nents. Demant guarantees the availability of spare parts for each hearing aid model for as long as the model is sales active, plus an additional five years after the model is discontinued. For the Diagnos- tics business area, we guarantee that spare parts are available for seven years after the invoice date of the product. Both Hearing Aids and Diag- nostics provide the required information for the user to be able to solve the most frequent issues. Diagnostics also provides training to ensure the proper use of our equipment. Demant offers repair services worldwide and for both Hearing Aids and Diagnostics, the repairabil- ity requirements of our instruments and devices can be set in the three levels below: • User level: Relates to minor reactive tasks for the proper use of our products, e.g. replace- ment of wax filters and domes, change of bat- teries and general cleaning of openings in the device. • Local service level: Relates to issues whose solving requires technical knowledge and is carried out by trained professionals, either at one of our clinics or at the user’s location. Ex- amples of these categories are diagnosing and replacing speaker units, recalibrating de- vices and replacing rechargeable batteries. • Service centre level: Relates to major repairs whose complexity requires the repair to be carried out at one of our service centres, e.g. issues with amplifiers or changing spare parts. Recyclable content in our products and pack- aging Demant is committed to providing transparent and trustful information on the recyclable content in our products and packaging. We are working to be able to report on this in 2026. Total weight of products and materials inflow (tonnes) 2025 2024¹ Plastic 753 1,051 Metals 1,705 1,197 Cardboard/paper 825 949 Electronic components 2,713 3,315 Wood 58 22 Other 846 919 Total resource inflow 6,901 7,455 ¹Total weight of products and materials inflow for 2024 has been restated due to methodology improvements . See accounting policy for more details. Biological materials, reused or recycled materials used for product manufacturing 2025 2024 Sustainable sourced biological materials used in manufacturing (tonnes) 0 0 Sustainable sourced biological materials used in manufacturing (%) ¹ 0% 0% Reused or recycled materials used in manufacturing and packaging (tonnes) 147 50 Reused or recycled materials used in manufacturing and packaging (%) 2% 1% ¹ Sustainable sourced biological materials used in manufacturing (%) was restated due to methodology improvements. See accounting pol- icy for more details. Sustainability in Demant Environment Social Governance Additional information Demant Annual Report 2025 77 Accounting policy Resource inflow Resource inflow includes materials directly related to the manufacturing of our products as well as core components of purchased goods and capital goods, including packaging and extra parts. The reported numbers are based on primary data combined with estimates. Resource inflows are categorised according to the origin of the materi- als. Biological materials and reused or recycled materials used in manufacturing Biological materials cover biodegradable materi- als, such as wood, paper and cardboard. Reused or recycled materials cover the amount of confirmed recycled materials used in manufactur- ing. Use of estimates and judgements Resource inflow, E5-4, is based on estimates, us- ing internal and external data combined with as- sumptions, which is then extrapolated to the total population based on unit sales and inventory movements. Key assumptions are made for resource inflow where quantities are primary data, but the weight of each component is unknown. We have used what information we have available to make sure the weight is as accurate as possible. To estimate the weight, large language models (LLM) were used. Any use of LLM models is, however, associ- ated with high uncertainty. In-house subject matter experts are consulted to reduce the risk of over- or understating, further- more benchmark analysis to companies who re- semble Demant was conducted and we believe we are within expected weight ranges. However, as the reported numbers are based on generic as- sumptions, numbers are subject to change when we gain access to more accurate data. Change in accounting policy and restatement In 2025, we have worked on improving our data capture for resource inflow, and as a result, we have obtained more reliable data quantifying the purchased materials compared to last year. We have therefore restated 2024 to make 2025 and 2024 comparable, resulting in an increase in re- ported weight numbers of approximately 4,000 tonnes from 3,121 tonnes in Annual Report 2024 to 7,455 tonnes in Annual Report 2025. The ac- counting principle for Sustainable sourced biologi- cal materials was updated and 2024 data was re- stated from 12.1% to 0%. Sustainability in Demant Environment Social Governance Additional information Demant Annual Report 2025 78 Eligibility To determine Demant’s eligible activities, we screened our turnover, OPEX (the cost of R&D, short-term leases, maintenance and repair) and CAPEX (net investments in property, plant and equipment, intangible assets and addition of right- of-use assets) against the activities of the Taxon- omy Compass. The three eligible economic activities that are sub- ject to alignment under the EU taxonomy are: • Manufacture of electrical and electronic equip- ment, which relates to our manufacture of hearing aids and diagnostic instruments. • Data processing, hosting and related activi- ties, which relates to our IT servers. • Acquisition and ownership of buildings, which relate to our offices, manufacturing facilities and retail. Alignment For each eligible activity, we are not able to com- ply with at least one of the technical screening cri- teria. Therefore, we are not able to claim align- ment for any of our eligible activities. For example, under the manufacture of electrical and electronic equipment activity, Demant should provide access to repairability information to external professional repairers. This is, however, information that we currently do not disclose externally, as it is consid- ered sensitive to our business. Demant continuously works to reduce the environ- mental impact associated with our business. How- ever, fulfilling all the alignment requirements for our eligible activities is not a strategic priority for us. For the mandatory reporting templates, see Addi- tional information on pages 111-113. Accounting policy As our eligible taxonomy activities are very lim- ited, the risk of double counting is considered very low. However, to make sure that we do not in- clude the same amounts multiple times, we per- form a reconciliation against the supporting finan- cial information to ensure that the total aligns with the financial notes. Turnover Turnover is reported and defined as taxonomy-eli- gible turnover (numerator) divided by the total turnover (denominator). OPEX Total OPEX covers direct non-capitalised costs pertaining to R&D, renovation of buildings, short- term leases, maintenance and other direct costs relating to the day-to-day servicing of property, plant and equipment. The KPI is defined as taxonomy-eligible OPEX (numerator) divided by total OPEX (denominator). CAPEX CAPEX consists of additions to property, plant and equipment, intangible assets, excluding good- will, as well as right-of-use assets. The KPI is de- fined as taxonomy-eligible CAPEX (numerator) di- vided by total CAPEX (denominator). EU taxonomy regulation disclosure EU Taxonomy overview table (DKK million) Economic activities Turnover Capex Opex Total Turnover, CAPEX, OPEX 22,971 100% 2,108 100% 1,484 100% Taxonomy non -eligible activi- ties 3,570 16% 240 11% 1,433 97% Climate change mitigation 7.7 Acquisition and ownership of buildings - 0% 1,685 80% - - 8.1 Data processing and hosting - 0% 25 1% 51 3% Circular Economy 1.2 Manufacturing of electrical and electronic equipment 19,401 84% 158 8% - - Eligible not aligned 19,401 84% 1,868 89% 51 3% Sustainability in Demant Environment Social Governance Additional information Demant Annual Report 2025 79 S1 Own workforce 80 S2 Workers in the value chain 89 S4 Consumers and end-users 91 Social Sustainability in Demant Environment Social Governance Additional information Demant Annual Report 2025 80 IROs Value chain Healthy and safe working environment Working time Talent attraction and retention Discrimination and harassment Upstream DownstreamOwn operations N N R N Equal opportunities N Equal pay for work of equal value N 2025 2024 56 th percentile 2024 52nd percentile 2025 2030 67th percentile 2030 67th percentile Progress against targets Engagement rate Inclusion score 2024 31% 2025 2030 35 % Gender balance in leadership (share of female leaders) ¹ 55th percentile 57th percentile 33% Own Hearing Clinic S1 Own workforce Our people are the most valuable part of our business, and their well-being, safety, engagement and development are fundamental to our success. Sustainability in Demant Environment Social Governance Additional information Demant Annual Report 2025 81 This section covers cross-cutting reporting for all IROs that relate to our own workforce. Where rel- evant, policies, actions, targets and metrics di- rectly related to the specific IROs are unfolded in the following chapters on working conditions and equal treatment. Policies guiding our behaviour S1-1 Our commitment to a good working environment is framed in our Code of Conduct, which outlines the minimum standards and ethical principles ap- plicable to all employees regardless of their loca- tion and the nature of their work. Our Code of Conduct explicitly addresses Demant’s zero toler- ance of any form of slavery or human trafficking, use of compulsory labour, the employment of chil- dren as well as discrimination and harassment, in- cluding sexual harassment. Our Global Policy on Human Resources further specifies what we mean by a good working envi- ronment. The Policy establishes a clear frame- work for the governance of employment practices and workplace conditions in alignment with De- mant’s strategy and values. The Policy is an- chored in our Leadership Compass, which, based on employee feedback, highlights five key drivers of employee engagement and wellbeing: A clear sense of purpose and direction, support on perfor- mance, opportunities for growth, a strong sense of belonging and leadership characterised by a high level of authenticity and empathy. The Policy sets out specific expectations to em- ployees and managers and applies to all employees, including full-time, part-time and tem- porary staff across all departments and locations, and is mainly implemented by the global HR or- ganisation and leaders in Demant. The Senior Vice President of HR is accountable for all Group policies related to our own workforce, unless otherwise stated, and is responsible for im- plementing, monitoring and reviewing adherence. Our employees can access all relevant policies through our intranet, which also provides access to all local personnel handbooks. The day-to-day business of HR is predominantly conducted locally. Cross-Group HR initiatives are prioritised, managed and coordinated via dedi- cated global forums, including the Global HR Board, which sets the direction of and approves strategies and budgets. Engaging our employees S1-2 Demant collaborates with employee representa- tives in many areas, and we comply with all legal requirements when it comes to employee repre- sentation in the geographies where we operate. Demant manages, measures and works with em- ployee engagement through the global engage- ment programme, Pulse. It includes an annual en- gagement survey that covers a range of relevant topics, such as wellbeing, working environment, development and inclusion, as well as a mid-year survey. The surveys cover the entire Group, except those countries where local data privacy legislation prevents it. Through quarterly info meetings, where Demant’s CEO gives a business update to employees, we provide a direct platform for employees to ask questions about business performance and any actual or potential impacts that are likely to affect them. These info meetings are available online to the majority of the Group’s employees, except in those few countries or sites, such as newly ac- quired entities, that do not have access to our in- tranet. General Managers of local Demant entities also share and cascade information, e.g. at info meetings or through other communication chan- nels. Demant’s whistleblower hotline enables employ- ees to report any concerns about adverse human rights impacts in a confidential and anonymous manner. Read more on page 99. Remediating negative impacts S1-3 Where Demant may cause or contribute to nega- tive impacts on employees, we are committed to taking appropriate remedial action. Cases raised are escalated to the Senior Vice President of HR, who will involve relevant HR business partners that can act independently and neutrally in under- standing and assessing the incident. When an incident is sufficiently substantiated, consequences for the wrongdoer can include oral or written warnings, mandatory training and medi- ation. When incidents occur, relevant top manage- ment leaders are informed to ensure organisa- tional learning and prioritisation of structural reme- dies such as improvement plans and preventive measures. Any remediation process complies with local legislation and adheres to our general whis- tleblower investigation instructions. Actions and results S1-4 Employee voices inform our actions Leadership teams in each business area are re- sponsible for creating a good working environ- ment where employees thrive and can perform at their best. The engagement survey provides data to help assess whether, and to what extent, cur- rent initiatives to create such a workplace are working. Further, it helps to inform the develop- ment of specific actions for areas that may need more attention when leaders and employees dis- cuss the outcomes. Many employees participate in the surveys, and in 2025, Demant achieved a participation rate of 85%. In 2025, we introduced a mid-year survey to focus on accountability and to track progress on the ac- tions and commitments made after the annual en- gagement survey. We see that leaders who en- sure follow-up actions also experience higher lev- els of engagement in their teams. Standardising leadership development and support In 2025, we implemented a dedicated leadership development program me for all leaders, focusing on learning journeys across the five essential pil- lars of leadership outlined in our Leadership Com- pass. It is our ambition to make all digital learning available to employees as well, which will be rolled out over the coming years. General information on own workforce To be a leader in creating a positive social impact on society, we need to be a leading employer offering a great place to work. Sustainability in Demant Environment Social Governance Additional information Demant Annual Report 2025 82 Stronger HR systems We have been working on establishing a global standard for capturing and reporting HR data. We have standardised key HR processes, such as re- cruitment, promotion and performance, and we have designed and implemented a new HR ser- vice delivery platform, which gives employees and managers easier access to HR-related information and support. In 2025, the new HR platform was rolled out in Denmark, Poland, Australia and New Zealand. We will continue the implementation in 2026 in the remaining largest countries by number of employ- ees, which includes the US, France, Canada, Ger- many and the United Kingdom. The rest of the world will follow consecutively. Optimised and sys- tem-supported processes support our employees and managers and enable us to assess the effec- tiveness of our processes through reliant and quantifiable data. Targets and metrics S1-5 Demant has set a target to take employee en- gagement to the top-third level by 2030, which corresponds to the 67th percentile or above in the Gallup engagement index. Entity-specific metrics Engagement improved from the 52nd to the 55th percentile, showing continued progress towards our engagement target. S1-6 As of 31 December 2025, the Group had 26,704 employees globally. Compared to 2024, the total headcount has increased by 18%, mainly due to the acquisition of KIND, which is based in Ger- many. Among all employees, the gender ratio be- tween female and male is 65/35%. This is due to the fact that the majority of our employees in hear- ing care clinics and at our manufacturing sites are female. Engaged at work 2025 2024 2023 1 2022 1 2021 1 Engagement score 4.16 4.13 4.11 4.08 4.02 Participation rate 85% 84% 87% 86% 88% Percentile 55th 52nd 52nd 50th 46th 1 Not covered by the Independent Auditor’s limited assurance report Number of employees by contract type, broken down by gender 2025 2024 (Headcount) Female Male Total Female Male Total Total employees 17,314 9,390 26,704 14,594 8,045 22,639 Permanent employees 16,165 9,088 25,253 13,772 7,839 21,611 Temporary employees 1,149 302 1,451 822 206 1,028 Full -time employees 14,593 8,857 23,450 12,338 7,579 19,917 Part -time employees 2,721 533 3,254 2,256 466 2,722 Sustainability in Demant Environment Social Governance Additional information Demant Annual Report 2025 83 Our headquarters in Denmark, manufacturing sites in Poland and hearing care clinics in Ger- many, the US and Poland are the sites with the largest number of employees. Accounting policy Engagement score Employee engagement is scored, using a scale from 1 to 5 based on the yearly engagement sur- vey conducted by Gallup. The engagement survey does not cover temporary staff, students, exter- nals, employees on leave and specific companies and countries not yet integrated into our global HR management system. Number of employees The number of employees is determined by head- count and as the number of persons employed by the Demant Group as at 31 December 2025. The number includes the total number of employees extracted from the global HR management system plus an estimate, covering the entities not using the system. Characteristics of employees Data on the characteristics of employees is dis- closed by headcount. The characteristics of em- ployees are aggregated and include both an anal- ysis of data extracted from our global HR man- agement system and estimates, covering entities not using the system, as stated below. In 2025, 77% of our employees were registered in our global HR management system. Estimation method For entities not using the global HR management system, the characteristics of employees are esti- mated based on the characteristics of employees in the region where the entity is located. Using our global HR management system, we calculate the characteristics of employees in one region based on an overview of all entities in that particular re- gion. Number of employees by country (Headcount) 2025 2024 Poland 5,241 5,087 Germany 4,484 1,020 USA 3,415 3,404 Denmark 2,201 2,111 Sustainability in Demant Environment Social Governance Additional information Demant Annual Report 2025 84 ESRS 2 SBM-3 S1 We have identified two actual impacts and one risk related to working conditions for our own workforce: • Physical health and safety incidents in De- mant, along with cases of stress leave, can negatively impact employees’ health and well- being. • Excessive overtime can sometimes be a prob- lem across the Demant Group and can have negative impacts on employees. • There is a risk related to the attraction and re- tention of employees, which could have a fi- nancial impact on Demant. Policies guiding our behaviour S1-1 We have site-specific health and safety prevention policies and management systems across our op- erational sites in accordance with country legisla- tion and regulatory requirements. All management systems comply with local requirements and in- clude, among others, risk assessment processes, health and safety instructions, safety walks and talks, training, accident investigation management and continuous review of processes. The local site management is responsible for occupational health and safety. We have a Stress Policy, covering all sites in Den- mark and explaining how to prevent and manage incidents of stress. Since stress management of- ten depends on location, cultural considerations and local legislation, it is handled locally by HR departments across the Group. The overall re- sponsibility lies with the local HR management in close collaboration with local management. The Global Policy on Human Resources ad- dresses working time by focusing on well-being and work-life balance. We comply with all relevant local legislation when it comes to working time. Demant strives to provide a good work-life bal- ance culture and to be a flexible workplace when tasks and local conditions allow for this. Our posi- tion on workplace flexibility provides guidance across the Group on implementing concrete measures that ensure flexibility for both employ- ees and the workplace. Managers must ensure that local guidelines on work-life balance and well- being are followed. Our Global Policy on Human Resources defines the minimum requirements for our employees re- garding their personal and professional develop- ment and growth as well as the company’s expec- tations of the employees. Engaging our employees S1-2 Health and safety committees At many Demant locations, health and safety committees are mandatory under national regula- tions. Such committees ensure employee engage- ment in guaranteeing that our workplace remains safe and healthy. They provide a platform for dis- cussing issues of relevance and invite employees to help define actions to prevent and mitigate health and safety incidents . Development and performance touch points Our annual cycle of performance touch points in- cludes, as a minimum, a mid-year and an annual review of performance. The objective is to openly and continuously discuss goal setting, provide clarity on job responsibilities and align on tasks and time management, skills assessment and learning plans. Most employees are in scope, ex- cluding manufacturing operators and warehouse staff, but it may vary across sites and business ar- eas. Approximately 70% of the global Demant workforce is registered in the performance devel- opment system. People leaders are responsible for these processes, supported by HR through clear and transparent guidelines and training. Actions and results S1-3 and S1-4 Health and safety assessment and management In 2025, we conducted an in-depth assessment of how we manage occupational health and safety (OHS) across our main manufacturing sites, ware- house facilities and the office sites with the most employees. The assessment provided a solid mapping of the key OHS risks and how OHS is managed, confirming us that we have adequate measures in place to prevent and mitigate impacts related to health and safety. In 2025, we further matured our management sys- tems across Demant sites: • At our Diagnostics manufacturing site in Po- land, we replaced a chemical agent, which, according to the updated safety data sheet, was labelled as carcinogenic, with a safer al- ternative. • At our manufacturing site in Mexico, we fo- cused on improving ergonomic conditions for our employees, replacing chairs and tools with more suitable variants. • In Australia and New Zealand, we released digital incident and injury report forms to ena- ble instantaneous feedback to the health and safety partner and to improve data collection on incidents. • In the US and Canada, we made efforts to im- plement a hazard identification culture that everyone takes responsibility for. Incident management When incidents occur, we ensure access to imme- diate first aid and, where necessary, enable medi- cal evaluation and support and appropriate return- to-work arrangements, such as paid time off or modified duties. All incidents are reported, re- viewed and investigated to identify root causes, implement corrective actions and prevent recur- rence. Working time It is a management task to ensure work-life bal- ance and limit overtime to a minimum. General tracking of working time enables employee-leader dialogue and helps leaders prevent and mitigate instances of excessive overtime. We work to en- sure that we comply with all relevant legislation re- lated to working time, such as the EU Working Time Directive. Development opportunities We provide our employees with development op- portunities through different global and local learn- ing platforms. At Demant, we use the 70/20/10 learning approach, which means that we aim for a distribution where 70% of learning happens on the Working conditions Working at Demant should be an enjoyable and rewarding experience, both professionally and personally, and it must also be physically and psychologi- cally safe. Sustainability in Demant Environment Social Governance Additional information Demant Annual Report 2025 85 job, 20% happens through coaching and peer learning and 10% can be formal internal or exter- nal learning. Launched in 2025, the global Leader- ship Compass also focuses on employee develop- ment and how leaders can facilitate conversations about this. In 2025, we welcomed 10 new graduates to our Global Graduate Programme, which offers oppor- tunities for young professionals to develop their personal and professional skills over a two-year journey across our entire global organisation. Retaining our talents Talent retention efforts are focused on the busi- ness areas with the highest turnover rates. In our Hearing Aids business area, we have since 2024 worked on a strategic project with high prior- ity and leadership attention to address high volun- tary turnover among manufacturing employees. The project first assessed root causes through, among other methods, candidate experience sur- veys and exit interviews. Key initiatives were then implemented, revolving around strengthening of front-line leadership, improving recruitment and onboarding processes to strengthen the sense of belonging and addressing basic needs. At our manufacturing sites in Mexico and Poland, these initiatives have led to the lowest turnover ever measured and a continuously downward trend with an annual voluntary turnover that is now be- low 15%. Further, our efforts have led to better and more focused employee dialogue, which has improved engagement. In our Hearing Care business area, which is part of the retail industry that traditionally has high em- ployee turnover, we have focused our efforts spe- cifically on improving development plans and ca- reer planning for front-end coordinators. Career paths and growth opportunities have been clari- fied through career frameworks and focus on in- ternal recruitment. In addition, both recruitment and onboarding practices have been improved, and we have strengthened our overall focus on culture and engagement through leadership train- ing. Tracking effectiveness and metrics ESRS 2 MDR-T and S1-5 Demant has not set any specific targets for health and safety, working time or employee turnover at this time. We strive to ensure zero harm, promote a healthy work-life balance and maintain a bal- anced employee turnover. We use relevant met- rics to assess progress and improvement, such as those disclosed in this section. S1-6 Employee turnover decreased by 2 percentage points from 2024 to 2025, reflecting our continued efforts to strengthen recruitment and onboarding. S1-14 Most reported incidents were minor injuries, mainly cuts, trips and falls. These insights shape our preventive actions. Accounting Policy Employee turnover rate The employee turnover rate is calculated as total terminations (excluding external employees), di- vided by the average number of employees multi- plied by 100. Turnover includes both voluntary and involuntary terminations. The rate is based on 86% of Demant Group employees covered by our global HR system (excluding KIND), with turnover (headcount) extrapolated for non-covered employ- ees assuming a similar rate. Health and safety management system The percentage of employees in Demant’s own workforce who are covered by our health and safety management system based on legal re- quirements and/or recognised standards or guide- lines. Fatalities as a result of work-related injuries Work-related incidents where an employee from own workforce or a value chain worker working on a Demant site lost their life. Recordable work-related accidents The number of work-related injuries classified as recordable, including cases requiring medical treatment, restricted work or days away from work among own employees during the reporting pe- riod. Rate of recordable work-related accidents The rate is calculated as the number of recordable work-related accidents multiplied by 1,000,000, di- vided by the total hours worked. The hours are es- timated by multiplying full-time equivalents by a 40-hour work week. Change in accounting policy and restate- ment Turnover figures for 2024-2022 have been re- stated to reflect the full workforce rather than only employees captured in our HR system, ensuring comparability across years. Without restatement, Group turnover (headcount) would have been: 3,733 in 2025 and 4,080 in 2024. Health and safety 2025 Employees covered by a health and safety management system (%) 100 Fatalities as a result of work -related injuries and work-related ill health (number) 0 Recordable work -related accidents (number) 154 Recordable work -related accidents (rate) 3.2 Employee turnover 2025 2024 2 2023 2 2022 2 Employee turnover (%) 18 20 25 26 Employee turnover (headcount) 1 4,341 4,636 5,708 5,660 1 2024-2022 restated due to the inclusion of employees outside of HR system to ensure comparability 2 Not covered by the Independent Auditor’s limited assurance report Sustainability in Demant Environment Social Governance Additional information Demant Annual Report 2025 86 ESRS 2 SBM-3 S1 We have identified one actual and two potential impacts related to equal treatment for own work- force: • Cases of discrimination and harassment sometimes occur in Demant’s global multi-cul- tural workforce, which can lead to negative impacts on employees. • Some employee groups in Demant may en- counter barriers to professional advancement, which could lead to negative impacts on those employees. • Demant has a potentially negative impact on employees’ right to equal pay for equal work. Policies guiding our behaviour S1-1 In Demant, we work to foster respect for diversity, and we strive to treat all employees fairly. The Global Policy on Human Resources has two dis- tinct drivers related to equal treatment: belonging and personal awareness. The Policy outlines mini- mum requirements of leaders and employees re- lated to psychological safety and inclusive culture. Further, leading with authenticity, empathy and adaptability is a prerequisite for fostering a culture of trust and enables open and honest conversa- tions when addressing issues related to equal treatment. Our Diversity and Inclusion Policy, which we re- vised in 2025 and that will apply from Q1 2026, covers our global organisation and guides our commitment to fair and respectful treatment of all employees. The Policy outlines our ambitions and strategic pillars. The Executive Leadership Team is accountable for compliance and progress. The Policy is implemented locally, with actions and ini- tiatives carried out in compliance with applicable laws and regulations. In Demant, there is zero tolerance of any form of discrimination, harassment or bullying related to our workplace. Our Anti-Harassment and Discrimi- nation Guideline articulates Demant’s approach to preventing, mitigating and acting on cases of dis- crimination, harassment, bullying and unethical behaviour. The Guideline applies to all employees and contractors working for Demant globally and governs behaviour at work, during off-site assign- ments and at office-sponsored social functions as well as private behaviour that can be related to Demant, such as on social media. It also provides specific information on how to raise grievances re- garding harassment and discrimination and the consequential complaints and remedy procedure. Our Recruitment Policy defines general principles for attracting, selecting and onboarding candi- dates for vacancies in all Demant entities to en- sure consistent and transparent recruitment pro- cesses. We commit to conducting interviews in a fair and non-discriminatory manner and to ensur- ing that hiring decisions are made objectively. We had planned to implement a Global Policy on Remuneration and Rewards in 2025, but we have prioritised building a new job architecture, which has taken all our focus in 2025. To ensure close alignment of the Policy with our internal pro- cesses, we have chosen to implement the new Policy in 2026. Engaging our employees S1-2 Employee resource groups Employee Resource Groups (ERGs) are volun- tary, employee-led groups that bring together indi- viduals who share a common trait, background or interest or those who are passionate about sup- porting the topics. ERGs are open to all and aim to provide a safe space where employees can connect, share experiences and build a sense of community. Currently, Demant has ERGs in Denmark and the US. ERGs provide an avenue for employees to raise concerns about specific issues related to equal treatment. In Denmark, ERGs are consulted on a regular basis and provide invaluable input for developing strategies to mitigate potential impacts related to fair and equal treatment. Where rele- vant, ERGs are supported by global HR and local HR, who ensure that input from ERGs helps in- form Demant’s approach to diversity and inclu- sion. Having worked with ERGs since 2022, we acknowledge that it can, at times, be challenging. It is a balancing act for ERGs to be passionate about a cause, despite not having the mandate or responsibility to drive change. At Demant, we are committed to continuing to support our ERGs with the primary objective to amplify employee voices. Actions and results S1-4 Learning and awareness Enabling learning and awareness for leaders and employees on Demant policies, guidelines and ex- pected behaviour is central to mitigating and pre- venting any negative impacts related to equal treatment. In 2025, we: • Made the mandatory Anti-Harassment and Discrimination Guideline accessible to all us- ers on our digital learning platform. In-person learning was initiated in December and will continue in Q1 2026, • Implemented a learning journey on inclusive leadership and belonging as part of our lead- ership development programme for global leaders, except where prohibited by local laws and regulations, • Celebrated diversity and inclusion in various countries, for example through our participa- tion in Copenhagen Pride in Denmark. Direct employee feedback on inclusion and equal opportunities Through the annual engagement survey, we ask employees in local markets, where permissible, to rate specific statements to assess their perception of inclusion and equal opportunities in Demant. Survey data enables specific tracking of the effec- tiveness of our actions. Global HR business part- ners support business area teams in assessing the data and prioritising actions to address prob- lem areas. Equal opportunities Our global recruitment platform contains embed- ded materials designed to prompt inclusive re- cruitment behaviour. We strive to implement prac- tices to ensure a fair and objective process, such Equal treatment and opportunities for all We want to foster a culture built on care and respect for others, characterised by diversity and a strong feeling of belonging. Sustainability in Demant Environment Social Governance Additional information Demant Annual Report 2025 87 as clear and comprehensive job requirements in the candidate assessment process. Specific themes related to equal treatment and belonging are embedded in the global performance dialogue review, which provides input for assessing the ef- fectiveness of our actions. Our practices are gov- erned by applicable local laws and regulations. Equal pay We strive to offer market-aligned and competitive salaries that reflect the principle of equal pay for equal work, while also recognising each em- ployee’s individual skills, experience and perfor- mance. To ensure this, we review and benchmark salaries internally and against comparable compa- nies in the markets where Demant operates. In 2025, we focused on building internal structures to meet coming requirements on pay transpar- ency. This included designing a job architecture in line with the EU Pay Transparency Directive and aligning decentralised systems to track compen- sation data. We are continuing our efforts to im- prove data and plan to report on the adjusted pay gap from 2026. Targets and metrics S1-5 To drive a more gender-balanced composition in leadership, we have set a target to reach a gender balance of 35/65% (female/male) by 2030. Gen- der representation metrics are calculated on a global basis to ensure consistency and transpar- ency. Actions to achieve gender representation targets will only be implemented where permitted by applicable local laws and regulations. Demant has set a target to take employees’ expe- rience of inclusion to the top-third level by 2030, which corresponds to the 67th percentile or above in the Gallup inclusion index. S1-9 In 2025, the share of female top-level managers increased to 33%, reflecting continued progress towards our 2030 target of 35%. Danish Financial Statement Act, section 107 f The Board of Directors aims to have at least 40% of the underrepresented gender among the Board members elected by the shareholders and for the staff-elected members, as this constitutes an even distribution in terms of gender cf. section 4 of the Danish Act on Gender Balance. In 2025, the Parent, Demant A/S, maintained an even distribution of gender both in the Board of Directors and at other levels of management, cf. section 4 of the Danish Act on Gender Balance. Hence, Demant A/S is not required to define a specific target and policy for other levels of man- agement. Entity-specific metrics In 2025, our inclusivity score reached 4.30 (+0.03) in the annual engagement survey, placing us in the 57th percentile. Overall, employees feel re- spected and valued for their strengths and trust Demant to act with integrity and responsibility. S1-9 In 2025, the age distribution among Demant’s em- ployees was relatively even. This reflects a bal- anced and diverse workforce, enabling genera- tional exchange of knowledge and perspectives. Age distribution of employees Below 30 18% 30-39 27% 40-49 30% 50 and above 25% Gender balance in Parent company 2025 % Headcount Board of Directors - shareholder-elected members (female/male) 40/60 5 Board of Directors - staff-elected members (female/male)¹ 33/67 3 Executive Board members (female/male)² 0/100 3 Other levels of Management (female/male)³ 50/50 8 ¹Equal to an even (40/60%) distribution, cf. Annex 1 to the Danish Act on Gender balance ²Reporting requirement cf. section 107 f of the Danish Financial Statement Act ³Executive Board incl. Direct reports employed in the legal entity Demant A/S Inclusivity at work 2025 2024 Inclusivity score 4.30 4.27 Participation rate 85% 84% Percentile 57th 56th Gender diversity in leadership 2025 2024 % Headcount % Headcount Board of Directors - all members (female/male) 38/62 3/5 29/71 2/5 Top -level management (female/male) 33/67 34/68 31/69 30/66 All managers (female/male) 51/49 1018/990 50/50 980/975 Sustainability in Demant Environment Social Governance Additional information Demant Annual Report 2025 88 S1-16 Equal pay In 2025, the unadjusted gender pay gap at De- mant was 28%. The figure reflects the distribution of employees across organisational levels and ge- ographies, with more men in senior roles and a high share of women employed in manufacturing facilities in Poland and Mexico and in our hearing care clinics around the world. To comply with the principle of equal pay for equal work, we have conducted a detailed analysis of pay differences across comparable job levels in Hearing Care and manufacturing. The analysis shows that the gen- der pay gap at these job levels is below 5%, con- firming that our pay practices are equitable for similar roles. The unadjusted gender pay gap was not reported for 2024 due to unavailable underlying data. Fol- lowing the completion of our HR data manage- ment enhancement project in 2025, we are now able to disclose the gender pay gap. In 2025, the CEO remuneration ratio increased by 1 point to 42 compared to 2024. For more details on remuneration, please refer to our Remunera- tion Report. S1-17 In 2025, Demant received 38 reports through its whistleblower hotline concerning discrimination and/or harassment. The increase in cases is mainly driven by the anti-harassment and discrimi- nation training introduced in Q3, which has strengthened employee awareness. 32 out of 38 claims have been handled. There were no severe human rights incidents in 2025, and therefore no fines, penalties or com- pensation for damages were paid. Severe human rights incidents are defined as confirmed cases, involving forced labour, human trafficking, child la- bour or other serious infringements of internation- ally recognised human rights. Accounting policy Age distribution of employees The chart shows the age distribution of employees in the Group, covering 100% of Demant’s employ- ees. Gender balance in leadership Board of Directors The gender distribution relates to the shareholder elected members of the Board of Directors and the employee representatives on the Board. Top-level management The gender distribution relates to management levels from Vice President and above. All managers The gender distribution relates to all people man- agers with one or more direct reports. The number is calculated based on data from our global HR management system, covering 77% of Demant’s employees. Inclusivity score Employees score inclusivity, using a scale from 1 (lowest) to 5 (highest) based on the yearly en- gagement survey conducted by Gallup. The sur- vey does not cover temporary staff, students, ex- ternals, employees on leave, specific companies and countries not yet integrated into our global HR management system and markets where the sur- vey questions are not permissible. CEO remuneration ratio The CEO remuneration ratio is calculated as the CEO’s total remuneration (numerator) divided by the average remuneration of all Group employees (denominator) instead of the median Group em- ployee. Demant is committed to enhancing data quality on this topic in future reporting periods. Gender pay gap The gender pay gap is calculated as the differ- ence between the average annual base salary of all male and female employees divided by the av- erage annual base salary of all male employees. Only employees who are included in our global HR management system are part of the calcula- tion. Incidents, complaints and severe human rights Incidents of discrimination and harassment in- clude any incidents brought forward through De- mant’s whistleblower hotline. The reported inci- dents include all recorded cases of bullying, har- assment and discrimination. Fines, penalties and compensation for damages refer to any financial payments made in relation to confirmed cases within the financial year. CEO remuneration ratio 39 47 41 42 0 10 20 30 40 50 60 2022 2023 2024 2025 Incidents, complaints and severe human rights impacts 2025 2024 Cases of harassment and discrimination reported 38 11 Complaints filed to National Points for OECD Multinational Enterprises 0 0 Fines, penalties and compensation for damages as a result of incidents and complaints 0 0 Confirmed severe human rights incidents connected to own workforce 0 0 Sustainability in Demant Environment Social Governance Additional information Demant Annual Report 2025 89 IROs Value chain Working conditions for value chain workers Upstream DownstreamOwn operations N Own Hearing Clinic S2 Workers in the value chain Our commitment to caring for people extends not only to own employees, but also to workers that we impact indirectly in our value chain. Sustainability in Demant Environment Social Governance Additional information Demant Annual Report 2025 90 ESRS 2 SBM-3 S2 We have identified one potential impact related to workers in the value chain: • Demant engages with suppliers that operate in countries and industries with potentially negative impacts on workers’ rights to a fair and safe working environment. The value chain workers identified to potentially be exposed to the above-mentioned impacts are those working in electronics manufacturing and its related supply chain. They are connected to the Demant upstream value chain through business relationships. We consider the potentially negative impact to be systemic to that particular value chain. Policies guiding our behaviour S2-1 Our Third Party Compliance Code outlines what we expect of our suppliers and business partners when it comes to working conditions for workers in the value chain. This includes the core Interna- tional Labour Organization (ILO) standards on working conditions, workplace health and safety, freedom of association, trafficking, forced/child la- bour and non-discrimination. We require all new direct suppliers to accept this Code or to comply with their own code of equivalent standard. The Code is included as an appendix to all new con- tracts with suppliers. The Senior Vice President of Group Legal & Compliance is accountable for the Code, while its implementation lies with Demant’s procurement departments. Updated in 2025, the Demant Group Supply Chain Sustainability Policy summarises our com- mitment to advancing sustainability across our supply chain. The Policy covers all relevant up- stream buying practices across the Demant Group and outlines how we manage supplier relation- ships from a risk-based approach. The responsi- bility for the implementation of this Policy into our ways of working is shared between the leader teams of the two main procurement functions in Demant, Hearing Aids and Diagnostics. Engaging with our stakeholders S2-2 and S2-3 We continuously take steps to understand the po- tential impacts of our operations on workers in our value chain. Our whistleblower hotline is accessi- ble to all external stakeholders, including value chain workers. Please refer to page 99. Currently, Demant does not require its suppliers to establish reporting channels for their own employees to raise concerns. This will be considered the next time we update our Third Party Compliance Code. In our Hearing Aids business area, we have inte- grated sustainability into our supplier engagement programme, Sustain, which focuses on decarboni- sation and addressing human rights impacts in our supply chain. When we audit suppliers in rela- tion to ESG, we interview workers directly. Actions and results S2-3 and S2-4 Considering the vast number of suppliers across our business areas, we take a risk-based ap- proach to managing potentially negative impacts on value chain workers. Our supplier sustainability risk assessment process, which was updated in 2024, enables the identification and documenta- tion of potential impacts that workers in our supply chain are exposed to, based on suppliers’ country and sector risks. Continuous risk assessment is embedded in how we manage our supply chain, and dedicated sustainability specialists lead this work in our procurement functions. If a negative impact is reported to or identified by Demant, we engage directly with the supplier to urge them to take preventive and corrective ac- tion, while clearly communicating our expectation that remedies are provided to the affected value chain workers. No severe human rights impacts or incidents connected to our upstream or down- stream value chain were reported to us in 2025. Hearing Aids business area We audit all new direct suppliers in high-risk terri- tories against the expectations of our Third Party Compliance Code, using an external audit pro- vider. When issues are raised, we engage in dia- logue and plan for corrective action. Further, the Code is embedded in the digital tender process. Suppliers must accept Demant’s terms and condi- tions, including the requirements of the Code, to register and submit a bid. The Hearing Aids pro- curement function covers procurement for our Hearing Care business area. Due to internal prioritisation and unclear legisla- tive expectations in the EU, progress on imple- menting the updated risk and due diligence pro- cesses in 2025 was slower than intended. Imple- mentation is now planned for 2026. Diagnostics business area Before engaging with new suppliers in select high- risk locations, we conduct an initial on-site audit for vendor approval through a third party. In 2025, we focused on implementing the sustain- ability supplier risk assessment process across the Group. This included onboarding and training of buyers and creating a central process platform. We will complete the roll-out to all manufacturing sites in 2026. We also introduced an ESG ques- tionnaire for selected high-risk suppliers to assess adherence to our Third Party Compliance Code. Tracking effectiveness ESRS 2 MDR-T and S2-5 Continuous evaluation of our actions and prac- tices is embedded in our ways of working. We are currently focusing on aligning due diligence pro- cesses to coming legislative requirements. We have not yet set specific targets related to the im- pact on workers in the value chain but will explore options to do so, as we mature our internal pro- cesses. Working conditions for value chain workers We work to ensure that we support the protection of rights throughout our value chain . Sustainability in Demant Environment Social Governance Additional information Demant Annual Report 2025 91 IROs Value chain Providing life-changing hearing health Product quality and safety Providing life -changing hearing health Right to privacy for end-usersRight to privacy for end-users Upstream 2025 2025 2030 2 million 2030 16 million DownstreamOwn operations R Progress against targets Lives improved People tested 1.6 million 12.1 million O P NR Own Hearing Clinic S4 Consumers and end-users Our core commitment to society is to help people become aware of and overcome hearing loss and improve their quality of life through innovative solutions and access to personalised hearing care. Sustainability in Demant Environment Social Governance Additional information Demant Annual Report 2025 92 ESRS 2 SBM-3 S4 and S4-2 We have identified one actual positive impact and one opportunity related to end-users: • Through our products, Demant positively im- pacts users living with hearing loss. • Delivering hearing health solutions is the core of the Demant business and a key driving force behind revenue growth and market ex- pansion. Hearing loss has immense societal implications (read more on page 15). Demant’s purpose, strat- egy and business model are built on making a positive impact for people living with hearing loss, ultimately improving our users’ quality of life. As this is inherent to our core activities, it is not cov- ered by a specific policy. Actions and results S4-2 and S4-4 Continuous feedback from users, hearing care professionals and wholesale customers drives us to focus on research and development of innova- tive technology and enables us to provide a high level of service and care in our hearing care clin- ics. See an overview of how we engage with cus- tomers on page 94 and read more about user en- gagement on the next pages. Our key actions towards maximising our positive impact and pursuing material opportunities are to grow our business. This is reflected in our strate- gic aspirations and expected growth. Read more on page 17. How we create value is presented on page 19. As part of our strategy, we are committed to con- tinuing to invest in R&D and further expanding the distribution of our products in both existing and new markets going forward. In 2025, Demant in- vested DKK 1,402 million in R&D to drive innova- tion and ensure continuous technological leader- ship to the benefit of our users. Raising awareness of hearing loss Raising awareness of the importance of hearing loss is an important driver towards succeeding in our purpose and growing our business. Our ap- proach is centred around addressing the stigma related to hearing loss. We do so by repositioning hearing loss treatment and the use of hearing aids to something positive and by focusing on the ben- efits of good hearing. We believe that people ex- periencing hearing loss should be motivated to address it, but the fact is that they often carry with them internal and external barriers in the form of stigma, bias and lacking awareness of hearing health. So, we focus our efforts on removing the barriers to having hearing loss addressed and treated. This is the main objective of our global campaign ‘Love your ears’. Many of our hearing care clinics actively engage with their local communities to create public awareness and to connect with those who may have a hearing loss but are unaware of it. Through outreach activities, we provide free hear- ing screening, enabling people living with an un- treated hearing loss to embark on their own jour- ney towards treatment. Building capacity in healthcare Across our business areas, we provide global ac- cess to the most current and relevant clinical knowledge about hearing health. Building capacity among ear-nose-throat doctors, audiologists and healthcare professionals is crucial to ensure early intervention for hearing loss and ultimately, ad- dressing hearing loss. Our training offerings help support building hearing health capacity in coun- tries and regions with no or very little formal audi- ology education, enabling better access to higher quality hearing healthcare for people living with hearing loss. Ensuring access Demant operates globally, providing access to in- novative hearing healthcare through its vast net- work of clinics. The international companies that are part of our Diagnostics business area cover every major customer segment in all key geo- graphic regions, while our Hearing Aids business area is present with sales companies in more than 30 countries. In markets where Demant is not present, we have long-term partnerships with distributors, who often have a strong background in audiology. We sup- port them in driving digital marketing, increasing consumer awareness and maturing their business to push hearing aid penetration, which in some markets is as low as 0-5% of people who need them. Global distribution provides access to our innovative products and supports healthy competi- tion in markets characterised by low supply of hearing health services for the benefit of users. See our global presence on page 11. A highly competitive hearing aid market powered by innovation leads to competitive pricing. Through our diversified portfolio of hearing aids, with products and services ranging from basic to premium, we offer a range of lower-priced and more easily accessible products, which benefits users with a lower income. Pricing in the retail market includes a high level of service and full re- turn assurance for the benefit of users. Demant also participates in public tenders globally, thereby supporting affordability. Targets and metrics S4-5 Demant has established the following targets for advancing positive impacts for people with hear- ing loss: • Improve more than 16 million lives by 2030 • Increase awareness by performing hearing tests on more than 2 million people by 2030 The targets are set based on Demant’s overall ambition and purpose and cover all markets where Demant is present. Lives improved (million lives improved) Based on the estimated lifetime of hearing aids, the number of hearing aids sold and the number of fittings made by the Group in 2025, we Providing life-changing hearing health According to the World Health Organization, one in five people today lives with hearing loss. If untreated, it impacts their ability to interact in life. 8.8 9.4 10.3 10.9 12.1 0 2 4 6 8 10 12 14 2021¹ 2022¹ 2023¹ 2024 2025 1 Not covered by the Independent Auditor’s limited assurance report Sustainability in Demant Environment Social Governance Additional information Demant Annual Report 2025 93 improved 12.1 million lives in 2025. In H1 2025, the number of lives improved increased from 10.9 to 11.4 million, a rise of 4.6%. Progress continued in H2, and, with an increase of 11% from 2024 to 2025, we are on track to meet our long-term ambi- tion to improve 16 million lives by 2030. People tested (million people) In 2025, Demant tested 1.6 million people with suspected hearing loss. Continued efforts focus on keeping this momentum. Entity-specific metrics R&D costs (DKK million) Reflecting the company’s ongoing commitment to product innovation, R&D investments remained broadly stable in 2025. Following R&D costs of 1.39 billion in 2024, expenditure increased slightly during the year and reached 1.40 billion at year- end, reflecting a stabilisation of the growth pattern observed in previous years. Accounting policy Lives improved The number of lives improved is determined by the number of hearing aids sold and the binaural rate. The calculation also accounts for a mortality rate to reflect that not all users remain active over the full period. The number is accumulated based on a five-year product lifecycle. Hearing tests performed Hearing tests performed is the number of tested people in our clinics during the reporting period. For entities without actual data, the number of tests is estimated, using a proxy based on hearing aids sold. This proxy assumes that regional aver- ages for the ratio between hearing aids sold and hearing tests can be applied to countries that do not have actual data. The accounting policy for R&D costs is described on page 124. 1.5 1.6 0.00 0.25 0.50 0.75 1.00 1.25 1.50 1.75 2.00 2021 2022 2023 2024 2025 Data not available 943 1,082 1,226 1,394 1,401 0 500 1,000 1,500 2021 2022 2023 2024 2025 Sustainability in Demant Environment Social Governance Additional information Demant Annual Report 2025 94 ESRS 2 SBM-3 S4 We have identified one risk related to the safety of consumers: • If quality requirements are not met or medical device regulations are not complied with, it represents a risk to Demant’s licence to oper- ate and our ability to bring products to market. Policies guiding our behaviour S4-1 Working with quality is vital for us to sustain the high standards and reliability of our products and to ensure the safety of our customers and users. We define quality management in policies for the Hearing Aids and Diagnostics business areas. The quality policies are embedded in our decision- making and ways of working and reflect our inten- tions regarding the quality of our products and services to enable us to deliver the best to our customers and users. The policies provide the foundation for meeting regulatory requirements, such as the EU Medical Device Regulation (MDR) and MDSAP requirements, as well as all local country regulatory requirements. The policies cover activities that support product development, manufacturing, marketing and servicing. Demant’s Executive Leadership Team carries the overall responsibility for product quality and safety, and specific managerial responsibilities are defined and described for relevant activities. Leaders in the quality functions are accountable for ensuring that quality and compliance are delivered by the organisation and for maintaining the quality policies. Engaging with users and customers S4-2 and S4-3 We have established customer support service platforms and channels for our three business ar- eas, enabling complaints and feedback from users throughout the user journey. These channels al- low our stakeholders to raise concerns and com- municate cases of negative impact. All complaints are handled by dedicated customer service teams, ensuring documentation and follow-up with the complainant. This includes any remediation, such as fitting support, repair and replacement, where relevant. User interaction through user quality surveys and daily engagement with hearing aid users through our global network of hearing clinics enable De- mant to continuously assess issues related to product quality and safety in hearing aids. If an in- cident related to product quality or safety occurs, it will be handled in our CAPA (corrective and pre- ventive action) system through which we conduct methodical risk analyses and root cause analyses, take corrective actions and initiate preventive measures. Following our processes, we report in- cidents to national health authorities, when re- quired. Actions and results S4-4 Quality management By using quality management systems, our Hear- ing Aids and Diagnostics business areas have a framework to demonstrate their ongoing commit- ment to providing safe and effective medical de- vices that consistently meet customer needs and comply with regulatory requirements. Certification against ISO 13485 cements that we have a pro- cess-based approach to ongoing quality manage- ment, ensuring that processes are well-defined, controlled and continuously improved. Risk man- agement is integrated into every stage of the product lifecycle. All Demant’s development and manufacturing sites are covered by ISO 13485 certification. We keep up to date with all requirements to en- sure compliance where we sell our products. This includes scouting regulatory requirements, which enables us to plan and implement processes to support compliance with future regulatory require- ments. Training We ensure that all employees are continuously trained in processes relevant to their tasks. Man- agers establish employee training plans to ensure relevant training ahead of any critical quality or safety activities. All training is documented, and we evaluate training performance and effective- ness. All employees involved in our quality man- agement system are by default trained and their training is recorded. Extensive testing In our Hearing Aids business area, products are tested against reliability requirements at component, assembly and product level to ensure that products are safe and effective throughout their lifetime. The reliability requirements are based on standards, regulations and our exten- sive experience in manufacturing hearing aids. At the end of the development process, final verifica- tion tests are conducted by internal specialists and external accredited test providers to ensure safety and effectiveness. Internally, the system is audited by our quality team and maintained to re- flect developments and changes in our organisa- tion. Before we release products in our Diagnostics business area, they are tested extensively by ac- credited test houses and verified according to es- tablished performance standards. We perform a full and final inspection of our products to ensure that all items are checked for defects, functionality and compliance with all specifications. Biological safety evaluation We mitigate risks associated with quality and safety through biological safety evaluation. We strive to use the same materials to avoid new bio- compatibility testing. When strictly needed, we evaluate materials in skin contact in accordance with ISO 10993. When necessary, we perform an- imal testing according to ISO 10993-10, while evaluating whether chemical extraction and char- acterisation are deemed sufficient instead. Animal tests are conducted by accredited external part- ners, who are required to meet the expectations of our Third Party Compliance Code. Since 2021, only a few such tests have been conducted. Strong safety processes We have strong processes to ensure user safety and actively use complaint handling and continu- ous risk assessments anchored in all processes to assess any need for product recalls. For the past Product quality and safety Ensuring the highest standards of quality and safety in our products is crucial to our purpose of providing life -changing differences through hearing health. Sustainability in Demant Environment Social Governance Additional information Demant Annual Report 2025 95 many years, we have had no need to use the re- call management system. Continuous audits Audits are a central element of ongoing quality management in Demant. We use internal and ex- ternal audits to continuously assess the effective- ness of our actions. Sales and service activities at key Diagnostics sites are certified and audited against ISO 9001. External audits are also con- ducted by national authorities and customers. In- ternally, we audit relevant processes for medical devices, including complaints and recall manage- ment, on a continuous basis. Demant is annually audited against ISO 13485, MDR and MDSAP. The audits are conducted by notified body TÜV SÜD for both our Hearing Aids and Diagnostics business and cover all Demant development and manufacturing sites. In 2025, we had the following audit results: • In Hearing Aids, we had no major findings and three minor findings • In Diagnostics, we had one major finding and 12 minor findings All findings are handled following our CAPA pro- cesses. Tracking effectiveness and metrics ESRS 2 MDR-T and S4-5 Demant has not set group targets related to prod- uct quality and safety. We assess effectiveness through business area-specific indicators related to product quality and safety. These include, but are not limited to, monthly process quality control (PQC), achievement progress for internal audit plans and a continuous target of zero vigilance cases. When audited in accordance with certification re- quirements for ISO 13485, MDR and MDSAP, De- mant aims for zero major findings year after year. Entity-specific metrics 1 Not covered by the Independent Auditor’s limited assurance report Demant monitors product recalls as an important indicator of product quality, consumer safety and the strength of our internal control environment. In 2025, we recorded zero product recalls, reflecting the effective performance of our quality-manage- ment systems throughout the year. Accounting policy Product recalls Product recalls cover both voluntary and manda- tory recalls. This metric includes all products in our portfolio that are placed on the market and are subject to applicable regulatory requirements. Product recalls 2025 2024 2023 1 2022 1 2021 1 Hearing A ids 0 0 0 0 0 Diagnostics 0 0 0 0 0 Sustainability in Demant Environment Social Governance Additional information Demant Annual Report 2025 96 ESRS 2 SBM-3 S4 We have identified one potential negative impact and one risk related to user privacy: • Demant has access to users’ sensitive per- sonal data, potentially resulting in negative im- pacts if the data is compromised. • Based on GDPR regulations, Demant may be subject to a penalty, if we fail to adequately protect the privacy of our users. Collecting personal data is not only necessary for the delivery of our products and services, but it also presents opportunities. The data available to Demant supports internal identification of efficien- cies, development of new products, gaining cus- tomer insights, optimising operations and tailoring business strategies. However, the collection and use of data also present an inherent risk of mis- use or access by threat actors, such as hackers and cybercriminals. Protecting data privacy is therefore dependent on strong security measures. Read more about our cyber security management on page 38. Policies guiding our behaviour S4-1 Demant has a data privacy programme to manage potentially negative impacts on the privacy of our employees, customers and users. This includes policies and processes for handling personal data as well as processes for engaging with affected stakeholders. Our Code of Conduct outlines our clear expecta- tions of employees’ conduct in relation to data pri- vacy. Demant has implemented a global Data Eth- ics Policy, which outlines the Group’s commitment to handling data with a high level of integrity. The Policy covers all processing of data globally, in- cluding both personal data and non-personal data. It is mandatory for all employees in Demant to comply with the Policy. Our Data Privacy Policy establishes the overall framework for working with personal and sensitive personal data in Demant and is implemented as a General Operating Procedure (GOP). It applies to all Demant employees, who receive, handle, ac- cess, distribute, transmit, protect or store personal or sensitive personal data in any form. Data privacy and ethics are governed by our Global Legal & Compliance Board. Group Legal & Compliance reports regularly on material issues to this Board, which includes the Executive Leader- ship Team, and to the audit committee. Engaging with our stakeholders S4-2 and S4-3 We handle personal data of our stakeholders with the utmost care and respect, recognising its sensi- tive nature, especially when it comes to hearing health information. Information about data privacy is provided in privacy notices when required by lo- cal legislation. All relevant stakeholders are in- formed of the use of their personal data and are also guided on how to exercise their legal rights regarding their personal data. The contact details of the Demant Group’s Data Protection Officer are communicated to all relevant stakeholders in the respective privacy notices, and the Demant pri- vacy mailbox is accessible on our company web- site. We continue to experience an increasing interest in privacy matters, both internally and externally, and we spend significant resources on ensuring that all privacy queries are timely addressed. Most often, privacy violations occur due to human error and are categorised as minor data breaches. Re- medial action is taken in accordance with the type of data breach, the risk category and any local re- quirements. Actions and results S4-4 All ongoing collection and processing of personal data are done in accordance with applicable laws and regulations, including the EU General Data Protection Regulation (GDPR) in the EU/EEA and California Consumer Privacy Act (CCPA) and the Health Insurance Portability and Accountability Act (HIPAA) in the US. The Data Privacy team, which is part of Demant’s Group Legal & Compliance, supports legal col- leagues and the business in relevant areas of our business. To support local implementation and awareness of data privacy policies and proce- dures, we have appointed around 100 data pri- vacy champions across our European sites. They receive ongoing training on privacy matters and notify the Data Privacy team if they encounter concerns or complaints related to data privacy. Tools and training The Data Privacy team maintains a privacy portal for employees, containing relevant national and international legislation and guidelines that the Demant Group must comply with, training materi- als and access to relevant policies, templates and processes. We started updating our data privacy training in 2025. The digital learning is mandatory for rele- vant employees and is key to preventing data breaches. Implementation will continue into 2026. Ad hoc training is also provided when incidents occur to mitigate future breaches. Based on risk assessment, we initiate awareness campaigns targeted towards relevant employees and func- tions on a continuous basis. Data breach response In addition to established IT security measures, we have a well-functioning data breach response procedure. The Data Privacy team monitors any alerts of a potential data breach every day of the year and ensures that appropriate action is taken. After a data breach has been addressed, the Data Breach Response Team reviews the incident and implements measures to prevent future breaches. These may include reviewing physical and tech- nical access controls and/or security, reviewing policies and procedures, conducting obligatory training or ultimately imposing sanctions on em- ployees. Tracking effectiveness ESRS 2 MDR-T and S4-5 Demant has not set group targets related to data privacy. To assess effectiveness of our actions, we continuously evaluate our processes and prac- tices, which is embedded in our ways of working. We strive to limit data breaches across our opera- tions and aim for year-on-year improvement. Right to privacy Sustainability in Demant Environment Social Governance Additional information Demant Annual Report 2025 97 G1 Business conduct 98 Governance Sustainability in Demant Environment Social Governance Additional information Demant Annual Report 2025 98 IROs Value chain Corruption and bribery Advocacy for hearing health Upstream 2025 2030 100% DownstreamOwn operations O Progress against targets Code of conduct training for highly exposed employees 99% R Own Hearing Clinic G1 Business conduct We take a proactive approach to business ethics to ensure that we behave as a company we can be proud of. Sustainability in Demant Environment Social Governance Additional information Demant Annual Report 2025 99 We have identified one risk related to business conduct: • Demant operates in countries with risks of corruption and bribery, exposing our commer- cial departments to financial risk. We work with distributors who operate in countries where these risks are higher than in the coun- tries where Demant operates directly. Policies, actions and results G1-1 and G1-3 Business ethics programme Our Code of Conduct reflects our commitment to a high level of business ethics and is the over- arching compliance document for our Group. It sets the minimum standards and ethical principles applicable to all employees, regardless of location and the nature of their work, and provides every- one with a common understanding of how we con- duct our business. Our business ethics programme lays a solid foun- dation for ensuring that Demant can identify, re- port and investigate any concerns about unlawful behaviour or behaviour that contradicts our Code of Conduct. In addition to the Code of Conduct, the business ethics programme covers the global whistleblower hotline as well as a portfolio of global programmes with relevant policies and guidelines, processes, tools, risk assessments, training and advice. In 2025, we updated our General Manager In- struction to extend its scope to also cover the broader top management. Going forward, it will be called the Demant Group Management Instructions and will apply from 1 January 2026. The Instructions are legally binding and clearly outline expectations of the employees in scope within the Demant Group with a view to creating transparency on their role and related responsibili- ties. Business ethics compliance is governed by the Legal & Compliance Board. The Demant Group’s General Counsel is accountable for of all the poli- cies described in this section, while implementa- tion lies with the business. Group Legal & Compli- ance is supported by a network of about 65 busi- ness ethics champions appointed in subsidiaries globally and in Group business functions. Whistleblower hotline The Demant whistleblower hotline enables em- ployees, business partners and all other internal and external stakeholders to report any concerns about serious and sensitive matters confidentially and anonymously. We encourage employees and external stakeholders to raise their concerns about serious and sensitive actions that (1) fail to comply with our Code of Conduct, (2) fail to com- ply with applicable laws and regulations and/or (3) jeopardise the health and safety of our employ- ees. These include concerns relating to corruption and bribery. When incidents that fall into one or more of the above categories are reported, either directly through the hotline or through other channels, we initiate incident investigation, response and cor- rective action. Group Legal & Compliance man- ages the whistleblower hotline, and our Investiga- tion Guideline describes step-by-step how an investigation is conducted. The Guideline ensures that the investigator involved in a specific whistle- blower case is independent from the chain of management involved in the matter. When needed, Group Legal & Compliance can escalate cases to the global Whistleblower Board, consisting of Demant’s CEO, CFO and Group General Counsel. Group Legal & Compliance re- ports regularly on relevant reports received through the whistleblower hotline to the audit com- mittee. We are committed to ensuring that there will be no discriminatory or retaliatory action against any employee or third party who, in good faith, raises a concern through the whistleblower hotline. Anti- retaliation is covered by our Whistleblower Policy, which we updated in 2025, and our efforts comply with Directive (EU) 2019/1937. Anti-corruption and bribery It is a fundamental principle for Demant to com- pete for business on fair terms and solely on the merits of our services and products. Through an anti-corruption risk assessment, we have identi- fied the functions that are exposed to the highest risk in respect of corruption and bribery. These, among others, include employees that are in di- rect contact with public officials, for instance by participating in negotiations for public tenders on Demant’s behalf. We have implemented policies and guidelines to mitigate corruption risks throughout our organisa- tion. These include an Anti-Corruption Policy, which was updated in 2025 to align with new inter- nal guidelines, and our Gifts & Hospitality Guide- line, which contains country-specific appendices with local monetary limits. In 2025, we prepared a Conflict of Interest Guideline, which will apply from 1 January 2026. The Guideline will be imple- mented through updated processes and training of all relevant employees. For distributors, we have a due diligence process where we assess the ethical risks, including anti- corruption risk, associated with dealing with third parties. Based on our findings, we implement ap- propriate mitigating measures, such as specific anti-corruption wording in contracts with third par- ties. Our Third Party Compliance Code, which contains a section on anti-corruption, is included as an appendix to contracts with third parties. Training and awareness To implement our policies and guidelines on busi- ness ethics, we train our employees and create awareness around risks. Our Code of Conduct e- learning broadly introduces the business ethics themes covered by the Code. Importantly, the e- learning informs employees about the whistle- blower hotline, what they can report and how to report, and provides information about our anti-re- taliation principles. Further, the Code of Conduct e-learning contains a deep dive into anti-corrup- tion. The e-learning is a central pillar of the induc- tion programme for new employees. It is mandatory for all employees, including the Executive Leadership Team, to complete the e- learning. We closely follow training completion for employees that are considered to be highly ex- posed to corruption risk. In 2025, we initiated a project to update our Code of Conduct training to ensure a better fit to the different types of employ- ees across Demant. It is our ambition to conduct physical training of production and warehouse staff, and in 2026, we will focus on implementa- tion. We plan to relaunch e-training every three years to ensure ongoing knowledge and Corruption and bribery We strive for high ethical standards and conduct business with integrity and honesty . Sustainability in Demant Environment Social Governance Additional information Demant Annual Report 2025 100 awareness of Demant’s Code of Conduct and business ethics principles and expectations. Our business ethics champions have received training on anti-corruption. As they are appointed throughout subsidiaries globally, they help us de- tect local issues, which could be problematic from an anti-corruption perspective, and ensure that Group Legal & Compliance is involved to the ex- tent necessary. In addition, our business ethics champions help us raise awareness locally about the Code of Conduct, the whistleblower hotline as well as our Anti-Corruption Policy and guidelines that apply to all employees globally. Targets and metrics Demant is committed to increasing business con- duct excellence, and in 2024, we set a target to ensure that 100% of highly exposed employees complete Code of Conduct training by 2030 (see accounting policy for scope). The target aligns with the objectives outlined in our Code of Con- duct. Entity-specific metrics Code of Conduct training – highly exposed employees In 2025, 99% of the Group’s employees that are considered highly exposed completed the Code of Conduct training, representing a 23 percentage point increase compared to 2024. The improvement was primarily driven by targeted follow-ups with employees who had not yet com- pleted the training. Data on Code of Conduct training in our e-learn- ing module for the period from 2021-2023 is not available, as e-learning was introduced in 2024. Relevant employees received training through other channels prior to 2024. In 2025, Demant received 126 reports through the whistleblower hotline. Please note that not all re- ports received qualify as whistleblower cases. The increase in reported cases reflects increased employee awareness of the whistleblower hotline which is likely driven by references to the hotline in this year’s anti-harassment and anti- discrimination campaign and awareness created through a higher completion rate of the Code of Conduct and Whistleblower Training. Distributor due diligence In 2025, Demant conducted 86 due diligence screenings. The increase in the number of distrib- utor due diligence assessments in 2025 reflects strengthened compliance efforts. G1-4 We had no confirmed incidents of corruption or bribery in Demant in 2025. Therefore, there have been no convictions or fines for violation of anti- corruption and anti-bribery laws in 2025. Accounting policy Code of Conduct training Code of Conduct training refers to the share of employees who completed the Code of Conduct training during the year and is reported separately for all employees and for highly exposed employ- ees. Highly exposed employees are employees in senior leadership and high-risk functions, e.g. Management, commercial functions, Finance, Le- gal, Export and Procurement. Only employees registered in our learning platform are included in the data. Employees in entities acquired after 30 September 2025 as well as employees hired after that date are not included in the numbers. Whistleblower reports Whistleblower reports refer to the number of whis- tleblower reports received through the whistle- blower hotline or through other channels, which were registered by the whistleblower unit in the system during the year. Distributor due diligence Distributor due diligence refers to the number of distributor due diligence processes conducted. 76% 99% 0% 20% 40% 60% 80% 100% 2021 2022 2023 2024 2025 No data available Code of Conduct training – all employees Whistleblower reports 58% 79% 0% 20% 40% 60% 80% 100% 2021 2022 2023 2024 2025 No data available 48 47 90 87 126 0 20 40 60 80 100 120 140 2021¹ 2022¹ 2023¹ 2024 2025 1 Not covered by the Independent Auditor’s limited assurance report 75 65 57 53 86 0 20 40 60 80 100 2021¹ 2022¹ 2023¹ 2024 2025 1 Not covered by the Independent Auditor’s limited assurance report Sustainability in Demant Environment Social Governance Additional information Demant Annual Report 2025 101 G1-5 We have identified one opportunity related to polit- ical influence and lobbying activities: • Engaging with governments and local authori- ties to raise awareness about the importance of hearing health represents an opportunity for Demant. Policies guiding our behaviour Our Anti-Corruption Policy establishes how De- mant’s Management and employees are expected to conduct themselves in relation to corruption. Demant is against any form of direct or indirect corruption and bribery, aiming at securing an im- proper advantage. The Policy does not allow polit- ical contributions, whether direct or indirect, which are defined as contributions to politicians, political campaigns and political parties. The Demant Vice President of Corporate Commu- nication & Sustainability is responsible for over- sight of our advocacy activities and supports De- mant’s Executive Leadership Team in our global advocacy efforts. Actions When carrying out advocacy activities, we carry with us our principles of conducting business with integrity and high ethical standards. We engage in advocacy activities through industry organisations by advocating industry-level initiatives and regula- tions to support the establishment of a more ad- vanced and better hearing healthcare infrastruc- ture. The objective is to ultimately ensure the best possible treatment for people with hearing loss, which underpins our material positive impact and opportunity related to life-changing hearing health (see page 92). We take active part in relevant industry organisa- tions, including, but not limited to, the following: European Hearing Instrument Manufacturers Association (EHIMA) The main objectives of EHIMA are to build and support public awareness of hearing issues, en- courage scientific research related to hearing in- struments, monitor common issues within the hearing instruments industry in Europe and repre- sent and protect the common interests of the members in the appropriate official EU bodies, other public institutions and private organisations. Demant is represented in the General Assembly and in the Technical, Regulatory, Public Affairs and Sustainability Committees. EHIMA is registered in the EU Transparency Reg- ister under ID 34590331316-73. Hearing Industries Association (HIA) HIA serves as a forum for hearing aid manufactur- ers, suppliers, distributors and hearing health pro- fessionals in the US. HIA supports its members and carries out its mission through advocacy with Congress and the Administration, interaction with government agencies, focusing on the FDA, FTC and FCC, and engagement with professional pro- vider organisations and other consumer groups. Demant is represented in the board of directors and the Technical and Regulatory, Market In- sights, Market Analytics and Claims Committees. Transparency We are transparent about our stance and advo- cate topics directly linked to our company purpose and strategy. How we engage politically varies, depending on local conditions, as activities to pro- mote hearing health depend entirely on country- specific legislation and hearing health infrastruc- ture. In 2026, we plan to implement lobbying and advo- cacy guidelines to ensure alignment across the Group. Further, we plan to define a stronger gov- ernance structure to support our efforts. Advocacy for hearing health Our advocacy efforts are closely intertwined with our objective of raising awareness about hearing healthcare and driven by our main purpose. Sustainability in Demant Environment Social Governance Additional information Demant Annual Report 2025 102 Sustainability reporting risks and internal controls 103 Disclosure requirements and incorporation by reference 104 EU Taxonomy regulation disclosure 111 Additional information Sustainability in Demant Environment Social Governance Additional information Demant Annual Report 2025 103 Scoping of material topics A double materiality assessment is conducted on a yearly basis, please refer to page 62. ESRS 2 GOV-5 Risk management in relation to sustainability reporting Demant’s sustainability reporting risk manage- ment framework is designed to identify, assess and manage risks related to sustainability report- ing. Key risk factors include regulatory compli- ance, data accuracy and stakeholder expecta- tions. We apply a comprehensive risk assessment process, involving regular reviews and updates. Through this process, we ensure that all identified potential risks are adequately addressed based on the scope of material sustainability topics iden- tified in the double materiality assessment. The identified risks are assessed as either high, medium or low. The sustainability reporting risk categorisation is based on inherent reporting risks, such as completeness and accuracy of the data. High risks have a higher prioritisation than medium and low risks. The main reporting risks are related to complete- ness and accuracy of the data submitted. The Sustainability Board receives updates on a quarterly basis and includes any findings in the in- ternal control framework related to sustainability reporting as well as measures to mitigate risks. Sustainability reporting risks and internal controls Demant is committed to ensuring adequate reporting data quality and mitigating significant risks related to sustainability reporting. Sustainability in Demant Environment Social Governance Additional information Demant Annual Report 2025 104 ESRS 2 IRO-2 The following tables outline all ESRS disclosure requirements in ESRS 2 and five topical stand- ards, which are relevant to Demant and have guided us in the preparation of this Sustainability statement. We have excluded disclosure require- ments in E2, E3, E4 and S3, as they are below our materiality thresholds. The tables serve as guides for locating infor- mation on specific disclosure requirements in the Sustainability statement. They also indicate where information on a specific disclosure requirement not included in the Sustainability statement can be found. This information is ‘incorporated by refer- ence’ either in the Management statement and Fi- nancial statements of this Annual Report 2025 or in the separately published Remuneration Report. Disclosure requirements and incorporation by reference Sustainability in Demant Environment Social Governance Additional information Demant Annual Report 2025 105 Cross -cutting standards ESRS 2 General disclosures Disclosure requirements Statement Page BP-1 General basis for preparation Sustainability 50 BP-2 Datapoints that derive from other EU legislation Sustainability 111 GOV-1 The role of the administrative, management and supervisory bodies Management/ Sustainability 40, 46, 47, 55 GOV-2 Information provided to and sustainability matters addressed by the undertaking's administrative, management and supervisory bodies Management/ Sustainability 55 GOV-3 Integration of sustainability -related performance in incentive schemes Remuneration report 6-9 GOV-4 Statement on sustainability due diligence Sustainability 61 GOV-5 Risk management and internal controls over sustainability reporting Sustainability 103 SBM-1 Strategy, business model and value chain (products, markets and customers) Management/ Sustainability 12, 16, 19, 56 SBM-1 Strategy, business model and value chain (headcount by country) Sustainability 83, 88 SBM-1 Strategy, business model and value chain (breakdown of revenue) Financial 128 SBM-2 Interest and views of stakeholders Sustainability 61-62 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model Sustainability 56, 65, 75, 84, 86, 90, 92, 94, 96 IRO-1 Description of the process to identify and assess material impacts, risks and opportunities Sustainability 61 IRO-2 Disclosure requirements in ESRS covered by the undertaking’s sustainability statement Sustainability 104 ESRS E5 Resource use and circular economy Disclosure requirements Statement Page ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model Sustainability 75 ESRS 2, IRO-1 Description of the processes to identify and assess material resource use and circular economy -related impacts, risks and opportunities Sustainability 61 E5-1 Policies related to resource use and circular economy Sustainability 75 E5-2 Actions and resources related to resource use and circular economy Sustainability 75 E5-3 Targets related to resource use and circular econ- omy Sustainability 76 E5-4 Resource inflows Sustainability 76 E5-5 Resource outflows Sustainability 76-77 Environmental standards ESRS E1 Climate change Disclosure requirements Statement Page E1-1 Transition plan for climate change mitigation Sustainability 66 ESRS 2, SBM-3 Material impacts, risks and opportunities and their in- teraction with strategy and business model Sustainability 65 ESRS 2, IRO- 1 Description of the processes to identify and assess material climate -related impacts, risks and opportunities Sustainability 61 E1-2 Policies related to climate change mitigation and ad- aptation Sustainability 65 E1-3 Actions and resources in relation to climate change policies Sustainability 67 E1-4 Targets related to climate change mitigation and ad- aptation Sustainability 68 E1-5 Energy consumption and mix Sustainability 69 E1-6 Gross scopes 1, 2, 3 and total GHG emissions Sustainability 70 Sustainability in Demant Environment Social Governance Additional information Demant Annual Report 2025 106 Social standards ESRS S1 Own workforce Disclosure requirements Statement Page ESRS 2, SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model Sustainability 84, 86 S1-1 Policies related to own workforce Sustainability 81, 84, 86 S1-2 Processes for engaging with own workers and workers’ representatives about impacts Sustainability 81, 84 S1-3 Processes to remediate negative impacts and channels for own workers to raise concerns Sustainability 81, 84 S1-4 Taking action on material impacts on own work- force, and approaches to managing material risks and pursuing material opportunities related to own workforce, and effectiveness of those actions Sustainability 81, 84, 86 S1-5 Targets related to managing material negative impacts, advancing positive impacts and managing material risks and opportunities Sustainability 85, 87 S1-6 Characteristics of the undertaking’s employees Sustainability 82-83, 85 S1- 9 Diversity metrics Sustainability 87 S1-14 Health and safety metrics Sustainability 85 S1-16 Remunerations metrics (pay gap and total remunerations) Sustainability 88 S1-17 Incidents, complaints and severe human rights impacts Sustainability 88 Social standards ESRS S2 Workers in the value chain Disclosure requirements Statement Page ESRS 2, SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model Sustainability 90 S2-1 Policies related to value chain workers Sustainability 90 S2-2 Processes for engaging with value chain workers about impacts Sustainability 90 S2-3 Processes to remediate negative impacts and channels for value chain workers to raise concerns Sustainability 90 S2-4 Taking action on material impacts on value chain workers and approaches to managing material risks and pursuing material opportunities related to value chain workers, and effectiveness of those actions Sustainability 90 S2-5 Targets related to managing material negative impacts, advancing positive impacts and managing material risks and opportunities Sustainability 90 Social standards ESRS S4 Consumers and end-users Disclosure requirements Statement Page ESRS 2, SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model Sustainability 92, 94, 96 S4-1 Policies related to consumers and end -users Sustainability 94, 96 S4-2 Processes for engaging with consumers and end -users about impacts Sustainability 92, 94, 96 S4-3 Processes to remediate negative impacts and channels for consumers and end -users to raise concerns Sustainability 94, 96 S4-4 Taking action on material impacts on consumers and end -users and approaches to mitigating material risks and pursuing material opportunities related to consumers and end -users, and effectiveness of those actions Sustainability 92, 94, 96 S4-5 Targets related to managing material negative impacts, advancing positive impacts and managing material risks and opportunities Sustainability 92-95- 96 Sustainability in Demant Environment Social Governance Additional information Demant Annual Report 2025 107 Governance standards ESRS G1 Business conduct Disclosure requirements Statement Page ESRS 2, GOV-1 The role of the administrative, supervisory and management bodies Management 40, 46- 47, 55 G1-1 Business conduct policies and corporate culture Sustainability 99 G1-3 Prevention and detection of corruption and bribery Sustainability 99 G1-4 Incidents of corruption or bribery Sustainability 100 G1-5 Political influence and lobbying activities Sustainability 101 Sustainability in Demant Environment Social Governance Additional information Demant Annual Report 2025 108 Datapoints in cross-cutting and topical standards The table below outlines the list of datapoints in cross-cutting standards that derive from other EU legislation. Disclosure requirements Datapoints SFDR reference Pillar 3 reference Benchmark r egulation reference EU climate law reference Report/ section Page ESRS 2 GOV -1 21 (d) Board's gender diversity x x Management statement 40 ESRS 2 GOV -1 21 (e) Percentage of board members who are independent paragraph x Management statement 46-47 ESRS 2 GOV -4 30 Statement on due diligence x Statement on due diligence 61 ESRS 2 SBM -1 40 (d) i Involvement in activities related to fossil fuel activities paragraph x x x Not material ESRS 2 SBM -1 40 (d) ii Involvement in activities related to chemical production x x Not material ESRS 2 SBM -1 40 (d) iii Involvement in activities related to controversial weapons x x Not material ESRS 2 SBM -1 40 (d) iv Involvement in activities related to cultivation and production of tobacco x Not material ESRS E1 -1 14 Transition plan to reach climate neutrality by 2050 x Climate change 66 ESRS E1 -1 16 (g) Undertakings excluded from the EU Paris-Aligned Benchmark x x Not material ESRS E1 -4 34 GHG emissions reduction targets x x x Climate change 68 ESRS E1 -5 38 Energy consumption from fossil sources disaggregated by sources (only high climate-impact sectors) x Climate change 69 ESRS E1 -5 37 Energy consumption and mix x Climate change 69 ESRS E1 -5 40-43 Energy intensity associated with activities in high climate-impact sectors x Climate change 69 ESRS E1 -6 44 Gross scope 1, 2 and 3 and total GHG emissions x x x Climate change 70 ESRS E1 -6 53-55 Gross GHG emissions intensity x x x Climate change 71 ESRS E1 -7 56 GHG removals and carbon credits x Not material ESRS E1 -9 66 Exposure of the benchmark portfolio to climate-related physical risks X Not material ESRS E1 -9 66 (a) Disaggregation of monetary amounts by acute and chronic physical risk x Not material ESRS E1 -9 66 (c) Location of significant assets at material physical risk x Not material ESRS E1 -9 67 (c) Breakdown of the carrying value of real estate assets by energy- efficiency classes x Not material ESRS E1 -9 69 Degree of exposure of the portfolio to climate-related opportunities X Not material Sustainability in Demant Environment Social Governance Additional information Demant Annual Report 2025 109 Disclosure requirements Datapoints SFDR reference Pillar 3 reference Benchmark r egulation reference EU climate law reference Report/ section Page ESRS E2 -4 28 Amount of each pollutant listed in Annex II of the E-PRTR Regulation (European Pollutant Release and Transfer Register) emitted to air, water and soil x Not material ESRS E3 -1 9 Water and marine resources x Not material ESRS E3 -1 13 Dedicated policy x Not material ESRS E3 -1 14 Sustainable oceans and seas x Not material ESRS E3 -4 28 (c) Total water recycled and reused x Not material ESRS E3 -4 29 Total water consumption in m 3 per net revenue on own operations x Not material ESRS 2 - SBM 3 - E4 16 (a) i x Not material ESRS 2 - SBM 3 - E4 16 (b) x Not material ESRS 2 - SBM 3 - E4 16 (c) x Not material ESRS E4 -2 24 (b) Sustainable land/agriculture practices or policies x Not material ESRS E4 -2 24 (c) Sustainable oceans/seas practices or policies x Not material ESRS E4 -2 24 (d) Policies to address deforestation x Not material ESRS E5 -5 37 (d) Non-recycled waste x Not material ESRS E5 -5 39 Hazardous waste and radioactive waste x Not material ESRS 2 - SBM3 - S1 14 (f) Risk of incidents of forced labour x Own workforce 88 ESRS 2 - SBM3 - S1 14 (g) Risk of incidents of child labour x Own workforce 54 ESRS S1 -1 20 Human rights policy commitments x Own workforce 54 ESRS S1 -1 21 Due diligence policies on issues addressed by the fundamental Interna- tional Labour Organization Conventions 1 to 8 x Own workforce 84 ESRS S1 -1 22 Processes and measures for preventing trafficking in human beings x Own workforce 54 ESRS S1 -1 23 Workplace accident prevention policy or management system x Own workforce 84-85 ESRS S1 -3 32 (c) Grievance/complaints handling mechanisms x Own workforce 81 ESRS S1 -14 88 (b), (c) Number of fatalities and number and rate of work-related accidents x x Own workforce 85 ESRS S1 -14 88 (e) Number of days lost to injuries, accidents, fatalities or illness x Not material ESRS S1 -16 97 (a) Unadjusted gender pay gap x x Own workforce 88 ESRS S1 -16 97 (b) Excessive CEO pay ratio x Own workforce 88 Sustainability in Demant Environment Social Governance Additional information Demant Annual Report 2025 110 Disclosure requirements Datapoints SFDR reference Pillar 3 reference Benchmark r egulation reference EU climate law reference Report/ section Page ESRS S1 -17 103 (a) Incidents of discrimination x Own workforce 88 ESRS S1 -17 104 (a) Non-compliance with UNGPs on Business and Human Rights and OECD Guidelines x x Own workforce 88 ESRS 2 - SBM3 - S2 11 (b) Significant risk of child labour or forced labour in the value chain x Workers in the value chain 90 ESRS S2 -1 17 Human rights policy commitments x Workers in the value chain 54 ESRS S2 -1 18 Policies related to value chain workers x Workers in the value chain 90 ESRS S2 -1 19 Non-compliance with UNGPs on Business and Human Rights principles and OECD guidelines x x Workers in the value chain 90 ESRS S2 -1 19 Due diligence policies on issues addressed by the fundamental Interna- tional Labour Organization Conventions 1 to 8 x Workers in the value chain 90 ESRS S2 -4 36 Human rights issues and incidents connected to upstream and down- stream value chain x Workers in the value chain 90 ESRS S3 -1 16 Human rights policy commitments x Not material ESRS S3 -1 17 Non-compliance with UNGPs on Business and Human Rights, ILO prin- ciples or OECD guidelines x x Not material ESRS S3 -4 36 Human rights issues and incidents x Not material ESRS S4 -1 16 Policies related to consumers and end-users x Consumers and end -users 94, 96 ESRS S4 -1 17 Non-compliance with UNGPs on Business and Human Rights and OECD guidelines x x Consumers and end -users 94, 96 ESRS S4 -4 35 Human rights issues and incidents x Consumers and end -users 94, 96 ESRS G1 -1 10 (b) United Nations Convention against Corruption paragraph x Business conduct 99 ESRS G1 -1 10 (d) Protection of whistleblowers paragraph x Business conduct 99 ESRS G1 -4 24 (a) Fines for violation of anti-corruption and anti-bribery laws paragraph x X Business conduct 100 ESRS G1 -4 24 (b) Standards of anti-corruption and anti-bribery x Business conduct 99 Sustainability in Demant Environment Social Governance Additional information Demant Annual Report 2025 111 EU Taxonomy regulation disclosure Turnover Substantial contributions to objectives 1-6 (%) Do no significant harm to objectives 1-6 (y/n) Economic activity Code Absolute turnover Propor- tion of turnover in 2025 Climate change mitiga- tion Climate change adapta- tion Water and ma- rine re- sources Circular economy Pollution preven- tion and control Protec- tion of biodiver- sity Climate change mitiga- tion Climate change adapta- tion Water and ma- rine re- sources Circular economy Pollution preven- tion and control Protec- tion of biodiver- sity Minimum social safe- guards Propor- tion of turnover in 2024 Category enabling/ transi- tional DKK million % % % % % % % Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E/T A.1 Taxonomy aligned activities None 0 0 0 0 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a 0 n/a Turnover of taxonomy aligned activities (A.1) 0 0 0 0 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a 0 n/a Of which enabling 0 0 0 0 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a 0 n/a Of which transitional 0 0 0 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a 0 n/a Taxonomy eligible but not aligned activities Manufacturing of electrical and electronic equipment CE 1.2 19,401 84 0 0 0 100 0 0 84 Turnover of taxonomy eligible but not aligned activities (A.2) 19,401 84 0 0 0 100 0 0 84 Turnover of taxonomy eligible activities (A1 + A2) 19,401 84 0 0 0 100 0 0 84 B. Taxonomy non -eligible activities Turnover of taxonomy non-eligible activities 3,570 16 16 Total ¹ 22,971 100 100 ¹Total revenue, Financial statements 2025, Note 2.1. Sustainability in Demant Environment Social Governance Additional information Demant Annual Report 2025 112 CAPEX Substantial contributions to objectives 1-6 (%) Do no significant harm to objectives 1-6 (y/n) Economic activity Code Absolute CAPEX Propor- tion of CAPEX in 2025 Climate change mitiga- tion Climate change adapta- tion Water and ma- rine re- sources Circular economy Pollution preven- tion and control Protec- tion of biodiver- sity Climate change mitiga- tion Climate change adapta- tion Water and ma- rine re- sources Circular economy Pollution preven- tion and control Protec- tion of biodiver- sity Minimum social safe- guards Propor- tion of CAPEX in 2024 Category enabling/ transi- tional DKK million % % % % % % % Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E/T A.1 Taxonomy aligned activities None 0 0 0 0 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a 0 n/a Turnover of taxonomy aligned activities (A.1) 0 0 0 0 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a 0 n/a Of which enabling 0 0 0 0 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a 0 n/a Of which transitional 0 0 0 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a 0 n/a Taxonomy eligible but not aligned activities Acquisition and ownership of buildings CCM 7.7 1,685 80 100 0 0 0 0 0 57 Manufacturing of electrical and electronic equipment CE 1.2 158 7 0 0 0 100 0 0 8 Data processing and hosting CCM 8.1 25 1 100 0 0 0 0 0 2 C APEX of taxonomy eligible but not aligned activities (A.2) 1,868 88 100 0 0 100 0 0 67 C APEX of taxonomy eligible activities (A1 + A2) 1868 88 100 0 0 100 0 0 67 B. Taxonomy non -eligible activities C APEX of taxonomy non-eligible activities 240 12 33 Total ¹ 2,108 100 100 ¹ Property, plant and equipment, Financial statements, Note 4.2 and 4.3. Sustainability in Demant Environment Social Governance Additional information Demant Annual Report 2025 113 OPEX Substantial contributions to objectives 1-6 (%) Do no significant harm to objectives 1-6 (%) Economic activity Code Absolute OPEX Propor- tion of OPEX in 2025 Climate change mitiga- tion Climate change adapta- tion Water and ma- rine re- sources Circular economy Pollution preven- tion and control Protec- tion of biodiver- sity Climate change mitiga- tion Climate change adapta- tion Water and ma- rine re- sources Circular economy Pollution preven- tion and control Protec- tion of biodiver- sity Minimum social safe- guards Propor- tion of OPEX in 2024 Category ena- bling/ transi- tional DKK million % % % % % % % Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E/T A.1 Taxonomy aligned activities None 0 0 0 0 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a 0 n/a O PEX of taxonomy aligned activities (A.1) 0 0 0 0 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a 0 n/a Of which enabling 0 0 0 0 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a 0 n/a Of which transitional 0 0 0 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a 0 n/a Taxonomy eligible but not aligned activities Data processing and hosting CCM 8.1 51 3 100 0 0 0 0 0 3 O PEX of taxonomy eligible but not aligned activities (A.2) 51 3 0 0 0 0 0 0 3 O PEX of taxonomy eligible activities (A1 + A2) 51 3 0 0 0 0 0 0 3 B. Taxonomy non -eligible activities O PEX of taxonomy non-eligible activities 1,433 97 97 Total 1,484 100 100 Consolidated financial statements Parent financial statements Demant Annual Report 2025 114 Financial statements Image is AI-generated Consolidated financial statements Parent financial statements Demant Annual Report 2025 115 Consolidated income statement 116 Consolidated statement of comprehensive income 116 Notes to consolidated financial statements 121 Consolidated financial statements Consolidated financial statements Parent financial statements Demant Annual Report 2025 116 Consolidated statement of comprehensive income (DKK million) 2025 2024 Profit for the year 1,544 2,388 Foreign currency translation adjustment, subsidiaries -886 265 Value adjustments of hedging instruments: Value adjustment for the year 300 -91 Value adjustment transferred to revenue -108 -5 Tax on currency translation and value adjustments -42 22 Items that have been or may subsequently be reclassified to the income statement -736 191 Actuarial gains/losses on defined benefit plans 22 -17 Tax on actuarial gains/losses on defined benefit plans -5 4 Items that will not subsequently be reclassified to the income statement 17 -13 Other comprehensive income -719 178 Comprehensive income 825 2,566 Comprehensive income attributable to: Demant A/S’ shareholders 826 2,565 Non -controlling interests -1 1 825 2,566 Consolidated income statement (DKK million) Note 2025 2024 Revenue 2.1 22,971 22,419 Production costs 2.2 / 2.3 / 2.4 -5,600 -5,329 Gross profit 17,371 17,090 R&D costs 2.2 / 2.3 -1,401 -1,394 Distribution costs 2.2 / 2.3 -10,867 -10,246 Administrative expenses 2.2 / 2.3 / 9.2 -1,179 -1,145 Share of profit after tax, associates 4.4 / 7.1 36 99 Operating profit (EBIT) before special items 3,960 4,404 Special items 2.8 -128 124 Operating profit (EBIT) 3,832 4,528 Financial income 5.2 102 113 Financial expenses 5.2 -833 -925 Profit before tax 3,101 3,716 Tax on profit for the year 6.1 -734 -824 Profit after tax – continuing operations 2,367 2,892 Profit after tax – discontinued operations 7.2 -823 -504 Profit for the year 1,544 2,388 Profit for the year attributable to: Demant A/S' shareholders 1,545 2,387 Non -controlling interests -1 1 1,544 2,388 Earnings per share (EPS), DKK – continuing operations 5.7 11.20 13.31 Diluted earnings per share (DEPS), DKK – continuing operations 5.7 11.20 13.31 Earnings per share (EPS), DKK 5.7 7.31 10.99 Diluted earnings per share (DEPS), DKK 5.7 7.31 10.99 Consolidated financial statements Parent financial statements Demant Annual Report 2025 117 (DKK million) Note 2025 2024 Equity and liabilities Share capital 5.6 43 44 Other reserves 9,799 9,520 Equity attributable to Demant A/S' shareholders 9,842 9,564 Equity attributable to non -controlling interests 77 80 Equity 9,919 9,644 Borrowings 5.3 16,411 12,487 Lease liabilities 4.3 / 5.3 2,571 2,104 Deferred tax liabilities 6.2 812 634 Provisions 8.1 / 8.2 221 213 Other liabilities 5.3 / 8.3 547 461 Deferred revenue 8.4 1,170 812 Non -current liabilities 21,732 16,711 Borrowings 5.3 1,194 423 Lease liabilities 4.3 / 5.3 812 667 Trade payables 5.3 923 658 Income tax 458 603 Provisions 8.1 / 8.2 91 93 Other liabilities 5.3 / 8.3 2,438 2,617 Unrealised losses on derivatives 3.3 / 5.3 / 5.4 / 5.5 24 102 Deferred revenue 8.4 862 588 Liabilities related to assets held for sale 7.2 621 344 Current liabilities 7,423 6,095 Liabilities 29,155 22,806 Equity and liabilities 39,074 32,450 Consolidated balance sheet 31 December (DKK million) Note 2025 2024 Assets Intangible assets 4.1 20,379 15,066 Property, plant and equipment 4.2 3,428 2,909 Lease assets 4.3 3,259 2,665 Investments in associates 4.4 370 363 Receivables from associates 4.4 / 5.3 / 9.1 166 193 Other investments 5.3 / 5.5 13 9 Customer loans 2.6 / 4.4 / 5.3 494 519 Other receivables 4.4 / 5.3 171 217 Deferred tax assets 6.2 719 588 Other non -current assets 5,192 4,554 Non -current assets 4.5 28,999 22,529 Inventories 2.4 2,620 2,500 Trade receivables 2.5 / 5.3 3,765 3,563 Receivables from associates 4.4 / 5.3 / 9.1 200 200 Income tax 147 78 Customer loans 2.6 / 4.4 / 5.3 150 155 Other receivables 4.4 / 5.3 575 454 Unrealised gains on derivatives 3.3 / 5.3 / 5.4 / 5.5 140 31 Prepaid expenses 449 435 Cash 5.3 1,330 1,112 Assets held for sale 7.2 699 1,393 Current assets 10,075 9,921 Assets 39,074 32,450 Consolidated financial statements Parent financial statements Demant Annual Report 2025 118 (DKK million) Note 2025 2024 Repayments of borrowings 5.3 -3,467 -5,023 Proceeds from borrowings 5.3 8,320 6,424 Change in short -term bank facilities 5.3 -167 -586 Repayments of lease liabilities 4.3 / 5.3 -777 -750 Transactions with non -controlling interests -2 -3 Share buy -backs -582 -2,301 Cash flow from financing activities (CFFF) 3,325 -2,239 Cash flow for the period, net – continuing operations 134 13 Cash flow for the period, net – discontinued operations 7.2 121 -16 Cash flow for the year, net 255 -3 Cash and cash equivalents at the beginning of the year 1,112 1,138 Foreign currency translation adjustment of cash and cash equivalents -37 -23 Cash and cash equivalents at the end of the year 1,330 1,112 Breakdown of cash and cash equivalents at the end of the year: Cash 5.3 1,330 1,112 Cash and cash equivalents at the end of the year 1,330 1,112 Consolidated cash flow statement (DKK million) Note 2025 2024 Operating profit (EBIT) 3,832 4,528 Non -cash items etc. 2.7 1,729 1,233 Change in receivables etc. -325 -119 Change in inventories 86 -7 Change in trade payables and other liabilities etc. 134 16 Change in provisions 19 -46 Dividends received 22 43 Cash flow from operating profit 5,497 5,648 Financial income etc. received 78 95 Financial expenses etc. paid -738 -884 Income tax paid -985 -779 Cash flow from operating activities (CFFO) 3,852 4,080 Acquisition of businesses 7.1 -6,285 -1,234 Investments in intangible assets -205 -203 Investments in property, plant and equipment -652 -576 Disposal of property, plant and equipment 47 31 Investments in other non -current assets -256 -251 Disposal of other non -current assets 308 405 Cash flow from investing activities (CFFI) -7,043 -1,828 Consolidated financial statements Parent financial statements Demant Annual Report 2025 119 Consolidated statement of changes in equity (DKK million) Other reserves Share capital Foreign currency translation reserve Hedging reserve Retained earnings Demant A/S’ shareholders’ share Non- controlling interests’ share Equity Equity at 1.1.2025 44 163 -53 9,410 9,564 80 9,644 Comprehensive income: Profit for the year - - - 1,545 1,545 -1 1,544 Other comprehensive income: Foreign currency translation adjustment, subsidiaries - -886 - - -886 - -886 Value adjustments of hedging instruments: Value adjustment for the year - - 300 - 300 - 300 Value adjustment transferred to revenue - - -108 - -108 - -108 Actuarial gains/losses on defined benefit plans - - - 22 22 - 22 Tax on other comprehensive income - - -42 -5 -47 - -47 Other comprehensive income - -886 150 17 -719 - -719 Comprehensive income for the year - -886 150 1,562 826 -1 825 Share buy -backs - - - -582 -582 - -582 Share -based compensation - - - 34 34 - 34 Capital reduction through cancellation of treasury shares -1 - - 1 - - - Transactions with non -controlling interests - - - - - -2 -2 Equity at 31.12.2025 43 -723 97 10,425 9,842 77 9,919 Consolidated financial statements Parent financial statements Demant Annual Report 2025 120 Consolidated statement of changes in equity (continued) (DKK million) Other reserves Share capital Foreign currency translation reserve Hedging reserve Retained earnings Demant A/S’ shareholders’ share Non- controlling interests’ share Equity Equity at 1.1.2024 45 -103 22 9,292 9,256 82 9,338 Comprehensive income: Profit for the year - - - 2,387 2,387 1 2,388 Other comprehensive income: Foreign currency translation adjustment, subsidiaries - 265 - - 265 - 265 Value adjustments of hedging instruments: Value adjustment for the year - - -91 - -91 - -91 Value adjustment transferred to revenue - - -5 - -5 - -5 Actuarial gains/losses on defined benefit plans - - - -17 -17 - -17 Tax on other comprehensive income - 1 21 4 26 - 26 Other comprehensive income - 266 -75 -13 178 - 178 Comprehensive income for the year - 266 -75 2,374 2,565 1 2,566 Share buy -backs - - - -2,301 -2,301 - -2,301 Share -based compensation - - - 44 44 - 44 Capital reduction through cancellation of treasury shares -1 - - 1 - - - Transactions with non -controlling interests - - - - - -3 -3 Equity at 31.12.2024 44 163 -53 9,410 9,564 80 9,644 Consolidated financial statements Parent financial statements Demant Annual Report 2025 121 Section 1 – page 122 Basis for preparation 1.1 Group accounting policies 1.2 Accounting estimates and judgements Section 2 – page 127 Operating activities and cash flow 2.1 Revenue and segment disclosures 2.2 Employees 2.3 Amortisation, depreciation and impairment losses 2.4 Inventory 2.5 Trade receivables 2.6 Customer loans 2.7 Specification of non-cash items 2.8 Specification of special items Section 3 – page 137 Exchange rates 3.1 Exchange rate risk policy 3.2 Sensitivity analysis in respect of exchange rates 3.3 Hedging and forward exchange contracts Section 4 – page 140 Asset base 4.1 Intangible assets 4.2 Property, plant and equipment 4.3 Leases 4.4 Other non-current assets 4.5 Non-current assets by geographic region Section 5 – page 148 Capital structure and financial management 5.1 Financial risk management and capital structure 5.2 Net financial items 5.3 Financial instruments 5.4 Interest rate risks 5.5 Fair value hierarchy 5.6 Share capital 5.7 Earnings per share Section 6 – page 156 Tax 6.1 Tax on profit 6.2 Deferred tax Section 7 – page 160 Acquisitions, discontinued operations and assets held for sale 7.1 Acquisition of businesses 7.2 Discontinued operations and assets held for sale 7.3 Divestment of businesses and activities Section 8 – page 167 Provisions, other liabilities etc. 8.1 Provisions 8.2 Employee benefit obligations 8.3 Other liabilities 8.4 Deferred revenue 8.5 Contingent liabilities Section 9 – page 172 Other disclosure requirements 9.1 Related parties 9.2 Fees to auditors 9.3 Events after the balance sheet date Parent balance sheet 31 December Parent statement of changes in equity Section 10 – page 179 Notes to Parent financial statements 10.1 Parent accounting policies 10.2 Employees 10.3 Fees to statutory auditors 10.4 Net financial items 10.5 Tax on profit for the year and deferred tax 10.6 Proposed distribution of net profit 10.7 Intangible assets 10.8 Property, plant and equipment 10.9 Financial assets 10.10 Financial liabilities 10.11 Treasury shares 10.12 Interest rate risk 10.13 Contingent liabilities 10.14 Related parties 10.15 Events after the balance sheet date Section 11 – page 187 Subsidiaries and associates Notes to consolidated financial statements Consolidated financial statements Parent financial statements Demant Annual Report 2025 122 Basis for preparation Consolidated financial statements Parent financial statements Demant Annual Report 2025 123 The Group’s general accounting policies are de- scribed below. Where an accounting policy is gen- erally applicable to a specific note to the financial statements, the policy is described in that note. General The consolidated financial statements are pre- sented in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU and Danish disclosure requirements for annual re- ports published by reporting class D (listed) com- panies, cf. the Danish executive order on IFRS is- sued in compliance with the Danish Financial Statements Act. The registered office of Demant A/S is in Denmark. The consolidated financial statements are pre- sented based on historical costs, except for obli- gations for contingent considerations in connec- tion with business combinations, share-based re- muneration, derivatives and financial assets clas- sified as assets held for sale, which are measured at fair value. The financial statements for the Parent as well as the Parent’s accounting policies are presented separately from the consolidated financial state- ments and are shown on the last pages of this An- nual Report 2025. Effect of new accounting standards The Group has adopted amended and revised ac- counting standards and interpretations as pub- lished by the IASB and adopted by the EU effec- tive for the accounting period beginning 1 January 2025. The amended and revised standards and interpretations did not result in any changes to the accounting policies for the Group, nor had it any significant impact on the consolidated financial statements for 2025. The accounting policies re- main unchanged compared to last year. IASB has issued new accounting standards and amendments effective for accounting periods be- ginning after 1 January 2026, which have been adopted by the EU. Changes in 2026 are not ex- pected to have any significant impact on the Group. In 2024, the IASB issued IFRS 18, which replaces IAS 1. The new accounting standard is not yet adopted by the EU, and the implications of the new requirements are currently being evalu- ated. Management expects to adopt the account- ing standards and interpretations as they become mandatory. The Group has applied the exception to recognise deferred tax in accordance with OECD/EU Pillar Two Model rules and their local implementation. Consolidated financial statements The consolidated financial statements comprise Demant A/S (the Parent) and the companies in which the Parent can or does exercise control by either directly or indirectly holding more than 50% of the voting rights, or in which the Parent exer- cises control in some other manner. Companies in which the Group holds 20-50% of the voting rights and/or in some other manner can or does exer- cise significant influence are considered associ- ates or joint ventures and are incorporated propor- tionately into the consolidated financial statements using the equity method. Consolidation principles The consolidated financial statements are pre- pared based on the financial statements of the Parent and its subsidiaries by aggregating uniform items. Companies that, by agreement, are managed jointly with one or more other compa- nies are recognised using the equity method. The consolidated financial statements are pre- pared in accordance with the Group’s accounting policies. Intra-group income, expenses, share- holdings, balances and dividends as well as unre- alised intra-group profits on inventories are elimi- nated. The accounting items of subsidiaries are recog- nised 100% in the consolidated financial state- ments. On initial recognition, non-controlling inter- ests are measured either at fair value or at the proportionate share of the fair value of the identifi- able assets, liabilities and contingent liabilities of the acquired subsidiary. The method is chosen for each individual transaction. Non-controlling inter- ests are subsequently adjusted according to their proportionate share of changes in equity of the subsidiary. Comprehensive income is allocated to non-con- trolling interests whether or not, as a result hereof, the value of such interests is negative. The pur- chase or sale of non-controlling interests in a sub- sidiary, which does not result in obtaining or dis- continuing control of such subsidiary, is treated as an equity transaction in the consolidated financial statements, and any difference between the con- sideration and the carrying amount is allocated to the Parent’s share of the equity. Foreign currency translation The Group’s presentation currency is Danish kro- ner, which is the functional currency of the Parent. On initial recognition, transactions in foreign cur- rencies are translated at the exchange rates pre- vailing at the date of the transaction. The func- tional currencies of the companies are determined by the economic environment in which the compa- nies operate, normally the local currency. Receivables, payables and other monetary items in foreign currencies are translated into Danish kroner at the exchange rates prevailing at the bal- ance sheet date. Realised and unrealised foreign currency translation adjustments are recognised in the income statement as part of the gross profit or net financial items, depending on the purpose of the underlying transaction. Property, plant and equipment, intangible assets, inventories and other non-monetary assets pur- chased in foreign currencies and measured on the basis of historical cost are translated at the ex- change rates prevailing at the transaction date. Non-monetary items, which are revalued at fair value, are translated using the exchange rates at the revaluation date. On recognition of companies presenting their fi- nancial statements in a functional currency other than Danish kroner in the consolidated financial statements, the income statement is translated using average exchange rates for the months of the year in question, unless they deviate materi- ally from actual exchange rates at the transaction dates. In case of the latter, actual exchange rates are applied. Balance sheet items are translated at the ex- change rates prevailing at the balance sheet date. Goodwill is considered as belonging to the ac- quired business in question and is translated at the exchange rate prevailing at the balance sheet date. 1.1 Group accounting policies Consolidated financial statements Parent financial statements Demant Annual Report 2025 124 All foreign currency translation adjustments are recognised in the income statement, except for the following, which are recognised in other com- prehensive income: • The translation of income statements of for- eign subsidiaries using monthly average ex- change rates for the respective months of the year, whereas balance sheet items of such foreign subsidiaries are translated using ex- change rates prevailing at the balance sheet date. • The translation of non-current, intra-group re- ceivables that are considered to be additions to or deductions from net investments in for- eign subsidiaries. • The translation of investments in associates. Income statement Income and costs are recognised on an accruals basis. The income statement is broken down by function, and all costs, including depreciation, amortisation and impairment losses, are therefore charged to production, distribution, administration and R&D. Production costs Production costs are costs incurred to generate revenue. Distribution companies recognise cost of goods sold as part of production costs. Production companies recognise cost of raw materials, con- sumables, production staff as well as mainte- nance of and depreciation, amortisation and im- pairment losses on property, plant and equipment and intangible assets used in the production pro- cess as part of production costs. R&D costs Research costs are always recognised in the in- come statement as such costs are incurred. De- velopment costs include all costs not satisfying capitalisation criteria but incurred in connection with the development of hearing aids and diag- nostic equipment, prototype construction, devel- opment of new business concepts and amortisa- tion of capitalised development costs. Distribution costs Distribution costs are recognised in the income statement as such costs are incurred and include costs relating to training, sales, marketing, promo- tion materials, distribution, bad debts as well as depreciation and amortisation of and impairment losses on assets used for distribution purposes. Administrative expenses Administrative expenses are recognised in the in- come statement as such costs are incurred and include administrative staff costs, office expenses as well as depreciation and amortisation of and impairment losses on assets used for administra- tive purposes. Government grants Government grants are recognised when there is reasonable certainty that the conditions for such grants are satisfied and that they will be awarded. Grants received as compensation for costs in- curred are recognised proportionately in the in- come statement over the periods in which the re- lated costs are recognised in the income state- ment and are offset against costs incurred. Prepaid expenses Prepaid expenses recognised as part of assets in- clude costs relating to the subsequent financial years. Prepaid expenses are measured at cost. Cash flow statement The cash flow statement is prepared according to the indirect method and reflects the consolidated net cash flow broken down into operating, invest- ing and financing activities. Cash flow from operating activities includes in- flows from the year’s operations adjusted for non- cash operating items, changes in working capital, financial income received, financial expenses paid and income tax paid. Cash flow from operating ac- tivities also includes short-term lease payments, lease payments of low-value assets and variable lease payments. Cash flow from investing activities includes pay- ments in respect of the acquisition or divestment of businesses and financial assets as well as the purchase, development, improvement or sale of intangible assets and property, plant and equip- ment. In addition to this, cash flow from investing activities also includes movements in receivables from associates as well as customer loans. Cash flow from financing activities includes pay- ments to and from shareholders and the raising and repayment of non-current and current debt and lease liabilities. Cash flow in currencies other than the functional currency is recognised at average exchange rates for the months of the year, unless they deviate significantly from actual exchange rates on the transaction dates. Repayments of lease liabilities are included as well. Cash and cash equivalents are cash less over- drafts, which consist of uncommitted bank facili- ties that often fluctuate from positive to over- drawn. Any short-term bank facilities that are con- sistently overdrawn are considered cash flow from financing activities. Equity Foreign currency translation reserves include for- eign currency translation adjustments on the translation of financial statements of foreign sub- sidiaries and associates from their respective functional currencies into Danish kroner. Foreign currency translation adjustments are recognised in the income statement on realisation of the net investment. Hedging reserves include fair value adjustments of derivatives and loans satisfying the criteria for hedging of future transactions. The amounts are recognised in the income statement or the balance sheet at the same time as hedged transactions are recognised. 1.1 Group accounting policies (continued) Consolidated financial statements Parent financial statements Demant Annual Report 2025 125 Financial ratios are calculated in accordance with Recommendations and Ratios from CFA Society Denmark. Key figures and financial ratios Organic growth Organic growth is measured as the year on year change excluding impact from acquisitions, divestments and foreign exchange adjustments in percentage. EBITDA Operating profit before amortisation, depreciation and impairment losses. EBITDA before spe- cial items Operating profit before amortisation, depreciation, impairment losses and spe- cial items EBIT before special items Operating profit before special items EBIT Operating profit Free cash flow Cash flow from operating activities (CFFO) and investing activities (CFFI) be- fore acquisitions and disposals of businesses and activities. Net interest -bearing debt (NIBD) Net amount of borrowings and lease liabilities less interest -bearing receivables and cash. Net working capital Net amount of current assets (excluding tax, financial contracts and cash) less trade payables, the current part of other liabilities and deferred income. EPS Earnings per share. Adjusted EPS Earnings per share adjusted for special items after tax. Per share Financial ratios per share are calculated per share of nominally DKK 0.20. Average number of shares outstanding Average number of shares excluding the average number of treasury shares for the year. 1.1 Group accounting policies (continued) Gross margin Gross profit 100 Revenue EBIT margin Operating profit 100 Revenue EBIT before special items margin Operating profit before special items100 Revenue Gearing multiple Net interest-bearing debt including unrealised gains/losses on derivatives EBITDA before special items EPS Profit for the year attributable to Demant A/S' shareholders 100 Average number of shares outstanding Adjusted EPS Profit for the continuing operations for the year attributable to Demant A/S' shareholders adjusted for special items after tax 100 Average number of shares outstanding EPS – continuing operations Profit for the continuing operations for the year attributable to Demant A/S' shareholders 100 Average number of shares outstanding EPS – discontinuing operations Profit for the discontinuing operations for the year attributable to Demant A/S' shareholders 100 Average number of shares outstanding Consolidated financial statements Parent financial statements Demant Annual Report 2025 126 iXBRL tagging The Commission Delegated Regulation (EU) 2019/815 on the European Single Electronic For- mat (ESEF Regulation) has introduced a single electronic reporting format for the annual financial reports of issuers with securities listed on the EU regulated markets. The combination of XHTML format and iXBRL tags makes it possible for annual financial reports to be read by both humans and machines, thus enhancing accessibility, analysis and comparabil- ity of the information included in the annual finan- cial reports. The Group’s iXBRL tags have been prepared in accordance with the ESEF taxonomy, which is in- cluded in the ESEF Regulation and developed based on the IFRS taxonomy published by the IFRS Foundation. The line items in the consolidated financial state- ments are tagged to elements in the ESEF taxon- omy. For financial line items that are not directly defined in the ESEF taxonomy, an extension to the taxonomy has been created. Extensions are anchored to elements in the ESEF taxonomy, ex- cept for extensions that are subtotals. The Annual Report 2025 submitted to the Danish Financial Supervisory Authority (the Officially Ap- pointed Mechanism) consists of the XHTML docu- ment together with the technical files, all of which are included in the ZIP file DEMANT-2025-12-31- en.zip. Key definitions XHTML (eXtensible HyperText Markup Language) is a text-based language used to structure and mark up content, such as text, images and hyper- links, in documents that are displayed in a web browser. iXBRL tags (or Inline XBRL tags) are hidden me- tainformation embedded in the source code of an XHTML document that enables the conversion of XHTML-formatted information into a machine- readable XBRL data record using appropriate software. A financial reporting taxonomy is an electronic dic- tionary of business reporting elements used to re- port business data. A taxonomy element is an ele- ment defined in a taxonomy that is used for the machine-readable labelling of information in an XBRL data record. As part of the preparation of the consolidated fi- nancial statements, Management makes a num- ber of accounting estimates and judgements. These relate to the recognition, measurement and classification of assets and liabilities. Many items can only be estimated rather than accurately measured. Such estimates are based on the most recent information available on preparation of the financial statements. Estimates and assumptions are therefore reassessed on an ongoing basis. Actual figures may, however, deviate from these estimates. Any changes in accounting estimates are recognised in the reporting period in which such changes are made. Significant accounting estimates and judgements are described in the individual notes to the consol- idated financial statements as outlined below: 2.4 Inventories 4.3 Leases 6.2 Deferred tax 7.1 Acquisition of businesses Additional descriptions of accounting estimates and judgements are provided in the relevant notes. 1.2 Accounting estimates and judgements 1.1 Group accounting policies (continued) Consolidated financial statements Parent financial statements Demant Annual Report 2025 127 Operating activities and cash flow REVENUE 22,971 DKK MILLION FREE CASH FLOW 3,094 DKK MILLION Consolidated financial statements Parent financial statements Demant Annual Report 2025 128 Consolidated revenue mainly derives from the sale of goods and is broken down by the custom- ers’ geographic region. The ten largest single customers together account for around 11% (13% in 2024) of total consoli- dated revenue. Value adjustments transferred from equity relating to derivatives made for hedging foreign exchange risks on revenue amount to DKK 108 million (DKK 5 million in 2024). For disclosures of deferred revenue, please refer to Note 8.4. For disclosures of non-current assets by geo- graphic region, please refer to Note 4.5. 2.1 Revenue and segment disclosures (DKK million)2025 2024 Contract liabilities:Customer prepayments¹ 97 52 Future performance obligations¹ 1,935 1,348 Expected volume discounts and other customer-related items² 315 368 Expected product returns³ 192 196 Contract liabilities 2,539 1,964 ¹Included in deferred revenue. ²Included in other cost payables under other liabilities. ³Included in product-related liabilities under other liabilities. (DKK million)2025 2024 Changes in contract liabilities:Contract liabilities at 1.1. 1,964 1,769 Foreign currency translation adjustment -105 20 Revenue recognised and included in the contract liability balance at 1.1. -797 -536 Increases due to cash received, excluding amounts recognised as revenue during the year878 702 Changes from expected volume discounts and other customer-related items -5 -29 Changes from product returns 9 -7 Additions from acquisitions 595 45 Contract liabilities at 31.12. 2,539 1,964 (DKK million)2025 2024 Revenue by business area:Hearing Aids 9,841 10,022 Hearing Care 10,724 9,932 Diagnostics 2,406 2,465 Revenue 22,971 22,419 (DKK million)2025 2024 Revenue by geographic region:Europe 10,233 9,301 North America 8,900 9,231 Asia 2,085 2,145 Pacific region 1,074 1,097 Rest of world 679 645 Revenue 22,971 22,419 Revenue by country: Denmark 352 290 USA 7,351 7,668 Other countries 15,268 14,461 Revenue 22,971 22,419 Consolidated financial statements Parent financial statements Demant Annual Report 2025 129 Nature of goods and services Control is normally transferred to the customer when the goods are shipped to the customer, though delivery terms can vary and control may be transferred at a later point in time. When selling hearing aids and diagnostic equip- ment to customers, control is transferred and rev- enue recognised, when the hearing aid and diag- nostic equipment, respectively, is delivered to the customer at a given point in time, and when a hearing aid is initially fitted to the user’s specific hearing loss. In some countries, the users are granted a trial period. In such cases, the transfer of control occurs when the trial period expires. Certain countries grant customers the right to re- turn the hearing aid within a certain period. When this applies, the number of expected returns is es- timated based on an analysis of historical return rates adjusted for any known factors impacting ex- pectations of future return rates. Revenue and cost of goods sold are adjusted accordingly, and contract liabilities (refund liabilities) and rights to the returned goods (included in prepaid expenses) are recognised for the expected returns. The Group’s activities also involve delivery of vari- ous services, such as extended warranties, war- ranty-related coverages (loss and damage) and after-sales services (e.g. fine-tuning of the hearing aid, additional hearing tests and cleaning). Reve- nue from these services is recognised on a straight-line basis over the warranty or service pe- riod, as the user makes use of the service contin- uously. Some users purchase a battery package or are given batteries free of charge as part of the purchase of the hearing aid, entitling them to free batteries for a certain period. Revenue is recog- nised when the user receives the batteries or is given batteries free of charge as part of the pur- chase of the hearing aid. When available, an observable price to determine the stand-alone selling price for the separate performance obliga- tions related to these services is used, and in countries where observable prices are not availa- ble, a cost-plus-margin method is used. The standard warranty period for hearing aids and diagnostic equipment varies between countries but is typically 12-24 months and for certain prod- ucts or countries up to 48 months. The extended warranty covers periods beyond the standard war- ranty period or standard warranty terms. Standard payment terms for customers in respect of hearing aids and diagnostic equipment are 30- 60 days but may vary between countries and also depend on whether the customer is a private or public customer. Most of the hearing aids sold to users are invoiced and paid for after the initial fitting, but some cus- tomers choose to have the hearing aid financed by us. The transaction price of such arrangements is adjusted for any significant financing benefit, and the financing component is recognised as fi- nancial income. Accounting policies Segment information In 2024, the Group announced the decision to un- dertake a review of strategic options for its Com- munications business and came to the conclusion to divest the business. As Communications is pre- sented as a discontinued operation and held for sale, it is no longer considered an operating seg- ment in the continuing business. Management has identified one operating seg- ment, Hearing Healthcare, as this reflects Man- agement’s approach to the organisation and to management activities, including the assessment of results and the use of resources. Hearing Healthcare comprises the Hearing Aids, Hearing Care and Diagnostics business areas, which do not represent operating segments for IFRS 8 pur- poses as management does not allocate re- sources or evaluate performance on that basis, and the business areas meet the aggregation cri- teria in IFRS 8. Revenue recognition Revenue is recognised when obligations under the terms of a contract with a customer are satis- fied, which usually occurs with the transfer of con- trol of the products and services. Revenue is measured as the consideration expected to be re- ceived in exchange for transferring goods and providing services net of the estimated discounts or other customer-related reductions. Accounting estimates and judgements Discounts, returns etc. (estimate) Discounts, loyalty programmes and other revenue reductions are estimated and accrued when the related revenue is recognised. Estimating these is a matter of judgement, as all conditions are not known at the time of sale, e.g. the number of units sold to a given customer or the expected utilisa- tion of loyalty programmes. Sales discounts, re- bates and loyalty programmes are adjusted, as better information on the likelihood that they will be realised and the value at which they are ex- pected to be realised is obtained. Sales discounts and rebates are recognised under other cost pay- ables as part of other liabilities, and loyalty pro- grammes are recognised under deferred revenue. Depending on local legislation and the conditions to which a sale is subject, some customers have the option to return purchased goods and obtain a refund. Based on historical return rates, an esti- mate is made of the number of expected returns, and a provision is recognised. This provision is updated, as returns are recognised, or when more accurate data on return rates is collected. After-sales services (estimate) After-sales services are provided to users of the hearing aids and are based on estimates, as not all users make use of these services. The esti- mate is a matter of judgement and is based on the number of visits, the duration of an average user’s visits and the expected number of users that make use of the after-sales services. 2.1 Revenue and segment disclosures (continued) Consolidated financial statements Parent financial statements Demant Annual Report 2025 130 Remuneration of the Executive Board The total remuneration of the Executive Board comprises: • Wages and salaries, which include a base sal- ary and certain other benefits • A short-term incentive programme (cash bo- nus) – STIP • A long-term incentive programme (share- based remuneration) – LTIP The remuneration of the Executive Board and the Board of Directors is described in detail in the Re- muneration Report 2025. Key Management Key Management personnel comprises the Exec- utive Board. Remuneration of the Board of Directors The remuneration of the Board of Directors com- prises a fixed fee and is not incentive-based. In 2025, the basic remuneration was DKK 450,000 (DKK 450,000 in 2024). The Chair re- ceives three times the base fee and the Vice Chair twice the base fee. The members of the audit committee receive a base fee of DKK 100,000 (DKK 100,000 in 2024), and the chair of the audit committee receives twice the base fee. The individual Board members' fees and their shareholdings can be found in the Remuneration Report 2025. Accounting policies Employee costs comprise wages, salaries, social security contributions, annual and sick leave, bo- nuses and non-monetary benefits and are recog- nised in the year in which the associated services are rendered by the employees. Where the Group provides long-term employee benefits, the costs are accrued to match the rendering of service by the employee in question. 2.2 Employees Remuneration of Executive Board and Board of Directors (included in employee costs) (DKK million)2025 2024 Executive Board:Wages and salaries 25.0 25.1 Cash bonus 1.3 0.6 Share-based remuneration 9.5 10.5 Total 35.8 36.2 Board of Directors:Fee 5.2 5.1 Total 5.2 5.1 Total 41.0 41.3 (DKK million)Note 2025 2024 Employee costs:Wages and salaries 8,979 8,500 Share-based remuneration 7 16 Defined contribution plans 101 108 Defined benefit plans 8.2 18 - Social security costs etc. 963 931 Employee costs 10,068 9,555Employee costs by function:Production costs 1,344 1,236 R&D costs 943 920 Distribution costs 6,700 6,298 Administrative expenses 1,081 1,101 Employee costs 10,068 9,555 Average number of full -time employees 22,248 21,381 Consolidated financial statements Parent financial statements Demant Annual Report 2025 131 Share-based remuneration The Group has two types of share-based remu- neration programmes, which consist of the “shadow share” programme and the RSU (re- stricted stock units) programme. The “shadow share” programme introduced in 2016 is cash-set- tled, whereas the RSU programme introduced in 2019 is equity-settled. Remuneration under both programmes is granted on a yearly basis and is contingent on the employee still being employed and not under termination when three years have passed from the time of the grant. The fair value of the shares at the time of the grant under both programmes is based on the average share price of the first five trading days after publication of the annual report. “Shadow share” programme In 2025 and 2024, the Group granted no “shadow shares”. The liability is recognised on a straight- line basis, as the service is rendered, and the lia- bility is remeasured at each reporting date and at the settlement date based on the fair value of the “shadow shares”. Fair value adjustments are rec- ognised as financial income or financial expenses. If relevant, the liability is adjusted to reflect the ex- pected risk of non-vesting as a result of resigna- tions. Any changes to the liability are recognised in the income statement. At 31 December 2025, the re- maining average contractual life of cash-settled remuneration programmes was 0 months (0 months in 2024). RSU programme In 2025, RSU shares were granted to 148 employ- ees (153 employees in 2024). The Group recog- nised costs of DKK 43 million (DKK 40 million in 2024) in the income statement related to the RSU programme. There has been no subsequent re- measurement of the fair value. The costs are rec- ognised on a straight-line basis, as the service is rendered. At 31 December 2025, the remaining average contractual life of equity-settled share programmes was 21 months (21 months in 2024). Restricted share units (RSU programme) Total number of Total shares fair value Number (DKK million) Outstanding 1.1.2024 463,798 Granted 147,697 52 Exercised -55,375 Forfeited -3,558 Outstanding 31.12.2024 552,562 Granted 201,244 53 Exercised -145,737 Forfeited -8,916 Outstanding 31.12.2025 599,153 Accounting estimates and judgements Vesting conditions and fair value (estimate) For the share-based programmes, Management estimates the likelihood of vesting conditions be- ing satisfied. Vesting is entirely dependent on the persons enrolled in the share-based programmes remaining employed until expiry of the vesting pe- riod. Based on such likelihood, the estimate made is used to calculate the fair value of the share-based programmes. Furthermore, the shares must be valued. For this purpose, Management uses the share price quoted on Nasdaq Copenhagen. Share -based remuneration ("shadow share" programme) (DKK million)2025 2024 Other senior Other senior Executive members of Executive members of Board Management Board Management Liabilities at 1.1. - - 9.3 2.3 Expensed during the year in wages and salaries - - 0.8 0.2 Fair value adjustments - - 1.9 0.4 Settled during the year - - -12.0 -2.9 Liabilities at 31.12. - - - - Granted during the year - - - - Unrecognised commitment at 31.12.¹ - - - - ¹Unrecognised commitment is the part of granted ”shadow shares” not expensed at 31 December. 2.2 Employees (continued) Consolidated financial statements Parent financial statements Demant Annual Report 2025 132 For accounting policies on amortisation and de- preciation, please refer to Note 4.1, Note 4.2 and Note 4.3. In 2025, no impairment losses were recognised (none in 2024), except for impairment losses re- lated to discontinued operations. Please refer to Note 7.2. Write-downs for the year are shown net, as a breakdown into reversed write-downs and new write-downs is not possible. Inventories are gener- ally expected to be sold within one year. Accounting policies Raw materials, components and goods for resale are measured at cost according to the FIFO prin- ciple (according to which the most recently pur- chased items are considered to be in stock) or at their net realisable value, whichever is lower. Group-manufactured finished goods and work in progress are measured at the value of direct costs, direct payroll costs, consumables and a proportionate share of indirect production costs, which are allocated based on the normal capacity of the production facility. Indirect production costs include the proportionate share of capacity costs directly relating to Group-manufactured finished goods and work in progress. The net realisable value of inventories is deter- mined as the estimated selling price less costs of completion and costs to sell. Accounting estimates and judgements Indirect production costs (significant judgement) Indirect production cost allocations to inventories are based on relevant judgements of capacity utili- sation at the production facility, of production time and of other product-related factors. The judge- ments are reviewed regularly to ensure that inven- tories are measured at their actual production cost. Changes in judgements may affect gross profit margins as well as the valuation of work in progress, finished goods and goods for resale. Obsolescence provision (estimate) The obsolescence provision for inventories is based on the expected sales forecasts for the in- dividual types of hearing aids and diagnostic equipment. Sales forecasts are based on Man- agement’s expectations of market conditions and trends, and the obsolescence provision is subject to changes in these assumptions. 2.3 Amortisation, depreciation and impairment losses 2.4 Inventory (DKK million) Note 2025 2024 Amortisation of intangible assets 4.1 207 194 Depreciation of property, plant and equipment 4.2 511 490 Depreciation of lease assets 4.3 801 751 Amortisation, depreciation and impairment losses 1,519 1,435 Amortisation, depreciation and impairment losses by function:Production costs 149 133 R&D costs 56 47 Distribution costs 1,028 1,028 Administrative expenses 286 227 Amortisation, depreciation and impairment losses 1,519 1,435 (DKK million)2025 2024 Raw materials and purchased components 1,194 1,289 Work in progress 48 35 Finished goods and goods for resale 1,378 1,176 Inventories 2,620 2,500 Write-downs and provisions for obsolescence included in the above 143 187 Included in the income statement under production costs:Write-downs of inventories for the year, net 40 82 Cost of goods sold for the year 3,964 3,880 Consolidated financial statements Parent financial statements Demant Annual Report 2025 133 The opening balance of trade receivables in 2024 amounted to DKK 3,650 million. Of the total amount of trade receivables, DKK 338 million (DKK 284 million in 2024) is expected to be collected after 12 months. For information on secu- rity and collateral, please refer to credit risks in Note 5.1. Accounting policies Trade receivables are measured at amortised cost less expected lifetime credit loss. For trade receivables, the Group has a simplified approach to determining the expected credit loss. The allowance for credit loss is measured through a provision matrix. To measure the expected credit loss, trade receivables are grouped based on shared credit risk and the number of days that have passed after the due date. Allowances are also made for trade receivables not due. For trade receivables that are considered credit-impaired, the expected credit loss is determined on an indi- vidual basis. Accounting estimates and judgements Impairment of receivables (estimate) The Group has historically incurred insignificant losses on trade receivables. Allowance for impairment is calculated for trade receivables. The allowance is determined as ex- pected credit loss based on assessments of the debtors’ ability to pay. These assessments are made for uniform groups of debtors based on ma- turity analyses. When indicated by special circum- stances, impairments are made for individual trade receivables. 2.5 Trade receivables (DKK million)2025 2024 Allowance for impairment:Allowance for impairment at 1.1. -338 -385 Foreign currency translation adjustments 15 -3 Realised 66 97 Additions -94 -123 Reversals 14 68 Transferred to assets held for sale - 8 Allowance for impairment at 31.12. -337 -338 Credit riskMore Total 0-3 3-6 6-12 than 12 carry-Balance months months months months ing (DKK million)not due overdue overdue overdue overdue amount 2025Gross carrying amount 2,751 651 211 150 339 4,102 Individual loss allowance -31 -51 -36 -27 -152 -297 General loss allowance -12 -7 -3 -5 -13 -40 Total 2,708 593 172 118 174 3,765 Expected loss rate 1.6% 8.9% 18.5% 21.3% 48.7% 8.2% 2024 Gross carrying amount 2,618 625 199 156 303 3,901 Individual loss allowance -27 -45 -30 -29 -171 -302 General loss allowance -12 -7 -3 -5 -9 -36 Total 2,579 573 166 122 123 3,563 Expected loss rate 1.5% 8.3% 16.6% 21.8% 59.4% 8.7% Consolidated financial statements Parent financial statements Demant Annual Report 2025 134 Accounting policies Customer loans are initially recognised at fair value less transaction costs and are subsequently measured at amortised cost less loss allowance or impairment losses. Any difference between the nominal value and the fair value of the loans at ini- tial recognition is treated as a prepaid discount on future sales to the customer and is recognised in the income statement as a reduction of revenue when the customer purchases goods from the Group. The fair value of customer loans at initial recogni- tion is measured as the present value of future re- payments on the loan discounted at a market in- terest rate. The effective interest on customer loans is recognised as financial income in the in- come statement over the term of the loans. A loss allowance is recognised on initial recogni- tion and is subsequently based on a 12-month ex- pected credit loss model. If a significant increase in the credit risk has arisen since the initial recog- nition of the loan, a loss allowance based on the expected lifetime credit loss is provided. The calculation of 12-month expected credit losses on customer loans is based on a weighted average of historical annual losses on customers as well as forward looking market developments. Payment plans are agreed with customers when loans are granted. The credit risk of customer loans is considered to have increased significantly since initial recognition when actual loan balances differ from the agreed development in loan bal- ances. The calculation of lifetime expected credit losses on customer loans is based on the difference be- tween the development in actual and agreed loan balances. The allowances are increased in steps if the difference between the development be- tween actual and agreed loan balances increases. Indicators that there is no reasonable expectation of recovery of a customer loan include bank- ruptcy, change of control and change in the pay- ment behaviour or financial situation of the cus- tomer. The loans are written off when all possible options have been exhausted and there is no rea- sonable expectation of recovery. Where recover- ies are made, these are recognised in the income statement. Accounting estimates and judgements Accounting treatment (judgement) and impairment (estimate) of loans The Group provides sales-related financing in the form of loans to some of its customers and busi- ness partners. These customer loan arrange- ments are complex, cover several aspects of the customer relationship and may vary from agree- ment to agreement. Management assesses the recognition and classi- fication of income and expenses for each of these agreements, including whether the agreement represents a discount on future sales (judgement). Management also assesses whether there is an indication of impairment based on current eco- nomic market conditions and changes in the cus- tomer’s payment behaviour (estimate). 2.6 Customer loans (DKK million)2025 2024 Non-current customer loans 494 519 Current customer loans 150 155 Total customer loans 644 674 Allowance for impairment:Allowance for impairment at 1.1. -84 -62 Foreign currency translation adjustment 8 -3 Realised 8 14 Additions -17 -49 Reversals 14 16 Allowance for impairment at 31.12. -71 -84 Group internal credit rating (DKK million)Expected Gross credit carrying Carrying 2025loss rate amount amount Performing12-month expected credit loss 0.2% 386 385 UnderperformingExpected lifetime credit loss 24.7% 329 259 Total customer loans 715 644 2024Performing12-month expected credit loss 0.3% 588 586 UnderperformingExpected lifetime credit loss 48.2% 170 88 Total customer loans 758 674 Consolidated financial statements Parent financial statements Demant Annual Report 2025 135 (DKK million)2025 2024 Amortisation and depreciation 1,519 1,435 Share of profit after tax, associates -36 -99 Gain on sale of intangible assets and property, plant and equipment - -1 Provisions 40 23 Exchange rate adjustments 94 -33 Employee share salary arrangement 34 44 Step-up gains¹ - -13 Non-cash on special items 82 -124 Other non-cash items -4 1 Non-cash items etc. 1,729 1,233 ¹Excluding the step-up gain presented in special items in the income statement. 2.7 Specification of non-cash items Consolidated financial statements Parent financial statements Demant Annual Report 2025 136 In 2025, the Group recognised one new significant non-operational special item of DKK 46 million in respect of acquisition-related costs in connection with the Group’s acquisition of the KIND Group. Furthermore, the Group concluded the acquisition of the remaining shares in Fuel Medical Group ac- quired in 2024, resulting in an adjustment to the previous recognised step-up gain of DKK -82 mil- lion. In 2024, the Group recognised as special items two significant, non-operational and non-cash items totalling DKK 124 million net. The positive impact of DKK 324 million relates to a step-up gain from the acquisition of Fuel Medical Group. This was partly offset by the adjustment of a judgement related to the accounting treatment of deferred payments of DKK 200 million in respect of a prior-year acquisition. Accounting policies Special items are used in the presentation of con- solidated income statement for the year to distin- guish consolidated operating profit from significant non-recurring income and expenses in respect of extraordinary items of a non-operational nature. Special items are shown separately from the Group’s operating activities to facilitate a better understanding of the Group’s performance and are presented on a net basis. Accounting estimates and judgements Determination and presentation of special items (judgement) Management exercises judgement to ensure that only significant, non-recurring income and ex- penses from items of a non-operational nature are included. Deferred payments (estimate) Adjustments of judgements related to deferred payments include accounting estimates. 2.8 Specification of special items (DKK million)2025 2024 Acquisition-related costs -46 - Step-up gain on acquisition -82 324 Adjustment of Management judgement related to deferred payments - -200 Special items, net -128 124 Impact of special items on consolidated income statement (DKK million)2025 2024 Special Special Reported items Adjusted¹ Reported items Adjusted¹ Revenue 22,971 - 22,971 22,419 - 22,419 Production costs -5,600 - -5,600 -5,329 - -5,329 Gross profit 17,371 - 17,371 17,090 - 17,090 R&D costs -1,401 - -1,401 -1,394 - -1,394 Distribution costs -10,867 -125 -10,992 -10,246 124 -10,122 Administrative expenses -1,179 -1 -1,180 -1,145 - -1,145 Share of profit after tax, associates 36 - 36 99 - 99 Operating profit (EBIT) before special items 3,960 -126 3,834 4,404 124 4,528 Special items -128 128 - 124 -124 - Operating profit (EBIT) 3,832 2 3,834 4,528 - 4,528 Financial income 102 - 102 113 - 113 Financial expenses -833 -2 -835 -925 - -925 Profit before tax 3,101 - 3,101 3,716 - 3,716 ¹‘ Reported’ are the figures reported in the income statement, while ‘Adjusted’ indicates what the figures would have been, if the special items had not been presented as such in the income statement. Consolidated financial statements Parent financial statements Demant Annual Report 2025 137 Exchange rates Consolidated financial statements Parent financial statements Demant Annual Report 2025 138 The Group has cash flow in foreign currencies due to its international operations, which exposes the Group to fluctuations in exchange rates. Hedging against exchange rate exposures en- sures greater predictability in profit. The Group manufactures and distributes most of its products from its production facilities in Poland. The general principle is to consolidate exchange rate risks at Group level, with the smaller entities being invoiced in functional currencies. The currencies that mainly contribute to the Group’s foreign exchange rate risks are US dol- lars, Polish zloty, British pound, Canadian dollars and Australian dollars. The aim of the Group’s hedging policy is to reduce the Group’s exposure to exchange rate fluctuations, mainly by entering into forward exchange contracts to mitigate the Group’s risks related to the impact that exchange rate fluctuations have on consolidated earnings for up to 18 months rolling forward. The exchange rate risk is managed by Group Treasury. Hedging is done in accordance with the Group’s policy to maintain overall adequate hedg- ing of the Group’s material exchange rate expo- sures. Group Treasury is not allowed to undertake any financial transactions in foreign currencies of a speculative nature. Cash flow hedging is under- taken to the extent possible to mitigate any nega- tive effects of adverse developments in exchange rates on the consolidated operating results. Fur- thermore, the Group seeks to hedge its on-bal- ance net exposure in its main trading currencies. Due to the fixed exchange rate policy towards the euro in Denmark, the risk associated with expo- sure to fluctuations is considered to be limited and is not hedged. The Group does not hedge translation risk associ- ated with the consolidation of Group accounts. The table shows the impact on the year’s operat- ing profit (EBIT), profit for the year and consoli- dated equity, given a 5% increase in the ex- change rates with the highest exposures. The exchange rate impact on EBIT is calculated based on the Group’s EBIT for each currency and does not include the possible exchange rate im- pact on balance sheet items in those currencies. 3.2 Sensitivity analysis in respect of exchange rates 3.1 Exchange rate risk policy Effect in DKK from exchange rates (DKK million)2025 2024 Profit Profit for the for the EBIT year Equity EBIT year Equity 5% increase in: USD 59 40 235 70 56 255 GBP 13 12 37 9 9 35 CAD 9 7 61 11 9 61 AUD 5 4 18 3 2 17 PLN 11 13 58 5 7 51 Consolidated financial statements Parent financial statements Demant Annual Report 2025 139 Cash flow hedging Open forward exchange contracts at the balance sheet date, which are entered to hedge future cash flows, are shown in the table, with sale of currency being shown at negative contractual val- ues. The expiry dates reflect the periods during which the hedged cash flows are expected to be realised. Realised forward exchange contracts, which are entered to hedge future cash flows, are recog- nised in the income statement together with reve- nue in foreign currencies that such contracts are designed to hedge. In 2025, the Group realised a gain of DKK 108 million (DKK 5 million in 2024) on forward exchange contracts, which increased the reported revenue for the year. The Group’s for- ward exchange contracts were effective in 2025 and 2024. Accounting policies On initial recognition, derivatives are measured at fair value at the settlement date. After initial recog- nition, derivatives are measured at fair value at the balance sheet date. Any positive or negative fair values of derivatives are recognised as sepa- rate items on the balance sheet as unrealised gains/losses on derivatives. Forward exchange contracts are measured based on current market data and using commonly recognised valuation methods. Please refer to Note 5.5. Any changes in fair values of derivatives classified as hedging instruments and satisfying the criteria for hedging the fair value of a recognised asset or a recognised liability are recognised in the income statement together with any changes in the fair value of the hedged asset or hedged liability. Any changes in fair values of derivatives classified as hedging instruments and satisfying the criteria for effective hedging of future transactions are recog- nised in other comprehensive income. The inef- fective portion is recognised directly in the income statement. On realisation of the hedged transac- tions, the accumulated changes are recognised together with the related transactions. Derivatives not fulfilling the conditions for treat- ment as hedging instruments are considered trad- ing investments and measured at fair value, with fair value adjustments being recognised on an on- going basis in the income statement. 3.3 Hedging and forward exchange contracts Forward exchange contractsAverage Positive fair Negative Hedging hedging Contractual value at fair value at (DKK million)Expiry period¹ rate value Fair value year-end year-end 2025USD 2027 18 months 658 -1,916 91 93 2 AUD 2026 10 months 413 -165 -4 - 4 GBP 2026 11 months 852 -494 2 4 2 CAD 2026 11 months 466 -436 4 6 2 JPY 2026 10 months 4.47 -71 6 6 - PLN 2026 11 months 171 754 16 16 - -2,328 115 125 10 2024USD 2025 11 months 675 -1,356 -64 - 64 AUD 2025 10 months 452 -212 5 5 - GBP 2025 11 months 865 -553 -15 - 15 CAD 2025 10 months 498 -463 3 3 - JPY 2025 10 months 4.64 -79 1 1 - PLN 2025 10 months 169 772 16 16 - -1,891 -54 25 79 ¹Hedging periods represent the estimated periods for which the exchange rate exposure of a relative share of the net flow in a currency will be hedged by forward exchange contracts. Consolidated financial statements Parent financial statements Demant Annual Report 2025 140 Asset base INTANGIBLE ASSETS 20,379 DKK MILLION PROPERTY, PLANT AND EQUIPMENT 3,428 DKK MILLION OTHER NON-CURRENT ASSETS 1,201 DKK MILLION Consolidated financial statements Parent financial statements Demant Annual Report 2025 141 The Group performed the annual impairment test of goodwill as at 31 December 2025 by comparing the market price of Demant A/S with its carrying amount. The market value of Demant A/S’ shares is based on the quoted price of DKK 215.2 per share on Nasdaq Copenhagen on 31 December 2025 (DKK 264.20 per share on 31 December 2024). Based on this market value approximation, De- mant's equity value is DKK 45,385 million (DKK 56,278 million in 2024), which leaves DKK 35,466 million (DKK 46,634 million in 2024) in headroom to the carrying amount of equity. Based on the test performed, Management con- cludes that there is no indication of impairment of goodwill. 4.1 Intangible assets (DKK million)2025 2024 Assets Assets Other under Total Other under Total Patents and intangible develop- intangible Patents and intangible develop- intangible Goodwill licences assets ment¹ assets Goodwill licences assets ment¹ assets Cost at 1.1. 13,854 71 2,048 267 16,240 12,381 71 1,777 332 14,561 Foreign currency translation adjustments -761 - -68 -13 -842 255 - 16 16 287 Additions - - 31 179 210 - - 56 152 208 Additions from acquisitions 5,941 - 181 - 6,122 1,836 - 47 - 1,883 Disposals - - -17 - -17 -1 - -4 - -5 Adjustment of Management judgement related to deferred payments - - - - - -200 - - - -200 Transfers - - 61 -61 - - - 244 -233 11 Transferred to assets held for sale - - - - - -417 - -88 - -505 Cost at 31.12. 19,034 71 2,236 372 21,713 13,854 71 2,048 267 16,240 Amortisation at 1.1. - -59 -1,115 - -1,174 - -56 -965 - -1,021 Foreign currency translation adjustments - - 35 - 35 - - -11 - -11 Amortisation - -4 -203 - -207 - -3 -193 - -196 Disposals - - 12 - 12 - - 3 - 3 Transfers - - - - - - - -8 - -8 Transferred to assets held for sale - - - - - - - 59 - 59 Amortisation at 31.12. - -63 -1,271 - -1,334 - -59 -1,115 - -1,174 Carrying amount at 31.12. 19,034 8 965 372 20,379 13,854 12 933 267 15,066 ¹Prepayments are included in assets under development. Consolidated financial statements Parent financial statements Demant Annual Report 2025 142 Accounting policies On initial recognition, goodwill is recognised and measured as the difference between the acquisi- tion cost – including the value of non-controlling interests in the acquired business and the fair value of any existing investment in the acquired business – and the fair values of the acquired as- sets, liabilities and contingent liabilities. Please re- fer to accounting policies in Note 7.1. On recognition, goodwill is allocated to corporate activities that generate independent payments (cash-generating units). The definition of a cash- generating unit is in line with the Group’s manage- rial structure as well as the internal financial man- agement reporting. Goodwill is not amortised, but an impairment test is performed at least once a year based on the single defined cash-generating unit in the Group. Patents and licences acquired from third parties are measured at cost less accumulated amortisa- tion and impairment losses. Patents and licences are amortised on a straight-line basis over their estimated useful lives. Other intangible assets consist of software, other rights than patents and licences and other intangi- ble assets acquired in connection with business combinations, primarily brand value and customer relationships. Other intangible assets are measured at cost less accumulated amortisation and impairment losses. Other intangible assets are amortised on a straight-line basis over their estimated useful lives, except other rights, which are not amortised, as the residual value of other rights is considered to exceed the cost price and is instead tested an- nually for impairment. Assets under development include internally de- veloped IT systems. Assets under development are measured at cost, which includes direct sala- ries, consultant fees and other direct costs at- tributable to the development of such assets. As- sets under development are not amortised, as they are not available for use. Useful lives of intangible assets: Patents and licences 5-20 years Software 3-10 years Brand value 5-10 years Customer relationships 5-9 years Impairment testing The carrying amounts of intangible assets with definite useful lives are reviewed at the balance sheet date to determine whether there are indica- tions of impairment. If so, the recoverable amount of the particular asset is calculated to determine the need for impairment, if any. The recoverable amounts of goodwill and other intangible assets with indefinite useful lives are estimated, whether or not there are indications of impairment. The recoverable amount is estimated for the smallest cash-generating unit to which the asset belongs. The recoverable amount is determined as the higher of the fair value of the asset or cash- generating unit less costs to sell and the value in use of such asset or unit. On determination of the value in use, estimated future cash flows are dis- counted to their present values, using a discount rate that reflects partly current market valuations of the time value of money, and partly the special risks attached to the particular asset or cash-gen- erating unit for which no adjustment has been made in the estimated future cash flows. If the re- coverable amount of a particular asset or cash- generating unit is lower than its carrying amount, such asset or unit is written down to its recovera- ble amount. Impairment losses are recognised in the income statement. On any subsequent reversal of impair- ment losses due to changes in the judgements on which the calculation of the recoverable amount is based, the carrying amount of an asset or cash- generating unit is increased to the adjusted esti- mate of the recoverable amount, however not ex- ceeding the carrying amount of the asset or cash- generating unit, had the particular asset or cash- generating unit not been written down. Impairment of goodwill is not reversed. Accounting estimates and judgements Product development (judgement) It is Management’s opinion that the product devel- opment undertaken by the Group today cannot meaningfully be allocated to either the develop- ment of new products or the further development of existing products. Moreover, as the products are subject to approval by various authorities, it is difficult to determine the final completion of new products. Consequently, development costs are expensed as incurred, as the criteria for capitali- sation are not considered to be met. Cash-generating units (judgement) In 2024, the Group announced the decision to un- dertake a strategic review of options for its Com- munications business and came to the conclusion to divest the business. As Communications is pre- sented as a discontinued operation and held for sale, it is no longer considered a cash-generating unit in the continuing business. Group businesses cooperate closely on R&D, pur- chasing, production, marketing and sale, as the use of resources in the individual markets is coor- dinated and monitored by Management in Den- mark. Group businesses are thus highly inte- grated. 4.1 Intangible assets (continued) Consolidated financial statements Parent financial statements Demant Annual Report 2025 143 4.2 Property, plant and equipment (DKK million)2025 2024 Other Other plant, plant, fixtures Total fixtures Total and Assets property and Assets property Land opera- Lease- under plant Land opera- Lease- under plant and Plant ting hold con-and and Plant ting hold con-and build-and ma-equip- improve- struc-equip-build-and ma-equip- improve- struc-equip-ings chinery ment ments tion¹ ment ings chinery ment ments tion¹ ment Cost at 1.1.1,472 826 1,870 1,812 198 6,178 1,439 726 1,796 1,574 225 5,760 Foreign currency translation adjustments -26 -3 -79 -56 2 -162 21 4 11 -4 2 34 Additions 11 26 210 261 144 652 9 33 202 232 113 589 Additions from acquisitions 193 8 259 14 - 474 - 1 13 11 - 25 Disposals -31 -4 -89 -20 -1 -145 -1 -36 -100 -13 -11 -161 Transfers 7 144 1 2 -154 - 4 98 4 14 -127 -7 Transferred to assets held for sale - - - - - - - - -56 -2 -4 -62 Cost at 31.12.1,626 997 2,172 2,013 189 6,997 1,472 826 1,870 1,812 198 6,178 Depreciation and impairment losses at 1.1. -341 -535 -1,344 -1,049 - -3,269 -304 -466 -1,288 -889 - -2,947 Foreign currency translation adjustments 12 6 60 35 - 113 -8 -3 -6 7 - -10 Depreciation -29 -113 -181 -188 - -511 -30 -100 -178 -180 - -488 Disposals 7 1 78 12 - 98 1 35 84 11 - 131 Transfers -1 - 1 - - - - -1 1 - - - Transferred to assets held for sale - - - - - - - - 43 2 45 Depreciation and impairment losses at 31.12. -352 -641 -1,386 -1,190 - -3,569 -341 -535 -1,344 -1,049 - -3,269 Carrying amount at 31.12.1,274 356 786 823 189 3,428 1,131 291 526 763 198 2,909 ¹Prepayments are included in assets under construction. Consolidated financial statements Parent financial statements Demant Annual Report 2025 144 Accounting policies Property, plant and equipment are recognised at cost less accumulated depreciation and impair- ment losses. Cost is defined as the acquisition price and costs directly relating to the acquisition until the particular asset is ready for use. For as- sets produced by the Group, cost includes all costs directly attributable to the production of such assets, including materials, components, sub-sup- plies and payroll. If the acquisition or the use of an asset requires the Group to defray costs for the demolition or restoration of such asset, the calcu- lated costs hereof are recognised as a provision and as part of the cost of the particular asset. Assets consisting of various elements are depreci- ated separately, if their useful lives are not the same. Property, plant and equipment are depreciated on a straight-line basis over their estimated useful lives. Land is not depreciated. Buildings 30-50 years Technical installations 10 years Plant and machinery 3-5 years Other plant, fixtures and operating equipment 3- 5 years IT hardware 3-5 years Leasehold improvements Up to 10 years Accounting estimates and judgements Useful life and residual value (estimate) The depreciation basis is cost less the estimated residual value of an asset after the end of its use- ful life. The residual value is the estimated amount, which could after deduction of costs to sell be obtained through the sale of the asset to- day, such asset already having the age and being in the state of repair expected after the end of its useful life. The residual value is determined at the time of acquisition and is reviewed annually. If the residual value exceeds the carrying amount, de- preciation is discontinued. Depreciation methods, useful lives and residual values are reviewed annually. Property, plant and equipment are written down to their recoverable amounts, if these are lower than their carrying amounts. 4.2 Property, plant and equipment (continued) Consolidated financial statements Parent financial statements Demant Annual Report 2025 145 Approximately 96% of the Group’s leases consist of property agreements. The lease terms can be up to twenty years but are normally up to ten years and may contain extension and termination options. The carrying amounts of vehicles and other equipment total DKK 140 million (DKK 132 million in 2024). Management exercises signifi- cant judgement in determining whether it is rea- sonably certain that these extension and termina- tion options will be exercised. Accounting policies Lease assets Lease assets and liabilities are recognised in the balance sheet at the commencement date of the contract, if it is or contains a lease. Lease assets are recognised at cost less accumulated deprecia- tion and impairment. Cost is defined as the lease liability adjusted for any lease payments made at or before the commencement date. Lease assets are depreciated on a straight-line basis over the lease term. Lease liabilities Lease liabilities are measured at the present value of future payments using the implicit interest rate in the lease agreement. Lease payments are dis- counted using the Group’s incremental borrowing rate adjusted for the functional currencies and du- ration of the lease term, if the implicit interest rate in the lease agreement cannot be determined. Lease payments contain fixed payments less any lease incentives receivable, variable lease pay- ments that depend on an index or a rate as well as payments of penalties for terminating the lease, if the terms of the lease warrant that the Group exercises such option. The lease liability is remeasured if or when the fu- ture payment or lease term changes. Any net re- measurement of the lease liability is recognised as an adjustment to the lease asset. If the carry- ing amount of the lease asset is reduced to zero, the adjustment is recognised in the income state- ment. Additional information Short-term lease expenses, low-value assets and variable lease payments are classified as operat- ing expenses in the income statement. Please refer to Note 5.3 for a maturity analysis of the lease liabilities. Accounting estimates and judgements Lease term (judgement) The lease term is the period during which the lease contract is enforceable. If the original expiry date of a lease contract has passed, typically in the case of property leases, but the contract con- tinues without a determined expiry date, the lease term is set for an estimated period during which the lease contract is expected to be enforceable. This assessment is based on Management’s judgement and takes into consideration the loca- tion of the lease, capitalised leasehold improve- ments and experience with similar leases for the specific area. Extension and termination options (significant judgement) When determining the lease term for lease agree- ments containing extension and termination op- tions, Management considers circumstances that create a financial incentive to exercise an exten- sion option or not to exercise a termination option. Extension and termination options are only in- cluded in the lease term, if it is reasonably certain that a lease will be extended/terminated. (DKK million)2025 2024 Lease assets at 1.1. 2,665 2,596 Foreign currency translation adjustments -71 -3 Additions 883 751 Additions from acquisitions 690 163 Disposals -107 -59 Depreciation -801 -751 Transferred to assets held for sale - -32 Lease assets at 31.12. 3,259 2,665 Lease liabilities at 1.1. 2,771 2,686 Foreign currency translation adjustments -82 1 Additions 883 751 Additions from acquisitions 690 163 Disposals -102 -57 Payments -861 -827 Interest 84 77 Transferred to liabilities related to assets held for sale - -23 Lease liabilities at 31.12. 3,383 2,771 Current lease liabilities 812 667 Non-current lease liabilities 2,571 2,104 Amounts recognised in the income statement:Variable lease payments 35 34 Short-term lease expenses 47 45 Low-value assets 11 8 4.3 Leases Consolidated financial statements Parent financial statements Demant Annual Report 2025 146 4.4 Other non-current assets (DKK million)2025 2024 Receivables Receivables Investments from Customer Investments from Customer in associates associates loans Other in associates associates loans Other Cost at 1.1. 319 202 593 228 741 268 526 172 Foreign currency translation adjustments -3 -12 -53 -5 21 10 24 13 Additions - 13 338 90 - 26 285 47 Additions from acquisitions 18 - - 7 8 - - 4 Disposals related to step acquisitions -19 - - - -383 - - - Disposals, repayments etc. 2 -31 -174 -101 -68 -34 -129 -56 Transferred to current assets - - -146 -38 - -68 -113 48 Cost at 31.12.317 172 558 181 319 202 593 228 Value adjustments at 1.1. 44 -9 -74 -11 -13 9 -49 -2 Foreign currency translation adjustments - - 5 1 -4 - -3 -1 Share of profit after tax¹ 36 - - - 42 - - - Dividends received -22 - - - -43 - - - Disposals related to step acquisitions - 3 - - 56 - - - Disposals - - 8 - - - 11 - Provisions - - -17 - - - -49 - Recovered - - 14 - - - 16 - Other adjustments -5 - - - 6 -18 - -8 Value adjustments at 31.12. 53 -6 -64 -10 44 -9 -74 -11 Carrying amount at 31.12. 370 166 494 171 363 193 519 217 ¹Excluding gain from the sale of an associate recognised in the income statement in 2024. Consolidated financial statements Parent financial statements Demant Annual Report 2025 147 Accounting policies Investments in associates are recognised and measured using the equity method, i.e. invest- ments are recognised in the balance sheet at the proportionate share of the equity value deter- mined in accordance with the Group’s accounting policies after the deduction and addition of propor- tionate intra-group gains and losses, respectively, and after the addition of the carrying amount of any goodwill. The proportionate shares of profit af- ter tax in associates are recognised in the income statement after the year’s changes in unrealised intra-group profits less any impairment loss relat- ing to goodwill. The proportionate shares of all transactions and events, which have been recognised in other com- prehensive income in associates, are recognised in consolidated other comprehensive income. On the acquisition of interests in associates, the ac- quisition method is applied. For accounting policies on segment information, please refer to Note 2.1. (DKK million)2025 2024 Non-current assets by geographic region: Europe 17,331 9,949 North America 7,367 8,162 Asia 1,805 1,945 Pacific region 798 799 Rest of world 135 148 Non-current assets 27,436 21,003 Non-current assets by country: Denmark 2,669 2,305 Germany 8,056 1,348 USA 5,764 6,521 France 3,307 3,170 Other countries 7,640 7,659 Non-current assets 27,436 21,003 4.4 Other non-current assets (continued) Associates (DKK million)2025 2024 Financial information from financial statements (Group share):Revenue 511 622 Profit for the year 36 99 Comprehensive income 36 99 4.5 Non-current assets by geographic region Consolidated financial statements Parent financial statements Demant Annual Report 2025 148 Capital structure and financial management NET INTEREST- BEARING DEBT 18,742 DKK MILLION NET FINANCIAL ITEMS -731 DKK MILLION Consolidated financial statements Parent financial statements Demant Annual Report 2025 149 Policies relating to financial risk management Financial risk management focuses on identifying risks related to changes in the financial markets and to customers’ propensity to pay for products and services. The Executive Leadership Team monitors the management of financial risks and risks relating to counterparties of the company to ensure that these remain well-balanced. Financial risks are managed centrally by Group Treasury, which is responsible for securing attractive funding under the prevailing market conditions and for monitor- ing and mitigating risks related to liquidity, interest rates and exchange rates. Risks related to coun- terparties are managed in the individual markets. Capital structure, funding and liquidity The Group remains highly cash-generating from operating activities with a strong balance sheet. The Group continuously adapts its capital struc- ture to the prevailing market conditions to secure attractive financing. Demant secures funding based on a strong commitment by our core banks to provide longer-term bank facilities. To mitigate potential liquidity and refinancing risks, the Group has secured considerable undrawn committed credit facilities from its core banking relations. In relation to R&D, Demant obtains financing from the Nordic Investment Bank and the European In- vestment Bank, which includes covenants with which Demant fully complies. To minimise financing risks, Demant aims for more than 50% of credit facilities to be committed with long-term maturity. Group Treasury monitors market conditions on an ongoing basis and en- sures planning and execution of refinancing when deemed appropriate and to manage maturity risk. Our financial gearing multiple is currently above the communicated target range of 2.0-2.5x due to the KIND acquisition. Demant prioritises delever- aging and expects to return to its medium- to long- term gearing target within 18-24 months after closing of the KIND transaction. The Group’s net interest-bearing debt (NIBD) amounted to DKK 18,742 million as at 31 Decem- ber 2025, and the gearing multiple was 3.4x. Interest rate risks Despite an increasing debt level, the financial ex- penses decreased in 2025, largely driven by de- creasing interest rates during the year as well as reduced credit margins. Currently, around 50% of the next-twelve-months interest expenses on the Group’s debt are funded through facilities with fixed rates or hedged through financial instruments that limit the interest rate risk. The Group seeks to maintain a balanced mix be- tween fixed and floating rate debt. Exchange rate risks The Group is exposed to exchange rate risks, as it trades with counterparties in a number of coun- tries, and as it has cash flows in different curren- cies. It is therefore important to adequately bal- ance foreign exchange rate risks to avoid unex- pected adverse impacts on the Group’s financial performance. The majority of Group companies transact mainly in local currencies and are therefore exposed to limited exchange rate risks. The Group does not hedge translation risks result- ing from the consolidation of Group accounts into Danish kroner. Most Group companies are invoiced from the Danish production entities. Around two-thirds of the invoices out of Denmark are issued in other currencies than Danish kroner or euros. To reduce our exchange rate exposure, the Group continuously seeks to balance incom- ing and outgoing cash flows in our main trading currencies as much as possible. To ensure pre- dictability in terms of net profit, the Group hedges expected future net cash flows, mainly through forward exchange contracts with a horizon of up to 18 months. In addition, the Group seeks to balance on-bal- ance net exposure in our main trading currencies and to hedge our exposure, if relevant. It is the Group’s policy to exclusively hedge financial risks arising from our commercial activities and not to undertake any financial transactions of a specula- tive nature. Credit risks From a commercial point of view, the Group is ex- posed to credit risks, if our customers fail to pay for products and services provided. Such risks mainly relate to trade receivables and loans to customers or business partners, and failure to ad- equately manage credit risks may adversely im- pact the Group. To minimise the risk of suffering losses on cus- tomers, the Group monitors the credit risks on an ongoing basis. The Group generally has a diversi- fied customer base, and in 2025, the accumulated revenue from our ten largest customers ac- counted for approximately 11% of total consoli- dated revenue. We regularly adjust our financial accounts to reflect the current credit risks. When granting loans to business partners, we re- quire that our counterparties provide security in their business. In general, we estimate that the risk relative to our total credit exposure is well- balanced at Group level, and historically, we have only suffered limited credit-related losses. The maximum credit risk relating to receivables matches the carrying amounts of such receiva- bles. Overall, the Group has limited deposits with financial institutions for which reason the credit risk in respect of deposits is considered to be low. The credit risk on cash is managed in accordance with the Group’s policy by selecting core banking partners, all with strong credit ratings. Due to its global presence and operations, the Group holds some cash balances. However, these are distrib- uted across multiple banks and locations, minimis- ing the associated credit risk. 5.1 Financial risk management and capital structure Consolidated financial statements Parent financial statements Demant Annual Report 2025 150 Accounting policies Net financial items mainly consist of interest in- come and interest expenses, credit card fees and bank fees and also include interest on lease liabili- ties, the unwinding of discounts on financial as- sets and liabilities, fair value adjustments of “shadow shares” under share-based remuneration programmes as well as certain realised and unre- alised foreign exchange gains and losses. Interest income and interest expenses are accrued based on the principal amount and the effective interest rate. The effective interest rate is the discount rate used for discounting expected future payments at- taching to the financial asset or financial liability in order for the present value to match the carrying amount of such asset or liability. The following non-financial item is included in the balance sheet and represents the difference be- tween the table and the balance sheet: Other lia- bilities of DKK 661 million (DKK 508 million in 2024). 5.2 Net financial items (DKK million)2025 2024 Interest on cash and bank deposits 21 26 Interest on receivables, customer loans etc. 73 75 Other financial income 8 12 Financial income from financial assets measured at amortised cost 102 113 Interest on bank debt, mortgages etc. -468 -575 Interest on lease liabilities -85 -77 Financial expenses on financial liabilities measured at amortised cost -553 -652 Foreign exchange losses, net -48 -45 Transaction costs -232 -228 Financial expenses -833 -925 Net financial items -731 -812 5.3 Financial instruments Categories of financial instruments(DKK million) 2025 2024 Unrealised gains on derivatives 140 31 Other investments 13 9 Financial assets at fair value through profit/loss 153 40 Receivables from associates 366 393 Customer loans 644 674 Other receivables 746 671 Trade receivables 3,765 3,563 Cash 1,330 1,112 Financial assets at amortised cost 6,851 6,413 Contingent considerations -70 -132 Unrealised losses on derivatives -24 -102 Financial liabilities at fair value through profit/loss -94 -400 Debt to credit institutions etc. -17,504 -12,670 Short-term bank facilities etc. -100 -240 Lease liabilities -3,383 -2,771 Trade payables -923 -658 Other liabilities excluding contingent considerations -2,254 -2,438 Financial liabilities measured at amortised cost -24,164 -18,611 Consolidated financial statements Parent financial statements Demant Annual Report 2025 151 In 2025, the weighted average effective interest rate for debt to credit institutions and short-term bank facilities was 2.6% (3.9% in 2024). Debt to credit institutions, short-term bank facili- ties and lease liabilities split by currency, including hedging: 71% in Danish kroner (61% in 2024), 16% in euros (19% in 2024), 6% in US dollars (14% in 2024), 2% in Canadian dollars (2% in 2024) and 5% in other currencies (4% in 2024). Accounting policies Debt to credit institutions is recognised at the date of borrowing as the proceeds received less trans- action costs. For subsequent periods, financial lia- bilities are measured at amortised cost in order for the difference between proceeds and the nominal value to be recognised as a financial expense over the term of the loan. On initial recognition, other financial liabilities are measured at fair value and subsequently at amor- tised cost using the effective interest method, and the difference between proceeds and the nominal value is recognised in the income statement as a financial expense over the term of the loan. 5.3 Financial instruments (continued) Maturity of financial liabilities(DKK million)Contractual cash flows Less than More than Carrying 1 year 1-3 years 4-5 years 5 years Total amount 2025 Debt to credit institutions etc. 1,580 15,275 702 1,065 18,622 17,504 Short-term bank facilities etc. 103 - - - 103 100 Lease liabilities 827 1,841 722 977 4,367 3,383 Trade payables 923 - - - 923 923 Deferred payments¹ 7 62 1 - 70 70 Contingent considerations¹ 37 - - - 37 37 Financial liabilities 3,477 17,178 1,425 2,042 24,122 22,017 2024Debt to credit institutions etc. 609 10,140 1,832 1,314 13,895 12,670 Short-term bank facilities etc. 253 - - - 253 240 Lease liabilities 669 1,351 672 661 3,353 2,771 Trade payables 658 - - - 658 658 Deferred payments¹ 44 42 46 - 132 132 Contingent considerations¹ 158 - 8 - 166 166 Financial liabilities 2,391 11,533 2,558 1,975 18,457 16,637 ¹Included in other liabilities. Consolidated financial statements Parent financial statements Demant Annual Report 2025 152 5.3 Financial instruments (continued) Cash flow from financing activities Non-cash changes Cash flow Acquisi-from tions and Foreign Transferred financing divest-exchange Other to held for (DKK million)31.12.2024 activities ments movement additions Disposals sale 31.12.2025 Debt to credit institutions etc. 12,670 4,853 51 -70 - - - 17,504 Short-term bank facilities etc. 240 -167 - -30 - - 57 100 Lease liabilities 2,771 -777 690 -82 883 -102 - 3,383 Financial liabilities 15,681 3,909 741 -182 883 -102 57 20,987 31.12.2023 31.12.2024 Debt to credit institutions etc. 11,238 1,401 - 31 - - - 12,670 Short-term bank facilities etc. 530 -586 3 12 - - 281 240 Lease liabilities 2,686 -750 163 1 751 -57 -23 2,771 Financial liabilities 14,454 65 166 44 751 -57 258 15,681 Consolidated financial statements Parent financial statements Demant Annual Report 2025 153 Sensitivity analysis in respect of interest rates Based on the Group’s net debt at the end of the 2025 financial year, a rise of 1 percentage point in the general interest rate level will cause an in- crease in consolidated annual interest expenses before tax of approximately DKK 97 million (DKK 44 million in 2024). Around 50% (around 60% in 2024) of the next-twelve-months interest ex- penses on the Group’s debt are funded through facilities with fixed rates or hedged through finan- cial instruments that limit the interest rate risk. 5.4 Interest rate risks Interest rate swap DKK/DKK (DKK million) 2025 Contractual Positive Negative Interest amount fair value fair value StartExpiryrate/strike at year-end at year-end at year-end 20232026 3.27% 1,000 - 12 20252026 2.02% 1,000 - - 20242027 2.22% 746 2 - 20252027 2.05% 1,000 2 - 20262027 2.26% 1,000 - 1 20252031 2.20% 895 14 - 5,641 18 13 2024 20232026 3.27% 1,000 - 22 20252026 2.02% 1,000 1 - 20242027 2.22% 746 1 - 20252027 2.05% 1,000 1 - 20262027 2.26% 1,000 - 1 20252031 2.20% 895 3 5,641 6 23 5.3 Financial instruments (continued) Net interest -bearing debt (DKK million) 2025 2024 Receivables from associates¹ 208 243 Customer loans 644 674 Other receivables¹ 63 107 Cash 1,330 1,112 Interest-bearing assets 2,245 2,136 Debt to credit institutions etc. -17,504 -12,670 Short-term bank facilities etc. -100 -240 Lease liabilities -3,383 -2,771 Interest-bearing liabilities -20,987 -15,681 Net interest-bearing debt -18,742 -13,545 ¹Interest -bearing portion. Consolidated financial statements Parent financial statements Demant Annual Report 2025 154 There have been no transfers between level 1 and level 2 in the 2025 and 2024 financial years. Financial assets and contingent considerations are measured at fair value in the balance sheet based on valuation methods, with any significant inputs not being based on observable market data (level 3). The majority of the contingent considerations are recognised as the maximum consideration to be paid, which Management has assessed to be the most likely outcome. Methods and judgements for determining fair values Other investments Other investments are assessed at fair value. Derivatives Forward exchange contracts are assessed using discounted cash flow valuation techniques. Future cash flows are based on observable forward ex- change rates at the end of the reporting period and on contractual forward exchange rates dis- counted at a rate that reflects the credit risk re- lated to various counterparties. Interest rate swaps are assessed using dis- counted cash flow valuation techniques. Future cash flows are based on observable forward yield curves at the end of the reporting period and on contractual interest rates discounted at a rate that reflects the credit risk related to various counterpar- ties. Contingent considerations Contingent considerations are measured at fair value based on the contractual terms of the con- tingent considerations and on non-observable in- puts (level 3), such as the financial performance and purchasing patterns of the acquired busi- nesses for a period of typically 1-5 years after the date of acquisition. Fair value hierarchy for assets and liabilities measured at fair value in the balance sheet Financial instruments measured at fair value are broken down according to the fair value hierarchy: • Listed prices in an active market for the same type of instrument (level 1). • Listed prices in an active market for similar as- sets or liabilities or other valuation methods, with all significant inputs being based on ob- servable market data (level 2). • Valuation methods, with any significant inputs not being based on observable market data (level 3). Accounting policies On initial recognition, other investments are rec- ognised at fair value and subsequently measured at fair value in the income statement. Unrealised and realised value adjustments are recognised in net financial items in the income statement. Con- tingent considerations arising from the acquisition of businesses are recognised at fair value at the time of acquisition. The obligations are reevalu- ated at fair value on a recurring basis. 5.5 Fair value hierarchy Contingent (DKK million)Financial assets considerations 2025 2024 2025 2024 Assets and liabilities (level 3) Carrying amount at 1.1. 9 19 -132 -127 Foreign currency translation adjustment -1 - 4 - Acquisitions 5 - -8 -42 Disposals, repayments, settlements etc. -1 -5 66 37 Other adjustments 1 -5 - - Carrying amount at 31.12. 13 9 -70 -132 (DKK million)Level 1 Level 2 Level 3 Total 2025Financial assets used as hedging instruments - 140 - 140 Other investments - - 13 13 Financial liabilities used as hedging instruments - -24 - -24 Contingent considerations - - -70 -70 2024Financial assets used as hedging instruments - 31 - 31 Other investments - - 9 9 Financial liabilities used as hedging instruments - -102 - -102 Contingent considerations - - -132 -132 Consolidated financial statements Parent financial statements Demant Annual Report 2025 155 At the balance sheet date in 2025, the share capi- tal was nominally DKK 43 million (DKK 44 million in 2024) divided into the corresponding number of shares of DKK 0.20. There are no restrictions on the negotiability or voting rights of the shares. At the balance sheet date in 2025, the number of shares outstanding was 210,898,609 (213,014,319 in 2024). As part of Demant A/S’ share buy-back pro- gramme, the company acquired 2,272,349 treas- ury shares in 2025 (7,598,403 shares in 2024), worth a total of DKK 582 million (DKK 2,301 mil- lion in 2024). Accounting policy On the buy-back of shares or sale of treasury shares, the purchase price or selling price, re- spectively, is recognised directly in equity as other reserves (retained earnings). A capital reduction through the cancellation of treasury shares will re- duce the share capital by an amount correspond- ing to the nominal value of such shares. Proposed dividends are recognised as a liability at the time of adoption at the annual general meeting. 5.6 Share capital 2025 2024 Percentage Percentage Treasury of share Treasury of share shares capital shares capital Treasury shares at 1.1. 8,075,473 3.6% 3,386,939 1.5% Cancellation of treasury shares -7,451,768 -3.5% -2,909,869 -1.3% Share buy-backs 2,272,349 1.1% 7,598,403 3.4% Treasury shares at 31.12. 2,896,054 1.4% 8,075,473 3.6% 5.7 Earnings per share 2025 2024 Demant A/S' shareholders' share of profit for the year, DKK million – continuing operations 2,368 2,891 Demant A/S' shareholders' share of profit for the year, DKK million – discontinued operations -823 -504 Demant A/S' shareholders' share of profit for the year, DKK million 1,545 2,387 Average number of shares, million 215.75 221.86 Average number of treasury shares, million -4.44 -4.64 Average number of shares outstanding, million 211.31 217.22 Earnings per share (EPS), DKK – continuing operations 11.20 13.31 Diluted earnings per share (DEPS), DKK – continuing operations 11.20 13.31 Earnings per share (EPS), DKK – discontinued operations -3.89 -2.32 Diluted earnings per share (DEPS), DKK – discontinued operations -3.89 -2.32 Earnings per share (EPS), DKK 7.31 10.99 Diluted earnings per share (DEPS), DKK 7.31 10.99 Adjusted earnings per share (adjusted EPS), DKK 11.74 12.74 (DKK million) 2025 2024 Share capital at 1.1 44,218 44,788 Capital reduction -1,459 -570 Share capital at 31.12 42,759 44,218 Total number of shares, thousand 213,795 221,090 Consolidated financial statements Parent financial statements Demant Annual Report 2025 156 Tax TAX ON PROFIT -734 DKK MILLION EFFECTIVE TAX RATE 23.7% Consolidated financial statements Parent financial statements Demant Annual Report 2025 157 The Group is not impacted by OECD/EU Pillar Two Model rules and their local implementation. Accounting policies Tax on profit for the year includes current tax and any changes in deferred tax. Current tax includes taxes payable and is determined on the basis of the estimated taxable income for the year and any prior-year tax adjustments. Tax on changes in eq- uity and other comprehensive income is recog- nised directly in equity and in other comprehen- sive income, respectively. Foreign currency translation adjustments of de- ferred tax are recognised as part of the year’s ad- justments of deferred tax. Permanent differences primarily include Danish interest limitation, R&D incentives, profit in associ- ates, non-deductible share-based payments and special items. Current tax liabilities or tax receivables are recog- nised in the balance sheet and determined as tax calculated on taxable income for the year, ad- justed for any tax on account. The tax rates pre- vailing at the balance sheet date are used for cal- culation of the year’s taxable income. (DKK million)2025 2024 Current tax on profit for the year -716 -878 Adjustment of current tax, prior years 10 -1 Change in deferred tax -78 39 Adjustment of deferred tax, prior years 51 16 Impact of changes in corporate tax rates -1 - Tax on profit for the year -734 -824 Reconciliation of tax rates:Danish corporate tax rate 22.0% 22.0% Differences between tax rates of non-Danish companies and Danish corporate tax rate 1.0% 0.8% Impact of unrecognised tax assets, net - 0.5% Permanent differences 2.2% -1.8% Other items, including prior-year adjustments -1.5% 0.7% Effective tax rate 23.7% 22.2% 6.1 Tax on profit (DKK million)2025 2024 Breakdown of tax on other comprehensive income:Foreign currency translation adjustment - 1 Value adjustment of hedging instruments for the year -64 20 Value adjustment of hedging instruments transferred to revenue 24 1 Actuarial gains/losses on defined benefit plans -5 4 Tax on other comprehensive income -45 26 Consolidated financial statements Parent financial statements Demant Annual Report 2025 158 The tax value of deferred tax assets not recognised is DKK 94 million (DKK 108 million in 2024) and relates mainly to tax losses and tax credits for which there is considerable uncertainty about their future utilisation. Tax losses of DKK 18 million will expire within 5-10 years, whereas other tax losses carried forward have no expiry date. Any sale of shares in subsidiaries and associates at the balance sheet date is estimated to result in tax in the amount of DKK 0 million (DKK 0 million in 2024). Accounting policies Deferred tax is recognised, using the balance sheet liability method on any temporary differ- ences between the tax base of assets and liabili- ties and their carrying amounts, except for de- ferred tax on temporary differences arisen either on initial recognition of goodwill or on initial recog- nition of a transaction that is not a business com- bination, with the temporary difference ascer- tained on initial recognition affecting neither net profits nor taxable income. Deferred tax is determined on the basis of the tax rules and rates prevailing at the balance sheet date in a particular country. The effect of any changes in tax rates on deferred tax is included in tax on profit for the year, unless such deferred tax is attributable to items previously recognised di- rectly in equity or in other comprehensive income. In the latter case, such changes will also be rec- ognised directly in equity or in other comprehen- sive income. The tax base of a loss, if any, which may be set off against future taxable income, is carried forward and set off against deferred tax in the same legal tax entity and jurisdiction. 6.2 Deferred tax (DKK million)2025 2024 Deferred tax recognised in the balance sheet:Deferred tax assets 719 588 Deferred tax liabilities -812 -634 Deferred tax, net at 31.12. -93 -46 Deferred tax, net at 1.1. -46 -91 Foreign currency translation adjustments 27 -28 Changes in deferred tax -78 39 Additions from acquisitions 1 3 Adjustment of deferred tax, prior years 51 16 Impact of changes in corporate tax rates -1 - Deferred tax relating to changes in equity, net -47 26 Transferred to assets held for sale - -11 Deferred tax, net at 31.12. -93 -46 Consolidated financial statements Parent financial statements Demant Annual Report 2025 159 Accounting estimates and judgements Deferred tax assets (significant estimate) Deferred tax assets, including the tax value of any tax losses allowed for carry-forward, are recog- nised in the balance sheet at the estimated realis- able value of such assets, either by a set-off against a deferred tax liability or by a net asset to be set off against future positive taxable income. At the balance sheet date, an assessment is made as to whether it is probable that sufficient taxable income will be available in the future against which the deferred tax asset can be uti- lised. Deferred tax on temporary differences between the carrying amounts and the tax values of invest- ments in subsidiaries and associates is recog- nised, unless the Parent is able to control the time of realisation of such deferred tax, and it is proba- ble that such deferred tax will not be realised as current tax in the foreseeable future. Deferred tax is recognised in respect of eliminations of intra- group profits and losses. Foreign Recognised currency in other Transferred Temporary translation Recognised compre-to assets Temporary differences adjust-Acquisi-in profit for hensive in-held for differences (DKK million)at 1.1. ments tions the year come sale at 31.12. 2025Intangible assets -719 -13 - -71 - - -803 Property, plant and equipment -128 51 - -40 - - -117 Leased assets 25 - - 4 - - 29 Inventories 193 10 - 50 - - 253 Receivables 60 -1 - - - - 59 Provisions 114 -4 - -89 - - 21 Deferred revenue 176 -5 1 27 - - 199 Tax losses 77 -4 - 54 - - 127 Other 156 -7 - 37 -47 - 139 Total -46 27 1 -28 -47 - -93 2024 Intangible assets -565 -3 1 -151 - -1 -719 Property, plant and equipment -159 -28 - 57 - 2 -128 Leased assets 21 -1 - 5 - - 25 Inventories 208 -3 - -15 - 3 193 Receivables 52 - - 10 - -2 60 Provisions 99 2 - 13 - - 114 Deferred revenue 158 2 1 27 - -12 176 Tax losses 56 10 1 11 - -1 77 Other 39 -7 - 98 26 - 156 Total -91 -28 3 55 26 -11 -46 6.2 Deferred tax (continued) Consolidated financial statements Parent financial statements Demant Annual Report 2025 160 Acquisitions , discontinued operations and assets held for sale Consolidated financial statements Parent financial statements Demant Annual Report 2025 161 As part of the capital allocation policy, a portion of the cash flow from operating activities is allocated to value-adding acquisitions. In 2025, a total of 53 acquisitions were completed at an estimated total consideration of DKK 6,274 million. Except for KIND Group, no other individual acqui- sitions are considered to be material and are therefore not disclosed separately but grouped to- gether within the respective geographical region. In 2025, the Group acquired a number of busi- nesses or obtained significant stakes in hearing healthcare businesses, the most significant ones being KIND Group and Ohrwerk Group, both in Germany. On 31 January 2025, the Group acquired 100% of the shares in Ohrwerk Horgeräte GmbH, which operates hearing care clinics across Germany. On 1 December 2025, the Group acquired 100% of the shares in KIND Group, a leading retailer of hearing aids operating hearing care clinics across Germany and several other countries. In addition, the Group made a number of other mi- nor acquisitions in Europe, North America, the Pacific region and Asia in 2025. The Pacific region and Asia are presented as “Other”. In 2024, the Group acquired a number of busi- nesses or obtained significant stakes in hearing healthcare businesses, the most significant one being Fuel Medical Group in the US. On 1 May 2024, the Group acquired the remaining 51% of the shares in Fuel Medical Group and now holds 100% of the shares. Fuel Medical Group is a value-added distributor of hearing aids that op- erates in North America. The step acquisition re- sulted in a fair value adjustment of the Group’s existing shares of DKK 324 million, presented as a special item in the income statement. In 2025, the Group concluded the acquisition, resulting in an adjustment to the previously recognised step- up gain of DKK -82 million. On 2 September 2024, the Group acquired 100% of the shares in Dansk HøreCenter ApS, which operates hearing care clinics across Denmark. In addition, the Group made a number of other mi- nor acquisitions in Europe, North America, the Pa- cific region and Asia in 2024. The Pacific region and Asia are presented as “Other”. (DKK million)2025 2024 North KIND North Europe America Other Group Total Europe America Other Total Intangible assets 16 2 1 162 181 21 25 1 47 Property, plant and equipment 24 1 3 446 474 20 3 2 25 Other non-current assets 120 23 8 565 716 141 22 15 178 Inventories 13 - - 301 314 19 1 1 21 Current receivables 50 1 - 231 282 19 44 - 63 Cash and cash equivalents 42 4 - 96 142 41 81 - 122 Non-current liabilities -174 -20 -7 -985 -1,186 -176 -19 -12 -207 Current liabilities -136 -6 -2 -446 -590 -75 -35 -4 -114 Acquired net assets -45 5 3 370 333 10 122 3 135 Goodwill 946 99 26 4,870 5,941 502 1,284 50 1,836 Consideration paid 901 104 29 5,240 6,274 512 1,406 53 1,971 Carrying amount of non-controlling interests on obtaining control -3 -16 - - -19 -26 -301 - -327 Fair value adjustment of non-controlling interests on obtaining control - - - - - -9 -328 - -337 Contingent considerations and deferred payments -53 -12 -9 - -74 -32 -81 -13 -126 Acquired cash and cash equivalents -42 -4 - -96 -142 -41 -81 - -122 Cash consideration paid 803 72 20 5,144 6,039 404 615 40 1,059 Figures are shown at fair value on the acquisition date. 7.1 Acquisition of businesses Consolidated financial statements Parent financial statements Demant Annual Report 2025 162 Accounting treatment In respect of the acquisitions, the Group paid total consideration of DKK 6,274 million, exceeding the fair values of the acquired assets, liabilities and contingent liabilities. Such positive balances in value can be attributed to expected synergies be- tween the activities of the acquired entities and the Group’s existing activities, to the future growth opportunities and to the value of staff competen- cies in the acquired businesses. These synergies are not recognised separately from goodwill, as they are not individually identifiable. Total goodwill recognised in respect of the acquisitions made in 2025 amounts to DKK 5,941 million. Of the total acquisitions made in 2025, the fair value of the estimated contingent considerations in the form of earn-outs and deferred payments accounted for DKK 74 million (DKK 126 million in 2024). Earn-outs depend on the results of the ac- quired entities for a period of 1-4 years. Earn-outs and other contingent considerations related to the acquisitions are estimated to be maximum DKK 77 million (DKK 145 million in 2024). The fair values of acquisitions are not considered final until 12 months after the acquisition date. Ad- justments to acquisitions completed more than 12 months prior to the time of the adjustments, in- cluding changes in estimated contingent consider- ations, are recognised in the income statement. In 2025, adjustments were made to the prelimi- nary recognition of acquisitions recognised in 2024. These adjustments relate to payments made, contingent considerations provided as well as net assets and goodwill acquired. The impact of these adjustments on goodwill was DKK 19 mil- lion (DKK 9 million in 2024) and DKK 16 million (DKK -1 million in 2024) on contingent considera- tions. In 2025, adjustments were also made to contin- gent considerations related to acquisitions com- pleted more than 12 months prior to the time of the adjustments. These adjustments amount to DKK 29 million (DKK 35 million in 2024) and are recognised as part of distribution costs for acquisi- tions. Step acquisitions At the time of acquisition of non-controlling inter- ests, the shares of the acquisitions are measured at the proportionate share of the total fair value of the acquired entities, including goodwill. On ob- taining a controlling interest through step acquisi- tions, previously held non-controlling interests are, at the time of obtaining control, remeasured at fair value with fair value adjustments recognised in the income statement. The total impact on the income statement of fair value adjustments of non-controlling interests in step acquisitions was DKK 0 million in 2025 (DKK 337 million in 2024). The statements of fair values of acquisitions are not considered final until 12 months after the ac- quisition date. Transaction costs Transaction costs in connection with acquisitions made in 2025 amounted to DKK 61 million (DKK 23 million in 2024). Of this amount, DKK 46 million were recognised as special items, with the re- mainder recognised in distribution costs. Acquired assets and pro forma figures The acquired assets include contractual receiva- bles amounting to DKK 206 million (DKK 57 mil- lion in 2024) of which DKK 16 million (DKK 2 mil- lion in 2024) was considered to be uncollectible at the date of the acquisition. Of total goodwill in the amount of DKK 5,941 million (DKK 1,836 million in 2024), DKK 4,753 million (DKK 1,328 million in 2024) can be amortised for tax purposes. Revenue and profit after tax generated by the ac- quired businesses since acquiring them in 2025 amount to DKK 507 million (DKK 371 million in 2024) and DKK 46 million (DKK 17 million in 2024), respectively. Had such revenue and profit been consolidated on 1 January 2025, it is esti- mated that consolidated pro forma revenue and profit after tax would have been DKK 25,052 mil- lion (DKK 22,710 million in 2024) and DKK 1,648 million (DKK 2,401 million in 2024), respectively. Without taking synergies from our core business into account, we believe that these pro forma fig- ures reflect the level of consolidated earnings af- ter acquisition of the business. Acquisitions after balance sheet date From the balance sheet date and until the date of financial reporting in 2026, the Group has ac- quired a number of retail businesses. The Group is in the process of completing the purchase price allocation, including the valuation of intangible as- sets and liabilities assumed. The final impact will be reflected in the subsequent reporting period. 7.1 Acquisition of businesses (continued) Consolidated financial statements Parent financial statements Demant Annual Report 2025 163 Accounting policies Newly acquired or newly established businesses are recognised in the consolidated financial state- ments from the time of acquisition or formation, respectively. The time of acquisition is the date when control of the business is transferred to the Group. For Group accounting policies on control, please refer to Note 1.1. In respect of newly ac- quired businesses, comparative figures and key figures are not restated. On acquiring new busi- nesses of which the Group obtains control, the pur- chase method is applied according to which their identified assets, liabilities and contingent liabili- ties are measured at fair value on the acquisition date. Any non-current assets acquired for the pur- pose of resale are, however, measured at fair value less expected cost of disposal. Restructur- ing costs are solely recognised in the pre-acquisi- tion balance sheet if they are a liability for the ac- quired business. Any tax effect of revaluations are taken into account. The acquisition cost of a business consists of the fair value of the consideration paid for the busi- ness with the addition of the fair values of previ- ously held interests in the acquiree. If the final consideration is conditional upon one or more fu- ture events, the consideration is recognised at fair value on acquisition. Any subsequent adjustment of contingent considerations is recognised directly in the income statement, unless the adjustment is the result of new information about conditions pre- vailing on the acquisition date, and this infor- mation becomes available up to 12 months after the acquisition date. Transaction costs are recog- nised directly in the income statement when in- curred. If the purchase price exceeds the fair val- ues of the assets, liabilities and contingent liabili- ties identified on acquisition, any remaining posi- tive differences (goodwill) are recognised in the balance sheet under intangible assets and tested for impairment at least annually. If the carrying amount of an asset exceeds its recoverable amount, it is written down to such lower recovera- ble amount. If, on the acquisition date, there are any uncertain- ties with respect to identifying or measuring ac- quired assets, liabilities or contingent liabilities or uncertainty with respect to determining their cost, initial recognition is made on the basis of provi- sionally calculated values. Such provisionally cal- culated values may be adjusted, or additional as- sets or liabilities may be recognised up to 12 months after the acquisition date, if new infor- mation becomes available about conditions pre- vailing on the acquisition date, which would have affected the calculation of values on that day, had such information been known. Accounting estimates and judgements Identification of assets and liabilities (significant judgement) On recognition of assets and liabilities from acqui- sitions, management judgements may be required for the identification of the following: • Goodwill • Intangible assets, resulting from technology, customer relationships, client lists or brand names. • Contingent considerations. Contingent considerations (estimate) Acquisitions may include provisions to the effect that additional payments of contingent considera- tions be paid to the previous owners when certain events occur or certain results are obtained. Man- agement assesses, on a regular basis, the judge- ments made in respect of the particular acquisi- tions, taking sales run rates of the acquired entity into account. 7.1 Acquisition of businesses (continued) Consolidated financial statements Parent financial statements Demant Annual Report 2025 164 On 22 October 2025, the Group signed an agree- ment to sell its bone anchored hearing systems (BAHS) business to Impilo, thereby concluding the process of divesting its Hearing Implants (Oticon Medical) business. As part of the agreement, the Group will provide transitional services related to the development of products, supply sound pro- cessors and provide local sales and customer support as well as administrative services. The transaction is subject to customary closing condi- tions and regulatory approvals and continues to be considered a discontinued operation. The Group announced on 20 December 2025 that an agreement to sell EPOS to ACCO Brands had been signed. The transaction is the result of the strategic review of the Communications business area under which the EPOS brand operates. Clos- ing of the transaction is subject to customary clos- ing conditions, and the Communications business continues to be considered a discontinued opera- tion. In 2025, discontinued operations realised a loss after tax of DKK 823 million. The loss relates to a combined net operating loss in the Hearing Im- plants and Communications businesses as well as impairment losses related to the transactions. Accounting policies Discontinued operations represent a separate line of businesses disposed of or being prepared for sale. The results of discontinued operations are presented separately in the income statement, and comparative figures are restated when first recognised. Assets and liabilities of discontinued operations are presented as separate items in the balance sheet, and cash flow from discontinued operations are presented separately in the cash flow statement. 7.2 Discontinued operations and assets held for sale (DKK million)2025 2024 Revenue 1,153 1,162 Expenses -1,099 -1,551 Gain/loss on divestment of businesses and activities - -25 Amortisation, depreciation and impairment losses -966 -224 Profit/loss before tax – discontinued operations -912 -638 Tax on profit/loss for the year 89 134 Profit/loss for the year – discontinued operations -823 -504 Profit/loss for the year for discontinued operations attributable to: Demant A/S' shareholders -823 -504 -823 -504 Earnings per share (EPS), DKK -3.89 -2.32 Diluted earnings per share (DEPS), DKK -3.89 -2.32 Cash flow from discontinued operations: Cash flow from operating activities (CFFO) 102 -247 Cash flow from investing activities (CFFI) -13 -38 Cash flow from financing activities (CFFF) 32 269 Cash flow for the year, net – discontinued operations 121 -16 Consolidated financial statements Parent financial statements Demant Annual Report 2025 165 Assets classified as held for sale as at 31 December 2025 comprise the Communications business and the Hearing Implants business. Accounting policies Assets and liabilities of discontinued operations and assets held for sale, except financial assets etc., are measured at the lower of the carrying amount and the fair value less costs to sell. Non- current assets held for sale are not depreciated. Key accounting estimates and judgements No key estimates were identified. 7.2 Discontinued operations and assets held for sale (continued) (DKK million)2025 2024 Balance sheet items:Intangible assets 82 433 Property, plant and equipment 7 25 Lease assets 24 44 Deferred tax assets 93 47 Other non-current assets - 1 Non-current assets 206 550 Current assets 493 843 Assets held for sale 699 1,393 Provisions and deferred considerations 340 46 Lease liabilities 36 46 Other liabilities 245 252 Liabilities related to assets held for sale 621 344 Net assets held for sale 78 1,049 Consolidated financial statements Parent financial statements Demant Annual Report 2025 166 In 2025, there were no divestments. In May 2024, the Group divested its CI business to Cochlear Limited. The divestment resulted in a loss of DKK 25 million. Accounting policies Gains or losses on the divestment of businesses and activities are determined as the difference be- tween the selling price and the carrying amount of the net assets divested. Transaction costs and any provisions made for obligations related to the divestment of businesses and activities are de- ducted. 7.3 Divestment of businesses and activities (DKK million)2025 2024 Selling price - - Net debt adjustment - 25 Selling price of divested businesses and activities - 25 Gain/loss on divestment of businesses and activities:Selling price for divested businesses and activities - 25 Net assets sold - -619 Previously recognised impairment losses - 612 Provisions as a result of the transaction - -32 Transaction costs - -11 Gain/loss on divestment of businesses and activities - -25 Net profit from divestment of businesses and activities:Profit from divested discontinued operations - -65 Gain/loss on divestment of business and activities - -25 Net profit from divestment of businesses and activities - -90 Consolidated financial statements Parent financial statements Demant Annual Report 2025 167 Provisions, other liabilities etc . PROVISIONS 312 DKK MILLION OTHER LIABILITIES 2,985 DKK MILLION Consolidated financial statements Parent financial statements Demant Annual Report 2025 168 Miscellaneous provisions relate to provisions for disputes etc. The majority of these provisions are expected to be realised within the next five years. 8.1 Provisions 2025 2024 Restructur-Staff- Miscel- Restructur-Staff- Miscel- (DKK million)ing costs related laneous Total ing costs related laneous Total Other provisions at 1.1. - 75 111 186 - 65 98 163 Foreign currency translation adjustments - -7 - -7 - - -1 -1 Additions - 3 51 54 40 4 27 71 Additions from acquisitions - 1 29 30 - 6 8 14 Realised - - -30 -30 - - -7 -7 Reversals - - -25 -25 - - -14 -14 Transferred to/from liabilities related to assets held for sale - - - - -40 - - -40 Other provisions at 31.12. - 72 136 208 - 75 111 186 Breakdown of provisions:Non-current provisions - 72 45 117 - 75 21 96 Current provisions - - 91 91 - - 90 90 Other provisions at 31.12. - 72 136 208 - 75 111 186 (DKK million)2025 2024 Staff-related provisions 72 75 Miscellaneous provisions 136 111 Other provisions 208 186 Defined benefit plan liabilities, net 104 120 Provisions at 31.12. 312 306 Breakdown of provisions:Non-current provisions 221 213 Current provisions 91 93 Provisions at 31.12. 312 306 Consolidated financial statements Parent financial statements Demant Annual Report 2025 169 Generally, the Group does not offer defined bene- fit plans, but it has such plans in Switzerland, France and Germany where they are required by law. Defined benefit plan costs recognised in the in- come statement amount to DKK 18 million (DKK 0 million in 2024), and the accumulated actuarial gain recognised in the statement of comprehen- sive income amounts to DKK 22 million (loss of DKK 17 million in 2024). In 2026, the Group expects to pay approximately DKK 16 million (DKK 22 million in 2025) into de- fined benefit plans. 2025 2024 Composition of plan assets: Equity 29% 28% Bonds 30% 31% Property 26% 26% Other 15% 15% Accounting policies Provisions are recognised if, as a result of an ear- lier event, the Group has a legal or constructive obligation, and if the settlement of such obligation is expected to draw on corporate financial re- sources, but there is uncertainty about the timing or amount of the obligation. Provisions are meas- ured on a discounted basis based on Manage- ment’s best estimate of the amount at which a particular liability may be settled. The discount ef- fect of any changes in the present value of provi- sions is recognised as a financial expense. The Group has defined benefit plans and similar agreements with some of its employees. With respect to defined contribution plans, the Group pays regular, fixed contributions to inde- pendent pension companies. Contributions are recognised in the income statement for the period in which employees have performed work entitling them to such pension contributions. Contributions due are recognised in the balance sheet as a lia- bility. With respect to defined benefit plans, the Group is obliged to pay a certain contribution when an em- ployee covered by such a plan retires, for instance a fixed amount or a percentage of the employee’s final salary. An actuarial calculation is prepared periodically of the accrued present value of future benefits to which employees, through their past employment with the Group, are entitled and which are payable under the defined benefit plan. This defined benefit obligation is calculated annu- ally, using the projected unit credit method based on judgements in respect of the future develop- ment in for instance wage levels, interest rates, mortality and inflation rates. (DKK million)2025 2024 Defined benefit obligations: Present value of defined benefit obligations 491 485 Fair value of defined benefit assets 387 365 Defined benefit obligations, net 104 120 Return on defined benefit assets:Actual return on defined benefit assets 3 33 Actuarial gains/losses on defined benefit assets 3 33 Defined benefit obligations maturity:Between 1-5 years 137 133 More than 5 years 354 352 Assumptions:Discount rate 1.6% 1.2% Expected return on defined benefit assets 0.0% 0.0% Future salary increase rate 1.3% 1.5% Sensitivity analysis: Discount rate Increase of 0.5 percentage point -6.3% -6.3% Decrease of 0.5 percentage point 6.8% 6.8% Expected salary growth rate Increase of 0.5 percentage point 0.5% 1.0% Decrease of 0.5 percentage point -0.7% -1.0% 8.2 Employee benefit obligations Consolidated financial statements Parent financial statements Demant Annual Report 2025 170 The defined benefit obligation less the fair value of any assets relating to the defined benefit plan is recognised in the balance sheet under provisions. Defined benefit costs are categorised as follows: • Service costs, including current service costs, past-service costs as well as gains and losses on curtailments and settlements • Net interest expenses or income • Remeasurements Remeasurements, comprising actuarial gains and losses, any effects of changes to the asset ceiling as well as returns on defined benefit assets, ex- cluding interest, are reflected immediately in the balance sheet with a charge or credit recognised in other comprehensive income for the period in which it occurs. Remeasurements recognised in other comprehen- sive income are reflected immediately in retained earnings and are not reclassified to the income statement. Service costs and net interest ex- penses or income are included in the income statement as staff costs. Other non-current employee benefits are recog- nised using actuarial calculation. Actuarial gains or losses on such benefits are recognised directly in the income statement. Accounting estimates and judgements Assessment of provisions (estimate) Management assesses, on an ongoing basis, pro- visions for, among others, restructuring costs and the likely outcomes of pending and probable law- suits etc. (other provisions). When assessing the likely outcomes of lawsuits, Management bases its assessments on internal and external legal ad- vice and established precedent. Provisions for re- structuring costs are based on the estimated costs of implementing restructuring initiatives and thus on a number of assumptions about future costs and events. For all provisions, the outcome and fi- nal expense depend on future events, which are by nature uncertain. Product-related liabilities include standard warran- ties and returned products etc. Staff-related liabili- ties include holiday pay and payroll costs due. The carrying amounts of other liabilities approxi- mate the fair values of such liabilities. Accounting policies Other non-financial liabilities are recognised if, as a result of an earlier event, the Group has a legal or constructive obligation, and if the settlement of such obligation is expected to draw on corporate financial resources. Other non-financial liabilities are measured on a discounted basis, and the dis- count effect of any changes in the present value of the liabilities is recognised as a financial ex- pense. On the sale of products with a right of return, a re- fund liability and a right to the returned products is recognised as a refund liability and a current asset (included in prepaid expenses), respectively. The refund liability is deducted from revenue, and the right to the returned products is offset in produc- tion costs. Warranty commitments include an obli- gation to remedy faulty or defective products dur- ing the warranty period. Accounting estimates and judgements Warranty and return liabilities (estimates) Liabilities in respect of service packages and war- ranties are calculated on the basis of information on products sold, related service and warranty pe- riods and past experience of costs incurred by the Group to fulfil its service and warranty liabilities. Liabilities in respect of returns are calculated based on information on products sold, related rights concerning returns and past experience of products being returned in the various markets. Consolidated product-related liabilities are the sum of a large number of small items, with the sum changing constantly due to a large number of transactions. 8.2 Employee benefit obligations (continued) P654T 83bA#y 8.3 Other liabilities (DKK million)2025 2024 Product-related liabilities 661 508 Staff-related liabilities 1,012 981 Other debt, public authorities 325 299 Contingent considerations 107 298 Other costs payable 880 992 Other liabilities 2,985 3,078 Due within 1 year 2,438 2,617 Due within 1-5 years 547 461 Consolidated financial statements Parent financial statements Demant Annual Report 2025 171 Some products and services, including warranty- related are provided free of charge to the cus- tomer. Certain other services and warranty-related services are paid by the customer on delivery of the related goods, but delivery of the service takes place 1-4 years after delivery of the goods. Please refer to Note 2.1 for a description of the nature of the deferred revenue. Accounting policies Deferred revenue includes income received or fu- ture performance obligations relating to subse- quent financial years and is recognised as revenue when the Group fulfils its obligations by transfer- ring the goods or services to the customers. 8.5 Contingent liabilities The Group is involved in minor litigations, claims, disputes etc. Management is of the opinion that such disputes do not or will not significantly affect the Group’s financial position. The Group seeks to make adequate provisions for legal proceedings. As part of its business activities, the Group has en- tered into normal agreements with customers and suppliers etc. as well as agreements for the pur- chase of shareholdings. The Demant Group is jointly taxed with William Demant Invest A/S, which is the administration company, and all Danish subsidiaries. Under the Danish Corporation Tax Act, the Group is first of all fully liable for corporate tax payments and for withholding tax at source in respect of interest, royalties and dividends in relation to its own sub- sidiaries and is secondly liable for tax payments due for William Demant Invest A/S and its partly owned subsidiaries. 8.4 Deferred revenue Expected recognition of revenue Less than 1 More than (DKK million)year 1-2 years 3-4 years 4 years Total 2025Prepayments from customers 97 - - - 97 Deferred warranty-related revenue 292 253 124 16 685 Deferred free products revenue 141 102 93 21 357 Deferred service revenue 332 276 182 103 893 Total 862 631 399 140 2,032 2024 Prepayments from customers 52 - - - 52 Deferred warranty-related revenue 287 261 119 10 677 Deferred free products revenue 74 48 66 31 219 Deferred service revenue 175 127 110 40 452 Total 588 436 295 81 1,400 (DKK million)2025 2024 Prepayments from customers 97 52 Future performance obligations:Deferred warranty-related revenue 685 677 Deferred free products revenue 357 219 Deferred service revenue 893 452 Total 2,032 1,400 Consolidated financial statements Parent financial statements Demant Annual Report 2025 172 Other disclosure requirements Consolidated financial statements Parent financial statements Demant Annual Report 2025 173 William Demant Foundation, Kongebakken 9, 2765 Smørum, Denmark, is the only related party with a controlling interest. Controlling interest is achieved through a combination of William De- mant Foundation’s own shareholdings and the shareholdings of William Demant Invest A/S for which William Demant Foundation exercises the voting rights. Subsidiaries and associated compa- nies of William Demant Invest A/S are related par- ties to the Demant Group. Related parties with significant influence are the Company’s Board of Directors and their related parties. Furthermore, related parties are the Exec- utive Board and companies in which the above persons have significant interests. Subsidiaries and associates as well as the De- mant Group’s ownership interests in these compa- nies appear from Subsidiaries and associates in Section 11. In 2025, William Demant Foundation paid admin- istration fees to the Group of DKK 2 million (DKK 2 million in 2024). The Demant Group paid admin- istration fees to William Demant Invest A/S of DKK 4 million (DKK 4 million in 2024) and received service fees of DKK 3 million (DKK 4 mil- lion in 2024) from William Demant Invest A/S. In 2025, the Demant Group paid service fees to Embla Medical, a subsidiary of William Demant In- vest A/S, of DKK 1 million (DKK 3 million in 2024) and received service fees of DKK 40 million (DKK 48 million in 2024) from Embla Medical. In 2025, the Demant Group was reimbursed by Vi- sion RT, a subsidiary of William Demant Invest A/S, for pass-through expenses in the amount of DKK 150 million (DKK 123 million in 2024). At year-end 2025, the Demant Group had receiva- bles of DKK 18 million for services provided to Vi- sion RT and Embla Medical (DKK 22 million in 2024). In 2025, William Demant Foundation donated DKK 6 million (DKK 8 million in 2024) to mainly PhD projects in the Demant Group. Further, Wil- liam Demant Foundation acquired diagnostic equipment and hearing aids worth DKK 0 million and DKK 1 million (DKK 0 million and DKK 1 mil- lion in 2024), respectively, from the Group. Since 2011, the Demant Group has settled Danish tax on account and residual tax with William De- mant Invest A/S, which is the administration com- pany for the joint taxation. There have been no transactions with the Execu- tive Board and the Board of Directors apart from normal remuneration. Please refer to Note 2.2. Transactions with associates Under the provisions of contracts concluded with associates, the Group is not entitled to receive dividends from certain associates. This is re- flected in the profit included in the income state- ment, as no profit is recognised, if the Group is not entitled to receive dividends. 9.1 Related parties Associates (DKK million)2025 2024 Transactions with associates:Revenue from sales 259 263 Royalties and paid licence fee, net 26 20 Purchased materials and other fees -6 - Dividends received 22 43 Interest income 15 19 Receivables from associates 366 393 Consolidated financial statements Parent financial statements Demant Annual Report 2025 174 Some of the Group's subsidiaries are not subject to auditing by PricewaterhouseCoopers. In 2025, the fee for non-audit services delivered by PricewaterhouseCoopers Statsautoriseret Re- visionspartnerselskab, Denmark, amounted to DKK 3 million (DKK 4 million in 2024). Services other than statutory audit of the financial statements provided by PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab, Den- mark, mainly consist of limited assurance on the Sustainability statement and tax-related advice. On 30 January 2026, the transaction to sell EPOS closed, cf. the investor news published that day. No events have occurred after the reporting date of importance to the consolidated financial statements. 9.3 Events after the balance sheet date 9.2 Fees to auditors (DKK million)2025 2024 Fees to Parent’s auditors appointed at the annual general meeting:Statutory audit fee 17 19 Other assurance engagements 2 3 Tax 1 1 Other services - 1 Total 20 24 Consolidated financial statements Parent financial statements Demant Annual Report 2025 175 Parent income statement 176 Parent financial statements Consolidated financial statements Parent financial statements Demant Annual Report 2025 176 Parent income statement (DKK million) Note 2025 2024 Revenue - - Administrative expenses 10.2 / 10.3 -91 -113 Operating loss (EBIT) -91 -113 Share of profit after tax, subsidiaries 10.9 846 2,575 Share of profit after tax, associates 10.9 -4 -2 Gain/loss on divestment of businesses and activities - -527 Financial income 10.4 468 312 Financial expenses 10.4 -596 -643 Profit before tax 623 1,602 Tax on profit for the year 10.5 41 56 Profit for the year 10.6 664 1,658 Consolidated financial statements Parent financial statements Demant Annual Report 2025 177 (DKK million) Note 2025 2024 Assets Goodwill 13 17 Intangible assets 10.7 13 17 Land and buildings - 24 Property, plant and equipment 10.8 - 24 Lease assets - 1 Investments in subsidiaries 10.9 17,840 18,019 Loans to subsidiaries 10.9 10,444 3,890 Investments in associates 10.9 25 28 Other investments 2 2 Other receivables 10 - Deferred tax assets 13 3 Other non -current assets 28,334 21,943 Non -current assets 28,347 21,984 Receivables from subsidiaries 1 - Income tax 53 45 Other receivables 60 6 Prepaid expenses 32 32 Cash 65 5 Current assets 211 88 Assets 28,558 22,072 (DKK million) Note 2025 2024 Equity and liabilities Share capital 10.10 43 44 Other reserves 3,322 2,712 Retained earnings 664 1,657 Total equity 4,029 4,413 Provisions 1,157 1,058 Provisions 1,157 1,058 Borrowings 10.11 16,363 12,474 Lease liabilities 10.11 - 1 Other liabilities 59 97 Non -current liabilities 10.11 16,422 12,572 Borrowings 10.11 1,130 377 Debt to subsidiaries 5,710 3,404 Other liabilities 110 248 Current liabilities 6,950 4,029 Liabilities 23,372 16,601 Equity and liabilities 28,558 22,072 Parent accounting policies 10.1 Contingent liabilities 10.13 Related parties 10.14 Events after the balance sheet date 10.15 Parent balance sheet 31 December Consolidated financial statements Parent financial statements Demant Annual Report 2025 178 (DKK million) Other reserves Share capital Foreign cur- rency transla- tion reserve Hedging reserve Reserve according to equity method Retained earnings Total equity Equity at 1.1.2024 45 -83 -19 2,414 2,426 4,783 Profit for the year - - - 2,573 -915 1,658 Dividends received - - - -1,104 1,104 - Foreign currency translation adjustment of investments in subsidiaries etc. - 7 - 148 - 155 Other changes in equity in subsidiaries - - - 68 1 69 Share buy -backs - - - - -2,301 -2,301 Capital reduction through cancellation of treasury shares -1 - - - 1 - Share -based compensation - - - - 12 12 Other changes in equity - - - - 37 37 Equity at 31.12.2024 44 -76 -19 4,099 365 4,413 Profit for the year - - - 842 -178 664 Dividends received - - - -1,082 1,082 - Foreign currency translation adjustment of investments in subsidiaries etc. - -75 - -502 - -577 Other changes in equity in subsidiaries - - - 28 - 28 Value adjustment for the year - - 23 - - 23 Tax relating to changes in equity - - -5 - - -5 Share buy -backs - - - - -582 -582 Capital reduction through cancellation of treasury shares -1 - - - 1 - Share -based compensation - - - - 6 6 Other changes in equity - - 7 - 52 59 Equity at 31.12.2025 43 -151 6 3,385 746 4,029 Parent statement of changes in equity Consolidated financial statements Parent financial statements Demant Annual Report 2025 179 Notes to Parent financial statements Consolidated financial statements Parent financial statements Demant Annual Report 2025 180 The financial statements of the Parent, Demant A/S, are presented in accordance with the provi- sions of the Danish Financial Statements Act for class D entities. The financial statements of the Parent are pre- sented in Danish kroner (DKK), which is also the functional currency for the Parent. The accounting policies are the same as last year. In respect of recognition and measurement, the Parent’s accounting policies are generally con- sistent with the Group’s accounting policies. The instances in which the Parent’s accounting poli- cies deviate from those of the Group are de- scribed below. The Parent has decided to apply recognition and measurement in accordance with IFRS 15 and 16. The standards affect the Parent’s proportionate share of its subsidiaries’ equity value, and IFRS 16 affects the Parent’s leases. Income statement Tax The Parent is jointly taxed with its Danish subsidi- aries and its parent, William Demant Invest A/S. Current income tax is allocated to the jointly taxed Danish companies in proportion to their taxable in- come. Balance sheet Goodwill Goodwill is amortised on a straight-line basis over 20 years. The 20-year amortisation period appro- priately reflects the long-term nature of the eco- nomic benefits derived from the acquired hearing healthcare businesses. Goodwill is written down to its recoverable amount, if lower than its carrying amount. Rights Rights acquired are amortised on a straight-line basis over their estimated useful lives and meas- ured at cost less accumulated amortisation and impairment losses. The amortisation period is five years. Rights acquired are written down to their recoverable value, if lower than their carrying value. Investments in subsidiaries and associates Investments in subsidiaries and associates are recognised and measured using the equity method, i.e. interest is measured at the propor- tionate share of the equity values of such subsidi- aries and associates with the addition or deduc- tion of the carrying amount of goodwill and with the addition or deduction of unrealised intra-group profits or losses, respectively. The Parent’s proportionate shares of profits or losses in subsidiaries and associates are recog- nised in the income statement after elimination of unrealised intra-group profits or losses less any amortisation and impairment of goodwill. Subsidiaries and associates with negative equity values are measured at DKK 0, and any receiva- bles from such companies are written down with the Parent’s share of the negative equity value to the extent that such receivable is considered irre- coverable. If the negative equity value exceeds the value of receivables, if any, such residual amount is recognised under provisions to the ex- tent that the Parent has a legal or constructive ob- ligation to cover liabilities incurred by the particu- lar subsidiary or associate. On distribution of profit or loss, net revaluation and net impairment losses on investments in sub- sidiaries and associates are transferred to reserves for net revaluation according to the eq- uity method. Loans to and receivables from subsidiaries Loans to and receivables from subsidiaries are recognised at amortised cost and subsequently measured after deduction of allowance for losses based on an individual assessment. Other investments On initial recognition, other investments are meas- ured at cost. Subsequently, they are measured at fair value on the balance sheet date, and any changes in fair values are recognised in the in- come statement under net financial items. Provisions Provisions include liabilities, which are uncertain in respect of the amount or the timing of their set- tlement. Provisions may include different types of liabilities, such as deferred tax liabilities, pension obligations, investments in subsidiaries with nega- tive equity as well as provisions for disputes etc. Debt to subsidiaries Debt to subsidiaries is measured at amortised cost. Statement of changes in equity In compliance with the format requirements of the Danish Financial Statements Act, any items in- cluded under comprehensive income in the con- solidated financial statements are recognised di- rectly in equity in the Parent financial statements. Cash flow statement In compliance with section 86(4) of the Danish Fi- nancial Statements Act, a cash flow statement is not prepared for the Parent, such statement being included in the consolidated cash flow statement. 10.1 Parent accounting policies Consolidated financial statements Parent financial statements Demant Annual Report 2025 181 (DKK million) 2025 2024 Employee costs Wages and salaries 82 103 Share -based remunera- tion 9 12 Defined benefit plans - - Total 91 115 Average number of full -time employees 52 52 For further details on the remuneration of the Ex- ecutive Board and the Board of Directors and the share-based remuneration programme, please re- fer to Note 2.2. 10.2 Employees Remuneration to Executive Board and Board of Directors (included in employee costs) (DKK million) 2025 2024 Executive Board: Wages and salaries 25.0 25.1 Cash bonus 1.3 0.6 Share -based remuneration 9.5 10.5 Total 35.8 36.2 Board of Directors: Fee 5.2 5.1 Total 5.2 5.1 Total 41.0 41.3 10.3 Fees to statutory auditors (DKK million) 2025 2024 Statutory audit fee 3 2 Other assurance engagements 2 3 Tax services 1 - Other services - 1 Total 6 6 10.4 Net financial items (DKK million) 2025 2024 Interest from subsidiaries 411 288 Interest on cash and bank deposits 7 1 Foreign exchange gains, net 50 23 Financial income 468 312 Interest to subsidiaries -144 -129 Interest on bank debt -433 -500 Transaction costs -19 -14 Financial expenses -596 -643 Net financial items -128 -331 Consolidated financial statements Parent financial statements Demant Annual Report 2025 182 10.5 Tax on profit for the year and deferred tax (DKK million) 2025 2024 Current tax on profit for the year 37 48 Adjustment of current tax, prior years -6 1 Change in deferred tax 10 8 Adjustment of deferred tax, prior years - -1 Tax on profit for the year 41 56 Deferred tax, net at 1.1. 3 -4 Changes in deferred tax 10 8 Adjustment of deferred tax, prior years - -1 Deferred tax, net at 31.12. 13 3 10.6 Proposed distribution of net profit (DKK million) 2025 2024 Transferred to reserves for net revaluation according to the equity method 842 2,573 Retained earnings -178 -915 Total 664 1,658 Consolidated financial statements Parent financial statements Demant Annual Report 2025 183 10.7 Intangible assets (DKK million) Goodwill Rights and other intangible assets Total intangible assets Cost at 1.1.2025 65 11 76 Cost at 31.12.2025 65 11 76 Amortisation at 1.1.2025 -48 -11 -59 Amortisation -4 - -4 Amortisation at 31.12.2025 -52 -11 -63 Carrying amount at 31.12.2025 13 - 13 Cost at 1.1.2024 65 11 76 Cost at 31.12.2024 65 11 76 Amortisation at 1.1.2024 -45 -11 -56 Amortisation -3 - -3 Amortisation at 31.12.2024 -48 -11 -59 Carrying amount at 31.12.2024 17 - 17 10.8 Property, plant and equipment (DKK million) Land and buildings Cost at 1.1.2025 31 Disposals -31 Cost at 31.12.2025 - Depreciation and impairment losses at 1.1.2025 -7 Disposals 7 Depreciation and impairment losses at 31.12.2025 - Carrying amount at 31.12.2025 - Cost at 1.1.2024 31 Cost at 31.12.2024 31 Depreciation and impairment losses at 1.1.2024 -7 Depreciation and impairment losses at 31.12.2024 -7 Carrying amount at 31.12.2024 24 Consolidated financial statements Parent financial statements Demant Annual Report 2025 184 The carrying amount of investments in subsidiaries includes capitalised goodwill of DKK 14,006 million (DKK 9,224 million in 2024). Amor- tisation of capitalised goodwill for the year was DKK 818 million (DKK 695 million in 2024). Loans to subsidiaries of DKK 10,444 million (DKK 3,890 million in 2024) are considered additions to the total investments in the particular business and are therefore considered non-current. Please refer to Section 11 for further information on subsidiaries and associates. 10.9 Financial assets (DKK million) 2025 2024 Investments in subsidiaries Loans to subsidiaries Investments in associates Investments in subsidiaries Loans to subsidiaries Investments in associates Cost at 1.1. 12,138 3,890 50 13,266 3,014 50 Foreign currency translation adjustments - -203 - - 64 - Additions 431 6,782 - 234 839 - Divestments - - - -498 - - Disposals -92 -25 - -864 -27 - Cost at 31.12. 12,477 10,444 50 12,138 3,890 50 Value adjustments at 1.1. 4,823 - -22 2,447 - -20 Foreign currency translation adjustments -502 - 1 148 - - Share of profit after tax 846 - -4 2,575 - -2 Dividends received -1,082 - - -1,104 - - Divestments - - - -47 - - Disposals 93 - - 736 - - Other adjustments 28 - - 68 - - Value adjustments at 31.12. 4,206 - -25 4,823 - -22 Carrying amount at 31.12. 16,683 10,444 25 16,961 3,890 28 Subsidiaries with negative equity reclassified to provisions 1,157 - - 1,058 - - Carrying amount after reclassification 17,840 10,444 25 18,019 3,890 28 Non -current financial assets 17,840 10,444 25 18,019 3,890 28 Consolidated financial statements Parent financial statements Demant Annual Report 2025 185 The weighted average effective interest rate for debt to credit institutions and short-term bank fa- cilities in 2025 was 2.7% (3.5% in 2024). Interest-bearing debt broken down by currency: 89% in Danish kroner (79% in 2024), 9% in euros (15% in 2024) and 2% in US dollars (6% in 2024). 10.11 Treasury shares Please refer to Note 5.6. (DKK million) Contractual cash flows Less than 1 year 1-3 years 4-5 years More than 5 years Total Carrying amount 2025 Debt to credit institutions etc. 1,562 15,226 702 1,065 18,555 17,440 Short -term bank facilities etc. 55 - - - 55 53 Lease liabilities - - - - - - Contingent liabilities¹ 3 59 - - 62 62 Financial liabilities 1,620 15,285 702 1,065 18,672 17,555 2024 Debt to credit institutions etc. 591 10,127 1,832 1,314 13,864 12,639 Short -term bank facilities etc. 223 - - - 223 212 Lease liabilities - 1 - - 1 1 Contingent liabilities¹ - 43 44 - 87 87 Financial liabilities 814 10,171 1,876 1,314 14,175 12,939 ¹Included in other liabilities. 10.10 Financial liabilities Consolidated financial statements Parent financial statements Demant Annual Report 2025 186 Sensitivity analysis in respect of interest rates Based on bank debt facilities at the balance sheet date, a rise of 1 percentage point in the general interest rate level will result in an increase in the Parent’s annual interest expenses before tax of approximately DKK 97 million (DKK 64 million in 2024). Around 50% (around 50% in 2024) of the interest-bearing debt is subject to fixed or limited interest rates, partly due to a bought interest rate swap, and partly due to loans being raised at fixed interest rates. 10.13 Contingent liabilities Demant A/S has provided security in respect of credit facilities established by Danish subsidiaries. These credit facilities totalled DKK 1,220 million as at 31 December 2025 (DKK 1,095 million in 2024) of which DKK 153 million was utilised (DKK 101 million in 2024). Demant A/S has provided security in respect of rent as well as guarantees concerning the contin- uous operation and settlement of liabilities in 2025 for some of its subsidiaries. The Parent is jointly taxed with William Demant In- vest A/S, which is the administration company, and with all Danish subsidiaries of both. Under the Danish Corporation Tax Act, Demant A/S is first of all fully liable for corporate tax payments and for withholding tax at source in respect of interest, royalties and dividends in relation to its own sub- sidiaries and is secondly liable for tax payments due for William Demant Invest A/S and its partly owned subsidiaries. For the purposes of section 357 of the Republic of Ireland Companies Act 2014, Demant A/S has un- dertaken to indemnify the creditors of its subsidi- aries incorporated in the Republic of Ireland in re- spect of all losses and liabilities for the financial year ending on 31 December 2025 or any amended financial period incorporating said finan- cial year. No material loss is expected to arise from this guarantee. 10.14 Related parties William Demant Foundation, Kongebakken 9, 2765 Smørum, Denmark, is the only related party with a controlling interest. Controlling interest is achieved through a combination of William De- mant Foundation’s own shareholdings and the shareholdings of William Demant Invest A/S for which William Demant Foundation exercises the voting rights. Subsidiaries and associated compa- nies of William Demant Invest A/S are related par- ties to Demant A/S. Related parties with significant influence are the company’s Board of Directors and their related parties. Furthermore, related parties are the Exec- utive Board and companies in which the above persons have significant interests. Demant A/S has not entered into any related‑party transactions that were not conducted on an arm’s length basis, in accordance with section 98 c of the Danish Financial Statements Act. 10.15 Events after the balance sheet date Please refer to Note 9.3. Interest rate swap DKK/DKK (DKK million) 2025 Start Expiry Interest rate/strike Contractual amount at year-end Positive fair value at year-end Negative fair value at year-end 2023 2026 3.27% 1,000 - 12 2025 2026 2.02% 1,000 - - 2024 2027 2.22% 746 2 - 2025 2027 2.05% 1,000 2 - 2026 2027 2.26% 1,000 - 1 2025 2031 2.20% 895 14 - 5,641 18 13 2024 2023 2026 3.27% 1,000 - 22 2025 2026 2.02% 1,000 1 - 2024 2027 2.22% 746 1 - 2025 2027 2.05% 1,000 1 - 2026 2027 2.26% 1,000 - 1 2025 2031 2.20% 895 3 5,641 6 23 10.12 Interest rate risk Consolidated financial statements Parent financial statements Demant Annual Report 2025 187 Subsidiaries and associates Consolidated financial statements Parent financial statements Demant Annual Report 2025 188 Company Interest Audilab SAS, France¹ ² ³ 100% Audio Seleccion S.L., Spain¹ 100% Audiology Services Company USA, LLC, United States² 100% AudioNet America, Inc., United States 100% Audmet Australia Pty Ltd, Australia 100% Audmet Canada Ltd., Canada 100% Audmet New Zealand Limited, New Zealand¹ 100% Audmet Oy, Finland¹ 100% Audmet Srl, Italy¹ 100% Beijing Shengwang Yuanbo Commerce and Trade Co., Ltd., China¹ ² ³ 100% Bernafon (UK) Limited, United Kingdom¹ 100% Bernafon AG, Switzerland¹ 100% Bernafon Hörgeräte GmbH, Germany 100% Bernafon, LLC, United States 100% Birdsong Hearing Benefits, LLC, United States 100% Centro Auditivo Telex Ltda, Brazil² 100% CQ Partners, LLC, United States 100% Demant Australia Pty Ltd, Australia¹ 100% Demant Belgium BV, Belgium¹ 100% Demant Business Services Poland Sp. z o.o., Poland¹ 100% Demant Germany GmbH, Germany 100% Demant Germany II GmbH, Germany 100% Demant Germany III GmbH, Germany 100% Demant Iberica, S.A., Spain¹ 100% Demant İşitme Cihazları San. Tic. A.Ş, Turkey¹ 100% Demant Italia S.r.l., Italy¹ 100% Demant Japan K.K., Japan¹ 100% Demant Korea Co., ltd., Korea, Republic Of¹ 100% Demant Malaysia Sdn. Bhd., Malaysia¹ 100% Demant México, S.A. de C.V., Mexico 100% ³Sub -consolidated group of companies, including companies with non-controlling interests. The list includes the Group's active companies . Company Interest Demant A/S Parent Oticon A/S, Denmark¹ 100% Oticon AS, Norway¹ 100% Oticon Denmark A/S, Denmark¹ 100% Oticon GmbH, Germany 100% Oticon Limited, United Kingdom¹ 100% Oticon Medical A/S, Denmark¹ 100% Oticon Medical AB, Sweden¹ 100% Oticon Medical, LLC, United States 100% Oticon Polska Sp. z o.o., Poland¹ 100% Oticon, Inc., United States 100% Oticon (Shanghai) Hearing Technology Co., Ltd., China¹ 100% ACS Audika Sp. z.o.o., Poland 100% Acustica Sp. z o.o., Poland¹ 100% Advanced Hearing Providers, LLC, United States 100% Akoustica Medica S.A., Greece¹ 100% Amplivox Limited, United Kingdom 100% Atomed Produtos Médicos e de Auxilio Humano Ltda, Brazil 100% Audifon GmbH & Co. KG, Germany² 100% Audika - SoluÇões Auditivas, Unipessoal Lda, Portugal¹ 100% Audika AB, Sweden¹ 100% Audika AG, Switzerland¹ 100% Audika ApS, Denmark¹ 100% Audika Australia Pty Ltd, Australia¹ 100% Audika B.V., Netherlands 100% Audika GmbH, Germany 100% Audika Groupe SAS, France¹ ² ³ 100% Audika K.K., Japan¹ 100% Audika New Zealand Limited, New Zealand¹ 100% Audika NV, Belgium¹ 100% ¹Directly owned by the Parent by 100% . ²Sub-consolidated group of companies, including associated companies. Consolidated financial statements Parent financial statements Demant Annual Report 2025 189 Company Interest EPOS Audio India Private Limited, India 100% EPOS Audio Ireland Limited, Ireland 100% EPOS Audio Singapore Pte. Ltd., Singapore 100% EPOS Audio UK Ltd., United Kingdom 100% EPOS Austria GmbH, Austria 100% EPOS Belgium BV, Belgium 100% EPOS Canada Ltd., Canada¹ 100% EPOS France S.A.S, France 100% EPOS Germany GmbH, Germany 100% EPOS Group A/S, Denmark¹ 100% EPOS Hong Kong Limited, Hong Kong 100% EPOS Netherlands B.V., Netherlands 100% EPOS Sales A/S, Denmark 100% EPOS Sweden AB, Sweden 100% EPOS Switzerland AG, Switzerland 100% EPOS USA, Inc., United States 100% Etymonic Design Inc., Canada¹ 100% Fluorite Sp. z o.o., Poland 100% Fonema Italia S.r.l., Italy 100% Fuel Medical Group, LLC, United States 100% Great Lakes Provider Network, LLC, United States 100% Guymark UK Limited, United Kingdom 100% HearBase Limited, United Kingdom² 100% Hearing Screening Associates, LLC, United States 100% HearingLife Canada Ltd., Canada¹ ² 100% Hess & Haas Horgeräte GmbH, Germany 100% Hess Hören Horgeräte GmbH, Germany 100% Hess Optic GmbH, Germany 100% Hidden Hearing (N.I.) Limited, United Kingdom 100% Hidden Hearing International Plc, United Kingdom¹ 100% ³Sub -consolidated group of companies, including companies with non-controlling interests. The list includes the Group's active companies . Company Interest Demant Nederland B.V., Netherlands¹ 100% Demant New Zealand Limited, New Zealand¹ 100% Demant Operations Poland Sp. z o.o, Poland 100% Demant Operations S.A. de C.V., Mexico 100% Demant Participaçoes Ltda, Brazil 100% Demant Sales Strategic Accounts A/S, Denmark¹ 100% Demant Schweiz AG, Switzerland¹ 100% Demant Singapore Pte Ltd, Singapore¹ ² 100% Demant South Africa (Pty) Ltd., South Africa¹ 100% Demant Sweden AB, Sweden¹ 100% Demant Technology & Innovation Centre Sdn. Bhd., Malaysia¹ 100% Demant Technology Centre Sp. z o.o., Poland¹ 100% DGS Diagnostics Sp. z o.o., Poland 100% Diagnostic Group LLC, United States 100% Diatec A/S, Denmark¹ 100% Diatec AG, Switzerland¹ 100% Diatec Canada Ltd., Canada 100% Diatec Diagnostics GmbH, Germany¹ 100% Diatec Diagnostics Ltd, United Kingdom 100% Diatec France SAS, France 100% Diatec Japan K.K., Japan¹ 100% Diatec Korea Joshik Hoesa, Korea, Republic Of¹ 100% Diatec New Zealand Limited, New Zealand 100% Diatec Polska Sp. z o.o., Poland¹ 100% Diatec Shanghai Medical Technology Co., Ltd., China¹ 100% Diatec Singapore, Singapore 100% Diatec Spain, S.L.U., Spain¹ 100% DSEA A/S, Denmark 100% e3 Diagnostics, Inc., United States 100% EPOS Audio Australia Pty Ltd, Australia 100% ¹Directly owned by the Parent by 100% . ²Sub -consolidated group of companies, including associated companies. Consolidated financial statements Parent financial statements Demant Annual Report 2025 190 Company Interest Hidden Hearing Limited, Ireland¹ 100% Hidden Hearing Limited, United Kingdom 100% Hidden Hearing Properties Ltd, United Kingdom 100% Horgerate-Akustik Flemming & Klingbeil Verwaltungs-GmbH, Germany 100% Hörgeräte Huth & Dickert GmbH, Germany 100% Hörgeräte-Akustik Flemming & Klingbeil GmbH & Co. KG, Germany 100% IDEA Isitme Sistemleri Sanayi ve Ticaret A.S., Turkey¹ 100% Interacoustics A/S, Denmark¹ 100% Interacoustics Pty Ltd, Australia 100% Inventis North America Inc., United States 100% Inventis S.r.l., Italy¹ 100% ITSA Medical SAS, France¹ 100% KIND Centre Auditif S.àr.l., Luxembourg¹ 100% KIND GmbH & Co. KG, Germany 100% KIND Hearing Pte. Ltd., Singapore 100% KIND Hörzentralen AG, Switzerland 100% Langer Hörstudio GmbH, Germany 100% LeDiSo Italia S.r.l., Italy¹ 100% Maico Diagnostics GmbH, Germany¹ 100% Maico S.r.l., Italy¹ 100% Mediszintech Audiologica Kft., Hungary¹ 100% MedRx, Inc., United States 100% Medton Ltd., Israel¹ ² 100% Medton Retail Ltd., Israel 100% Mr. Optik GmbH, Germany² 100% Northeast Hearing Instruments, LLC, United States 100% Ohrwerk Hörgeräte GmbH, Germany 100% Prodition SAS, France¹ 100% SBO Hearing A/S, Denmark¹ 100% SBO Hearing US, Inc., United States 100% ¹Directly owned by the Parent by 100% . ²Sub -consolidated group of companies, including associated companies. Company Interest SBO International Sales A/S, Denmark¹ 100% Shanghai YinPo Technology Co., Ltd., China 100% Sonic AG (Sonic SA) (Sonic Ltd.), Switzerland¹ 100% Sonic Equipment Australia Pty Ltd, Australia 100% Sonic Innovations, Inc., United States 100% Synapsys S.A.S, France 100% Udicare S.r.l., Italy¹ 100% Value Hearing (Pty) Ltd., South Africa¹ 100% Virtualis VR, Corp., United States 100% WDH Germany GmbH, Germany¹ 100% WDH NR. 11 A/S, Denmark¹ 100% WDH UK Limited, United Kingdom¹ 100% WDH USA, Inc., United States¹ 100% Workplace Integra Inc., United States 100% Your Hearing Network, LLC, United States 100% Destin Hearing Associates, LLC, United States 70% Virtualis SAS, France 55% Conc. Maico - Centro Otoacustico Marchesin S.r.l., Italy 50% Acustica Umbra S.r.l., Italy 49% Exclusive Hearing Limited, United Kingdom 49% Ma.Bi.Ge Bioacustica S.r.l., Italy 49% Microfon S.r.l., Italy 49% Otic Hearing Solutions Private Limited, India 49% AIRD S.r.l., Italy 40% Audiology Concepts, LLC, United States 40% Audiology Specialty Clinics of Minnesota, LLC, United States 40% Audition Bahuaud SAS, France 40% Dencker A/S, Denmark 40% Istituto Acustica Italia S.r.l., Italy 40% Vocechiara S.r.l., Italy 40% ³Sub -consolidated group of companies, including companies with non-controlling interests. The list includes the Group's active companies . Consolidated financial statements Parent financial statements Demant Annual Report 2025 191 Company Interest Centro Audioprotesico Lombardo S.r.l., Italy 35% HIMSA A/S, Denmark 25% Imperial Hearing Limited, United Kingdom 25% Acufon S.r.l., Italy 20% Audiovox Preduzece Za Izradu I Promet Ortopedskih Pomagaladoo, Serbia 20% Bontech Research CO D.o.o., Croatia 20% HIMSA II A/S, Denmark 20% The Hearing Doctors of Georgia, LLC, United States 20% K/S HIMPP, Denmark 19% HIMPP A/S, 14% HIMSA II K/S, Denmark 13% Shanghai Longwan Medical Ltd., China 10% ¹Directly owned by the Parent by 100% . ²Sub -consolidated group of companies, including associated companies. ³Sub -consolidated group of companies, including companies with non-controlling interests. The list includes the Group's active companies. Statement by management Independent auditor’s report Independent assurance report Demant Annual Report 2025 192 Statement by Management 193 Independent auditor’s reports 195 Independent auditor’s limited assurance report on the Sustainability Statement 199 Signatures Statement by management Independent auditor’s report Independent assurance report Demant Annual Report 2025 193 The Board of Directors and the Executive Board have today considered and adopted the Annual Report of Demant A/S for the financial year 1 Jan- uary to 31 December 2025. The consolidated financial statements for Demant A/S have been prepared in accordance with IFRS Accounting Standards as adopted by the EU and further requirements in the Danish Financial Statements Act, and the Parent financial state- ments have been prepared in accordance with the Danish Financial Statements Act. The Manage- ment statement has been prepared in accordance with the Danish Financial Statements Act. In our opinion, the consolidated financial state- ments and the Parent financial statements give a true and fair view of the financial position at 31 December 2025 of the Group and the Parent and the results of the Group and the Parent operations and consolidated cash flows for the financial year 1 January to 31 December 2025. In our opinion, the Management statement in- cludes a fair review of the development in the op- erations and financial circumstances of the Group and the Parent, of the results for the year and of the financial position of the Group and the Parent as well as a description of the most significant risks and elements of uncertainty, which the Group and the Parent are facing. Additionally, the Sustainability statement, which is part of the Management statement, has been pre- pared, in all material respects, in accordance with the Danish Financial Statements Act paragraph 99a. This includes compliance with the European Sustainability Reporting Standards (ESRS), in- cluding that the process undertaken by Manage- ment to identify the reported information (the “Pro- cess”) is in accordance with the description set out in the Double materiality assessment section. Furthermore, disclosures in the EU taxonomy sub- section under the Environment section of the Sus- tainability statement are, in all material respects, in accordance with article 8 of EU Regulation 2020/852 (the “Taxonomy Regulation”). The Sustainability statement includes forward- looking statements based on disclosed assump- tions about events that may occur in the future and possible future actions by the Group. Actual outcomes are likely to be different, since antici- pated events frequently do not occur as expected. Statement by Management Statement by management Independent auditor’s report Independent assurance report Demant Annual Report 2025 194 In our opinion, the Annual Report of Demant A/S for the financial year 1 January to 31 December 2025 with the file name DEMANT-2025-12-31- en.zip is prepared, in all material respects, in com- pliance with the ESEF Regulation. We recommend that the Annual Report 2025 be adopted at the annual general meeting on 5 March 2026. Smørum, 3 February 2026 Executive Board Søren Nielsen, President & CEO René Schneider, CFO Niels Wagner, President Hearing Care Board of Directors Niels B. Christiansen, Chair Niels Jacobsen, Vice Chair Thomas Duer Heidir Hørby Sisse Fjelsted Rasmussen Anders Højsgaard Thomsen Kristian Villumsen Katrin Pucknat Statement by management Independent auditor’s report Independent auditor’s limited assurance report on the sustainability statement Demant Annual Report 2025 195 To the shareholders of Demant A/S Report on the audit of the Financial Statements Our opinion In our opinion, the Consolidated Financial State- ments give a true and fair view of the Group’s fi- nancial position at 31 December 2025 and of the results of the Group’s operations and cash flows for the financial year 1 January to 31 December 2025 in accordance with IFRS Accounting Stand- ards as adopted by the EU and further require- ments in the Danish Financial Statements Act. Moreover, in our opinion, the Parent Company Fi- nancial Statements give a true and fair view of the Parent Company’s financial position at 31 Decem- ber 2025 and of the results of the Parent Com- pany’s operations for the financial year 1 January to 31 December 2025 in accordance with the Dan- ish Financial Statements Act. Our opinion is consistent with our Auditor’s Long- form Report to the Audit Committee and the Board of Directors. What we have audited The Consolidated Financial Statements of De- mant A/S for the financial year 1 January to 31 December 2025 comprise the consolidated in- come statement and consolidated statement of comprehensive income, the consolidated balance sheet, the consolidated cash flow statement, the consolidated statement of changes in equity and the notes, including material accounting policy in- formation. The Parent Company Financial Statements of De- mant A/S for the financial year 1 January to 31 December 2025 comprise the income statement, the balance sheet, the statement of changes in equity and the notes, including material account- ing policy information. Collectively referred to as the “Financial Statements”. Basis for opinion We conducted our audit in accordance with Inter- national Standards on Auditing (ISAs) and the ad- ditional requirements applicable in Denmark. Our responsibilities under those standards and re- quirements are further described in the Auditor’s responsibilities for the audit of the Financial State- ments section of our report. We believe that the audit evidence we have ob- tained is sufficient and appropriate to provide a basis for our opinion. Independence We are independent of the Group in accordance with the International Ethics Standards Board for Accountants’ International Code of Ethics for Pro- fessional Accountants (IESBA Code) as applica- ble to audits of financial statements of public inter- est entities, and the additional ethical require- ments applicable in Denmark. We have also ful- filled our other ethical responsibilities in accord- ance with these requirements and the IESBA Code. To the best of our knowledge and belief, prohib- ited non-audit services referred to in Article 5(1) of Regulation (EU) No 537/2014 were not provided. Appointment We were first appointed auditors of Demant A/S on 10 March 2022 for the financial year 2022. We have been reappointed annually by shareholder resolution for a total period of uninterrupted en- gagement of four years including the financial year 2025. Key audit matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the Financial Statements for 2025. These matters were addressed in the context of our audit of the Financial Statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Independent auditor’s reports Statement by management Independent auditor’s report Independent auditor’s limited assurance report on the sustainability statement Demant Annual Report 2025 196 Key audit matter How our audit addressed the key audit matter Acquisitions Acquisitions are complex transactions, which are subject to significant estimates, including the identification and valuation of assets, liabilities and contingent con- sideration etc. In order to determine the fair value of the separately identified as- sets and liabilities in a business combina- tion, the valuation methodologies require input based on assumptions about the fu- ture and applied discounted cash flow forecasts, including market development and WACC. We focused on this area because of the significance to the Financial Statements, the inherent complexity and high degree of estimation in the accounting for acqui- sitions, as well as the potential inherent risk related to the control environment. Our main focus of the area was on the acquisition of KIND Group. Reference is made to Note 7.1 Acquisi- tion of businesses in the consolidated fi- nancial statements. We performed risk assessment procedures with the pur- pose of achieving an understanding of procedures and rel- evant controls relating to acquisition accounting. In re- spect of controls, we assessed whether these were de- signed and implemented effectively to address the risk of material misstatement. Our audit procedures included assessing the appropriate- ness of the accounting policies for acquisitions applied by Management and assessing compliance with IFRS Ac- counting Standards. We assessed the valuation methodologies applied by Management and challenged Management’s significant assumptions used to determine the fair value of the ac- quired assets and liabilities in the acquisitions, including the fair value of the intangible assets. Finally, we assessed the adequacy of disclosures relating to the acquisitions. Key audit matter How our audit addressed the key audit matter Revenue recognition Recognition of revenue is inherently complex due to the extent of different revenue streams, several performance obligations, trial periods and prepaid dis- counts, which are subject to interpreta- tion, including the point in time of satis- faction of the perfo rmance obligations and recognition of related deferred reve- nue in respect of e.g. extended warran- ties, after sales services, etc. We focused on this area because of the significance to the Financial Statements, as well as the complexity and high de- gree of estimation related to e.g. prepaid discounts, provision for sales returns and extended warranties and deferred reve- nue . In addition, we focused on this area as revenue comprises a substantial num- ber of transactions, with different charac- teristics depending on the business area the revenue relates to. Reference is made to Note 2.1 Revenue and segment disclosures in the consoli- dated financial statements. Our audit procedures included considering the appropri- ateness of the accounting policies for revenue recognition applied by Management and assessing compliance with IFRS Accounting Standards. We performed risk assessment procedures to understand the information processing activities in relation to revenue recognition and evaluated whether the information sys- tems appropriately support revenue recognition and measurement in accordance with the accounting policies. We identified controls addressing risk of material misstate- ments determined to be significant risk and evaluated the design of the controls and determined whether the con- trols have been implemented. We assessed the accounting estimates related to the recognition and presentation of revenue with Manage- ment. Further, we performed substantive procedures regarding invoicing, significant contracts and provision for e.g. sales returns and extended warranties in order to assess the ac- counting treatment and principles applied. We applied data analysis in our testing of selected reve- nue streams in order to identify transactions outside the ordinary transaction flow, including journal entry testing. Finally, we assessed the adequacy of disclosures relating to revenue recognition. Statement by management Independent auditor’s report Independent auditor’s limited assurance report on the sustainability statement Demant Annual Report 2025 197 Statement on Management’s review Management is responsible for Management’s re- view. Management's review consist of the Man- agement statement (page 4-48) and the Sustaina- bility statement (page 49-113). Our opinion on the Financial Statements does not cover Management’s review, and we do not as part of the audit express any form of assurance conclusion thereon. In connection with our audit of the Financial State- ments, our responsibility is to read Management’s review and, in doing so, consider whether Man- agement’s review is materially inconsistent with the Financial Statements or our knowledge ob- tained in the audit, or otherwise appears to be ma- terially misstated. Moreover, we considered whether Management’s review includes the disclosures required by the Danish Financial Statements Act. This does not include the requirements in paragraph 99 a re- lated to the sustainability statement covered by the separate auditor’s limited assurance report hereon. Based on the work we have performed, in our view, Management’s review is in accordance with the Consolidated financial statements and the Parent Company Financial Statements and has been prepared in accordance with the require- ments of the Danish Financial Statements Act, ex- cept for the requirements in paragraph 99 a re- lated to the sustainability statement, cf. above. We did not identify any material misstatement in Man- agement’s review. Management’s responsibilities for the Financial Statements Management is responsible for the preparation of consolidated financial statements that give a true and fair view in accordance with IFRS Accounting Standards as adopted by the EU and further re- quirements in the Danish Financial Statements Act and for the preparation of parent company fi- nancial statements that give a true and fair view in accordance with the Danish Financial Statements Act, and for such internal control as Management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the Financial Statements, Manage- ment is responsible for assessing the Group’s and the Parent Company’s ability to continue as a go- ing concern, disclosing, as applicable, matters re- lated to going concern and using the going con- cern basis of accounting unless Management ei- ther intends to liquidate the Group or the Parent Company or to cease operations, or has no realis- tic alternative but to do so. Auditor’s responsibilities for the audit of the Financial Statements Our objectives are to obtain reasonable assur- ance about whether the Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an au- ditor’s report that includes our opinion. Reasona- ble assurance is a high level of assurance, but is not a guarantee that an audit conducted in ac- cordance with ISAs and the additional require- ments applicable in Denmark will always detect a material misstatement when it exists. Misstate- ments can arise from fraud or error and are con- sidered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the ba- sis of these Financial Statements. As part of an audit in accordance with ISAs and the additional requirements applicable in Den- mark, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: • Identify and assess the risks of material mis- statement of the Financial Statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and ob- tain audit evidence that is sufficient and appro- priate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one re- sulting from error, as fraud may involve collu- sion, forgery, intentional omissions, misrepre- sentations, or the override of internal control. • Obtain an understanding of internal control rel- evant to the audit in order to design audit pro- cedures that are appropriate in the circum- stances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s and the Parent Company’s internal control. • Evaluate the appropriateness of accounting policies used and the reasonableness of ac- counting estimates and related disclosures made by Management. • Conclude on the appropriateness of Manage- ment’s use of the going concern basis of ac- counting and based on the audit evidence ob- tained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s and the Par- ent Company’s ability to continue as a going concern. If we conclude that a material uncer- tainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the Financial Statements or, if such disclo- sures are inadequate, to modify our opinion. Our conclusions are based on the audit evi- dence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group or the Parent Company to cease to continue as a going concern. • Evaluate the overall presentation, structure and content of the Financial Statements, in- cluding the disclosures, and whether the Fi- nancial Statements represent the underlying transactions and events in a manner that gives a true and fair view. • Plan and perform the group audit to obtain suf- ficient appropriate audit evidence regarding the financial information of the entities or business units within the group as a basis for forming an opinion on the Consolidated Financial State- ments and the Parent Company Financial Statements. We are responsible for the direc- tion, supervision and review of the audit work performed for purposes of the group audit. We remain solely responsible for our audit opinion. We communicate with those charged with govern- ance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide those charged with governance with a statement that we have complied with rele- vant ethical requirements regarding independ- ence, and to communicate with them all relation- ships and other matters that may reasonably be thought to bear on our independence and, where applicable, actions taken to eliminate threats or safeguards applied. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the Financial Statements of the current period and are therefore the key audit matters. We de- scribe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter. Report on compliance with the ESEF Regulation As part of our audit of the Financial Statements, we performed procedures to express an opinion on whether the annual report of Demant A/S for the financial year 1 January to 31 December 2025 with the filename DEMANT-2025-12-31-en.zip is Statement by management Independent auditor’s report Independent auditor’s limited assurance report on the sustainability statement Demant Annual Report 2025 198 prepared, in all material respects, in compliance with the Commission Delegated Regulation (EU) 2019/815 on the European Single Electronic For- mat (ESEF Regulation) which includes require- ments related to the preparation of the annual re- port in XHTML format and iXBRL tagging of the Consolidated Financial Statements including notes. Management is responsible for preparing an an- nual report that complies with the ESEF Regula- tion. This responsibility includes: • The preparing of the annual report in XHTML format; • The selection and application of appropriate iXBRL tags, including extensions to the ESEF taxonomy and the anchoring thereof to ele- ments in the taxonomy, for all financial infor- mation required to be tagged using judgement where necessary; • Ensuring consistency between iXBRL tagged data and the Consolidated Financial State- ments presented in human-readable format; and • For such internal control as Management de- termines necessary to enable the preparation of an annual report that is compliant with the ESEF Regulation. Our responsibility is to obtain reasonable assur- ance on whether the annual report is prepared, in all material respects, in compliance with the ESEF Regulation based on the evidence we have ob- tained, and to issue a report that includes our opinion. The nature, timing and extent of proce- dures selected depend on the auditor’s judge- ment, including the assessment of the risks of ma- terial departures from the requirements set out in the ESEF Regulation, whether due to fraud or er- ror. The procedures include: • Testing whether the annual report is prepared in XHTML format; • Obtaining an understanding of the company’s iXBRL tagging process and of internal control over the tagging process; • Evaluating the completeness of the iXBRL tag- ging of the Consolidated Financial Statements including notes; • Evaluating the appropriateness of the com- pany’s use of iXBRL elements selected from the ESEF taxonomy and the creation of exten- sion elements where no suitable element in the ESEF taxonomy has been identified; • Evaluating the use of anchoring of extension elements to elements in the ESEF taxonomy; and • Reconciling the iXBRL tagged data with the audited Consolidated Financial Statements. In our opinion, the annual report of Demant A/S for the financial year 1 January to 31 December 2025 with the file name DEMANT-2025-12-31- en.zip is prepared, in all material respects, in com- pliance with the ESEF Regulation. Hellerup , 3 February 2026 PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab CVR No 3377 1231 Rasmus Friis Jørgensen State-Authorised mne28705 Torben Jensen State-Authorised mne18651 Statement by management Independent auditor’s report Independent auditor’s limited assurance report on the sustainability statement Demant Annual Report 2025 199 To the stakeholders of Demant A/S Limited assurance conclusion We have conducted a limited assurance engage- ment on the sustainability statement of Demant A/S (the “Group”) included in management state- ment (the “Sustainability Statement”), page 49- 113, for the financial year 1 January – 31 Decem- ber 2025. Based on the procedures we have performed and the evidence we have obtained, nothing has come to our attention that causes us to believe that the Sustainability Statement is not prepared, in all ma- terial respects, in accordance with the Danish Fi- nancial Statements Act paragraph 99 a, including: • Compliance with the European Sustainability Reporting Standards (ESRS), including that the process carried out by the management to identify the information reported in the Sus- tainability Statement (the “Process”) is in ac- cordance with the description set out in the section “Double materiality assessment”; and • Compliance of the disclosures in the section “EU Taxonomy regulation disclosure” of the Sustainability Statement with Article 8 of EU Regulation 2020/852 (the “Taxonomy Regula- tion”). Basis for conclusion We conducted our limited assurance engagement in accordance with International Standard on As- surance Engagements (ISAE) 3000 (Revised), Assurance engagements other than audits or re- views of historical financial information (“ISAE 3000 (Revised)”) and the additional requirements applicable in Denmark. The procedures in a limited assurance engage- ment vary in nature and timing from, and are less in extent than for, a reasonable assurance en- gagement. Consequently, the level of assurance obtained in a limited assurance engagement is substantially lower than the assurance that would have been obtained had a reasonable assurance engagement been performed. We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our conclusion. Our responsibilities under this standard are further described in the Auditor’s re- sponsibilities for the assurance engagement sec- tion of our report. Our independence and quality management We are independent of the Group in accordance with the International Ethics Standards Board for Accountants’ International Code of Ethics for Pro- fessional Accountants (IESBA Code) and the additional ethical requirements applicable in Den- mark. We have also fulfilled our other ethical re- sponsibilities in accordance with these require- ments and the IESBA Code. Our firm applies International Standard on Quality Management 1, which requires the firm to design, implement and operate a system of quality man- agement including policies or procedures regard- ing compliance with ethical requirements, profes- sional standards and applicable legal and regula- tory requirements. Other Matter The comparative information for the financial years 1 January – 31 December 2023, 2022 and 2021 included in the Sustainability Statement of the Group was not subject to an assurance en- gagement. Our conclusion is not modified in re- spect of this limitation of scope. Management’s responsibilities for the Sustainability Statement Management is responsible for designing and im- plementing a process to identify the information reported in the Sustainability Statement in accord- ance with the ESRS and for disclosing this Pro- cess as included in the section “Double materiality assessment” of the Sustainability Statement. This responsibility includes: • Understanding the context in which the Group’s activities and business relationships take place and developing an understanding of its affected stakeholders; • The identification of the actual and potential impacts (both negative and positive) related to sustainability matters, as well as risks and op- portunities that affect, or could reasonably be expected to affect, the Group’s financial posi- tion, financial performance, cash flows, ac- cess to finance or cost of capital over the short-, medium-, or long-term; • The assessment of the materiality of the iden- tified impacts, risks and opportunities related to sustainability matters by selecting and ap- plying appropriate thresholds; and • Making assumptions that are reasonable in the circumstances. Management is further responsible for the prepa- ration of the Sustainability Statement, which in- cludes the information identified by the Process, in accordance with the Danish Financial Statements Act paragraph 99 a, including: • Compliance with the ESRS; • Preparing the disclosures as included in the section “EU Taxonomy regulation disclosure” of the Sustainability Statement, in compliance with Article 8 of the Taxonomy Regulation; • Designing, implementing and maintaining such internal control that management Independent auditor’s limited assurance report on the Sustainability Statement Statement by management Independent auditor’s report Independent auditor’s limited assurance report on the sustainability statement Demant Annual Report 2025 200 determines is necessary to enable the prepa- ration of the Sustainability Statement that is free from material misstatement, whether due to fraud or error; and • The selection and application of appropriate sustainability reporting methods and making assumptions and estimates that are reasona- ble in the circumstances. Inherent limitations in preparing the Sustainability Statement In reporting forward-looking information in accord- ance with ESRS, management is required to pre- pare the forward-looking information on the basis of disclosed assumptions about events that may occur in the future and possible future actions by the Group. Actual outcomes are likely to be differ- ent since anticipated events frequently do not oc- cur as expected. Auditor’s responsibilities for the assurance engagement Our responsibility is to plan and perform the as- surance engagement to obtain limited assurance about whether the Sustainability Statement is free from material misstatement, whether due to fraud or error, and to issue a limited assurance report that includes our conclusion. Misstatements can arise from fraud or error and are considered mate- rial if, individually or in the aggregate, they could reasonably be expected to influence decisions of users taken on the basis of the Sustainability Statement as a whole. As part of a limited assurance engagement in ac- cordance with ISAE 3000 (Revised) we exercise professional judgement and maintain professional scepticism throughout the engagement. Our responsibilities in respect of the Process in- clude: • Obtaining an understanding of the Process, but not for the purpose of providing a conclusion on the effectiveness of the Pro- cess, including the outcome of the Process; • Considering whether the information identified addresses the applicable disclosure require- ments of the ESRS; and • Designing and performing procedures to eval- uate whether the Process is consistent with the Group’s description of its Process, as dis- closed in the section “Double materiality as- sessment”. Our other responsibilities in respect of the Sus- tainability Statement include: • Identifying where material misstatements are likely to arise, whether due to fraud or error; and • Designing and performing procedures respon- sive to disclosures in the Sustainability State- ment where material misstatements are likely to arise. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omis- sions, misrepresentations, or the override of internal control. Summary of the work performed A limited assurance engagement involves per- forming procedures to obtain evidence about the Sustainability Statement. The nature, timing and extent of procedures selected depend on profes- sional judgement, including the identification of disclosures where material misstatements are likely to arise, whether due to fraud or error, in the Sustainability Statement. In conducting our limited assurance engagement, with respect to the Process, we: • Obtained an understanding of the Process by performing inquiries to understand the sources of the information used by manage- ment; and reviewing the Group’s internal doc- umentation of its Process; and • Evaluated whether the evidence obtained from our procedures about the Process imple- mented by the Group was consistent with the description of the Process set out in the sec- tion “Double materiality assessment”. In conducting our limited assurance engagement, with respect to the Sustainability Statement, we: • Obtained an understanding of the Group’s re- porting processes relevant to the preparation of its Sustainability Statement including the consolidation processes by obtaining an un- derstanding of the Group’s control environ- ment, processes and information systems rel- evant to the preparation of the Sustainability Statement but not evaluating the design of particular control activities, obtaining evidence about their implementation or testing their op- erating effectiveness; • Evaluated whether the information identified by the Process is included in the Sustainability Statement; • Evaluated whether the structure and the presentation of the Sustainability Statement is in accordance with the ESRS; • Performed inquiries of relevant personnel and analytical procedures on selected information in the Sustainability Statement; • Performed substantive assurance procedures on selected information in the Sustainability Statement; • Where applicable, compared disclosures in the Sustainability Statement with the corre- sponding disclosures in the financial state- ments and management statement. Evaluated the methods, assumptions and data for devel- oping estimates and forward-looking infor- mation; and • Obtained an understanding of the Group’s process to identify taxonomy-eligible and tax- onomy-aligned economic activities and the corresponding disclosures in the Sustainability Statement. 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