GN Store Nord — Earnings Release 2017

Aug 17, 2017

-- GN Store Nord delivered 15% revenue growth in Q2 2017 driven by strong
performance across GN Hearing and GN Audio. Organic growth was 7%
-- EBITA increased 15% in Q2 2017. The EBITA margin was stable reflecting
product launch costs in both businesses and investments in growth as part
of the 2017 – 2019 strategy
-- EPS increased 25% and reached DKK 1.92
-- Continued strong cash conversion at 89% in Q2 2017
-- The financial guidance for 2017 is confirmed

-- GN Hearing’s revenue increased 12% in Q2 2017. Organic growth was 5%, on a
tough comparison base
-- The newly launched ReSound LiNX 3D generating strong momentum. Double digit
organic growth since launch
-- EBITA increased 7% to DKK 255 million. EBITA margin decreased in the
quarter reflecting product launch costs and investments in growth as part
of the 2017 – 2019 strategy
-- Free cash flow excl. M&A was DKK 267 million in Q2 2017 – an increase
of DKK 27 million in H1 2017 compared to H1 2016

-- GN Audio delivered 19% revenue growth in Q2 2017. Organic growth was 12%
-- The continued strong growth was also in Q2 2017 driven by the Jabra Evolve
and Jabra Speak series as well as the Jabra Elite Sport true wireless
earbuds. The recently launched products have been received exceptionally
well by the market
-- EBITA increased 46% and reached DKK 168 million in Q2 2017. EBITA margin
increased to 17.2%, driven by favorable product mix and operational
leverage
-- Free cash flow excl. M&A was DKK 131 million in Q2 2017 – an increase
of DKK 20 million in H1 2017 compared to H1 2016

Quotes from the executive management

Anders Hedegaard, CEO of GN Hearing: “End of April, we launched our 5th
generation 2.4 GHz hearing aid family, ReSound LiNX 3D. The strong momentum
generated by our new products, as well as the excellent user feedback, sets the
stage for a strong second half of 2017. I am very pleased that our continuous
focus on innovation is paying off for our users, so that they are now able to
hear more, do more and be more than what they ever thought possible.”

René Svendsen-Tune, CEO of GN Audio: “In Q2 2017, we continued to deliver
strong results across regions and channels, in line with our 2017 – 2019
strategy. Our strong momentum is the result of our tireless efforts to stay on
top of competition through focus on innovation, commercialization and people
excellence. I am very pleased to see that our focus has led to both strong
topline and bottom line growth.”

Teleconference
GN will host a teleconference at 11.00 am CEST today. Please visit
www.gn.com/investor to access the teleconference. Presentation material will be
available on the website approximately one hour prior to the teleconference.

For further information please contact:

Peter Justesen
VP – Investor Relations & Treasury
GN Store Nord A/S
Tel: +45 45 75 87 16

or

Rune Sandager
Treasury Manager – Investor Relations & Treasury
GN Store Nord A/S
Tel: +45 45 75 92 57