Helping people “hear more, do more, be more”...Interim Report Q3 2016 Page 3 of 27 Q3 Q3 YTD YTD Full year 2016 2015 2016 2015 2015 DKK million (unaud.) (unaud.) (unaud.) (unaud.)

Co. reg. no. 24257843

Helping people “hear more, do more, be more”

Interim Report Q3 2016


Page 3 of 27

Q3 Q3 YTD YTD Full year2016 2015 2016 2015 2015

DKK million (unaud.) (unaud.) (unaud.) (unaud.) (aud.)

GN Hearing (excl. GN Otometrics)Continuing operationsRevenue 1,284 1,109 3,767 3,259 4,526

Organic growth 5% 7% 8% 8% 9%

Gross profit margin 70.6% 65.6% 68.1% 67.0% 67.4%EBITA 237 230 701 614 921EBITA margin 18.5% 20.7% 18.6% 18.8% 20.3%

ROIC (EBITA/Average invested capital) 16.5% 15.8% 16.5% 15.8% 16.2%

Free cash flow excl. company acquisitions and divestments 271 162 597 285 456

114% 70% 85% 46% 50%

GN AudioRevenue 833 766 2,377 2,224 3,229- CC&O 624 499 1,750 1,503 2,148- Mobile 209 267 627 721 1,081

Organic growth 9% 11% 7% 2% 2%

- CC&O 24% 11% 16% 5% 6%- Mobile (21)% 12% (12)% (6)% (5)%

Gross profit margin 52.9% 51.4% 52.5% 53.0% 52.6%EBITA 139 113 344 330 540EBITA margin 16.7% 14.8% 14.5% 14.8% 16.7%

ROIC (EBITA/Average invested capital) 45.5% 52.0% 45.5% 52.0% 46.9%


92% 63% 92% 62% 50%

GN Store NordContinuing operationsRevenue 2,117 1,875 6,144 5,483 7,755Organic growth 6% 9% 8% 6% 6%Gross profit margin 63.6% 59.8% 62.0% 61.4% 61.2%EBITA 357 326 990 894 1,383EBITA margin 16.9% 17.4% 16.1% 16.3% 17.8%Profit (loss) before tax 278 264 850 585 1,016Effective tax rate 20.1% 26.5% 23.2% 26.8% 26.5%

ROIC (EBITA/Average invested capital) 19.5% 19.7% 19.5% 19.7% 19.6%Earnings per share, basic (EPS) from continuing operations 1.51 1.25 4.38 2.73 4.79 Earnings per share, fully diluted (EPS diluted) from continuing operations 1.50 1.24 4.37 2.72 4.77


105% 59% 82% 38% 44%

Continuing and discontinued operationsEquity ratio 45.6% 51.1% 45.6% 51.1% 51.6%Net interest-bearing debt 3,008 2,256 3,008 2,256 2,212 Net interest-bearing debt (period-end)/EBITDA 1.8 1.4 1.8 1.4 1.4 Dividend payout ratio - - - - 20%Share buybacks* 160 228 779 883 1,162

Outstanding shares, end of period (thousand) 146,852 154,454 146,852 154,454 152,254

147,687 155,942 149,345 157,610 156,734 Share price at the end of the period 143 120 143 120 125 Market capitalization 21,000 18,534 21,000 18,534 19,032

ROIC and NIBD/EBITDA are calculated based on reported EBITA and EBITDA for the latest four quarters

* Incl. buybacks as part of share based incentive programsGN Otometrics will be classified as held for sale in the balance sheet and as discontinued operations in the income statement

Cash conversion (free cash flow excl. company acquisitions and divestments/EBITA)



Average number of outstanding shares, fully diluted (thousand)

Financial highlights


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GN Hearing

HIGHLIGHTS Q3 2016

Revenue growth of 16% in Q3 2016 with organic growth of 5%

EBITA of DKK 237 million after transaction related costs of DKK 13 million related to the divestment of Otometrics. Before transaction related costs, EBITA was DKK 250 million, compared to DKK 230 million in Q3 2015

Strong free cash flow excl. M&A of DKK 271 million with a cash conversion of 114% Divestment of non-core Otometrics business targeted to be completed by the end of 2016 GN Hearing’s financial guidance for 2016 is confirmed

REVENUE GN Hearing delivered 16% revenue growth in Q3 2016, with organic growth of 5%. The organic growth reflects a tough comparison base with strong growth in certain channels in Q3 2015 as well as de-stocking in the private label part of Costco (Kirkland Signature) this quarter. The effects of foreign exchange rates added around 3% to revenue, while M&A contribution was around 8%. GN Hearing’s revenue in Q3 2016 reached DKK 1,284 million compared to DKK 1,109 million in Q3 2015. In the first nine months of 2016, the organic growth was 8%. The reported figures only include the Hearing Instrument business, with Otometrics reported as “Profit (Loss) for the period from discontinued operations”.

The revenue growth in Q3 2016 was driven by the consistent success of GN Hearing’s broad industry leading product portfolio. In the second year after its launch, ReSound LiNX2 continues to drive growth and to open up for new customer accounts with its strong audiological and connectivity benefits. ReSound Enya continues to deliver high growth rates in the Essential category.

GN Hearing recorded solid growth across all regions. In the US, the position in Veteran Affairs (VA) as the second largest supplier was maintained and ReSound Cala was successfully introduced in Costco. In Europe, GN Hearing continued to gain market share in several important countries, including Germany. In the Asian region, China, Korea and India continued to deliver strong double-digit organic growth, while both the market and GN Hearing in Japan had negative growth.

In the beginning of Q3 2016, Audigy became part of GN Hearing, with the integration progressing as planned. Audigy is a preeminent provider of business and performance management solutions to independent hearing care professionals. The acquisition reflects GN Hearing’s ambition to continuously offer leading products and services to its customers while maintaining GN Hearing’s strict focus on its innovative hearing aid wholesale business, which has driven significant market share gains in recent years.

EARNINGS AND OTHER FINANCIAL HIGHLIGHTS Gross profit for GN Hearing reached DKK 906 million in Q3 2016, which is an increase of 24%. The gross margin was 70.6%, compared to 65.6% in Q3 2015, positively impacted among other by Audigy.

GN Hearing’s EBITA grew to DKK 237 million after transaction related costs of DKK 13 million related to the divestment of Otometrics. Before transaction related costs, EBITA was DKK 250 million, compared to DKK 230 million in Q3 2015. The EBITA margin was 2.2 percentage points lower than Q3 2015, reflecting among other the transaction related costs as well as short term dilutive EBITA margin impact from Audigy. In the first nine months of 2016, EBITA increased from DKK 614 million to DKK 701 million, equivalent to an increase of 14%.

Free cash flow excl. M&A was DKK 271 million in Q3 2016, an increase of DKK 109 million compared to Q3 2015. The strong development led to a cash conversion of 114% in Q3 2016, driven by continued strict focus on working capital. Cash conversion was 85% in the first nine months of 2016, which is above or on par with industry peers. Net cash from financial support arrangements was DKK 9 million in Q3 2016.

Results relating to Otometrics are reported as “Profit (Loss) for the period from discontinued operations”. In Q3 2016, the result was DKK (5) million.


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BUSINESS HIGHLIGHTS In October 2016, GN Audio announced the acquisition of the US based company VXi Corporation, a leading innovative manufacturer of professional headset solutions. The acquisition further strengthens GN Audio’s presence in the important North American market, where VXi enables access to new attractive segments, among other leveraging VXi’s best-in-class expertise within communication in high noise environments.

At the IFA international consumer electronics tradeshow in Berlin in September 2016, GN Audio launched true wireless earbuds under its new Elite franchise with superior sound, strong long battery life and advanced personalized fitness analysis. Leveraging GN Group’s unique combined headset and hearing aid expertise, GN Audio continues to pioneer unparalleled sound capabilities with the launch of the unrivalled Elite franchise. Benefitting among other from being waterproof, Jabra Elite Sport is a true training aid delivering freedom of movement, ground-breaking in-ear fitness analysis and strong long battery life for anyone who wants to work out.

In Q3 2016, GN Audio continued to innovate in the Sports Audio segment and extended the range of wireless sports headphones with the launch of two new Special Editions. The Jabra Sport Pulse and Jabra Sport Coach Special Editions deliver innovation in all areas, with passive noise cancellation, a broader choice of fitting options, improved durability and world-first intelligent sports features for fitness enthusiasts of all standards. As the existing line-up of Jabra sports headphones (Jabra Sport Pulse, Jabra Sport Coach and Jabra Sport Pace), the new editions offer quality calls, music and intelligent in-ear coaching to help enhance the users’ training effectiveness.

MARKET DEVELOPMENT In Q3 2016, the global CC&O market continued to develop favorably. GN Audio expects that the market trend will continue for the remaining part of 2016 creating a solid foundation for continued growth.

On the consumer electronics market, the challenges faced in the Bluetooth mono market during 2015 and early 2016 continued in Q3 and is expected to continue in Q4.

OUTLOOK 2016 GN Audio confirms its financial guidance for 2016 of an organic growth of “7-10%” and EBITA of “around DKK 590 million”.

“In Q3 2016, we continued to improve our very strong momentum in our CC&O business. It is satisfying to see the strong focus on professional execution within the organization – the driver behind our continued market share gains and strengthened leadership in the attractive CC&O market. I am also very pleased with our ability to continuously improve our cash generation.”

René Svendsen-Tune, CEO of GN Audio


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GN Store Nord In Q3 2016, GN Store Nord increased revenue with 13% to DKK 2,117 million from DKK 1,875 million (excluding Otometrics). Organic growth was 6%.

EBITA in Other amounted to DKK (19) million in Q3 2016, compared to DKK (17) million in Q3 2015. GN Store Nord EBITA reached DKK 357 million, an increase of 10% compared to Q3 2015.

In Q3 2016, amortization of acquired intangible assets amounted to DKK (30) million. Financial items amounted to DKK (49) million and the profit before tax was DKK 278 million. The free cash flow excl. M&A reached DKK 375 million.

Earnings per share (EPS) was DKK 1.51, an increase of 21% compared to Q3 2015 (excluding Otometrics).

In the first nine months of 2016, GN Store Nord has increased revenue by 12% compared to the same period in 2015. The growth was primarily driven by a strong organic growth of 8% as a result of solid performance across GN Hearing and GN Audio. EBITA has increased by 11% from DKK 894 million in the first nine months of 2015 to DKK 990 million in the first nine months of 2016, equivalent to a relative flat development in the EBITA margin, driven by among other investment in growth. In the first nine months of 2016, amortizations of acquired intangible assets amounted to DKK (77) million compared to DKK (52) million, while financial items ended at DKK (61) million compared to DKK (103) million. In the first nine months of 2016, the net profit from continuing operations increased by 53% to DKK 653 million. During 2016, the strong performance across the business entities has driven a cash conversion increase of 44 percentage point from 38% in the first nine months of 2015 to 82% in the first nine months of 2016.

GN Store Nord confirms the overall financial guidance for 2016. The expected effective tax rate is lowered from “25-26%” to “around 22%”:

* Before transaction related costs to Audigy and Otometrics

CAPITAL STRUCTURE Until today, GN has in total distributed DKK 1,093 million back to shareholders through share buybacks and dividend. Until today, GN has in total repurchased 7.1 million shares at a total price of DKK 932 million through two different Safe Harbor programs in 2016. As of November 3, 2016, GN owns 9,381,028 treasury shares equivalent to 6.1% of the shares issued.

As previously communicated, GN’s long-term capital structure policy is to have net interest-bearing debt of up to a maximum of two times EBITDA. As highlighted on the Capital Markets Day 2016, GN targets a net interest-bearing debt between one and two times EBITDA for the coming years based on the solid financial development in GN, the favorable capital markets as well as the relentless focus on maximizing shareholder value. By the end of Q3 2016, the net interest-bearing debt was DKK 3,008 million corresponding to 1.8 times EBITDA where EBITDA is based on last four rolling quarters and is including GN Otometrics.

DKK million

GN Hearing

GN Audio

Other

GN Store Nord

Profit before tax Effective tax rate

~ 6% ~ 1,100*

7 - 10% ~ 590

Organic revenue growth EBITA

~ (70)

~ 7% ~ 1,620* ~ 1,420* ~ 22%


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CLAIM AGAINST PLANTRONICS INC. In 2012, GN Audio filed suit against Plantronics for attempted monopolization of the distributors’ market in the US. On September 23, 2013, the federal district court in Wilmington, Delaware, dismissed Plantronics’ “motion to dismiss” the case in its entirety. The court also stated that GN Audio’s allegations were sufficiently substantiated to allow the case to proceed into discovery. During the discovery phase, GN learned of alleged intentional document destruction. A hearing on the matter was held on May 18, 2016, and on July 6, 2016, the Court issued a sanctions motion ordering Plantronics to pay USD 3 million to GN Audio in punitive damages as well as reasonable fees and costs incurred in connection with the discovery dispute. The USD 3 million do not have any impact on the income statement. Further, the Court reserved the right to issue additional evidentiary sanctions and it will instruct the jury that it may draw an adverse inference that emails destroyed by Plantronics would have been favorable to GN Audio's case and/or unfavorable to Plantronics' defense. The Court has set the jury trial for October 10, 2017.

FOREIGN EXCHANGE EXPOSURE Based on the expected 2016 revenue and cost composition, the table below outlines the currencies which constitute the primary exposure for GN in 2016, excluding any hedging impact. Annual EBITA impact from a 5% increase in currency excluding hedging (DKK million):

GN is hedging the vast majority of the expected EBITA exposure for the next 12 months in the above-mentioned currencies in both GN Hearing and GN Audio. The hedging practice entails that the EBITA effect from foreign exchange development is postponed one year while the majority of the impact on revenue is having immediate effect.

Currency GN Hearing GN Audio GN Store Nord

USD 52 (1) 51

GBP 9 7 16

JPY 8 2 10

CNY (8) 0 (8)

CAD 6 0 6


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ADDITIONAL INFORMATION Teleconference GN will host a teleconference at 11.00 am CET today. Please visit www.gn.com to access the teleconference. Presentation material will be available on the website approximately one hour prior to the start of the teleconference.

Financial calendar for 2017 Annual Report 2016: February 9, 2017 Annual general meeting: March 14, 2017 Interim Report Q1 2017: May 4, 2017 Interim Report Q2 2017: August 17, 2017 Interim Report Q3 2017: November 2, 2017

Forward-looking statements The forward-looking statements in this interim report reflect the management's current expectations of certain future events and financial results. Statements regarding the future are, naturally, subject to risks and uncertainties, which may result in considerable deviations from the outlook set forth. Furthermore, some of these expectations are based on assumptions regarding future events, which may prove incorrect.

For further information please contact

Peter Justesen Michael Nass Nielsen VP – Investor Relations & Treasury Manager – Investor Relations GN Store Nord A/S GN Store Nord A/S Tel: +45 45 75 87 16 Tel: +45 45 75 02 40

GN Store Nord A/S Lautrupbjerg 7 2750 Ballerup Denmark Company reg. no. 24257843


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ABOUT GN STORE NORD In recent years, the GN group has transformed into an industry leader in innovation and growth – pioneering great sound from world leading hearing aids, headphones, headsets and speakerphones. GN’s purpose across the group is to make life sound better for people by developing intelligent audio solutions that let them hear more, do more and be more than they ever thought possible. GN is the only company that under the same roof commands world-leading expertise in the human auditory system, sound processing, wireless technologies, and software development linking deep insight and knowledge from both the hearing aid and the headset industries. This unique combination of knowledge across consumer, professional and medical products and solutions enables GN to develop truly intelligent audio solutions that do much more than amplify speech and sound. They are comprehensive solutions that support the user in a variety of different ways. The significant shifts in the world’s demographics with ageing populations, a growing and increasingly affluent middle-class and pressure on public healthcare spend prompts a future when people ever more use technology to increase health and well-being as well as work productivity. The rapid emergence of ear-worn technology in combination with people’s increasing reliance on always-on access to the internet and information presents a sweet spot for GN’s combined innovative expertise and market access across medical, professional and consumer target groups. GN's innovative and intelligent audio solutions are marketed by the brands Jabra, ReSound, Beltone, Interton and Otometrics in more than 90 countries across the world. Founded in 1869, the GN Group today has more than 5,000 employees and is listed on Nasdaq Copenhagen (GN.CO).

World leading audio solutions expertise, all under one roof

For more information please visit www.gn.com


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Statement by the board of directors and the executive management

Today, the board of directors and the executive management have reviewed and approved the interim report for GN Store Nord A/S for the period January 1 - September 30, 2016.

The interim report, which has not been audited or reviewed by the company’s auditors, has been prepared in accordance with IAS 34 "Interim Financial Reporting" as adopted by the EU and Danish disclosure requirements for listed companies.

In our opinion, the interim report gives a true and fair view of the group's assets, liabilities and financial position at September 30, 2016 and of the results of the group's operations and cash flows for the period January 1 – September 30, 2016.

Further, in our opinion the executive management's review gives a true and fair view of the development in the group's operations and financial matters, the results of the group for the period and the group's financial position as a whole, and describes the significant risks and uncertainties pertaining to the group.

Ballerup, November 3, 2016

BOARD OF DIRECTORS

Per Wold-Olsen Chairman

William E. Hoover, Jr. Deputy Chairman

Carsten Krogsgaard Thomsen

Hélène Barnekow Ronica Wang Wolfgang Reim

Leo Larsen Nikolai Bisgaard Morten Andersen

EXECUTIVE MANAGEMENT

Anders Hedegaard CEO, GN Hearing

René Svendsen-Tune CEO, GN Audio

Marcus Desimoni CFO, GN Store Nord


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Financial statements

Quarterly reporting by segment 15

Income statement 16

Statement of comprehensive income 16

Balance sheet 17

Consolidated equity 18

Cash flow statement 19

Note 1 Accounting policies 20

Note 2.1 Segment disclosures Q3 2016 20

Note 2.2 Segment disclosures September 2016 YTD 22

Note 3 Acquisitions of companies and operations 23

Note 4 Discontinued operations 24

Note 5 Incentive plans 25

Note 6 Shareholdings 25


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Quarterly reporting by segment (excluding Otometrics) Q1 Q2 Q3 Q4 Q1 Q2 Q3 YTD YTD 2015

2015 2015 2015 2015 2016 2016 2016 2015 2016 TotalDKK million (unaud.) (unaud.) (unaud.) (unaud.) (unaud.) (unaud.) (unaud.) (unaud.) (unaud.) (aud.)

Income statementRevenueGN Hearing 1,042 1,108 1,109 1,267 1,218 1,265 1,284 3,259 3,767 4,526 GN Audio 694 764 766 1,005 720 824 833 2,224 2,377 3,229 Total 1,736 1,872 1,875 2,272 1,938 2,089 2,117 5,483 6,144 7,755

Organic growthGN Hearing 10% 8% 7% 10% 11% 10% 5% 8% 8% 9%GN Audio (3)% (2)% 11% 3% 4% 9% 9% 2% 7% 2%Total 4% 3% 9% 7% 8% 9% 6% 6% 8% 6%

Gross profit marginGN Hearing 67.2% 68.3% 65 6% 68.4% 67.2% 66.4% 70.6% 67.0% 68.1% 67.4%GN Audio 53.9% 53.8% 51.4% 51.5% 51.5% 52.8% 52.9% 53.0% 52.5% 52.6%Total 61.9% 62.4% 59.8% 61.0% 61.4% 61.0% 63.6% 61.4% 62.0% 61.2%

Expensed development costsGN Hearing (100) (117) (112) (99) (116) (118) (117) (329) (351) (428) GN Audio (44) (52) (55) (58) (50) (68) (55) (151) (173) (209) Other * (2) (2) (4) (6) (3) - (1) (8) (4) (14) Total (146) (171) (171) (163) (169) (186) (173) (488) (528) (651)

Selling and distribution costs and administrative expenses etc.GN Hearing (416) (440) (386) (461) (477) (483) (552) (1,242) (1,512) (1,703) GN Audio (220) (252) (226) (250) (231) (252) (247) (698) (730) (948) Other * (17) (12) (13) (22) (15) (18) (18) (42) (51) (64) Total (653) (704) (625) (733) (723) (753) (817) (1,982) (2,293) (2,715)

EBITAGN Hearing 184 200 230 307 225 239 237 614 701 921 GN Audio 110 107 113 210 90 115 139 330 344 540 Other * (19) (14) (17) (28) (18) (18) (19) (50) (55) (78) Total 275 293 326 489 297 336 357 894 990 1,383

EBITA marginGN Hearing 17.7% 18.1% 20.7% 24.2% 18.5% 18.9% 18.5% 18.8% 18.6% 20.3%GN Audio 15.9% 14.0% 14 8% 20.9% 12.5% 14.0% 16.7% 14.8% 14.5% 16.7%Total 15.8% 15.7% 17.4% 21.5% 15.3% 16.1% 16.9% 16.3% 16.1% 17.8%

Depreciation and software amortizationGN Hearing (24) (23) (27) (23) (25) (26) (29) (74) (80) (97) GN Audio (9) (9) (9) (10) (9) (9) (10) (27) (28) (37) Other * (7) (7) (7) (8) (8) (8) (7) (21) (23) (29) Total (40) (39) (43) (41) (42) (43) (46) (122) (131) (163)

EBITDAGN Hearing 208 223 257 330 250 265 266 688 781 1,018 GN Audio 119 116 122 220 99 124 149 357 372 577 Other * (12) (7) (10) (20) (10) (10) (12) (29) (32) (49) Total 315 332 369 530 339 379 403 1,016 1,121 1,546

EBITA 275 293 326 489 297 336 357 894 990 1,383 Amortization of acquired intangible assets (18) (18) (16) (22) (22) (25) (30) (52) (77) (74) Gain (loss) on divestment of operations etc. - (4) - (6) (1) (1) - (4) (2) (10) Beltone Network non-recurring items - (150) - - - - - (150) - (150) Operating profit (loss) 257 121 310 461 274 310 327 688 911 1,149 Share of profit (loss) in associates - - - 5 - - - - - 5 Financial items, net (24) (33) (46) (35) (5) (7) (49) (103) (61) (138) Profit (loss) before tax 233 88 264 431 269 303 278 585 850 1,016 Tax on profit (loss) (63) (24) (70) (112) (66) (75) (56) (157) (197) (269) Profit (loss) for the period from continuing operations 170 64 194 319 203 228 222 428 653 747

Balance sheetDevelopment projectsGN Hearing 735 733 737 751 754 759 769 737 769 961 GN Audio 180 198 211 223 233 238 251 211 251 223 Other * - - - - - - - - - - Total 915 931 948 974 987 997 1,020 948 1,020 1,184

InventoriesGN Hearing 350 351 370 359 378 396 435 370 435 491 GN Audio 204 229 257 229 224 237 260 257 260 229 Total 554 580 627 588 602 633 695 627 695 720

Trade receivablesGN Hearing 1,160 1,146 1,180 1,214 1,219 1,207 1,142 1,180 1,142 1,345 GN Audio 699 752 706 909 690 758 814 706 814 909 Other * 1 1 - 1 1 - - - - 1 Total 1,860 1,899 1,886 2,124 1,910 1,965 1,956 1,886 1,956 2,255

Net working capitalGN Hearing 940 836 906 755 943 834 739 906 739 942 GN Audio 436 377 387 486 485 463 454 387 454 486 Other * (49) (22) (39) (59) (93) (68) (84) (39) (84) (59) Total 1,327 1,191 1,254 1,182 1,335 1,229 1,109 1,254 1,109 1,369

Cash flowFree cash flow excl. company acquisitions and divestmentsGN Hearing (61) 184 162 171 47 279 271 285 597 456 GN Audio 11 121 71 68 29 160 128 203 317 271 Other * (84) (19) (41) 24 (49) (25) (24) (144) (98) (120) Total (134) 286 192 263 27 414 375 344 816 607

Acquisitions and divestments of companies (12) (7) (4) (15) (33) (54) (606) (23) (693) (38)

Free cash flow (146) 279 188 248 (6) 360 (231) 321 123 569

* "Other" comprises Group Shared Services, GN Ejendomme and eliminations.


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Income statement Consolidated

Statement of comprehensive income Consolidated


(DKK million) (unaud.) (unaud.) (unaud.) (unaud.) (aud.)Continuing operationsRevenue 2,117 1,875 6,144 5,483 7,755 Production costs (770) (753) (2,333) (2,119) (3,006) Gross profit 1,347 1,122 3,811 3,364 4,749

Development costs (173) (171) (528) (488) (651) Selling and distribution costs (663) (518) (1,849) (1,647) (2,261) Management and administrative expenses (153) (108) (450) (343) (462) Other operating income and costs, net (1) 1 6 8 8 EBITA*) 357 326 990 894 1,383

Amortization of acquired intang ble assets (30) (16) (77) (52) (74) Gain (loss) on divestment of operations etc. - - (2) (4) (10) Beltone Network non-recurring items - - - (150) (150) Operating profit (loss) 327 310 911 688 1,149

Share of profit (loss) in associates - - - - 5 Financial income 26 44 123 60 88 Financial expenses (75) (90) (184) (163) (226) Profit (loss) before tax 278 264 850 585 1,016

Tax on profit (loss) (56) (70) (197) (157) (269) Profit (loss) for the period from continuing operations 222 194 653 428 747

Discontinued operationsProfit (loss) for the period from discontinued operations (5) 3 6 31 58 Profit (loss) for the period 217 197 659 459 805

Earnings per share (EPS)Earnings per share (EPS) 1.47 1.27 4.42 2.93 5.16 Earnings per share, fully diluted (EPS diluted) 1.47 1.26 4.41 2.91 5.14

Earnings per share (EPS) from continuing operationsEarnings per share (EPS) from continuing operations 1.51 1.25 4.38 2.73 4.79 Earnings per share from continuing operations, fully diluted (EPS diluted) 1.50 1.24 4.37 2.72 4.77

*) Excluding Beltone Network non-recurring items, Gain (loss) on divestment of operations etc. and Amortization of acquired intang ble assets but including amortization of development projects and software.


(DKK million) (unaud.) (unaud.) (unaud.) (unaud.) (aud.)

Profit (loss) for the period 217 197 659 459 805

Other comprehensive incomeItems that will not be reclassified to profit or lossActuarial gains (losses) - - - - 14 Tax relating to this item of other comprehensive income - - - - (6)

Items that may be reclassified subsequently to profit or lossAdjustment of cash flow hedges 3 21 (6) 33 30 Foreign exchange adjustments, etc. (18) (57) (128) 342 462 Tax relating to these items of other comprehensive income 3 (2) 5 (15) (10) Other comprehensive income for the period, net of tax (12) (38) (129) 360 490

Total comprehensive income for the period 205 159 530 819 1,295


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Balance sheet Consolidated

Sep. 30 June 30 March 31 Dec. 312016 2016 2016 2015

(DKK million) (unaud.) (unaud.) (unaud.) (aud.)

Assets

Intangible assets 6,024 5,710 5,525 5,469Property, plant and equipment 504 526 523 534Deferred tax assets 506 507 492 507Other non-current assets 991 1,084 1,129 1,264Total non-current assets 8,025 7,827 7,669 7,774

Inventories 695 761 733 720Trade receivables 1,956 2,082 2,033 2,255Tax receivable 46 12 68 63Other receivables 187 238 239 232Cash and cash equivalents 163 151 134 132Total current assets 3,047 3,244 3,207 3,402

Assets held for sale 862 - - -

Total assets 11,934 11,071 10,876 11,176

Equity and liabilities

Equity 5,444 5,383 5,284 5,764

Bank loans 3,145 2,687 2,831 2,297Pension obligations 61 67 63 64Provisions 251 126 124 59Deferred tax liabilities 448 509 509 496Other non-current liabilities 289 279 277 301Total non-current liabilities 4,194 3,668 3,804 3,217

Bank loans 45 79 41 47Trade payables 510 548 430 731Tax payable 69 1 3 28Provisions 275 264 268 282Other payables 1,220 1,128 1,046 1,107Total current liabilities 2,119 2,020 1,788 2,195

Liabilities directly associated with assets held for sale 177 - - -

Total equity and liabilities 11,934 11,071 10,876 11,176


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Consolidated equity

(DKK million)

Share capital

(shares of DKK 4 each)

Additionalpaid-incapital

Foreignexchange

adjustmentsHedging reserve

Treasuryshares

Proposed dividends

for the yearRetainedearnings

Totalequity

Balance at December 31, 2014 672 540 (1,185) (50) (1,112) 151 6,651 5,667

Profit (loss) for the period - - - - - - 459 459 Adjustment of cash flow hedges - - - 33 - - - 33 Foreign exchange adjustments, etc. - - 342 - - - - 342 Tax relating to other comprehensive income - - (11) (4) - - - (15) Total comprehensive income for the period - - 331 29 - - 459 819

Reduction of the share capital (23) (476) - - 784 - (285) - Share-based payment (granted) - - - - - - 16 16 Share based payment (exercised) - (64) - - 130 - (1) 65 Tax related to share-based incentive plans - - - - - - 22 22 Purchase/sale of treasury shares - - - - (883) - - (883) Paid dividends - - - - - (142) - (142) Dividends, treasury shares - - - - - (9) 9 - Balance at September 30, 2015 649 - (854) (21) (1,081) - 6,871 5,564

Profit (loss) for the period - - - - - - 346 346 Actuarial gains (losses) - - - - - - 14 14 Adjustment of cash flow hedges - - - (3) - - - (3) Foreign exchange adjustments, etc. - - 120 - - - - 120 Tax relating to other comprehensive income - - 8 (3) - - (6) (1) Total comprehensive income for the period - - 128 (6) - - 354 476

Share-based payment (granted) - - - - - - 3 3 Purchase/sale of treasury shares - - - - (279) - - (279) Proposed dividends for the year - - - - - 161 (161) - Balance at December 31, 2015 649 - (726) (27) (1,360) 161 7,067 5,764

Profit (loss) for the period - - - - - - 659 659 Adjustment of cash flow hedges - - - (6) - - - (6) Foreign exchange adjustments, etc. - - (128) - - - - (128) Tax relating to other comprehensive income - - - 5 - - - 5 Total comprehensive income for the period - - (128) (1) - - 659 530

Reduction of the share capital (30) - - - 1,036 - (1,006) - Share-based payment (granted) - - - - - - 18 18 Share-based payment (exercised) - - - - 82 - (27) 55 Tax related to share-based incentive plans - - - - - - 5 5 Purchase/sale of treasury shares - - - - (779) - - (779) Proposed dividends for the year - - - - - - - - Paid dividends - - - - - (149) - (149) Dividends, treasury shares - - - - - (12) 12 - Balance at September 30, 2016 619 - (854) (28) (1,021) - 6,728 5,444


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Cash flow statement (including GN Otometrics) Consolidated Q3 Q3 YTD YTD Full year

2016 2015 2016 2015 2015(DKK million) (unaud.) (unaud.) (unaud.) (unaud.) (aud.)

Operating activitiesOperating profit (loss) 331 316 932 728 1,220 Depreciation, amortization and impairment 166 152 479 441 599 Other non-cash adjustments (4) (27) 3 108 127 Cash flow from operating activities before changes in working capital 493 441 1,414 1,277 1,946

Changes in working capital 76 (51) (5) (184) (151)

Cash flow from operating activities before financial items and tax 569 390 1,409 1,093 1,795

Financial items, net (18) (29) (57) (56) (71) Tax paid, net (15) (18) (121) (120) (274) Cash flow from operating activities 536 343 1,231 917 1,450

- Investing activitiesDevelopment projects (115) (111) (341) (332) (460) Investments in other intangible assets, net (38) (26) (85) (81) (159) Investments in property, plant and equipment, net (34) (47) (75) (130) (169) Investments in other non-current assets, net 12 23 42 29 81 Company acquisitions (606) (4) (693) (29) (47) Cash flow from investing activities (781) (165) (1,152) (543) (754) Cash flow from operating and investing activities (free cash flow) (245) 178 79 374 696

Financing activitiesPaid dividends - - (149) (142) (142) Share-based payment (exercised) 8 - 55 65 65 Purchase/sale of treasury shares and other equity instruments (160) (228) (779) (883) (1,162) Increase/decrease in bank loans and other adjustments 430 28 847 616 557 Cash flow from financing activities 278 (200) (26) (344) (682) Net cash flow 33 (22) 53 30 14

Cash and cash equivalents beginning of period 151 173 132 114 114 Adjustment foreign currency, cash and cash equivalents (1) (4) (2) 3 4 Cash and cash equivalents, end of period 183 147 183 147 132


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Note 1 – Accounting policies This interim report has been prepared in accordance with IAS 34 “Interim Financial Reporting” as adopted by the EU and Danish interim financial reporting requirements for listed companies.

New standards, interpretations and amendments adopted by GN Store Nord As of January 1, 2016, GN Store Nord adopted all relevant new or revised International Financial Reporting Standards and IFRIC Interpretations with effective date January 1, 2016 or earlier, including those specified in note 1.1 in the Annual Report 2015. The new or revised Standards and Interpretations did not affect recognition and measurement materially or result in any material changes to disclosures in the notes. The accounting policies applied are unchanged from those applied in the Annual Report 2015.

Discontinued operations On September 25, 2016 GN Hearing and Natus Medical Incorporated entered into an agreement whereby ownership of GN Otometrics is transferred from GN Hearing to Natus. As a consequence GN Store Nord has at September 30, 2016 classified GN Otometrics as a disposal group held for sale and as discontinued operations. Closing of the transaction is subject to regulatory approval and is targeted by end of 2016. Please refer to the note Discontinued operations for further information.

Note 2.1 – Segment disclosures Q3 2016

Income statementQ3 Q3 Q3 Q3 Q3 Q3 Q3 Q3

2016 2015 2016 2015 2016 2015 2016 2015(DKK million) (unaud.) (unaud.) (unaud.) (unaud.) (unaud.) (unaud.) (unaud.) (unaud.)Continuing operationsRevenue 1,284 1,109 833 766 - - 2,117 1,875 Production costs (378) (381) (392) (372) - - (770) (753) Gross profit 906 728 441 394 - - 1,347 1,122

Expensed development costs (117) (112) (55) (55) (1) (4) (173) (171) Selling and distribution costs (448) (320) (215) (198) - - (663) (518) Management and administrative expenses (103) (67) (32) (28) (18) (13) (153) (108) Other operating income and costs, net (1) 1 - - - - (1) 1 EBITA 237 230 139 113 (19) (17) 357 326

Amortization of acquired intangible assets (29) (13) (1) (3) - - (30) (16) Gain (loss) on divestment of operations etc. - - - - - - - - Beltone Network non-recurring items - - - - - - - - Operating profit (loss) 208 217 138 110 (19) (17) 327 310

Financial items (37) (19) 7 (14) (19) (13) (49) (46) Profit (loss) before tax 171 198 145 96 (38) (30) 278 264

Tax on profit (loss) (40) (53) (23) (24) 7 7 (56) (70) Profit (loss) for the period from continuing operations 131 145 122 72 (31) (23) 222 194

Discontinued operationsProfit (loss) for the period from discontinued operations (5) 3 - - - - (5) 3 Profit (loss) for the period 126 148 122 72 (31) (23) 217 197

Cash flow statement (including GN Otometrics)Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3

2016 2015 2016 2015 2016 2015 2016 2015(DKK million) (unaud.) (unaud.) (unaud.) (unaud.) (unaud.) (unaud.) (unaud.) (unaud.)Operating activities before changes in working capital 337 313 173 155 (17) (27) 493 441

Cash flow from changes in working capital 71 (33) (3) (19) 8 1 76 (51) Cash flow from operating activities excludingfinancial items and tax 408 280 170 136 (9) (26) 569 390 Cash flow from investing activities:Development projects (83) (78) (32) (33) - - (115) (111) Other (653) (32) (9) (17) (4) (5) (666) (54) Cash flow from operating and investing activities before financial items and tax (328) 170 129 86 (13) (31) (212) 225 Tax and financial items (21) (22) (1) (15) (11) (10) (33) (47) Cash flow from operating and investing activities (free cash flow) (349) 148 128 71 (24) (41) (245) 178

Free cash flow excl. company acquisitions and divestments 257 152 128 71 (24) (41) 361 182

* "Other" comprises Group Shared Services, GN Ejendomme and eliminations

GN AudioGN Hearing Other* Consolidated total



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Note 2.1 – Segment disclosures Q3 2016 (continued)

Balance sheetQ3 Q3 Q3 Q3 Q3 Q3 Q3 Q3

2016 2015 2016 2015 2016 2015 2016 2015(DKK million) (unaud.) (unaud.) (unaud.) (unaud.) (unaud.) (unaud.) (unaud.) (unaud.)

ASSETS

Goodwill 3,545 2 996 526 524 - - 4,071 3,520 Development projects 769 933 251 211 - - 1,020 1,144 Other intangible assets 799 450 35 40 99 108 933 598 Property, plant and equipment 265 272 64 64 175 181 504 517 Loans to dispensers and ownership interests 755 1 010 - - - - 755 1,010 Other non-current assets 584 663 155 166 3 (17) 742 812 Total non-current assets 6,717 6,324 1,031 1,005 277 272 8,025 7,601

Inventories 435 506 260 257 - - 695 763 Trade receivables 1,142 1,307 814 706 - - 1,956 2,013 Receivables from subsidiaries** - - 2,271 1,870 (2,271) (1,870) - - Tax receivables 24 44 13 11 9 36 46 91 Other receivables 142 221 42 41 3 9 187 271 Cash and cash equivalents 121 110 42 37 - - 163 147 Total current assets 1,864 2,188 3,442 2,922 (2,259) (1,825) 3,047 3,285

Assets classified as held for sale 862 - - - - - 862 -

Total assets 9,443 8,512 4,473 3,927 (1,982) (1,553) 11,934 10,886

EQUITY AND LIABILITIES

Equity 6,428 5,697 3,661 3,153 (4,645) (3,286) 5,444 5,564

Bank loans - - - - 3,145 2,325 3,145 2,325 Pension obligations and deferred tax 288 298 49 38 172 154 509 490 Provisions 239 84 12 10 - 1 251 95 Other non-current liabilities 289 282 - - - - 289 282 Total non-current liabilities 816 664 61 48 3,317 2,480 4,194 3,192

Bank loans 5 6 7 14 33 58 45 78 Trade payables 201 237 302 307 7 10 510 554 Amounts owed to subsidiaries** 764 861 - - (764) (861) - - Tax payables 55 174 26 45 (12) (5) 69 214 Provisions 218 199 56 50 1 13 275 262 Other current liabilities 779 674 360 310 81 38 1,220 1,022 Total current liabilities 2,022 2,151 751 726 (654) (747) 2,119 2,130

Liabilities directly associated with assets held for sale 177 - - - - - 177 -

Total equity and liabilities 9,443 8,512 4,473 3,927 (1,982) (1,553) 11,934 10,886

Invested capital*** 6,415 6,501 1,262 1,166 188 236 7,865 7,903

Average invested capital 6,458 6,115 1,214 1,019 212 238 7,884 7,372


Additional information (excluding GN Otometrics)Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3


Revenue distributed geographicallyEurope 23% 26% 43% 45% 0% 0% 31% 34%North America 56% 52% 39% 36% 0% 0% 49% 45%Rest of world 21% 22% 18% 19% 0% 0% 20% 21%

Incurred development costs (124) (116) (67) (67) (1) (4) (192) (187) Capitalized development costs 64 64 32 33 - - 96 97 Amortization and depreciation of development costs** (57) (60) (20) (21) - - (77) (81) Expensed development costs (117) (112) (55) (55) (1) (4) (173) (171)

EBITDA 266 257 149 122 (12) (10) 403 369 Depreciation and software amortization (29) (27) (10) (9) (7) (7) (46) (43) EBITA 237 230 139 113 (19) (17) 357 326

EBITA margin 18.5% 20.7% 16.7% 14.8% N/A N/A 16.9% 17.4%

Number of employees, end of period ~4,300 ~3,875 ~1,025 ~1,000 ~75 ~75 ~5,400 ~4,950

* "Other" comprises Group Shared Services, GN Ejendomme and eliminations**Net amount


*** Includes Net working capital (Inventories, Trade receivables, Other receivables, Trade payables and Other current liabilities), Goodwill, Development projects, Other intangible assets, Property, plant and equipment, Loans to dispensers and ownership interests and Provisions.


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Note 2.2 – Segment disclosures September 2016 YTD

Income statementSep. YTD Sep. YTD Sep. YTD Sep. YTD Sep. YTD Sep. YTD Sep. YTD Sep. YTD

2016 2015 2016 2015 2016 2015 2016 2015(DKK million) (unaud.) (unaud.) (unaud.) (unaud.) (unaud.) (unaud.) (unaud.) (unaud.)Continuing operationsRevenue 3,767 3 259 2,377 2,224 - - 6,144 5,483 Production costs (1,203) (1 074) (1,130) (1,045) - - (2,333) (2,119) Gross profit 2,564 2,185 1,247 1,179 - - 3,811 3,364

Expensed development costs (351) (329) (173) (151) (4) (8) (528) (488) Selling and distribution costs (1,230) (1,040) (619) (607) - - (1,849) (1,647) Management and administrative expenses (287) (210) (112) (91) (51) (42) (450) (343) Other operating income and costs, net 5 8 1 - - - 6 8 EBITA 701 614 344 330 (55) (50) 990 894

Amortization of acquired intangible assets (74) (44) (3) (8) - - (77) (52) Gain (loss) on divestment of operations etc. (2) (4) - - - - (2) (4) Beltone Network non-recurring items - (150) - - - - - (150) Operating profit (loss) 625 416 341 322 (55) (50) 911 688

Financial items (39) (53) 20 (13) (42) (37) (61) (103) Profit (loss) before tax 586 363 361 309 (97) (87) 850 585

Tax on profit (loss) (148) (99) (66) (76) 17 18 (197) (157) Profit (loss) for the period from continuing operations 438 264 295 233 (80) (69) 653 428

Discontinued operationsProfit (loss) for the period from discontinued operations 6 31 - - - - 6 31 Profit (loss) for the period 444 295 295 233 (80) (69) 659 459

Cash flow statement (including GN Otometrics)Sep. YTD Sep. YTD Sep. YTD Sep. YTD Sep. YTD Sep. YTD Sep. YTD Sep. YTD

2016 2015 2016 2015 2016 2015 2016 2015(DKK million) (unaud.) (unaud.) (unaud.) (unaud.) (unaud.) (unaud.) (unaud.) (unaud.)Operating activities before changes in working capital 1,010 907 443 418 (39) (48) 1,414 1,277

Cash flow from changes in working capital (10) (135) 17 (39) (12) (10) (5) (184) Cash flow from operating activities excludingfinancial items and tax 1,000 772 460 379 (51) (58) 1,409 1,093 Cash flow from investing activities:Development projects (249) (230) (92) (102) - - (341) (332) Other (781) (139) (21) (43) (9) (29) (811) (211) Cash flow from operating and investing activities before financial items and tax (30) 403 347 234 (60) (87) 257 550 Tax and financial items (110) (88) (30) (31) (38) (57) (178) (176) Cash flow from operating and investing activities (free cash flow) (140) 315 317 203 (98) (144) 79 374


GN Hearing GN Audio Other* Consolidated total


Additional information (excluding GN Otometrics)Sep. YTD Sep. YTD YTD YTD Sep. YTD Sep. YTD Sep. YTD Sep. YTD




EBITDA 781 688 372 357 (32) (29) 1,121 1,016 Depreciation and software amortization (80) (74) (28) (27) (23) (21) (131) (122) EBITA 701 614 344 330 (55) (50) 990 894



* "Other" comprises Group Shared Services, GN Ejendomme and eliminations**Net amount*** Includes Net working capital (Inventories, Trade receivables, Other



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Note 3 – Acquisitions of companies and operations

In July 2016, GN Hearing acquired 100% of the US based company Audigy, a leading provider of business and performance management solutions to independent hearing care practices. The acquisition of Audigy will further support GN Hearing’s strong momentum allowing GN Hearing to be an even better partner to its customers. The goodwill related to the acquisition of Audigy is mainly attributable to Audigy's business and performance management solutions to independent hearing care professionals and the expected synergy effects from applying these in other parts of GN Hearing as well as a strengthening of the sales and distribution channels.

During the first nine months of 2016, GN Hearing furthermore acquired a number of minor hearing instrument chains and distributors, primarily in the US. These acquisitions all strengthen GN Hearing's sales and distribution channels and the goodwill related to the acquisitions are mainly attributable to this.

The goodwill related to the acquisition of Audigy has not yet been allocated to cash generating units. Goodwill relating to the other transactions is allocated to the cash-generating unit Hearing Instruments with DKK 68 million (2015: DKK 21 million). Transaction costs of DKK 22 million were recognized and included in operating expenses during H1 2016.

In the first nine months of 2016, GN Hearing paid out DKK 25 million (2015: DKK 4 million) in contingent considerations related to prior years acquisitions. The payments were mainly related to the acquisition of Dansk HøreCenter ApS. No adjustment has been recognized in the income statement.

The recognition of the fair value of identified net assets is based on available information at the acquisition date. In the event of new information, the recognition is subject to change within a one-year measurement period.

Subsequent events As mentioned in the business highlights GN Audio acquired the US based company VXi Corporation on October 13, 2016. The purchase price allocation relating to the acquisition of VXi has not yet been finalized.

YTD YTDDKK million 2016 2015

Identifiable assets acquired and liabilities assumed and consideration transferred

Non-current assets 28 1 Current assets 49 6 Non-current liabilities (15) (2) Current liabilities (57) (7) Fair value of identified net assets 5 (2) Goodwill 678 21 Other intangible assets 311 12 Consideration transferred 994 31 Fair value of assets transferred (163) (1) Contingent consideration (163) (5) Acquired cash and cash equivalents - - Cash consideration paid 668 25

Fair value at acquisition date

DKK million 2016 2015

Revenue 159 18 EBIT 2 2

Profit (loss) for the year - -

Acquired operations if they had been owned throughout the first three quarters of 2016:

Revenue 293 22 EBIT 24 2 Profit (loss) for the year 21 -

The share of revenue and profit (loss) for the first three quarters of 2016 from the acquisition date can be specified as follows:


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Note 4 – Discontinued Operations

On September 25, 2016 GN Hearing and Natus Medical Incorporated (hereafter “Natus”) entered into an agreement whereby ownership of GN Otometrics is transferred from GN Hearing to Natus. The divestment will further strengthen GN Hearing’s focus and strategic direction as a dedicated hearing instrument company, with GN Hearing being in a unique position to continue to deliver industry leading growth and profitability. The total consideration payable by Natus is USD 145 million and will be settled in cash on a debt and cash free basis. Closing of the transaction is subject to regulatory approval and is targeted by end of 2016.

At September 30, 2016 GN Otometrics was classified as a disposal group held for sale and as discontinued operations. The results of GN Otometrics for the first nine months of 2016 are presented below:

Accounting policies Assets and liabilities classified as held for sale are presented separately as items in the balance sheet. A disposal group qualifies as discontinued operation if it is a component of an entity that either has been disposed of, or is classified as held for sale, and:

Represents a separate major line of business or geographical area of operations, Is part of a single coordinated plan to dispose of a separate major line of business or geographical area of

operations, or

Is a subsidiary acquired exclusively with a view to resale

Discontinued operations are excluded from the results of continuing operations and are presented as a single amount as profit or loss after tax from discontinued operations in the income statement.

YTD YTDDKK million 2016 2015

GN Otometrics

Revenue 490 463 Expenses (477) (423) Operating profit 13 40 Financial items (5) 1 Profit/(loss) before tax from discontinued operations 8 41 Tax (2) (10) Profit/(loss) for the period from discontinued operations 6 31

The major classes of assets and liabilities of GN Otometrics classified as held for sale as at September 30, 2016 are as follows:

AssetsIntangible assets 485 Property, plant & equipment 23 Inventories 128 Receivables 206 Cash and cash equivalents 20 Assets held for sale 862

LiabilitiesPension obligations and deferred tax 60 Payables 117 Liabilities directly associated with assets held for sale 177

Earnings per share (EPS) from discontinued operationsEarnings per share (EPS) from discontinued operations 0.04 0.20 Earnings per share from discontinued operations, fully diluted (EPS diluted) 0.04 0.19


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Note 5 – Incentive plans

As of September 30, 2016, the total number of outstanding warrants in GN Hearing was 16,575 (2.6% of the shares issued in GN Hearing). The total number of outstanding warrants in GN Audio was 10,091 (3.0% of the shares issued in GN Audio).

Note 6 – Shareholdings

On November 3, 2016, members of the board of directors and the executive management, respectively, own 486,160 and 83,400 shares in GN Store Nord.

On November 3, 2016, GN owns 9,381,028 treasury shares, equivalent to 6.1% of the 154,787,929 shares issued. At the annual general meeting on March 10, 2016, it was decided to reduce the company’s nominal share capital from DKK 648,765,076 to nominally DKK 619,151,716 by cancelling part of the company’s treasury shares at a nominal value of DKK 29,613,360 divided into 7,403,340 shares of DKK 4 each. The reduction was conducted on April 8, 2016.

The GN stock is 100% free float, and the company has no dominant shareholders. T. Rowe Price Associates Inc., Marathon Asset Management LLP and APG Asset Management N.V. have reported an ownership interest in excess of 5% of GN’s share capital. Foreign ownership of GN is estimated to be around 65%.


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Appendix: Segment disclosures June 2016 YTD

GN has in agreement with the Danish Business Authority attached the June YTD numbers on segment disclosures as well as comments on the June YTD development in the management part of the report. This information was by mistake not included in the Q2 2016 report. During the first six months of 2016, GN Hearing increased revenue by 14% compared to the same period last year, which was primarily driven by organic growth of 9%. EBITA grew strongly by DKK 64 million, equivalent to an increase of 15% during the first six months of 2016. In the period the EBITA margin increased slightly from 17.0% to 17.2%. In the first six months of 2016, cash conversion developed strongly and increased from 46% to 61% equal to an improvement of free cash flow excl. M&A of DKK 104 million. During the first six months of 2016, GN Audio increased revenue by 6% compared to the same period last year, which was driven by organic growth of 6%, as M&A and the development in foreign exchange rates had no impact on the revenue growth. In the first six months of 2016, EBITA ended at DKK 205 million compared to DKK 217, equivalent to a flat development in the EBITA margin in constant currencies. In the first six months of 2016, cash conversion developed strongly and increased from 61% to 92% equal to an improvement of free cash flow excl. M&A of DKK 57 million. GN Store Nord delivered 8% organic growth in the first six months of 2016, equivalent to revenue of DKK 4,345 million. In the same period, EBITA increased from DKK 602 million to DKK 651 million, and the cash conversion increased from 37% to 63%, equivalent to an absolute increase of DKK 190 million. The tables are including GN Otometrics in GN Hearing, as the disposal of GN Otometrics was announced after the Q2 2016 report was released.

Income statementJune YTD June YTD June YTD June YTD June YTD June YTD June YTD June YTD


Revenue 2,801 2,462 1,544 1,458 - - 4,345 3,920 Production costs (984) (835) (738) (673) - - (1,722) (1,508) Gross profit 1,817 1,627 806 785 - - 2,623 2,412

Expensed development costs (261) (240) (118) (96) (3) (4) (382) (340) Selling and distribution costs (868) (795) (404) (409) - - (1,272) (1,204) Management and administrative expenses (212) (181) (80) (63) (33) (29) (325) (273) Other operating income and costs, net 6 7 1 - - - 7 7 EBITA 482 418 205 217 (36) (33) 651 602

Amortization of acquired intangible assets (46) (31) (2) (5) - - (48) (36) Gain (loss) on divestment of operations etc. (2) (4) - - - - (2) (4) Beltone Network non-recurring items - (150) - - - - - (150) Operating profit (loss) 434 233 203 212 (36) (33) 601 412

Financial items (5) (32) 13 1 (23) (24) (15) (55) Profit (loss) before tax 429 201 216 213 (59) (57) 586 357

Tax on profit (loss) (111) (54) (43) (52) 10 11 (144) (95) Profit (loss) 318 147 173 161 (49) (46) 442 262

Cash flow statementJune YTD June YTD June YTD June YTD June YTD June YTD June YTD June YTD

2016 2015 2016 2015 2016 2015 2016 2015(DKK million) (unaud.) (unaud.) (unaud.) (unaud.) (unaud.) (unaud.) (unaud.) (unaud.)Operating activities before changes in working capital 673 594 270 263 (22) (21) 921 836

Cash flow from changes in working capital (81) (102) 20 (20) (20) (11) (81) (133) Cash flow from operating activities excludingfinancial items and tax 592 492 290 243 (42) (32) 840 703 Cash flow from investing activities:Development projects (166) (152) (60) (69) - - (226) (221) Other (128) (107) (12) (26) (5) (24) (145) (157) Cash flow from operating and investing activities before financial items and tax 298 233 218 148 (47) (56) 469 325 Tax and financial items (89) (66) (29) (16) (27) (47) (145) (129) Cash flow from operating and investing activities (free cash flow) 209 167 189 132 (74) (103) 324 196


* "Other" comprises Group Shared Services, GN Ejendomme and eliminations




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Additional informationJune YTD June YTD June YTD June YTD June YTD June YTD June YTD June YTD




EBITDA 537 471 223 235 (20) (19) 740 687 Depreciation and software amortization (55) (53) (18) (18) (16) (14) (89) (85) EBITA 482 418 205 217 (36) (33) 651 602



* "Other" comprises Group Shared Services, GN Ejendomme and eliminations**Net amount


*** Includes Net working capital (Inventories, Trade receivables, Other receivables, Trade payables and Other current liabilities), Goodwill, Development projects, Other intangible assets, Property, plant and equipment, Loans to dispensers and ownership interests and Provisions.

Documents

Helping people “hear more, do more, be more”...Interim Report Q3 2016 Page 3 of 27 Q3 Q3 YTD YTD Full year 2016 2015 2016 2015 2015 DKK million (unaud.) (unaud.) (unaud.) (unaud.)