Audientes’ Annual Report 2020: We are ready for commercialization

Today, Audientes A/S releases its financial results for 2020. Both the financial and operational results are in line with the management’s expectations, and a strong foundation has been established for the upcoming launch of the company’s selffitting hearing aid in mid-2021. Mass production and sales start are expected in Q3 2021. Company announcement nr. 1-2021

Today, Audientes A/S releases its financial results for 2020.

Steen Thygesen, CEO Audientes A/S, comments:

“2020 has been an incredibly exciting and gratifying year, where we achieved our set goals. In the beginning of 2021, we entered the final phase of the development of our smart self-fitting hearing aid. And thanks to the steps we took to strengthen our organization in Q4 2020, we have been able to really accelerate our efforts so that we are now also ready with a detailed go-to-market strategy for India and online.

2021 will be the year when we go from a development company to a commercial and revenue-generating company, and we are really looking forward to the product launch in mid-2021. Being a listed company with a much-increased business visibility, has made a crucial difference, so we thank our shareholders once again for their trust.”

Performance highlights for 2020

FINANCIAL HIGHLIGHTS 2020

Financial development in 2020 was characterized by sizable investments in the completion of our self-fitting hearing aid, as well as the implementation of our go-to-market strategy. Audientes had no revenue in 2020.

Operating profit (EBITDA) was TDKK -5,548 in 2020 (2019: TDKK 110), which is better than the expected TDKK -7,000 pre IPO-related costs. This outcome covers a transference of travel costs and development activities to 2021. The remaining cost developments are in line with management’s expectations.

As of December 31, 2020, cash and cash equivalent assets amounted to TDKK 30,364 (2019: TDKK 78).

Equity ration, as of December 31, 2020 is calculated to be TDKK 38,372 (2019: TDKK 3,931), corresponding to an equity ration of 91% (2019: 51%).

OPERATIONAL HIGHLIGHTS 2020

 Product: We reached our agreed product development goals in 2020. In Q4 2020, we intensified the number of test rounds involving end users and channel partners, leading to significant improvements in both product design and the smartphone application. At the beginning of 2021, we also announced a significant technology boost by including in

our product the market-leading fitting algorithm NAL-NL2 to restore optimal hearing, together with Active Noise Canceling (ANC) and Pure Tone Audiometry, significantly lifting the overall user experience.

 Go-to-market strategy: Since Q4 2020, Audientes has secured a local presence in India by hiring a country manager for this market. Dialogue with potential channel partners in India and other countries is progressing well, accelerated by significantly improved product design and technical specifications. This is also the primary reason for a strengthened positioning in the over-the-counter segment. We are being met with an extremely positive response when talking with potential customers. Additionally, at the close of 2020 and in early 2021, we commenced the establishment of the platform for our online sales, as well sales via e-tailers, such as Amazon, Flipkart and Alibaba.

Trademark protection: Our brand efforts continued in 2020 to secure both product design and brand identity elements in our priority markets.

Organization: In Q4 2020, we strengthened our organization with the hiring of six new senior employees, holding specialities in international marketing, sales and distribution, including local knowledge of our primary focus market, India.

 Stock exchange listing: Audientes completed a successful Initial Public Offering in September, 2020. Subscription interest was high and we welcomed 2,800 shareholders to Audientes. The strengthened capital base has paved the way for the completion of business-critical activities in preparation for product launch in mid-2021.

2021. Outlook

In 2021, Audientes expects revenue in the range of DKK 3.5-5.0 mil., and a 2021 operating profit (EBITDA) in the range of DKK -12 to -14 mil.

Operating losses for 2021 should be viewed in the light of the ongoing development activities and intensified marketing focus for the second half of the 2021.

After recognition of capitalised development costs, the cost level in 2021 will be at the level described in the Company Description from September 2020. As previously announced, sales start is Q3 2021.

Financial Calender

Link to Annual Report 2020 (in Danish): https://www.audientes.com/investor-relations/

Annual report presentation: March 19. 2021 11:00 AM (CET)

On Friday March 19, 2021 at 11:00 AM(CET) Audientes CEO, Steen Thygesen presents the 2020 financial results and latest news of the upcoming product launch mid-2021, followed by a Q&A session.

Link to registration at HC Andersen Capital.

For further information, please contact:

CEO, Steen Thygesen Tlf.: +45 53 17 26 10 e-mail: steen.thygesen@audientes.com www.audientes.com

Certified advisor

Kapital Partner ApS

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1608 København V Tlf. + 45 89 88 78 46 www.kapitalpartner.dk

This message contains insider information, which Audientes is legally bound to make public in accordance with the European Commission's market abuse regulations (MAR).

Contacts

 Steen Thygesen, CEO, +45 53172610, Steen.Thygesen@audientes.com

Audientes’ goal is to make smart, self-fitting and high-quality hearing aids accessible and affordable to everyone who needs them. We achieve this by designing, developing and bringing to market innovative assisted-hearing solutions. Today, nearly 500 million people suffer from disabling hearing loss. By 2050, that number is estimated to reach 900 million. We aim to address this global health challenge by bringing our affordable and self-fitting binaural hearing aid to the millions of hearing-impaired people around the world who need it.

Audientes A/S is traded on Nasdaq First North Growth Market Denmark under the symbol "AUDNTS" and ISIN DK0061406618.

For additional information about Audientes financial position and development, please refer to the Company’s website ( www.audientes.com).