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GN Annual Results 2006
and the Way Forward
Toon Bouten, President & CEO
Jens Due Olsen, EVP and CFO
February 22, 2007

2
Safe harbor statement
The forward-looking statements in this interim report reflect management's current
expectations of certain future events and financial results. Statements regarding 2007
are, of course, subject to risks and uncertainties which may result in material deviations
from the outlook set forth. Furthermore, some of these expectations are based on
assumptions regarding future events which may prove incorrect.
Factors that may cause actual results to deviate materially from expectations include –
but are not limited to – general economic developments and developments in the
financial markets, technological developments, changes and amendments to legislation
and regulations governing GN’s markets, changes in the demand for GN's products,
competition, fluctuations in sub-contractor supplies, and the integration of company
acquisitions.
Class action lawsuits are being brought in the United States against our American
subsidiary and other Bluetooth headset manufacturers claiming failure to warn of 'noise
induced hearing loss.' While we believe these suits are without merit, the costs to defend
against them could be high and the outcome of litigation is not predictable.
This interim report, announcement or presentation should not be considered an offer to
sell securities in GN Store Nord.

3
Agenda
1. Annual results incl. Q4
2. The way forward

4
Profit and Loss
(DKK million) 2005 Q4/2005 2006 Q4/2006
Revenue 3,533 946 3,413 840
Gross margin 41% 44% 36% 34%
EBITA before one-offs 322 104 70 20
EBITA margin before one-offs 9.1% 11.0% 2.1% 2.4%
EBITA 322 104 (120) (15)
EAT continuing operations 278 (55)
EAT discontinuing operations 572 403
• Q4 2006 excl. one-offs in line with expectations
• Q4 Y-o-Y revenue decline from Mobile and HDI, CC&O EMEA +14%, CC&O US (10)%
• Q4 EBITA include one-offs of DKK (35)m, primarily severance payments
• Q4 CC&O EBITA margin excl. one-offs 21.2% and 26.6% excl. HDI
• Q4 Mobile EBITA margin excl. one-offs (11.3)%
• Full year EBITA also include one-offs from Hello Direct of DKK (115)m and Q3 write
downs on inventories of DKK (40)m
• EBITA decline mainly due to Mobile with higher sales of mainstream products at
lower margins and higher spending on R&D and S&M

5
Balance Sheet
(DKK million) Pro-forma
Q4/2005
End
Q4/2006
After
payout*
Goodwill 502 455 450
Other intangible assets 261 291 300
Tangible assets 229 501 500
Inventories 427 316 300
Trade receivables 720 604 600
Asset held for sale 5,544 5,596 0
Other assets 408 464 1,400
Equity 5,349 4,900 2,700
Other liabilities 1,377 2,001 850
Liabilities held for sale 1,365 1,326 0
Total assets/liabilities 8,091 8,227 3,550
Net interest bearing debt** 720 1,387 (1,000)
*Approx. figures assuming 31/12 balance sheet adjusted for proceeds and payout
** incl. discontinuing operations
• No value from TPSA or tax disputes included in balance sheet
• NIBD impact from share buy back and dividend

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Cash flow (selected items)
(DKK million) 2005 Q4/2005 2006 Q4/2006
CFFO before working capital 498 151 67 6
Change in working capital (357) (163) 185 246
Cash flow from operations 137 (12) 231 239
CFFI excl. HQ and disposals (156) (53) (201) (37)
Disposal of companies 1 1 49 0
Invest. in new HQ (20) (19) (306) (77)
Cash flow from investments (175) (71) (458) (114)
Free cash flow, continuing (38) (83) (227) 125
Free cash flow, discontinuing 112 n/a (4) n/a
• Positive impact from working capital reductions, particularly in Q4
• CFFI excl. new HQ and disposals increased, primarily R&D capitalizations

7
GN ReSound
• GN ReSound will be sold to Phonak for DKK 15.5bn on a net debt free
basis
• Net gain will be more than DKK 10bn
• All anti-trust approvals obtained except for Germany. This approval is
expected mid April 2007
• Closing is expected late first half 2007
• After closing GN will pay out DKK 61 per share = DKK 12.4bn
• GN will fine tune pay out via share buy back program but retain DKK
1bn net cash

8
TPSA arbitration facts
• GN involved in an arbitration case against TPSA through its 75% share of
DPTG
• Arbitration case concerns traffic volumes carried over the NSL fiber optical
telecommunication system in Poland
• DPTG is entitled to 14.8% of net profits from NSL during the period 1994-
2009
• Early 2003 DPTG claimed approx. DKK 1.6bn for the period 1994 to mid
2002
• Based on a preliminary expert opinion and because of the lapse of time
from mid 2002 to mid 2005, early 2006 DPTG modified its claim to
approximately DKK 5bn
• TPSA disputes the expert’s estimates and calculations as well as the legal
basis of DPTG's claim

9
Agenda
1. Annual results incl. Q4
2. The way forward

10
DKK bn
25
20
15
10
5
0
Headset is an attractive market opportunity
Total market value, manufacturer value
Contact Center: 2% CAGR
Office and Mobile: 20% CAGR
2005 2006 2007 2008 2009 2010
BT Mobile Office CC
> 17% CAGR p.a. to DKK 24 bn.
Source: Datamonitor, IMS, Annual reports, GN estimates
Market share: CC&O~ 35%, BT Mobile ~ 25%

2500
2000
1500
1000
500
11
0
DKKm
Status – end of 2006
2002 2003 2004 2005 2006
CC&O Revenue
Mobile Revenue
CC&O EBITA Mobile EBITA
EBITA %
25
• The world’s leading provider of
headsets
• 1,800 employees
• Low cost manufacturing in China
• Sales in 70 countries
• R&D centers in Denmark and China
• Product brand name Jabra
• OEM for the mobile phone industry
Strengths: Product creation, channel partners, sales and marketing
Challenges: Insufficient business and market focus, weak operational
excellence, low productivity
20
15
10
5
0
-5
-10
-15

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Reengineer:
Build Scalable Business
The 3-step approach to a sustainable business
Extend:
Add New Activities
Accelerate:
Accelerate the Headset Businesses
2007 2008 2009
Reengineer – build scalable business
1. Market-oriented Organization
2. Operational Excellence
3. Increase Productivity
Goals:
1. Expand the leadership in the
headset market
2. Achieve competitive profitability
and attractive return on capital
employed

13
Marketing
Services
R&D
GSC
1. Market-Oriented Organization
Sales
Services
Contact
Centre
Financial
Stability
Office
Profitable
Growth
Toon Bouten
CEO
Jens Due Olsen
CFO
Premier
Brand
Preference
Mainstream
Scale

14
Four distinct but increasingly overlapping
markets …
Contact Center
• Market growth currently 2-4%
• Profit mid 20%
• Contact Centre customers
• Indirect fulfilment
Premier (mobile)
• Market growth currently 30%
• Profit mid single digits
• Telcos and CE stores
• Category management
Converging technologies, distribution and brand
Office
• Market growth currently 10-20%
• Profit mid 10%
• Large enterprises , SME and Home
Office
• Indirect fulfilment
Mainstream (mobile)
• Market growth currently 30-40%
• Profit low single digits
• High vol. Jabra channels
•OEM

15
2. Operational excellence – GSC From a
Fragmented to Main partner model
How:
• One main partner for total
supply chain. Manufacturing
and physical distribution
• 60% reduction in vendors
• Postponement centers
Advantages:
• Reduce working capital
• Improved service levels
• Transfer from fixed to
variable cost
• Increase flexibility
• Reduce cost

16
3. Increase Productivity Improvements
People
• sales per employee
• Simple KPI’s aligned to strategy and remuneration
systems
Products
• Prune product portfolio
• Platform development
• Improve time to market
Manufacturing
• Outsource remaining manufacturing to one
main and few secondary partners
• Retain key sourcing competencies
• Improve flexibility and reduce capital
through postponement
Customers and distribution
• Focus on key account vs. indirect model to
better fulfil individual customer requirements
Capital employed and overall cost structure
• Outsource manufacturing
• Significantly reduce capital employed
•+40% to DKK 3.8 m (non manufacturing
employees).
•Headcount reduction >40% within 18
months primarily in supply chain.
•25% of products on same platform.
•Shorten volume product development
cycle by 50% to app. 6 months.
•Contract ready by end of Q2.
•Existing organization upgraded.
•First postponement center in place
August 2007.
•Global accounts organization in place.
•Focus on key customers and key markets
•Contract main partner signed end Q2.
•Working capital reductions.

(DKK million -
approximate figures)
17
2007 guidance
Outlook for 2007 Comments
Continuing operations:
Revenue
Contact Center & Office Headsets 1,300 - 1,400 Org. growth of app. 10%
Hello Direct 250 - 300 Flat revenue at Q4 2006 run rate
Mobile Headsets 2,000 - 2,100 Org. growth of app. 15%
GN Total 3,700
EBITA (before one-offs)
Contact Center & Office Headsets 250
CCO normal seasonality with low
Hello Direct minor, positive
Mobile Headsets (50) - (75)
in H2; with Q4 at 2-3%
Other (30)
GN Total 150 - 175 2006 EBITA (excl. one-offs) = 70
Restructuring (50) - (100)
Q3. Mobile negative in H1; positive
Overall profitability highest in Q4
Amortization ((10)) & finance (0), net (10) Depending on timing of closing
Discontinuing operations:
Profit from discontinuing operations 150 - 200 EAT excl. depreciations for 6 months
Profit from sale of GN ReSound min. 10,000