Demant A/S: Update on IT infrastructure incident

As previously announced, the Demant Group experienced a critical incident in our internal IT infrastructure on 3 September 2019 when the Group’s IT infrastructure was hit by cyber-crime. Our quick response to the issue by shutting down IT systems across multiple sites and business units contained and limited the issue. Due to the lack of core IT infrastructure since the incident, key business processes throughout the value chain have been impacted, including R&D, production and distribution. With different magnitude and regional variances, this has impacted all business areas. Across our wholesale businesses in Hearing Devices, Diagnostics and Hearing Implants, we have experienced delays in the supply of products as well as an impact on our ability to receive orders. In our hearing aid retail business, many clinics across our network have not been able to service end-users in a regular fashion. Despite manual workarounds, we have not been able to run our business at a normal activity level. Sennheiser Communications has also been affected by the IT incident – albeit to a lesser extent.