Bang & Olufsen A/s · OMXCOP:BO

Bang & Olufsen A/s — FY2011/12 Earnings Presentation

28 slides from Bang & Olufsen A/s's earnings presentation, Aug 15, 2012

  1. Slide 1: Annual Report for the 2011/12 Financial Year

    ANNUAL REPORT FOR THE 2011/12 FINANCIAL YEAR 15 August 2012 BANG & OLUFSEN 1

  2. Slide 2: Agenda

    AGENDA THE FULL YEAR AND FOURTH QUARTER HIGHLIGHTS – Tue Mantoni, CEO THE FINANCIAL RESULT FOR THE FOURTH QUARTER OF 2011/12 – Henning Bejer Beck, CFO THE EXPECTATIONS TO THE 2012/13 FINANCIAL YEAR – Tue Mantoni, CEO ‘LEANER, FASTER, STRONGER’ STRATEGY FOLLOW-UP – Tue Mantoni, CEO QUESTIONS & ANSWER

  3. Slide 3: Financial Highlights for the Fourth Quarter and Financial Year 2011/12

    FINANCIAL HIGHLIGHTS FOR THE FOURTH QUARTER  Fourth quarter revenue was DKK 867 million compared to DKK 711 million driven by product launches and increased demand ahead of the European Championships and the Olympics  Gross margin was 40.6 per cent against a gross margin of 39.2 per cent last year

  4. Slide 4: New B&O PLAY Products Released in Fourth Quarter

    NEW B&O PLAY PRODUCTS RELEASED IN FOURTH QUARTER BeoPlay V1 launched in May:  BeoPlay V1 is available in 32” and 40”  Easy connection to third-party devices  Delivers flexible placement possibilities, outstanding sound, and optimal picture quality BeoPlay A8 launched in May:  Expands the functio

  5. Slide 5: Automotive Announcements in Fourth Quarter

    AUTOMOTIVE ANNOUNCEMENTS IN FOURTH QUARTER  Audi A3 is now available with an audio system from Bang & Olufsen  Bang & Olufsen concluded a new agreement with Audi during the financial year. Under this new agreement, Bang & Olufsen will develop and supply sound systems for three future Audi models 

  6. Slide 6: Acceleration of China Growth Plans Through Strategic Partnership

    ACCELERATION OF CHINA GROWTH PLANS THROUGH STRATEGIC PARTNERSHIP  To further accelerate the growth in China, Bang & Olufsen enters a strategic partnership with Sparkle Roll and A CAPITAL  The strategic partnership aims at leveraging the resources and experience of the strategic investors in distri

  7. Slide 7: Agenda

    AGENDA THE FULL YEAR AND FOURTH QUARTER HIGHLIGHTS – Tue Mantoni, CEO THE FINANCIAL RESULT FOR THE FOURTH QUARTER OF 2011/12 – Henning Bejer Beck, CFO THE EXPECTATIONS TO THE 2012/13 FINANCIAL YEAR – Tue Mantoni, CEO ‘LEANER, FASTER, STRONGER’ STRATEGY FOLLOW-UP – Tue Mantoni, CEO QUESTIONS & ANSWER

  8. Slide 8: Development in Revenue and Result Before Tax (DKK million)

    DEVELOPMENT IN REVENUE AND RESULT BEFORE TAX (DKK MILLION) 1000 100  Revenue for the fourth quarter was 900 80 DKK 867 million compared to DKK 800 711 million last year 60 700 40  Revenue for the financial year 600 2011/12 was DKK 3,008 million, 500 20 which was up 5 per cent from DKK 400 0 2,867

  9. Slide 9: Development in Revenue by Product Area (DKK million)

    DEVELOPMENT IN REVENUE BY PRODUCT AREA (DKK MILLION) 600  AV recorded a revenue of DKK 505 million compared to DKK 504 million 500 in the same period last year 400  B&O PLAY recorded a revenue of DKK 183 million compared to DKK 51 300 million in the same period last year 200  Automotive recorded

  10. Slide 10: Development in Revenue and Gross Margin by Product Area

    DEVELOPMENT IN REVENUE AND GROSS MARGIN BY PRODUCT AREA (DKK MILLION) 600 60%  The Group gross margin for the fourth quarter was 40.6 per cent 500 50% compared to 39.2 last year  The AV gross margin in the fourth 400 40% quarter was 47 per cent against 39 per cent last year. The change is 300 30%

  11. Slide 11: Distribution Development – Number of B1-Shops per Region

    DISTRIBUTION DEVELOPMENT – NUMBER OF B1-SHOPS PER REGION 500  By the end of May 2012 there were 450 442 B1-shops in Region Europe against 450 at the end of the third 400 quarter of 2011/12 350 300  In Region North America, there were 250 50 B1-shops, compared to 49 at the end of the third quarter

  12. Slide 12: Development in Revenue by Business Area (DKK million)

    DEVELOPMENT IN REVENUE BY BUSINESS AREA (DKK MILLION) 800  The B2C business line, recorded revenue of DKK 688 million compared to revenue of DKK 555 600 million in the same period last year. In the B2C business line third party distribution and ecommerce grew to 400 DKK 20.4 million from DKK 6.8 mi

  13. Slide 13: Revenue Development per Region, Consumer Business (DKK million)

    REVENUE DEVELOPMENT PER REGION, CONSUMER BUSINESS (DKK MILLION) 600  Region Europe saw an increase in revenue of DKK 108 million or 25 per 500 cent from DKK 430 million last year to DKK 538 million driven by product 400 launches and sales ahead of the European Championships and the 300 Olympics 200

  14. Slide 14: Capacity Costs (DKK million)

    CAPACITY COSTS (DKK MILLION)  In the fourth quarter of the 2011/12 320 financial year, the Group maintained its capacity costs relative to the third 300 quarter, and only increased the costs by DKK 9 million to DKK 271 million 280 compared to the same period last year 260  Distribution and marketi

  15. Slide 15: Net Working Capital (DKK million)

    NET WORKING CAPITAL (DKK MILLION) 700 30,0%  Net working capital increased by DKK 162 million from DKK 451 million last 600 year to DKK 613 million 25,0% 500  Net working capital in percentage of revenue is 20 per cent compared to 400 20,0% 16 per cent last year 300  The increase is primarily exp

  16. Slide 16: Net Interest Bearing Debt (DKK million)

    NET INTEREST BEARING DEBT (DKK MILLION) 300  Net interest bearing debt has increased to DKK 248 million 250 compared to DKK 85 million by the end of the 2010/11 financial year 200  The increase in the net interest bearing debt is primarily caused by 150 the increase in net working capital 100  Th

  17. Slide 17: Agenda

    AGENDA THE FULL YEAR AND FOURTH QUARTER HIGHLIGHTS – Tue Mantoni, CEO THE FINANCIAL RESULT FOR THE FOURTH QUARTER OF 2011/12 – Henning Bejer Beck, CFO THE EXPECTATIONS TO THE 2012/13 FINANCIAL YEAR – Tue Mantoni, CEO ‘LEANER, FASTER, STRONGER’ STRATEGY FOLLOW-UP – Tue Mantoni, CEO QUESTIONS & ANSWER

  18. Slide 18: Expectations to the 2012/13 Financial Year

    EXPECTATIONS TO THE 2012/13 FINANCIAL YEAR  The challenging macroeconomic outlook, the low level of consumer confidence and the company’s high exposure to Europe lead to an uncertain trading environment ahead.  Due to the company’s strong innovation pipeline and the continued implementation of the

  19. Slide 19: Agenda

    AGENDA THE FULL YEAR AND FOURTH QUARTER HIGHLIGHTS – Tue Mantoni, CEO THE FINANCIAL RESULT FOR THE FOURTH QUARTER OF 2011/12 – Henning Bejer Beck, CFO THE EXPECTATIONS TO THE 2012/13 FINANCIAL YEAR – Tue Mantoni, CEO ‘LEANER, FASTER, STRONGER’ STRATEGY FOLLOW-UP – Tue Mantoni, CEO QUESTIONS & ANSWER

  20. Slide 20: 'Leaner, Faster, Stronger' - Must-Win Battles for 2011/12

    ‘LEANER, FASTER, STRONGER’ - MUST-WIN BATTLES FOR 2011/12 1. Build Acoustics as our hero 2. Launch new product category 3. Optimise retail network 4. Grow BRIC 5. Transition R&D 6. Simplify & speed up execution BANG & OLUFSEN 20

  21. Slide 21: 'Leaner, Faster, Stronger' – Follow-up on the First Financial Year

    ‘LEANER, FASTER, STRONGER’ – FOLLOW-UP ON THE FIRST FINANCIAL YEAR 1. Build Acoustics as our hero 2. Launch new product category  Bang & Olufsen has set-up a Sound &  Launch of a new brand, B&O PLAY, Acoustics Innovation Team aimed at the digital generation  The acoustics product portfolio has 

  22. Slide 22: 'Leaner, Faster, Stronger' – Follow-up on the First Financial Year

    ‘LEANER, FASTER, STRONGER’ – FOLLOW-UP ON THE FIRST FINANCIAL YEAR 3. Optimise retail network 4. Grow BRIC  Work is continuously being undertaken  National sales office has been to increase the number of B1 stores in established in Shanghai developing markets and reducing the number of B1 stores i

  23. Slide 23: 'Leaner, Faster, Stronger' – Follow-up on the First Financial Year

    ‘LEANER, FASTER, STRONGER’ – FOLLOW-UP ON THE FIRST FINANCIAL YEAR 5. Transition R&D 6. Simplify & speed up execution  New sourcing operations in Singapore  Implementation of more trimmed and to be closer to the company’s partners agile organisation in Asia  The sales and marketing department  I

  24. Slide 24: The Business Logic: The Core + Two Growth Engines

    THE BUSINESS LOGIC: THE CORE + TWO GROWTH ENGINES BANG & OLUFSEN B&O PLAY AUTOMOTIVE BANG & OLUFSEN 24

  25. Slide 25: Strategic Priorities in 2012/13

    STRATEGIC PRIORITIES IN 2012/13  Further expand acoustics product portfolio and drive innovation for the future  Continue building the B&O PLAY brand and expand product portfolio  Increase the number of retail outlets outside Europe and further reduce European network to improve quality, customer

  26. Slide 26: Agenda

    AGENDA THE FULL YEAR AND FOURTH QUARTER HIGHLIGHTS – Tue Mantoni, CEO THE FINANCIAL RESULT FOR THE FOURTH QUARTER OF 2011/12 – Henning Bejer Beck, CFO THE EXPECTATIONS FOR THE 2012/13 FINANCIAL YEAR – Tue Mantoni, CEO ‘LEANER, FASTER, STRONGER’ STRATEGY FOLLOW-UP – Tue Mantoni, CEO QUESTIONS & ANSWE

  27. Slide 27: Disclaimer

    DISCLAIMER This presentation does not constitute or form part of and should not be construed as, an offer to sell or issue or the solicitation of an offer to buy or acquire securities issued by Bang & Olufsen A/S in any jurisdiction, including the United States of America, Canada, Australia, Japan o

  28. Slide 28: Annual Report for the 2011/12 Financial Year

    ANNUAL REPORT FOR THE 2011/12 FINANCIAL YEAR BANG & OLUFSEN 28

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