Bang & Olufsen A/s · OMXCOP:BO
Bang & Olufsen A/s — Q1 2022 Earnings Presentation
19 slides from Bang & Olufsen A/s's earnings presentation, Oct 6, 2021
Slide 1: Webcast Presentation 6 October 2021
WEBCAST PRESENTATION 6 OCTOBER 2021 BANG & OLUFSEN
Slide 2: 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
Slide 3: Agenda
Slide 4: Positive EBIT and free cash flow following 44% revenue growth in Q1
POSITIVE EBIT AND FREE CASH FLOW FOLLOWING 44% REVENUE GROWTH IN Q1 FY 2020/21 OUTLOOK FY 2021/22 . REVENUE REVENUE * Continued to execute on the turnaround strategy, and maintained strong momentum from last year DKK 666m DKK 2.9bn to 3.1bn . 44% growth in local currencies + Broad based performance
Slide 5: Good progress on our strategy
GOOD PROGRESS ON OUR STRATEGY wv) Becoming a customer love brand Win in six European core markets Build foundation for accelerated growth in two Asian core markets Expand strategic partnerships (OK, DE, UK, CH, FR, ES) (CN, KR) Build product portfolio Amplify Accelerate digital fit for the future de
Slide 6: Securing a robust foundation of the business
SECURING A ROBUST FOUNDATION OF THE BUSINESS C7) a O Improve profitability + Full run-rate of cost reduction programme completed last year STRONG BACKBONE + Price increases implemented + Production on some products shifted between Asia and EMEA to FOR BUSINESS reduce logistics costs RESILIENCE & HEA
Slide 7: Building the model for scale in the future
BUILDING THE MODEL FOR SCALE IN THE FUTURE Build product portfolio fit for the future o + Three product innovations launched _ * Beovision Contour 55” a * Beoplay EQ + Stereo pairing for Beosound Balance, Level and Emerge | * Sports collection of Beosound Al 24 Gen and Beoplay E8 Sport | oO Amplify
Slide 8: Concerted efforts within pillars of growth
CONCERTED EFFORTS WITHIN PILLARS OF GROWTH MARKET AND GROWTH PRIORITIES FOR THE YEAR O °? Win in six European core markets 37% growth in local currencies Staged and Flexible Living products driving most of the growth Monobrand network delivering majority of absolute growth Etailers channel more than
Slide 9: We continue to receive strong reviews of new products
WE CONTINUE TO RECEIVE STRONG REVIEWS OF NEW PRODUCTS Pocketlint é @ INDEPENDENT fl © € (Csubserive ) Review: B&O Embraces The Sound Of Silence With These Great New EQ. Noise-Canceling Earphones Beoplay EQ review: £ Mark Sparrow soi Extras > IndyBest > Tech > Headphones & Earphones Premium Bang & Ol
Slide 10: Financial Performance
BANG & OLUFSEN
Slide 11: 44% revenue growth driven by all channels, regions and product categories
44% REVENUE GROWTH DRIVEN BY ALL CHANNELS, REGIONS AND PRODUCT CATEGORIES STAGED FLEXIBLE LIVING ON-THE-GO DKKm DKKm DKKm DKKm ct sales 35% | ™ Brand Partnering & Other Activities 294 48% 44% Le 254 258 265 87% % 225 228 196 190 193 193 Revenue grew 44% YoY 181 776 134 148 131 * Product sales grew 4
Slide 12: Improved product gross margin, but adversely impacted by component and logistics costs
IMPROVED PRODUCT GROSS MARGIN, BUT ADVERSELY IMPACTED BY COMPONENT AND LOGISTICS COSTS 44.2% 41.8% 41.6% 45% 40.0% 25% 5% 37.0% 2.0% 5.5% 35.6% 36.1% 35.3% 39.3% 39.7% 38.0% 36.1% 27.9% 119/20. @219/20 QB 19/20 419/20 120/21 — 220/21 = 320/21 4.20/21 a 21/22 12| [_] Extra logistic and component cost
Slide 13: Fourth consecutive quarter with positive EBIT
FOURTH CONSECUTIVE QUARTER WITH POSITIVE EBIT 446 449 44.8 428 an a @ @ @ a 20/21 21/22 + Improved gross margin driven by: ~— Higher product gross margin — partly offset by Brand Partnering accounting for relatively less of gross profit GROSS MARGIN STAGED FLEXIBLE LIVING 469 4e5 483 494 401 446 45.
Slide 14: Capacity costs ratio improved year-on-year
CAPACITY COSTS RATIO IMPROVED YEAR-ON-YEAR CAPACITY DEVELOPMENT DISTRIBUTION & ADMINISTRATIVE COSTS COSTS MARKETING COSTS COSTS DKKm DKKm DKKm DKKm 422% —_ *15% 429% — 47% 78 38 37 312 68 ” 191 ir 208 292 62 183 a 3) 284 © 285 56 29 142 239 14.7% 8.9% 8.0% 9.3% 1.7% 30.7% 27.6% 27.4% 26.2% 27.5% 6.3
Slide 15: Fourth consecutive quarter with positive free cash flow
FOURTH CONSECUTIVE QUARTER WITH POSITIVE FREE CASH FLOW FREE CASH FLOW NWC CAPEX AVAILABLE LIQUIDITY DKKm DKKm ——“Kotctmrevenue DKKm DKKm 139 Intangible 593 608 2 337 Tangible 63 58 573 55 497 18 229-232 34 39 * on 187191 8 7 || ~~ 27 26 16.2% 7 45 10.7%) [10.4% 32] [97 62 7:1%| [6.7% 20 a |_| a a @
Slide 16: Outlook
INANCIAL PERFO OUTLOOK BANG & OLUFSEN
Slide 17: Outlook 2021/22 maintained
OUTLOOK 2021/22 MAINTAINED OUTLOOK MAIN ASSUMPTIONS Revenue DKK 2.9b6n to 3.1bn EBIT margin BSI* 2-4% Free cash flow DKK Om to 100m Growth mainly driven by product sales Full-year effect from products launched last year Launching +4 product innovations in the next nine months Double-digit customer b
Slide 18: Summary: strong momentum from last year maintained
SUMMARY | STRONG MOMENTUM os FROM LAST YEAR MAINTAINED * Continued execution on turnaround strategy * The first time since 2007/08 with a positive Q1 result from operations. * Broad based revenue growth of 44% across regions, channels and product categories * Component shortage had a negative effect
Slide 19: Investor Relations Contact