Bang & Olufsen A/s · OMXCOP:BO
Bang & Olufsen A/s — Q2 2021/22 Earnings Presentation
19 slides from Bang & Olufsen A/s's earnings presentation, Jan 12, 2022
Slide 1: Interim Report Q2 2021/22
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: 15% revenue growth in Q2
15% REVENUE GROWTH IN Q2 Q2 HI OUTLOOK 2021/22 2021/22 FY 2021/22 REVENUE REVENUE REVENUE . . DKK 809m DKK 1,475m DKK 2.9bn to 3.1bn Continues] eceuiiten Gn Sie IeEy PEM 15% growth in local 27% growth in local + Product sales grew 22%, driven mainly by the Staged currencies currencies and Flexible L
Slide 5: Continued execution on strategy plans
CONTINUED EXECUTION ON STRATEGY PLANS wy) Becoming a customer love brand Win in six European core markets Build foundation for accelerated growth in two Asian core markets Expand strategic partnerships (DK, DE, UK, CH, FR, ES) (CN, KR) Build product portfolio Amplify Accelerate digital fit for the f
Slide 6: Core markets: strong performance in Asia, EMEA impacted by product returns
CORE MARKETS | STRONG PERFORMANCE IN ASIA - EMEA IMPACTED BY PRODUCT RETURNS SIX EUROPEAN CORE MARKETS REPORTED GROWTH ees * Growth driven by Staged and Flexible Living, despite being negatively impacted by component scarcity + Double-digit Like-for-like sell-out growth in Q2 + Positive results from
Slide 7: Win London: like-for-like sell-out from monobrand stores up 170%
WIN LONDON | LIKE-FOR-LIKE SELL-OUT FROM MONOBRAND STORES UP +170% Roll-out of a plan to win in a smaller geographical area Select examples of roll-out activities LONDON INCREASED PHYSICAL FOOTPRINT + Pop-up store in Shoreditch, East London * Three new wall bays in key London train stations * High d
Slide 8: Beolink: connecting past and future products in a unified system
BEOLINK | CONNECTING PAST AND FUTURE BANG & OLUFSEN PRODUCTS IN A UNIQUE UNIFIED SYSTEM + Beolink Multiroom sits at the heart of the strategic ambition of building a portfolio fit for the future + Beolink connects products from the past with products from the present and the future + Facilitates sha
Slide 9: Beosound Level Cradle-to-Cradle Certified
BEOSOUND LEVEL CRADLE-TO-CRADLE CERTIFIED HIGHLIGHTS PRODUCT LONGEVITY 8 . + First ever consumer electronics product to be pe] ta { rm j Cradle-to-Cradle Certified® Designed with a modular approach, making it easy to maintain, service and repair Extends the lifetime substantially beyond industry sta
Slide 10: Financial Performance
BANG & OLUFSEN
Slide 11: 15% revenue growth driven by all channels, regions and product categories
15% REVENUE GROWTH DRIVEN BY ALL CHANNELS, REGIONS AND PRODUCT CATEGORIES STAGED FLEXIBLE LIVING ON-THE-GO one uct sl DKKm DkKm OKKm oduct sales 28% — ™Brand Partnering & Other Activities % 327 44% -1% 15% LC —_ 294 254 258 265 225 228 222 809 181 190 193 193 193 776 8 14! 134 8 693 698 666 Q2 Q@3 @
Slide 12: Gross margin impacted by continued increases in component costs
GROSS MARGIN IMPACTED BY CONTINUED INCREASES IN COMPONENT COSTS Gross margin before component and logistics 46.6% impact improved: 44.2% * Change in product mix towards higher margin 41.8% 41.6% 7.0% products 40.4% 25% AS% * Reduced impact from fixed production costs 25% | 5.5% 30.7% 30.6% allocatio
Slide 13: Fifth consecutive quarter with positive EBIT
FIFTH CONSECUTIVE QUARTER WITH POSITIVE EBIT GROSS MARGIN FLEXIBLE LIVING — ~0.2pp ~~ STAGED 44.6% 44.9% 44.8% 44.49% a1a% 469 og 458 46.0 a9 a2 a3 a a a2 Q2 G3 a4)qai a2 20/21 21/22 20/2 2/22 * Gross margin declined by 0.2pp due + Decreased 0.9pp to: ~— Negative impact ~— Decline in Brand Partnerin
Slide 14: Stable cost ratio reflecting investment in our strategy
STABLE COSTS RATIO REFLECTING INVESTMENT IN OUR STRATEGY CAPACITY DEVELOPMENT DISTRIBUTION & ADMINISTRATIVE COSTS COSTS MARKETING COSTS COSTS DKKm DKKm DKKm yy DKKm ame +8% +21% ———} +10% 231 332 Rn 7s 203 38 37 312 67 191 191 183 34 62 1 1 284 285 292 56 3 3 41.0% | | 40.8% || 40.2% | | 43.8% | |41
Slide 15: Fifth consecutive quarter with positive free cash flow
FIFTH CONSECUTIVE QUARTER WITH POSITIVE FREE CASH FLOW FREE CASH FLOW NWC CAPEX AVAILABLE LIQUIDITY DKKm DKKm 352 —= %ofLTMrevenue DKKm DKKm 229 O17 Intangible soe 582 573.998 139 137191 63 534 ) 54 39 26 — 45 4 34 a 10.7%] [10.4% Bz] Ba uD 8 n 71%) [6.7%| |7-4% 22 a |_| Q2 Qs a4 al a2 a2 a3 a4 a a2
Slide 16: Outlook
INANCIAL PERFO OUTLOOK BANG & OLUFSEN
Slide 17: Outlook 2021/22 maintained
OUTLOOK 2021/22 MAINTAINED OUTLOOK MAIN ASSUMPTIONS = Growth mainly driven by product sales = Full-year effect from products launched last year = Launching more than two product innovations in H2 DKK 2.9bn to 3.lbn = No significant worsening of product availability e.g. due to component scarcity or
Slide 18: Summary: strong momentum maintained
SUMMARY | STRONG MOMENTUM MAINTAINED m 2 * Continued execution on strategy + Product sales grew 22% across regions, product categories and distribution channels * Double-digit sell-out growth across all distribution channels and product categories, exceeding sell-in * Continued negative revenue and
Slide 19: Investor Relations Contact