Bang & Olufsen A/S · OMXCOP:BO
Bang & Olufsen A/S — H1 2005/06 Earnings Presentation
20 slides from Bang & Olufsen A/S's earnings presentation, Jan 11, 2006
Slide 1: Interim report 2005/06
Bang & Olufsen Group Interim report 2005/06
Slide 2: Headlines: 1st half year
Bang & Olufsen Group Headlines 1st half year: • Result from ordinary operations before tax, DKK 185 million against DKK 136 million, i.e. an increase of DKK 49 million (36 %) • Turnover DKK 1,924 million against DKK 1,722 million, i.e. an increase of DKK 202 million (12 %) • Continued positive devel
Slide 3: Headlines: 2nd quarter
Bang & Olufsen Group Headlines 2nd quarter: • Result from ordinary operations before tax for Q2 was DKK 135 million against DKK 126 million, i.e. an increase of DKK 9 million (7 %) • Turnover in Q2 was DKK 1,126 million against DKK 996 million, i.e. an increase of DKK 130 million (13 %) 3
Slide 4: Net turnover
Bang & Olufsen Group Net turnover - 1st half year DKK million • Increased turnover from sales of flat screen TVs. • Turnover distribution: Branded business 1,797 mio. DKK Medicom a/s 107 mio. DKK ICEpower a/s 41 mio. DKK Internal turnover -21 mio. DKK 1,924 mio. DKK 4
Slide 5: Profit from ordinary operations before tax
Bang & Olufsen Group Profit from ordinary operations before tax - 1st half year DKK million • The Group’s profitability improved: - Gross margin increased by 1.2 % point. - Increased use of resources for product development. - Increased marketing pressure. • Development costs increased from DKK 185
Slide 6: New factory in the Czech Republic
New factory in the Czech Republic Number of employees 30/9-04: 49 31/5-05: 69 30/11-05: 114 31/5-06: Expected 142
Slide 7: Profit for the half year after tax
Bang & Olufsen Group Profit for the half year after tax DKK million • Tax on ordinary profit for the half year was DKK 59 million corresponding to a tax percentage of 32. (Only the comparison figures for 04/05 have been adjusted to IFRS) 7
Slide 8: Total assets - per 30/11
Bang & Olufsen Group Total assets - per 30/11 DKK million • Capitalized development costs were 81 million against DKK 47 million last year. • Intangible fixed assets increased by DKK 52 million. • Tangible fixed assets increased by DKK 14 million. • Inventory and receivables increased by DKK 163 mil
Slide 9: Cash flow 1/6 - 30/11
Bang & Olufsen Group Cash flow 1/6 - 30/11 DKK million • DKK 246 million paid out in investor related initiatives against DKK 187 million the year before. • Increased liquidity tie-up as a consequence of the increased activity level: - Inventory: + DKK 150 million. - Trade receivables: + DKK 269 mil
Slide 10: Branded business: Turnover per market 2005/06
Bang & Olufsen Branded business Turnover per market 2005/06 - 1st half year ** DKK million * Russia, South America and East Europe 10
Slide 11: Branded business: Development per market 2005/06
Bang & Olufsen Branded business Development per market 2005/06 - 1st half year (local currency) • Increased growth in turnover on all important markets, except UK and the USA. 11
Slide 12: Branded business: Shops world-wide 2001/02 - 2005/06
Bang & Olufsen Branded business Shops world-wide 2001/02 - 2005/06 - 1st half year • Change in the number of shops compared to 31/5-05: B1 +13 SIS -18 Other shops -17 Total -22 12
Slide 13: Branded business: Number of B1 shops per market
Bang & Olufsen Branded business Number of B1 shops per market 30.11.05 • Total number of B1 shops: 685. Number of B1 1/6-05 672 New 29 Upgraded 9 Closed/downgraded -25 Total 30/11-05 685 13
Slide 14: Branded business: Share of turnover by types of shops
Bang & Olufsen Branded business Share of turnover by types of shops in 2005/06 - 1st half year • Turnover allocated by segment: 2005/06 2004/05 B1 72 % 70 % SIS 27 % 27 % Other 1% 3% 100 % 100 % 14
Slide 15: Branded business: Turnover development in B1 shops
Bang & Olufsen Branded business Turnover development in the B1 shops - older than 24 month 15
Slide 16: Product launches 2005/06
Bang & Olufsen Group Product launches 2005/06 - 1st half year BeoVision 7-40 BeoVision 7-40 BeoLab 4 BeoMedia BeoLab 7-2 BeoLab 7-4 16
Slide 17: Medicom a/s
Bang & Olufsen Medicom a/s Turnover and result from ordinary operations before tax 1st half year DKK million • Increase in turnover of DKK 35 million against DKK 13 million last year. 17
Slide 18: ICEpower a/s
Bang & Olufsen ICEpower a/s Turnover and result from ordinary operations before tax 1st half year DKK million • Increase in turnover of DKK 20 million against DKK 4 million last year. • 86 % of the turnover relates to external partners compared to 72 % in the same period last year. 18
Slide 19: Expected product launches 2005/06 - 2nd half year
Bang & Olufsen Group Expected product launches 2005/06 - 2nd half year Serene BeoSound 3 BeoSound 4 19
Slide 20: Expectations for the financial year 2005/06
Bang & Olufsen Group Expectations for the financial year 2005/06: • Increased weight of TV products in the product mix - meaning a lower gross margin. • The objective for the year is for a net addition of 50 new B1 shops. • Turnover growth of 8 %. • Continued high activity level within product devel