Bang & Olufsen A/s · OMXCOP:BO
Bang & Olufsen A/s — Q3 2022 Earnings Presentation
22 slides from Bang & Olufsen A/s's earnings presentation, Apr 7, 2022
Slide 1: Interim Report Q3 2021/22 Webcast Presentation
INTERIM REPORT Q3 2021/22 W E B C A S T P R E S E N TAT I O N 7 APRIL 2022 1|
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 or
Slide 3: Agenda
AG E N DA KEY HIGHLIGHTS AND STRATEGY UPDATE FINANCIAL PERFORMANCE OUTLOOK 3|
Slide 4: Double-digit growth despite continued supply challenges
D O U B L E - D I G I T G R OW T H D E S P I T E C O N T I N U E D S U P P LY CHALLENGES Q3 9M OUTLOOK 2021/22 2021/22 FY 2021/22 REVENUE REVENUE REVENUE • Product sales grew by 10% in local currencies mainly driven by the Staged category DKK 775m DKK 2,250m DKK 2.9bn to 3.1bn 10% growth in local 19
Slide 5: Impact of Russia's invasion of Ukraine and COVID-19 lockdowns in China
I M PAC T O F R U S S I A’ S I N VA S I O N O F U K R A I N E A N D C OV I D -1 9 LO C K D OW N S I N C H I N A Russia’s war Lockdowns in China • Immediately stopped all sales • Short term risk related to to Russia and Belarus Mainland China and Hong • Complied with the subsequent Kong: sanctions ag
Slide 6: We continued to build robustness
W E C O N T I N U E D TO B U I L D R O B U S T N E S S 6|
Slide 7: Continued positive sell-out in core markets
C O N T I N U E D P O S I T I V E S E L L- O U T I N CORE MARKETS SIX EUROPEAN CORE MARKETS TWO ASIAN CORE MARKETS • Sell-out grew by 10%, with strong • Reported revenue grew by 28%, driven performance from multibrand and etail by most channels • Reported revenue declined by 10%, mainly due to high
Slide 8: Customer growth and demand creation
C U S TO M E R G R OW T H A N D D E M A N D C R E AT I O N Customer growth Demand creation Headphone campaign Customer growth* • Campaign across channels +25% • Lifted performance on sell-out of headphones • Campaign supported by brand ambassadors and influencers • Significant uptake in both reaches
Slide 9: Launch of Beoplay Portal and Beosystem 72-22
L A U N C H O F B E O P L AY P O R TA L A N D B E O SYS T E M 7 2 - 2 2 Beoplay Portal for PlayStation, PC and mobile • Fully compatible with PlayStation consoles and PCs • Comes with a wireless dongle for faster connectivity • Battery life improved, offering up to 42 hours of playtime Beosystem 72-
Slide 10: Consistent inflow of bespoke and customisation requests
C O N S I S T E N T I N F LOW O F B E S P O K E A N D C U S TO M I S AT I O N REQUESTS MATERIAL SAMPLES STORE EXPERIENCE DIGITAL EXPERIENCE 10 |
Slide 11: New brand licensing partners and brands
N E W B R A N D L I C E N S I N G PA R T N E R S A N D B R A N D S Brand partnership with Verizon Luxury car brand Genesis Sagemcom • HARMAN have onboarded the Luxury car • Sagemcom have onboarded Telecom Italia • Verizon launched two soundbars audio brand Genesis to its Video Soundbox unit tuned by
Slide 12: Agenda
AG E N DA KEY HIGHLIGHTS AND STRATEGY UPDATE FINANCIAL PERFORMANCE OUTLOOK 12 |
Slide 13: 10% revenue growth, especially driven by the Staged category
1 0 % R E V E N U E G R OW T H , E S P E C I A L LY D R I V E N BY T H E S TAG E D C AT E G O R Y STAGED FLEXIBLE LIVING ON-THE-GO Revenue grew 10% YoY DKKm DKKm • Product sales grew 10% to DKK 702m DKKm DKKm 25% 1% • Brand Partnering & other activities 10% LC 2% increased by 9% in local currencies,
Slide 14: Increased impact on product gross margin from higher component costs
I N C R E A S E D I M PA C T O N P R O D U C T G R O S S M A R G I N F R O M HIGHER COMPONENT COSTS +5.9pp 47.7% 46.6% Gross margin before component and logistics 44.2% impact increased by 5.9pp: 41.8% 41.6% 7.0% 9.0% • Change in product mix towards higher margin 40.4% 4.5% 2.5% products 2.5% 5.5% 3
Slide 15: Positive EBIT margin despite significant impact from component costs
P O S I T I V E E B I T M A R G I N D E S P I T E S I G N I F I C A N T I M PAC T FROM COMPONENT COSTS % GROSS MARGIN EBIT MARGIN BSI* % -0.9pp STAGED FLEXIBLE LIVING ON-THE-GO -1.1pp -4.2pp -2.2pp 44.9 44.8 44.4 45.8 46.0 44.0 44.6 43.2 41.1 41.9 49.1 46.1 46.8 46.9 45.3 4.9 +0.9pp 26.6 > 23.0 24.2
Slide 16: Capacity costs reflecting strategic investments
C A PAC I T Y C O S T S R E F L E C T I N G S T R AT E G I C I N V E S T M E N T S CAPACITY DEVELOPMENT DISTRIBUTION & ADMINISTRATIVE COSTS COSTS MARKETING COSTS COSTS DKKm DKKm DKKm DKKm +25% +24% -11% 231 236 78 38 37 +19% 203 72 70 34 34 67 191 183 31 340 332 56 312 285 292 > 8.0% 9.3% 11.7% 8.3%
Slide 17: Negative free cash flow following higher investments in strategy execution
N E G AT I V E F R E E C A S H F LOW F O L LOW I N G H I G H E R I N V E S T M E N T S I N S T R AT E GY E X E C U T I O N NWC CAPEX FREE CASH FLOW AVAILABLE LIQUIDITY DKKm % of LTM revenue DKKm Intangible Tangible DKKm DKKm 593 608 232 573 217 76 34 534 511 187 191 187 63 27 21 55 54 18 11 18 18 8
Slide 18: Agenda
AG E N DA KEY HIGHLIGHTS AND STRATEGY UPDATE FINANCIAL PERFORMANCE OUTLOOK 18 |
Slide 19: Outlook 2021/22 maintained
O U T L O O K 2 0 2 1 / 2 2 M A I N TA I N E D OUTLOOK MAIN ASSUMPTIONS No significant worsening of product availability e.g. due to component scarcity or reduction in manufacturing Revenue capacity No major lockdowns due to COVID-19 outbreaks in China DKK 2.9bn to 3.1bn No revenue from sales
Slide 20: Summary: Double-digit growth despite headwind
S U M M A R Y | D O U B L E - D I G I T G R OW T H D E S P I T E H E A DW I N D • Double-digit growth for the seventh consecutive quarter • Positive sell-out growth in all regions in Q3, underlining the good customer demand for B&O products • We continue to see growth in our customer base and in rep
Slide 21: Questions
Questions 21 |
Slide 22: Investor Relations Contact
INVESTOR RELATIONS CONTACT Martin Egenhardt +45 53707439 mare@bang-olufsen.dk 22 |