Bang & Olufsen A/s · OMXCOP:BO
Bang & Olufsen A/s — Q3 2012/13 Earnings Presentation
23 slides from Bang & Olufsen A/s's earnings presentation, Apr 5, 2013
Slide 1: Interim Report for the Third Quarter of the 2012/13 Financial Year
INTERIM REPORT FOR THE THIRD QUARTER OF THE 2012/13 FINANCIAL YEAR 5 APRIL 2013 1
Slide 2: Disclaimer
DISCLAIMER This presentation does not constitute or form part of and No part of the information contained in this presentation should not be construed as, an offer to sell or issue or the should form the basis of or be relied upon in connection solicitation of an offer to buy or acquire securities i
Slide 3: Agenda
AGENDA THIRD QUARTER HIGHLIGHTS – Tue Mantoni, CEO FINANCIAL RESULTS – Henning Bejer Beck, CFO EXPECTATIONS TO THE 2012/13 FINANCIAL YEAR – Tue Mantoni, CEO QUESTIONS & ANSWERS APPENDIX 3
Slide 4: Third Quarter Highlights
THIRD QUARTER HIGHLIGHTS • The revenue development in AV remains challenging, whereas the investments in new product innovation continue to pay off: • B&O PLAY revenue grew by 107 per cent in the quarter • Automotive revenue grew by 14 per cent in the quarter • BeoVision 11 continues to show strong
Slide 5: The Key Issue with the TV Business
THE KEY ISSUE WITH THE TV BUSINESS TV unit sales and revenue (9M 2011/12 = index 100) 120 +2% • TV units sold increased by 2 per cent in the first nine -17% 100 months of the 2012/13 financial year compared to the same -60% period last year. Excluding the BV7-series unit growth was 80 -62% 24 per ce
Slide 6: Product Launches and New Features
PRODUCT LAUNCHES AND NEW FEATURES BeoLab 15/16 A new in-wall or in-ceiling sound system comprising two loudspeakers with a motorised tilt function (BeoLab 15) and a subwoofer (BeoLab 16) Spotify Spotify has been launched as a free software up-date for all existing BeoSound 5 customers signalling Ban
Slide 7: Strong New Product Programme in the Second Half of 2013
STRONG NEW PRODUCT PROGRAMME IN THE SECOND HALF OF 2013 Spring 2013: • B&O PLAY Headphones and Earphones (April) • Bang & Olufsen (AV) surround-sound system (May) Autumn 2013: • A number of new AV products building on Bang & Olufsen’s unique capabilities within acoustics and design • A number of fun
Slide 8: Transitioning to Fewer, More Productive Stores
TRANSITIONING TO FEWER, MORE PRODUCTIVE STORES • In accordance with strategy, more than 80 stores were Number of B1 and shop-in-shop terminated (closed or notified) in Europe during the third 450 419426 quarter 400 350 • The remaining stores up to the projected 125 stores will be 300 closed during t
Slide 9: Upgrading the Network with Luxury Shopping Experiences
UPGRADING THE NETWORK WITH LUXURY SHOPPING EXPERIENCES • Launch of a new retail concept giving customers a truly magical shopping experience: combining the best of luxury shopping with experiential retail • Uniting Bang & Olufsen and B&O PLAY while clearly highlighting the differences between the tw
Slide 10: China Strategy Starting to Show Traction
CHINA STRATEGY STARTING TO SHOW TRACTION • Revenue in BRIC increased by 67 per cent driven mainly by BRIC revenue (DKKm) strong growth in Bang & Olufsen’s own stores in Hong Kong 120 and South China as well as sales related to the opening of 108 new stores 100 81 80 • Sparkle Roll will open 3 B1 sho
Slide 11: Global Brand Collaboration with Universal Music
GLOBAL BRAND COLLABORATION WITH UNIVERSAL MUSIC • Bang & Olufsen and Universal Music have entered a Possible activities in collaboration with Universal Music partnership with a long term perspective dedicated to musical excellence and sound experiences • Product launch events • In-store audio and vi
Slide 12: Agenda
AGENDA THIRD QUARTER HIGHLIGHTS – Tue Mantoni, CEO FINANCIAL RESULTS – Henning Bejer Beck, CFO EXPECTATIONS TO THE 2012/13 FINANCIAL YEAR – Tue Mantoni, CEO QUESTIONS & ANSWERS APPENDIX 12
Slide 13: Revenue and Gross Margin
REVENUE AND GROSS MARGIN Revenue DKK million 3rd quarter YTD • Group revenue for the third quarter was DKK 655 million 2012/13 2011/12 Index 2012/13 2011/12 Index compared to DKK 766 million last year AV 362 559 65 1,179 1,538 77 B&O PLAY 162 78 207 420 195 215 B2C 524 637 82 1,599 1,733 92 • The re
Slide 14: AV Gross Margin Development
AV GROSS MARGIN DEVELOPMENT • The AV gross margin was adversely impacted by indirect production costs (IPC) due to a significant reduction in AV inventory. This had a negative impact on the gross margin AV gross margin Q3 2012/13 vs. Q3 2011/12 of 5.2 percentage points 42 39.9 -5.2 40 • The decline
Slide 15: Revenue per Region, B2C Business
REVENUE PER REGION, B2C BUSINESS • B2C revenue decreased to DKK 524 million from DKK Revenue per region (DKKm) 638 million in the same quarter last year 500 463 • Revenue in Europe was DKK 292 million compared to 400 DKK 463 million last year. The decline was seen in all 292 European markets 300 200
Slide 16: Capacity Costs – Distribution and Marketing Costs
CAPACITY COSTS – DISTRIBUTION AND MARKETING COSTS • Capacity costs increased to DKK 343 million from DKK 271 million in the same quarter last year Capacity costs DKK million 3rd quarter YTD • Distribution and marketing costs increased by DKK 39 2012/13 2011/12 Index 2012/13 2011/12 Index million dur
Slide 17: Capacity Costs – Development Costs
CAPACITY COSTS – DEVELOPMENT COSTS Incurred development costs and capitalisation 140 80% • Development costs were DKK 119 million in the third 120 70% quarter compared to DKK 86 million in the same quarter 100 60% Incurred last year 80 development 50% costs before 60 capitalisation 40% Capitalisatio
Slide 18: Income Statement
INCOME STATEMENT Consolidated income statement DKK million 3rd quarter YTD • In the third quarter of the 2012/13 financial year EBIT was 2012/13 2011/12 Index 2012/13 2011/12 Index negative DKK 114 million compared to DKK 23 million in Revenue 655 766 85 2074 2140 97 the same quarter last year Gross
Slide 19: Cash Flow and Net Working Capital
CASH FLOW AND NET WORKING CAPITAL Cash Flow DKK million 3rd quarter YTD • Free cash flow was DKK 92 million for the quarter 2012/13 2011/12 2012/13 2011/12 compared to DKK 16 million in the same quarter last year Earnings for the period -91 17 -123 19 Amort., depr. and imp. 85 64 243 182 • The posit
Slide 20: Agenda
AGENDA THIRD QUARTER HIGHLIGHTS – Tue Mantoni, CEO FINANCIAL RESULTS – Henning Bejer Beck, CFO EXPECTATIONS TO THE 2012/13 FINANCIAL YEAR – Tue Mantoni, CEO QUESTIONS & ANSWERS APPENDIX 20
Slide 21: Expectations to the 2012/13 Financial Year
EXPECTATIONS TO THE 2012/13 FINANCIAL YEAR Outlook for the 2012/13 financial year • Revenue of DKK 2,800 – 2,900 million • Gross margin at the same level as in the 2011/12 financial year • A negative EBIT in the range of DKK 150-200 million The outlook includes • Non-recurring costs of DKK 40 millio
Slide 22: Questions & Answers
QUESTIONS & ANSWERS 22
Slide 23: Investor relations contact
Investor relations contact: Claus Højmark Jensen Investor Relations Manager Direct tel. : +45 96 84 12 51 Mobile tel. : +45 23 25 10 67 Email : chm@bang-olufsen.dk 23