Bang & Olufsen A/S · OMXCOP:BO

Bang & Olufsen A/S — H1 2007/08 Earnings Presentation

17 slides from Bang & Olufsen A/S's earnings presentation, Jan 9, 2008

  1. Slide 1: Bang & Olufsen Group Interim report 2007/08

    Bang & Olufsen Group Interim report 2007/08

  2. Slide 2: Group turnover and half-year result highlights

    • Group turnover DKK 2,166 million against DKK 2,069 million, i.e. an increase of DKK 97 million (5 %). Last year’s turnover included Medicom at DKK 74 million. • The branded business increased by DKK 162 million to DKK 2,166 million (8 %) during the half year. (Currency fluctuations negative with D

  3. Slide 3: Turnover distribution

    DKK million • Turnover distribution (mio. DKK): 2007/08 2006/07 Branded business 2,127 1,965 Medicom a/s - 75 ICEpower a/s 48 50 Internal turnover -9 -21 2,166 2,069 3

  4. Slide 4: Decrease in result before tax

    DKK million • The decrease in result before tax is due to: - Decrease in gross margin due to mix change (DKK 26 million). - Negative effect of capitalisation (DKK 25 million). - Non-recurring expenditures (DKK 25 million). - Increased marketing spending. (Only the comparison figures for 04/05 and th

  5. Slide 5: Tax on ordinary profit

    DKK million • Tax on ordinary profit for the half year was DKK 53 million corresponding to a tax percentage of 36 (last half year 30). • Tax rate full year still expected to be 27-30 percent. (Only the comparison figures for 04/05 and the following years have been adjusted to IFRS) 5

  6. Slide 6: Cash flow from operating activities

    DKK million • Cash flow from operating activities negative with DKK 0.3 million against minus DKK 101.1 million last year. • DKK 347 million paid out in investor related initiatives against DKK 290 million last year. • New long term loan of DKK 200 million obtained. 6

  7. Slide 7: Shareholder-related initiatives

    Bang & Olufsen Group Shareholder-related initiatives 2007/08 2006/07 2005/06 2004/05 2003/04 Dividend paid per share (nom. DKK 10) 20 16 12 Dividend paid 241.6 200.2 149.0 86.7 94.0 Repurchase of own shares 100.0 271.3 148.9 105.5 98.1 Total 341.6 471.5 297.9 192.2 192.1 BANG & OLUFSEN

  8. Slide 8: Development in turnover by market

    • Development in turnover: 2007/08 2006/07 +/- Denmark 266 259 +7 UK 248 269 -21 Germany 229 230 -1 743 758 -15 Enterprise 81 29 +52 Expansion 124 93 +31 Asia 145 119 +26 France 114 94 +20 Rest 920 872 +48 2,127 1,965 +162 * Russia, South America and East Europe 8

  9. Slide 9: Growth in turnover per market, 1st half year

    Bang & Olufsen A/V consumer business Growth in turnover per market 2007/08 - 1st half year (local currency) Expansion Markets Middle East Asia France Switzerland Norway Holland North America Italy Japan Belgium Austria Denmark Spain/Portugal Sweden Germany UK 34% 26 % 21% 21% 17% 13 % 12 % 8% 7% 7%

  10. Slide 10: Growth in turnover per market, 2nd quarter

    Bang & Olufsen A/V consumer business Growth in turnover per market - 2nd quarter (local currency) Middle East Switzerland Austria Expansion Markets Sweden Norway France Holland Asia Belgium Japan Italy Germany Denmark North America Spain/Portugal UK 10 27% 24% 23 % 22% 21% 20 % 19 % 17 % 15 % 14% 11

  11. Slide 11: Number of shops

    Number of shops • Change in the number of shops compared to 31/5-07: B1 +32 SIS -24 Other shops -4 Total +4 Total number of B1 shops: 809 • Number of B1 1/6-07 777 New +40 Upgraded +7 Closed/downgraded -15 Change +32 Total 30/11-07 809 11

  12. Slide 12: New established B1-shops 2007/08 - 1st half year

    • New established B1-shops 2007/08 - 1st half year 12

  13. Slide 13: Turnover by shop segment

    • Turnover by shop segment: 2007/08 2006/07 B1 79 % 76 % SIS 21 % 24 % 100 % 100 % 13

  14. Slide 14: Average growth mature B1 and SIS shops

    • Average growth mature B1-shops 4 %. • Average growth mature SIS 4 %. 14

  15. Slide 15: Project sales and investment level

    • Slightly slower project sales in 1st half year than expected. • Maintained high investment level within R&D and sales. 15

  16. Slide 16: Cautious turnover expectations and full-year outlook

    • Low sales second half of December and early January leads to more cautious turnover expectations. Interval DKK 4,450 - 4,550 million. • EBIT expected DKK 385 - 425 million. • Profit before tax of DKK 360-400 million. • Net addition of 50 new B1-shops. • The high activity level within product devel

  17. Slide 17: Slide 17

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