Bang & Olufsen A/s · OMXCOP:BO
Bang & Olufsen A/s — H1 2004/05 Earnings Presentation
20 slides from Bang & Olufsen A/s's earnings presentation, Jan 12, 2005
Slide 1: Interim report 2004/05
Bang & Olufsen Group Interim report 2004/05
Slide 2: Headlines: 1st half year
Bang & Olufsen Group Headlines 1st half year: • Difficult trading conditions on the European markets as expected. • The transition to flat screen technology results in substantial fluctuations in the turnover. • Profit improvement in the USA of DKK 14 million. Loss reduced to DKK 1 million • against
Slide 3: Headlines: 2nd quarter and expectations
Bang & Olufsen Group Headlines 2nd quarter • Q2 turnover DKK 996 million. Last year DKK 1,065 million. Decrease of DKK 69 million • (-6%). • The turnover in September and October was below last year’s level, while November • showed a small advance. • Q2 profit before tax was DKK 134 million against
Slide 4: Net turnover
Bang & Olufsen Group Net turnover - 1st half year • BeoVision 6-26 launched at the DKK million end of the 2nd quarter of 2004/05. • Difficult market situation in most European markets: - Spain/Portugal - decrease of 7%. - UK - decrease of 5%. - Germany - decrease of 4%. • Denmark - small but positiv
Slide 5: Branded Business
Bang & Olufsen Branded Business Turnover development in the B1 shops - older than 24 months. Average turnover in all B1 shops have increased with 6% (2 years+). 5
Slide 6: Profit from ordinary operations before tax
Bang & Olufsen Group Profit from ordinary operations before tax - 1st half year DKK million • Increased profitability in the Group: - Gross margin increased 2.5%. - Continued focus on efficiency - within product development and - marketing. • Development costs before capita- lization was DKK 182 mil
Slide 7: Profit after tax
Bang & Olufsen Group Profit after tax - 1st half year DKK million • Tax on ordinary result was DKK 48 million against DKK 13 million last year. • The effective tax rate was 33% against 12% last year (last year was influenced by a conversion of debt in the USA). 7
Slide 8: Total assets
Bang & Olufsen Group Total assets - 1st half year DKK million • Inventories and recievables are at the same level as in the 1st half year of 2003/04. • Liquid funds has increased from DKK 194 million to DKK 370 million. 8
Slide 9: Cash flow
Bang & Olufsen Group Cash flow - 1st half year DKK million • Cash flow statement in total: From operating activities 188) From investment activities (99) From financing activities (192) (103) • A repayment of corporation tax in 2004/05 while the company paid corporation tax the year before resulted
Slide 10: Turnover per market 2004/05
Bang & Olufsen Branded Business Turnover per market 2004/05 - 1st half year DKK million 10 * Russia, Middle East, South America and East Europe
Slide 11: Development per market 2004/05 1st half year
Bang & Olufsen Branded Business Development per market 2004/05 1st half year (local currency) 11
Slide 12: Number of B1 shops per market
Bang & Olufsen Branded Business Number of B1 shops per market 30.11.04 • Total number of B1 shops: 640 12
Slide 13: Shops world-wide 2000/01 - 2004/05
Bang & Olufsen Branded Business Shops world-wide 2000/01 - 2004/05 - 1st half year Number of shops Number Number Change of shops of shops 30/11 04 30/11 03 B1 640 646 (6) SIS 639 666 (27) Other 152 256 (104) 1,431 1,568 (137) 13
Slide 14: Share of turnover by types of shops
Bang & Olufsen Branded Business Share of turnover by types of shops in 2004/05 - 1st half year • 70% of the turnover is generated through the B1 distribution. 14
Slide 15: Medicom a/s
Bang & Olufsen Medicom a/s Turnover and result from ordinary operations before tax 1st half year DKK million • Turnover increases within the production of drug delivery and patient compliance devices as well as new development contracts. • Continued adjustments of the cost level. 15
Slide 16: ICEpower a/s
Bang & Olufsen ICEpower a/s Turnover and result from ordinary operations before tax 1st half year DKK million • DKK 3 million turnover increase from external customers. 16
Slide 17: Product launches 2004/05
Bang & Olufsen Group Product launches 2004/05 - 1st half year BeoVision 6-26 BeoVision 4-37 BeoCenter 2 DAB BeoLab 7-1 October 2004 November 2004 November 2004 November 2004 17
Slide 18: Expected product launches 2004/05 - 2nd half year
Bang & Olufsen Group Expected product launches 2004/05 - 2nd half year BeoVision 7-32 HDR 1 BeoVision 4-65 BeoLink Media December 2004 January 2005 March 2005 2nd half year 2004/05 18
Slide 19: BeoLiving
BeoLiving 1st half year 2004/05 18
Slide 20: Expectations for the financial year 2004/05
Bang & Olufsen Group Expectations for the financial year 2004/05 • Changes from the traditional picture tube TVs towards flat screens will influence • 2nd half year. • TV products will carry a greater weight in the product mix, which means that • the gross margin will be lower. • At year end a net o