Bang & Olufsen A/S · OMXCOP:BO
Bang & Olufsen A/S — FY2010/11 Earnings Presentation
33 slides from Bang & Olufsen A/S's earnings presentation, August 2011
Slide 1: Webcast Annual Report 2010/11 & Strategy Plan
WEBCAST ANNUAL REPORT 2010/11 & STRATEGY PLAN Bang & Olufsen Group
Slide 2: Agenda
AGENDA SUMMARY OF THE FINANCIAL RESULT – Tue Mantoni, CEO THE FINANCIAL RESULT FOR THE 2010/11 FINANCIAL YEAR – Henning Bejer Beck, CFO THE EXPECTATIONS FOR THE 2011/12 FINANCIAL YEAR – Tue Mantoni, CEO NEW STRATEGY PLAN – Tue Mantoni, CEO
Slide 3: Summary of the Financial Result
SUMMARY OF THE FINANCIAL RESULT Fourth quarter § Turnover decreased by 9 per cent from DKK 779 million to DKK 711 million, which should be seen in the light of a tough comparison base as the previous year’s quarter recorded a growth of 26 per cent. § Result before tax was positive at DKK 8 million a
Slide 4: Turnover Development per Market for the 2010/11 Financial Year
TURNOVER DEVELOPMENT PER MARKET FOR THE 2010/11 FINANCIAL YEAR 500 § Automotive continues the strong 450 performance. 400 350 300 § The Asian markets recorded an 250 increase of 22.4 per cent in the 200 2010/11 financial year compared to 150 last year. 100 2010/11 50 2009/10 § North America and Fran
Slide 5: Turnover Development per Market in the Fourth Quarter
TURNOVER DEVELOPMENT PER MARKET IN THE FOURTH QUARTER 140 § Automotive increased turnover in the 120 fourth quarter with 19.2 per cent. 100 § During the fourth quarter the markets 80 in North America and France saw 60 increases of 67.1 per cent and 8.7 per 40 Q4 2010/11 cent respectively compared to
Slide 6: Distribution Development
DISTRIBUTION DEVELOPMENT 1.000 § The movement in the B1 segment for the financial year 2010/11 was minus 13 shops. 822 777 758 725 § During the fourth quarter the 703 690 750 672 movement was plus 4 shops divided 637 596 into 16 openings and 12 closures. 522 500 421 385 300 265 250 88 51 18 14 3 2 1
Slide 7: Number of B1 Shops per Market May 31, 2011
NUMBER OF B1 SHOPS PER MARKET MAY 31, 2011 Expansion Markets 97 ∆ Q4 Asia Pacific 76 Market 2009/10 United Kingdom 70 Expansion Markets 7 Germany 66 Asia Pacific 0 Italy 55 50 United Kingdom -3 Spain/Portugal Denmark 45 Germany -2 France 46 Italy -1 North America 50 Spain/Portugal 0 the Netherlands
Slide 8: Agenda
AGENDA SUMMARY OF THE FINANCIAL RESULT – Tue Mantoni, CEO THE FINANCIAL RESULT FOR THE 2010/11 FINANCIAL YEAR – Henning Bejer Beck, CFO THE EXPECTATIONS FOR THE 2011/12 FINANCIAL YEAR – Tue Mantoni, CEO NEW STRATEGY PLAN – Tue Mantoni, CEO
Slide 9: Development in Turnover and Result Before Tax
DEVELOPMENT IN TURNOVER AND RESULT BEFORE TAX 900 60 § The fourth quarter showed a decrease 800 40 in turnover of 9 per cent as expected. 700 20 600 0 § The Group’s gross margin for the fourth quarter was 39.2 per cent 500 -20 against 40.3 per cent for the same 400 -40 quarter of the 2009/10. The lo
Slide 10: Development in Turnover and Result Before Tax – 12 Months Rolling
DEVELOPMENT IN TURNOVER AND RESULT BEFORE TAX – 12 MONTHS ROLLING 3000 100 § During the last 12 months the Group 2900 0 has experienced a turnover increase of 4 per cent and a positive result before 2800 -100 tax of DKK 40 million against a 2700 negative result of DKK 50 million in the -200 2600 pre
Slide 11: Cost Level Under Control
COST LEVEL UNDER CONTROL 360 § During the 2010/11 financial year, the 340 Group reduced its capacity costs by DKK 41 million from DKK 1,137 million 320 for the same period last year to DKK 300 1,096 million this year. 280 § Distribution and marketing costs fell 260 during the year by DKK 48 million
Slide 12: Development Costs
DEVELOPMENT COSTS 2010/11 2009/10 mDKK mDKK § The Group’s incurred development costs were DKK 448 million against Development costs incurred before capitalisation 448.1 437.7 Amount hereof capatilised -251.0 -206.4 DKK 438 million for the same period Total amortisation and impairment losses on devel
Slide 13: Launch Products' Share of Audio-Video Turnover
LAUNCH PRODUCTS’ SHARE OF AUDIO-VIDEO TURNOVER 40% § In the 2010/11 financial year 26 per 35% 35% cent of the Group’s turnover within the audio and video business derived from 30% 28% new products. 26% 26% 25% 20% 16% 15% 11% 10% 5% 0% 05/06 06/07 07/08 08/09 09/10 10/11
Slide 14: Net Working Capital
NET WORKING CAPITAL § The net working capital is on the same 600 30,0% level as last year, with a small increase of DKK 6 million. 500 25,0% § The net working capital in percentage 400 of turnover is on the same level as last 300 20,0% year at 14 per cent. 200 15,0% 100 0 10,0% Q4 08/09 Q4 09/10 Q4
Slide 15: The Debt Situation
THE DEBT SITUATION 600 § The net interest bearing debt has increased by DKK 22 million from the 500 third quarter of the 2010/11 financial year to the fourth quarter of the 400 2010/11 financial year. 300 § Compared to last year, the net interest bearing debt is on the same level - 200 DKK 85 millio
Slide 16: Agenda
AGENDA SUMMARY OF THE FINANCIAL RESULT – Tue Mantoni, CEO THE FINANCIAL RESULT FOR THE 2010/11 FINANCIAL YEAR – Henning Bejer Beck, CFO THE EXPECTATIONS FOR THE 2011/12 FINANCIAL YEAR – Tue Mantoni, CEO NEW STRATEGY PLAN – Tue Mantoni, CEO
Slide 17: Expectations for the 2011/12 Financial Year
EXPECTATIONS FOR THE 2011/12 FINANCIAL YEAR Expectations for the Group result for 2011/12 Bang & Olufsen expects the 2011/12 result before tax to be in the level of DKK 100 million based on a turnover level exceeding DKK 3,000 million. Product portfolio The Group’s objective for the 2011/12 financia
Slide 18: Agenda
AGENDA SUMMARY OF THE FINANCIAL RESULT – Tue Mantoni, CEO THE FINANCIAL RESULT FOR THE 2010/11 FINANCIAL YEAR – Henning Bejer Beck, CFO THE EXPECTATIONS FOR THE 2011/12 FINANCIAL YEAR – Tue Mantoni, CEO NEW STRATEGY PLAN – Tue Mantoni, CEO
Slide 19: Situational Analysis
SITUATIONAL ANALYSIS Challenges and threats Strengths and opportunities 1. Unstable technology situation 1. Brand value § Western world: Still perceived as a 2. Unclear product portfolio substance based premium brand § Growing economies: Recognized as an 3. Weak recruitment of new consumers aspirati
Slide 20: 'Leaner, Faster, Stronger'
‘LEANER, FASTER, STRONGER’ Leaner We focus our activities and investments on adding long-term value to our key stakeholders: customers, retailers, partners and shareholders The image part with relationship ID rId3 was not found in the file. Faster We are passionate about daily execution and performa
Slide 21: Our Business Logic – Recruiting Consumers Through Deep Brand Engagements
OUR BUSINESS LOGIC – RECRUITING CONSUMERS THROUGH DEEP BRAND ENGAGEMENTS NEW PRODUCT CATEGORY CORE BUSINESS: Core A/V AUTOMOTIVE Premium, Contemporary, and Luxury integrated A/V solutions High-end audio solutions for accessible A/V products premium cars Product characteristics: Product characteristi
Slide 22: 2011/12 Must Win Battles
2011/12 MUST WIN BATTLES 1. Build 3. Optimise 5. Transition R&D Acoustics as Retail network our hero 2. Launch new 4. Grow BRIC 6. Simplify and product speed up category execution
Slide 23: 1. Increase Focus on Sound and Acoustics
1. INCREASE FOCUS ON SOUND AND ACOUSTICS § Taking advantage of Bang & Olufsen’s unique competencies and market position § Establishing a Sound & Acoustics Innovation Team § Expanding the acoustics product portfolio BeoLab 5 BeoLab 9 Lens from Automotive ICEpower module
Slide 24: 1. Strengthen the Automotive Business Further
1. STRENGTHEN THE AUTOMOTIVE BUSINESS FURTHER § Leading provider of high-end sound systems for cars § Automotive business to benefit from increased focus on sound and acoustics § Increasing value to existing Automotive partners § Evaluate approaches from potential new partners with due consideration
Slide 25: 2. Launch a New Product Category and Expand the Distribution
2. LAUNCH A NEW PRODUCT CATEGORY AND EXPAND THE DISTRIBUTION § New product category to be launched by the end of 2011 § Based on Bang & Olufsen’s competencies and quality approach § Marketed through Bang & Olufsen’s shops and complementary retail channels § Expected to generate incremental turnover
Slide 26: 3. Restructure the Retail Network
3. RESTRUCTURE THE RETAIL NETWORK – INCREASED CUSTOMER FOCUS AND PROFITABILITY § Excellent customer service and installation support as true brand differentiators § Future store design to reflect the focus on integrated audio-video solutions § Increasing the number of dedicated shops in developing m
Slide 27: 3. Solutions Wall
3. SOLUTIONS WALL
Slide 28: 4. Expand the Business in BRIC Markets
4. EXPAND THE BUSINESS IN BRIC MARKETS § Geographic refocus required § Aggressive growth strategy in China § National sales office to be established in Shanghai § Taking control of the Hong Kong and South China operations
Slide 29: 5. Leverage Partners for Audio-Video Development and Sourcing
5. LEVERAGE PARTNERS FOR AUDIO-VIDEO DEVELOPMENT AND SOURCING § Leverage partners for audio-video development and sourcing to a significantly greater extent § Focus internal resources on key differentiating areas § Ensure more effectiveness in product development BeoSound 5 BeoSound 8 BeoVision 7 Be
Slide 30: 5. BeoSound 9000 & BeoSound 3200
5. BEOSOUND 9000 & BEOSOUND 3200
Slide 31: 5. BeoSound 5 Family
5. BEOSOUND 5 FAMILY
Slide 32: 6. Create a Leaner and More Agile Organization with a Global Outlook
6. CREATE A LEANER AND MORE AGILE ORGANIZATION WITH A GLOBAL OUTLOOK § Global outlook is required § Bang & Olufsen organization to be affected to a significant extent § A leaner and flatter organization with focus on areas aligned with the strategy plan
Slide 33: Webcast Annual Report 2010/11 & Strategy Plan
WEBCAST ANNUAL REPORT 2010/11 & STRATEGY PLAN Bang & Olufsen Group