Bang & Olufsen A/S · OMXCOP:BO
Bang & Olufsen A/S — Q2 2011/12 Earnings Presentation
24 slides from Bang & Olufsen A/S's earnings presentation, January 2012
Slide 1: Interim Report Second Quarter of the 2011/12 Financial Year
INTERIM REPORT SECOND QUARTER OF THE 2011/12 FINANCIAL YEAR BANG & OLUFSEN 1
Slide 2: Agenda
AGENDA THE SECOND QUARTER HIGHLIGHTS – Tue Mantoni, CEO THE FINANCIAL RESULT FOR THE SECOND QUARTER OF 2011/12 – Henning Bejer Beck, CFO THE EXPECTATIONS FOR THE 2011/12 FINANCIAL YEAR – Tue Mantoni, CEO QUESTIONS & ANSWERS BANG & OLUFSEN 2
Slide 3: Financial Highlights for Second Quarter
FINANCIAL HIGHLIGHTS FOR SECOND QUARTER Second quarter revenues at 776 million, which is on the same level as last year AV revenues in BRIC markets grew 25 per cent Improved gross margin EBIT-Margin increased from 5 per cent last year to 6 per cent this year Result before tax was DKK 41 million agai
Slide 4: New Products Released in Second Quarter
NEW PRODUCTS RELEASED IN SECOND QUARTER BeoVision 7-40 3D launched in November: Integrated Blu-ray player Second-to-none sound and picture experiences Completes 3D portfolio – entire BeoVision 4 and BeoVision 7 families are offered in 3D CD Ripping Device launched in November: Creates a “bridge” bet
Slide 5: Subsequent News
SUBSEQUENT NEWS B&O PLAY and Beolit 12 launched at Consumer Electronics show (CES) in Las Vegas BeoVision 12 announced at CES BeoLab 12 announced at CES Other recent news BeoSound 5 Encore awarded ‘Best Danish Gadget 2011’ Successful take over of Hong Kong and Southern China operations Three store o
Slide 6: B&O PLAY
B&O PLAY B&O PLAY is expected to deliver incremental turnover and generate new customer leads to the existing Bang & Olufsen distribution. B&O PLAY products will be marketed through Bang & Olufsen’s dedicated shops Complementary retail channels, e.g. Apple New B&O PLAY branded online shop BeoLit 12
Slide 7: BeoVision 12 / BeoLab 12
BeoVision 12 / BeoLab 12 7
Slide 8: New Dealers Opened
NEW DEALERS OPENED Xian, China Hohhot, China Tianjin, China Mauritius Forte dei Marmi, Italy Nancy, France Murcia, Spain Sevilla, Spain Coimbra, Portugal Kingston, UK Groeningen, Holland Richmond, Australia Sassou N Guesso, Congo Seoul, South Korea BANG & OLUFSEN 8
Slide 9: Agenda
AGENDA THE SECOND QUARTER HIGHLIGHTS – Tue Mantoni, CEO THE FINANCIAL RESULT FOR THE SECOND QUARTER OF 2011/12 – Henning Bejer Beck, CFO THE EXPECTATIONS FOR THE 2011/12 FINANCIAL YEAR – Tue Mantoni, CEO QUESTIONS & ANSWERS BANG & OLUFSEN 9
Slide 10: Development in Revenue and Result Before Tax (DKK million)
DEVELOPMENT IN REVENUE AND RESULT BEFORE TAX (DKK MILLION) 900 60 Revenues for the second quarter 800 were DKK 776 million, which is 40 marginally above last year’s level. 700 600 20 Result before tax was positive at 500 DKK 41 million against a positive 0 400 result last year of DKK 36 million. 300
Slide 11: Development in Revenues and Result Before Tax – 12 Months Rolling
DEVELOPMENT IN REVENUES AND RESULT BEFORE TAX – 12 MONTHS ROLLING (DKK MILLION) 3000 100 During the last 12 months the Group 2900 has experienced a revenue increase 0 of 1.4 per cent and a positive result 2800 before tax of DKK 47 million against -100 2700 a positive result of DKK 53 million in -200
Slide 12: Development in Revenue by Product Area (DKK million)
DEVELOPMENT IN REVENUE BY PRODUCT AREA (DKK MILLION) 700 The AV business recorded revenues of DKK 552 million compared to DKK 600 604 million in the same period last year. 500 B&O PLAY recorded revenues of DKK 65 million compared to DKK 15 400 million in the same period last year. 300 The Automotive
Slide 13: Development in Revenue and Gross Margin by Product Area
DEVELOPMENT IN REVENUE AND GROSS MARGIN BY PRODUCT AREA (DKK MILLION) 700 50% The Gross Margin within the AV business was 45.8 per cent against a 45% gross margin of 45.0 per cent for the 600 40% same period last year. The change in contribution margin is primarily due 500 35% to a change in product
Slide 14: Distribution Development – Number of Shops
DISTRIBUTION DEVELOPMENT – NUMBER OF SHOPS 800 During the second quarter 14 B1- 700 shops were opened or upgraded, while 11 shops were closed. Thus, 600 the net movement for the second 500 quarter amounted to an additional 3 shops. 400 300 By the end of November 2011 there 200 were 685 B1-shops acro
Slide 15: Distribution Development – Number of Shops per Region
DISTRIBUTION DEVELOPMENT – NUMBER OF SHOPS PER REGION 800 By the end of November 2011 there were 455 B1-shops in Region Europe 700 against 457 at the end of the first 600 quarter of 2011/12. 500 In Region North America, there were 400 51 B1-shops, which is unchanged from the end of first quarter of
Slide 16: Development in Revenue by Business Area (DKK million)
DEVELOPMENT IN REVENUE BY BUSINESS AREA (DKK MILLION) 700 The B2C business line, which consists of the AV and the B&O PLAY 600 segments, recorded revenues of DKK 500 617 million compared to revenues of DKK 619 million in the same period 400 last year. 300 The B2B business line, which 200 consists of
Slide 17: Revenue Development per Region, Consumer Business
REVENUE DEVELOPMENT PER REGION, CONSUMER BUSINESS (DKK MILLION) 500 Region Europe saw a decline in 450 revenues of DKK 37 million or 8 per 400 cent from DKK 444 million to DKK 350 407 million in the same period last year. 300 250 North America recorded revenues of 200 DKK 40 million compared to DKK
Slide 18: Capacity Costs (DKK million)
CAPACITY COSTS (DKK MILLION) 320 During the second quarter of the 2011/12 financial year, the Group 300 increased its capacity costs by DKK 4 million from DKK 289 million to DKK 280 293 million. The increase is caused by a high activity level in product 260 development. 240 Distribution and marketin
Slide 19: Net Working Capital (DKK million)
NET WORKING CAPITAL (DKK MILLION) 600 30.0% Net working capital is on the same level as last year, with a minor 500 increase of DKK 4 million. 25.0% 400 Net working capital in percentage of revenue is on the same level as last 300 20.0% year at 18.3 per cent. 200 15.0% 100 0 10.0% Q1 Q2 Q3 Q4 Q1 Q2
Slide 20: Debt Situation (DKK million)
DEBT SITUATION (DKK MILLION) 300 Net interest bearing debt has increased to DKK 219 million 250 compared to DKK 153 million by the end of the second quarter of the 200 2010/11 financial year. 150 The increase in the net interest bearing debt is primarily caused by 100 higher investments in fixed ass
Slide 21: Agenda
AGENDA THE SECOND QUARTER HIGHLIGHTS – Tue Mantoni, CEO THE FINANCIAL RESULT FOR THE SECOND QUARTER OF 2011/12 – Henning Bejer Beck, CFO THE EXPECTATIONS FOR THE 2011/12 FINANCIAL YEAR – Tue Mantoni, CEO QUESTIONS & ANSWERS BANG & OLUFSEN 21
Slide 22: Expectations for the 2011/12 Financial Year
EXPECTATIONS FOR THE 2011/12 FINANCIAL YEAR Bang & Olufsen maintains its guidance of a 2011/12 result before tax in the level of DKK 100 million based on a revenue level exceeding DKK 3,000 million. The EBIT-margin for the 2011/12 financial year is expected to be 3.5-4.0 per cent. This compares to a
Slide 23: Agenda
AGENDA THE SECOND QUARTER HIGHLIGHTS – Tue Mantoni, CEO THE FINANCIAL RESULT FOR THE SECOND QUARTER OF 2011/12 – Henning Bejer Beck, CFO THE EXPECTATIONS FOR THE 2011/12 FINANCIAL YEAR – Tue Mantoni, CEO QUESTIONS & ANSWERS BANG & OLUFSEN 23
Slide 24: Interim Report Second Quarter of the 2011/12 Financial Year
INTERIM REPORT SECOND QUARTER OF THE 2011/12 FINANCIAL YEAR BANG & OLUFSEN 24