Bang & Olufsen A/S · OMXCOP:BO
Bang & Olufsen A/S — Q1 2012/13 Earnings Presentation
20 slides from Bang & Olufsen A/S's earnings presentation, Oct 10, 2012
Slide 1: Interim Report First Quarter of the 2012/13 Financial Year
INTERIM REPORT FIRST QUARTER OF THE 2012/13 FINANCIAL YEAR 10 October 2012
Slide 2: Disclaimer
DISCLAIMER This presentation does not constitute or form part of and should not be construed as, an offer to sell or issue or the solicitation of an offer to buy or acquire securities issued by Bang & Olufsen A/S in any jurisdiction, including the United States of America, Canada, Australia, Japan o
Slide 3: Agenda
AGENDA FIRST QUARTER HIGHLIGHTS – Tue Mantoni, CEO FINANCIAL RESULT FOR THE FIRST QUARTER OF 2012/13 – Henning Bejer Beck, CFO EXPECTATIONS TO THE 2012/13 FINANCIAL YEAR – Tue Mantoni, CEO QUESTIONS & ANSWERS 3
Slide 4: Financial Highlights for the First Quarter
FINANCIAL HIGHLIGHTS FOR THE FIRST QUARTER First quarter revenue was DKK 600 million compared to DKK 599 million last year Transition towards seasonal product launch windows, as announced in the “Leaner, Faster, Stronger” strategy, creates, among other things, greater seasonality in the revenue
Slide 5: Automotive Announcements in First Quarter
AUTOMOTIVE ANNOUNCEMENTS IN FIRST QUARTER Bang & Olufsen has launched a sound system for the Aston Martin Vanquish. The system will be standard equipment Bang & Olufsen has launched sound systems for Mercedes-Benz CLS Shooting Brake. The High-End Sound System will be offered as an optional extra
Slide 6: New Products Released in the First Quarter
NEW PRODUCTS RELEASED IN THE FIRST QUARTER BeoLab 12-2 launched in June The latest addition to Bang & Olufsen’s collection of dedicated wall speakers Together, BeoLab 12-3 and 12-2 comprise a unique surround sound setup Playmaker launched in July A simple way to add digital music – wirelessly
Slide 7: New Innovative Products Launched in October
NEW INNOVATIVE PRODUCTS LAUNCHED IN OCTOBER BeoPlay A9 launched on October 3 The system integrates dedicated speaker units and amplifiers – delivering a total output of 480 watts Inspired Scandinavian design Wireless streaming with Apple AirPlay and DLNA Available in shops from the second ha
Slide 8: Other Subsequent Events
OTHER SUBSEQUENT EVENTS Partnership with Sparkle Roll and A CAPITAL On September 28 2012, the capital increase to Sparkle Roll and A CAPITAL was finalised Sparkle Roll and A CAPITAL now hold 6.1 per cent and 1.6 per cent of the share capital respectively Distribution of B&O PLAY Distribution a
Slide 9: Agenda
AGENDA FIRST QUARTER HIGHLIGHTS – Tue Mantoni, CEO FINANCIAL RESULT FOR THE FIRST QUARTER OF 2012/13 – Henning Bejer Beck, CFO EXPECTATIONS TO THE 2012/13 FINANCIAL YEAR – Tue Mantoni, CEO QUESTIONS & ANSWERS 9
Slide 10: Development in Revenue and Gross Margin
DEVELOPMENT IN REVENUE AND GROSS MARGIN Revenue Revenue for the first quarter was DKK million Q1 12/13 Q1 11/12 Chg., % DKK 600 million compared to DKK AV 342 427 -20 599 million last year B&O PLAY 99 52 +92 B2C 440 478 -8 Revenue growth is driven by strong growth in B&O PLAY and Automotive Auto
Slide 11: Revenue Development per Region, Consumer Business
REVENUE DEVELOPMENT PER REGION, CONSUMER BUSINESS (DKK MILLION) B2C revenue fell to DKK 440 million 350 from DKK 478 million in the same 331 quarter last year 300 279 First quarter 2011/12 was positively 250 impacted by DKK 50 million by the launch of BeoSound 5 Encore and 200 BeoVision 7-55 3D
Slide 12: Distribution Development
DISTRIBUTION DEVELOPMENT To improve the health of the retail 500 network, an extra effort has been 442 done to close some of the weakest 450 428 B1-shops and shop-in-shops 400 350 The total number of B1-shops was 300 642 compared to 674 B1-shops at 250 228 244 the end of the fourth quarter 2011/
Slide 13: Capacity Costs
CAPACITY COSTS Capacity costs Capacity costs increased to DKK 306 DKK million Q1 12/13 Q1 11/12 Chg., % million from DKK 260 million last Development costs 111.8 91.0 +23 year Distribution and marketing costs 175.2 147.8 +19 Administration costs 19.3 20.7 -7 Development costs increased due to To
Slide 14: Income Statement
INCOME STATEMENT Consolidated income statement In the first quarter of the 2012/13 DKK million Q1 12/13 Q1 11/12 financial year, the EBIT fell to Revenue 600.4 598.6 negative DKK 61 million from Gross profit 245.0 231.0 negative DKK 29 million Earnings before interest and tax (EBIT) -61.3 -28.5 Ea
Slide 15: Net Working Capital
NET WORKING CAPITAL Net working capital increased by DKK 800 30% 90 million from DKK 613 million in the fourth quarter to DKK 703 million 700 600 25% Net working capital in percentage of revenue is 23 per cent compared to 500 20 per cent at the end of the fourth 400 20% quarter 2011/12 300 The
Slide 16: Cash Flow
CASH FLOW Cash flow The Free Cash Flow was negative DKK million Q1 12/13 Q1 11/12 with DKK 145 million for the quarter Earnings for the period -47 -27 compared to DKK 137 million last Amort., depr. and imp. 79 59 year Change in receivables 137 -24 Change in inventories -192 -34 The negative cash
Slide 17: Agenda
AGENDA FIRST QUARTER HIGHLIGHTS – Tue Mantoni, CEO FINANCIAL RESULT FOR THE FIRST QUARTER OF 2012/13 – Henning Bejer Beck, CFO EXPECTATIONS TO THE 2012/13 FINANCIAL YEAR – Tue Mantoni, CEO QUESTIONS & ANSWERS 17
Slide 18: Expectations to the 2012/13 Financial Year
EXPECTATIONS TO THE 2012/13 FINANCIAL YEAR The challenging macroeconomic outlook, the low level of consumer confidence and the company’s high exposure to Europe lead to an uncertain trading environment ahead Due to the company’s strong innovation pipeline and the continued implementation of the
Slide 19: Agenda
AGENDA FIRST QUARTER HIGHLIGHTS – Tue Mantoni, CEO FINANCIAL RESULT FOR THE FIRST QUARTER OF 2012/13 – Henning Bejer Beck, CFO EXPECTATIONS TO THE 2012/13 FINANCIAL YEAR – Tue Mantoni, CEO QUESTIONS & ANSWERS 19
Slide 20: Interim Report First Quarter of the 2012/13 Financial Year
INTERIM REPORT FIRST QUARTER OF THE 2012/13 FINANCIAL YEAR 10 October 2012