Bang & Olufsen A/S · OMXCOP:BO
Bang & Olufsen A/S — Q2 2012/13 Earnings Presentation
23 slides from Bang & Olufsen A/S's earnings presentation, Jan 9, 2013
Slide 1: Interim Report Second Quarter of the 2012/13 Financial Year
INTERIM REPORT SECOND QUARTER OF THE 2012/13 FINANCIAL YEAR 09 January 2013
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 SECOND QUARTER HIGHLIGHTS – Tue Mantoni, CEO FINANCIAL RESULT FOR THE SECOND QUARTER OF 2012/13 – Henning Bejer Beck, CFO STRATEGY UPDATE– Tue Mantoni, CEO EXPECTATIONS TO THE 2012/13 FINANCIAL YEAR – Tue Mantoni, CEO QUESTIONS & ANSWERS 3
Slide 4: Financial Highlights for the Second Quarter
FINANCIAL HIGHLIGHTS FOR THE SECOND QUARTER Second quarter revenue was DKK 819 million compared to DKK 776 million last year – a growth of 5.5 per cent despite headwind from the macro economy and negotiations with master dealers in mid-China and Brazil The products launched during the second qua
Slide 5: New Innovative Products Launched in the Quarter
NEW INNOVATIVE PRODUCTS LAUNCHED IN THE QUARTER BeoPlay A9 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 BeoVision 11 A new generation of Bang & Olufsen TVs bui
Slide 6: Bang & Olufsen at CES in Las Vegas
Bang & Olufsen at CES in Las Vegas BeoPlay A9 wins Best of Innovations award The BeoPlay A9 wins Best of Innovations award in the category High Performance Home Audio judged on materials, aesthetics and design qualities, unique features and how the design and innovation of the product compares Sto
Slide 7: Agenda
AGENDA SECOND QUARTER HIGHLIGHTS – Tue Mantoni, CEO FINANCIAL RESULT FOR THE SECOND QUARTER OF 2012/13 – Henning Bejer Beck, CFO STRATEGY UPDATE– Tue Mantoni, CEO EXPECTATIONS TO THE 2012/13 FINANCIAL YEAR – Tue Mantoni, CEO QUESTIONS & ANSWERS 7
Slide 8: Development in Revenue and Gross Margin
DEVELOPMENT IN REVENUE AND GROSS MARGIN Revenue Revenue for the second quarter was DKK million Q2 12/13 Q2 11/12 Chg., % DKK 819 million compared to DKK AV 476 552 -14 776 million last year B&O PLAY 159 65 +144 B2C 635 617 +3 Revenue growth is driven by strong growth in B&O PLAY and Automotive A
Slide 9: Revenue Development per Region, Consumer Business (DKK million)
REVENUE DEVELOPMENT PER REGION, CONSUMER BUSINESS (DKK MILLION) B2C revenue increased to DKK 635 500 million from DKK 617 million in the 454 same quarter last year 450 407 400 Revenue in Europe was DKK 454 350 million compared to DKK 407 million 300 last year. The increase is mainly 250 driven b
Slide 10: Distribution Development
DISTRIBUTION DEVELOPMENT The total number of B1-shops was 450 426 428 637 compared to 642 B1-shops at the end of the first quarter 2012/13 400 350 B2C revenue per B1-shop (open 300 more than 24 months) fell 6.5 per cent compared to the same period 250 222 228 last year 200 150 The total number
Slide 11: Capacity Costs
CAPACITY COSTS Capacity costs Capacity costs increased to DKK 331 DKK million Q2 12/13 Q2 11/12 Chg., % million from DKK 293 million in the Development costs -117 -87 +34 same period last year Distribution and marketing costs -191 -175 +9 Administration costs -23 -30 -22 Development costs increa
Slide 12: Income Statement
INCOME STATEMENT Consolidated income statement In the second quarter of the 2012/13 DKK million Q2 12/13 Q2 11/12 financial year, EBIT fell to DKK 26 Revenue 819 776 million from DKK 47 million in the Gross profit 358 339 same period last year Earnings before interest and tax (EBIT) 26 47 Earnings
Slide 13: Net Working Capital
NET WORKING CAPITAL Net working capital increased by DKK 1,000 30% 224 million from DKK 703 million in 900 the first quarter to DKK 927 million 800 25% The increase compared to the 700 previous quarter mainly relates to 600 higher trade receivables related to 500 20% product launches during the
Slide 14: Cash Flow
CASH FLOW Cash flow Free cash flow was negative at DKK DKK million Q2 12/13 Q2 11/12 208 million for the quarter compared Earnings for the period 15 29 to positive DKK 17 million last year Amort., depr. and imp. 79 59 Change in receivables -252 -106 The negative cash flow in the second Change in
Slide 15: Agenda
AGENDA SECOND QUARTER HIGHLIGHTS – Tue Mantoni, CEO FINANCIAL RESULT FOR THE SECOND QUARTER OF 2012/13 – Henning Bejer Beck, CFO STRATEGY UPDATE– Tue Mantoni, CEO EXPECTATIONS TO THE 2012/13 FINANCIAL YEAR – Tue Mantoni, CEO QUESTIONS & ANSWERS 15
Slide 16: Leaner, Faster, Stronger - Must-Win Battles
‘LEANER, FASTER, STRONGER - MUST-WIN BATTLES NEED FOR ON TRACK ON TRACK FURTHER ACTION 2. Launch new product 1. Build Acoustics as our hero 3. Optimise Retail Network category • Established sound and acoustics • In Q2 12/13 B&O PLAY grew • New B1 store concept developed innovation team 144% and repr
Slide 17: Strategic Review of Must-Win Battle 'Optimise Retail Network'
STRATEGIC REVIEW OF MUST-WIN BATTLE ”OPTIMISE RETAIL NETWORK” Ensuring the success of Must-win Battle –”Optimise Retail Network” is key to realising the full potential of Bang & Olufsen Closing stores is a necessary action to ensure long term growth Created a taskforce dedicated to the impleme
Slide 18: Strategic Review of Must-Win Battle 'Grow BRIC'
STRATEGIC REVIEW OF MUST-WIN BATTLE ”GROW BRIC” Bang & Olufsen has signed a letter of intent to acquire the master dealer in mid-China (including Shanghai and Beijing) and has reached an agreement to acquire the master dealer activities in Brazil Taking over these operations is expected to have
Slide 19: Agenda
AGENDA SECOND QUARTER HIGHLIGHTS – Tue Mantoni, CEO FINANCIAL RESULT FOR THE SECOND QUARTER OF 2012/13 – Henning Bejer Beck, CFO STRATEGY UPDATE– Tue Mantoni, CEO EXPECTATIONS TO THE 2012/13 FINANCIAL YEAR – Tue Mantoni, CEO QUESTIONS & ANSWERS 19
Slide 20: Expectations to the 2012/13 Financial Year
EXPECTATIONS TO THE 2012/13 FINANCIAL YEAR Compared to the expectations at the beginning of the 2012/13 financial year, the expectations have been adversely impacted by the following: Up to 125 stores are estimated to be closed within the next 12-18 months, of which a significant number of closing
Slide 21: Leaner, Faster, Stronger
LEANER, FASTER, STRONGER The six ”Must-win Battles” remain the strategic priorities to realise the full potential of Bang & Olufsen The ”Leaner, Faster, Stronger” strategy plan remains the strategy with the aim of realising the full potential of the company, which is estimated to be revenue of D
Slide 22: Agenda
AGENDA SECOND QUARTER HIGHLIGHTS – Tue Mantoni, CEO FINANCIAL RESULT FOR THE SECOND QUARTER OF 2012/13 – Henning Bejer Beck, CFO EXPECTATIONS TO THE 2012/13 FINANCIAL YEAR – Tue Mantoni, CEO STRATEGY UPDATE– Tue Mantoni, CEO QUESTIONS & ANSWERS 22
Slide 23: Interim Report Second Quarter of the 2012/13 Financial Year
INTERIM REPORT SECOND QUARTER OF THE 2012/13 FINANCIAL YEAR 09 January 2013