interim report, 1 half-year 2012/13 1 june 2012 – 30...

Bang & Olufsen a/s grOupCompany announcement no. 12.18, 2012/13 – 9 January 2013

InTerIM repOrT, 1 Half-Year 2012/13

1 JUNE 2012 – 30 NOVEMBER 2012

Bang & Olufsen a/s

Peter Bangs Vej 15

DK-7600 Struer

Tel. +45 9684 1122

www.bang-olufsen.com

CVR-no: 41257911

Bang & Olufsen a/s iNTERiM REPORT 1ST half-yEaR 2012/13 · 2

• TheGroup’srevenuewasDKK819millionforthesecond

quarterofthe2012/13financialyearcomparedtorev-

enueofDKK776millioninthesameperiodlastyear.

• TheB2CbusinessrecordedrevenueofDKK635million

inthesecondquarterofthe2012/13financialyearcom-

paredtoDKK617millioninthesameperiodlastyear.

TheB2BbusinessrecordedrevenueofDKK182million


paredtorevenueofDKK163millioninthesameperiod

lastyear.

• B2CrevenueinEuropeincreasedby12percentinthe

secondquarterdrivenbythelaunchesofnew,innova-

tiveproducts.NorthAmericaincreasedby2percent

whereasB2CrevenueintheRestofWorlddecreased

by22percentmainlyduetolaterintroductionofnew

products.RevenueintheBRICmarketsdeclinedby22

percentmainlyduetoon-goingnegotiationsregarding

theacquisitionoftheactivitiesfromthemasterdeal-

ersinmid-ChinaandinBrazil.Aletterofintenthas

beenfinalisedwiththemasterdealerinmid-China,and

anagreementhasbeenmadewiththemasterdealer

inBrazilaftertheendofthereportingperiodwhich

means,thatBang & Olufsenisexpectedtoassumedi-

rectcontrolofthedistributioninthesetwostrategically

importantmarkets.

• TheGroup’sgrossmarginforthesecondquarterofthe

2012/13financialyearimprovedto43.7percentfrom

40.8percentinthefirstquarterandremainedonpar

withthegrossmarginof43.8percentinthesamepe-

riodlastyear.Theimprovementisduetoanimproved

marginintheB&OPLAYsegmentandinAutomotive.

• Asexpected,amortisationchargeswereDKK13million

higherthanlastyearandcapitaliseddevelopmentcosts

weredownbyDKK9millioncomparedtothesame

quarterlastyear.Thishashadanadverseimpactonearn-

ingsbeforetaxofDKK22millionexplainingthedrop

fromDKK41millionlastyeartoDKK23millioninthe

secondquarterofthisyear.

HIGHLIGHTs“The second quarter showed growth of 5.5 per cent compared to the same quarter last year driven mainly by Automotive and new products in B&O PLAY. The AV segment declined for the following three reasons: Firstly, the success of Bang & Olufsen’s new generation of innovative products has slowed down sales of older products. Secondly, our decision to transition from a master dealer set-up to direct distribution in selected

BRIC markets has caused a decline in revenue. Thirdly, a detailed analysis of the performance of Bang & Olufsen’s network of independent retailers shows a significant

under-performance of a group of retailers compared to the rest of the network. To accelerate the optimisation of our store network we have decided to proactively

terminate up to 125 low-performing stores mainly in Europe. The above has had an adverse impact on our topline and our expectations to the financial results of the

2012/13 financial year. We remain focused on the execution of our strategy, “Leaner, Faster, Stronger”, and continue to believe in the full potential of

Bang & Olufsen”, says CEO Tue Mantoni.

HIgHlIgHTs · key figures · management report · statement · financial review · additional informationAnchor#1-R


• Freecashflowinthesecondquarterwasnegativeat

DKK208millioncomparedtopositiveDKK17millionin

thesameperiodlastyear.TheGroup’snetworkingcapi-

talwasDKK927millionattheendofthesecondquarter

ofthe2012/13financialyear,comparedtoDKK533at

theendofthesecondquarterofthe2011/12financial

year.Thisismainlyduetohightradereceivablesandcon-

tinuedhighinventorieswhichismainlyaconsequenceof

lowerthanexpectedrevenueinthesecondquarter.Itis

expectedthatnetworkingcapitalwillbereducedinthe

secondhalfofthe2012/13financialyear.

• TheGroup’stotalrevenueforthefirsthalfofthe

2012/13financialyearwasDKK1,419millionagainst

DKK1,374millionlastyear,oragrowthof3percent.

Earningsbeforetaxforthefirsthalfofthe2012/13

financialyearwerenegativeDKK41millionagainstposi-

tiveDKK8millionlastyear.Freecashflowinthefirsthalf

ofthe2012/13financialyearwasnegativeatDKK352

millioncomparedtonegativeDKK120millionlastyear.

• Duringthesecondquarter,Bang&Olufsenhasper-

formedastrategicreviewofthe”Leaner,Faster,

stronger”strategy.Themust-winbattlesingeneralare

progressingasplanned,whichisillustratedbythemany

successfulproductlaunchesduring2012,whichhave

alsobeenbettertimedandmoreimpactful,aswellas

withimprovedquality.However,thethirdandfourth

must-winbattles,“OptimiseRetailNetwork”and“Grow

BRIC”arenotprogressingwiththepacesetforthinthe

“Leaner,Faster,stronger”strategy.

• Toacceleratetheopeningofnewstoresingrowth

marketsandtoimprovethehealthofthecurrentretail

network,Bang&OlufsenwillopenownB1shopsin

keylocationsandacceleratetheclosureofunprofitable

storesinmaturemarkets.Thenumberofextraordinary

storeclosings(B1andshop-in-shops)areinitiallyex-

pectedtoexceedthenumberofstoreopenings.This

isaconsciousstrategydecisiontoimprovethequality

andsustainabilityoftheretailnetworkandtheoverall

customerexperience.Thestoreclosingsareexpected

tohaveanadverseimpactofuptoDKK100millionon

2012/13revenue.

• AftertheendofthereportingperiodBang&Olufsenhas

signedaletterofintenttoacquireallactivitiesfromthe

masterdealerinmid-China(includingBeijingandshang-

hai).Bang&Olufsenhasalsoacquiredthemasterdealer-

shipinBrazil.Itisexpectedthattheseinitiativeswillhave

anadverseeffecton2012/13revenueofuptoDKK100

million.

• Distributionagreementshavealsobeenmaderegarding

B&OPLAYwith24thirdpartystoresinEuropeandin

HongKongaftertheendofthereportingperiod.

• Asaconsequenceoftheacceleratedstoreclosings,the

acquisitionofthemasterdealeroperationsinmid-China

andBrazilandthecontinuedmacroeconomicheadwind,

werevisetherevenueoutlooktorevenueexceedingthe

2011/12financialyearrevenueofDKK3,008million.

• ThelowerrevenuewilladverselyimpactEBIT.Thiswill

bepartlyoffsetbyadditionalefficiencymeasuresandan

increasedgrossmargininthe2012/13financialyear.The

outlookforEBITisrevised,sothattheEBIT-marginisex-

pectedtoremainpositive.

• TheEBITguidanceincludesanexpectedadverseimpact

ofmorethanDKK100millioncomparedtolastyear

fromhigheramortisationandlowercapitalisation,while

continuingahighlevelofproductdevelopmentactivity.

• Thenetworkrestructuringisestimatedtotake12-18

months,whichimpliesthatthetransitionphaseinthe

“Leaner,Faster,stronger”strategywilltakeoneyearlong-

erthananticipatedatthelaunchofthe“Leaner,Faster,

stronger”strategy.Consequentlythestrategyimplemen-

tationperiodwillbeextendedfromfivetosixyears.

Anyenquiriesaboutthisannouncementcanbeaddressedto:

CEOTueMantoni,tel.:+4596845000

IRManagerClausHøjmarkJensen,tel.:+4523251067

Awebcastwillbehostedon9January2013at10.00.

Accesstothewebcastisobtainedthroughourhomepage

www.bang-olufsen.com.

HIgHlIgHTs · key figures · management report · statement · financial review · additional information


Bang&Olufsena/s-Group(DKKmillion) 2nd quarter growth 1st half-year growth

2012/13 2011/12 % 2012/13 2011/12 %

Income statement: Revenue 819 776 6 1,419 1,374 3Grossmargin,% 43.7 43.8 - 42.5 41.5 -Earningsbeforeinterest,taxes, depreciation,amortisationand capitalisation(EBITDAC) 40 32 25 10 6 67Earningsbeforeinterest,taxes, depreciationandamortisation(EBITDA) 106 106 0 123 137 (10)Earningsbeforeinterestandtax(EBIT) 26 47 (45) (35) 18 (194)Financialitems,net (4) (5) 20 (7) (8) 13Earningsbeforetax(EBT) 23 41 (44) (41) 8 (513)Earningsaftertax 15 29 (52) (32) 2 (1,700) financial position: Totalassets 3,190 2,698 18 3,190 2,698 18sharecapital 393 362 9 393 362 9Equity 1,772 1,540 15 1,772 1,540 15Netinterest-bearingdebt 422 219 93 422 219 93Networkingcapital 927 533 74 927 533 74 Cash flow: –fromoperatingactivities (139) 104 (214) 51–frominvestingactivities (69) (87) (139) (171)–freecashflow (208) 17 (352) (120)–fromfinancingactivities 179 46 287 91Cashflowfortheperiod (28) 63 (66) (29) Key figures: EBITDA-margin,% 12.9 13.6 8.7 9.9EBIT-margin,% 3.2 6.0 (2.5) 1.3NIBD/EBITDAratio*) 1.15 0.66 1.15 0.66Returnonassets,% 1.0 2.0 (1.3) 0.8Returnoninvestedcapital,excl. goodwill,% 4.4 6.0 3.9 6.1Returnonequity,% (1.9) 1.9 (1.9) 0.1Fulltimeemployeesattheend oftheperiod 2,142 2,040 2,142 2,040 stock related key figures: Earningspershare(EPs),DKK 0.4 0.8 (0.9) 0.0Earningspersharediluted(EPs-D),DKK 0.4 0.8 (0.9) 0.0Price/Earnings 161 65 (76) 1,047 *) Calculated based on rolling 12m EBITDA

KEYFIGUREs

highlights · KeY fIgures · management report · statement · financial review · additional informationAnchor#2-R


Q2 revenue driven by growth in B&O plaY and

automotive

TheGroup’srevenueforthesecondquarterofthe2012/13

financialyearwasDKK819million,comparedtoDKK776

millionlastyear.TheGroup’stotalrevenueforthefirsthalf

ofthe2012/13financialyearwasDKK1,419millionagainst

DKK1,374millionlastyear,whichcorrespondstoagrowth

of3percent.

TheGroup’sgrossmarginimprovedto43.7percentinthe

secondquarterfromagrossmarginof40.8percentinthe

firstquarterofthe2012/13financialyearanditremained

onparwiththegrossmarginof43.8percentforthesame

periodlastyear.Theimprovementinthegrossmarginwas

Revenue YTD 2012/13 (DKK million)

B2C B2B

aV

DKK 817m

B&O PLAY

DKK 258m

Automotive

DKK 288m

iCEpower

DKK 54m

mainlyduetoanimprovedmarginintheB&OPLAYseg-

ment.TheB&OPLAYgrossmarginincreased,comparedto

thefirstquarter,by11percentagepointsto32.8percent

inthesecondquarterduetoproductmix.Inthefirsthalfof

the2012/13financialyear,thegroupgrossmarginwas42.5

percentagainstagroupgrossmarginof41.5percentfor

thesameperiodlastyear.

Earningsbeforetaxforthesecondquarterwerepositiveat

DKK23millionagainstpositiveearningsofDKK41million

inthesameperiodlastyear.Earningsbeforetaxforthefirst

halfofthe2012/13financialyearwerenegativeDKK41

millionagainstpositiveDKK8millionlastyear.

MANAGEMENTREPORTThe second quarter showed revenue growth of 5.5 per cent. B&O PLAY

and Automotive grew by 144 per cent and 16 per cent respectively offsetting a decline in AV by 14 per cent. As expected, amortisation charges were

DKK 13 million higher than the same quarter last year, at the same time as capitalised development projects were down by DKK 9 million. This leads to an adverse impact on earnings before tax of DKK 22 million explaining the

drop from DKK 41 million last year to DKK 23 million in the second quarter of this year.

highlights · key figures · ManageMenT repOrT · statement · financial review · additional information

revenue YTd · the development in bang & olufsen distribution by region · product launches · distribution development expectations to the future

Anchor#3-R

Anchor#1-U


B2C

TheB2Cbusiness,whichconsistsoftheAVandtheB&O

PLAYsegments,recordedrevenueofDKK635millioninthe

secondquarterofthe2012/13financialyearcomparedto

revenueofDKK617millioninthesameperiodlastyear.Ac-

cumulatedtheB2CbusinessrecordedrevenueofDKK1,075

millioncomparedtoDKK1,096millioninthefirsthalfofthe

2011/12financialyear.

B2CrevenueinEuropeincreasedby12percentinthe

quarterdrivenbythelaunchesofnew,innovativeproducts.

NorthAmericaincreasedby2percentwhereastheBRIC

marketsdeclinedby22percent.ThedeclineintheBRIC

revenueismainlyexplainedbythetransitionfromamaster

dealerset-uptodirectdistributioninmid-ChinaandBrazil.

B2CrevenueintheRestofWorlddeclinedby22percent

duetolaterintroductionofnewproducts.

TheAVsegmentrecordedrevenueofDKK476millioninthe


DKK552millioninthesameperiodlastyear.Thedeclinein

revenuewasduetoagenerallylowerthanexpecteddemand

inEuropecombinedwithatransitionfromamasterdealer

set-uptodirectdistributioninmid-China(includingshang-

haiandBeijing)andinBrazil.AccumulatedtheAVsegment

recordedrevenueofDKK817millioncomparedtoDKK979

millioninthefirsthalfofthe2011/12financialyear.

ThegrossmarginfortheAVsegmentinthesecondquarter

ofthe2012/13financialyearwas48.7percentagainsta

grossmarginof45.8percentforthesameperiodlastyear.

Theimprovedgrossmarginisinspiteofahighershareof

TVsales,followingthelaunchoftheBeoVision11.TheAV

margincontinuestobepositivelysupportedbythedistribu-

tiondevelopmentwherethestoresacquiredinHongKong

andsouthernChinainthethirdquarterof2011/12gives

anincreaseinoverallgrossmargin.Thisishowevertoa

certainextentoff-setbyincreaseddistributionandmar-

ketingcostsasevidencedbythedevelopmentincapacity

costs.

B&OPLAYrecordedrevenueofDKK159millioninthe


DKK65millioninthesameperiodlastyear.Accumulated

B&OPLAYrecordedrevenueofDKK258millioncompared

toDKK117millioninthefirsthalfofthe2011/12financial

year.Thegrowthislargelyexplainedbyagenerallymore

extensiveproductportfolioaswellasastronglaunchofthe

BeoPlayA9inNovember.

revenue and growth by segment Q2 – B2C

(dKK million)

0

100

200

300

400

500

600

700

AV

Q2 11/12

B&O PLAY Total B2C

Q2 12/13

-14%

+144%

+3%

revenue and growth by segment YTd – B2C

(dKK million)

0

200

400

600

800

1,000

1,200

AV

YTD 11/12

B&O PLAY Total B2C

YTD 12/13

-17%

+121%

-2%




gross margin by segment Q2 – B2C (%)

0

10

20

30

40

50

60

AV

Q2 11/12

B&O PLAY Total B2C

Q2 12/13

gross margin by segment YTd – B2C (%)

0

10

20

30

40

50

60

AV

YTD 11/12

B&O PLAY Total B2C

YTD 12/13

ThegrossmarginforB&OPLAYinthesecondquarterofthe

2012/13financialyearwas32.8percentagainstagross

marginof21.5percentinthepreviousquarter,and33.9

percentforthesameperiodlastyear.Theincreaseinthe

grossmargincomparedtothefirstquarterismainlyattribut-

abletoproductmix,astheBeoPlayA9hasahighermargin

thanBeoPlayV1,whichhasbeenthemostpredominant

B&OPLAYrevenuedriverintheprevioustwoquarters.




B2B

TheB2Bbusiness,whichconsistsoftheAutomotiveand

ICEpowersegments,recordedrevenueofDKK182millionin

thesecondquarterofthe2012/13financialyearcompared

torevenueofDKK163millioninthesameperiodlastyear,

whichcorrespondstoanincreaseof11percent.Accumu-

latedtheB2BbusinessrecordedrevenueofDKK342million

comparedtoDKK285millioninthefirsthalfofthe2011/12

financialyear,oranincreaseof20percent.

TheAutomotivesegmentrecordedrevenueofDKK154

millioninthesecondquarterofthe2012/13financialyear,

comparedtoDKK133millioninthesecondquarterlast

year.Thegrowthcontinuestobedrivenbythelaunchofa

numberofnewcarmodelsattheendofthe2011/12finan-

cialyear.AccumulatedtheAutomotivesegmentrecorded

revenue and growth by segment Q2 – B2B

(dKK million)

0

40

80

120

160

200

240

ICEpower

Q2 11/12

Automotive Total B2B

Q2 12/13

+16%

-7%

+11%

revenue and growth by segment YTd – B2B

(dKK million)

0

60

120

180

240

300

360

ICEpower

YTD 11/12


YTD 12/13

+25%

+1%

+20%

revenueofDKK288millioncomparedtoDKK231millionin

thefirsthalfofthe2011/12financialyear.Thegrossmargin

withintheAutomotivesegmentinthesecondquarterof

the2012/13financialyearwas38.4percentagainstagross

marginof39.5percentforthesameperiodlastyear.

TheICEpowersegmentrecordedrevenueofDKK28million


paredtoDKK30millioninthesameperiodlastyear.Accu-

mulatedtheICEpowersegmentrecordedrevenueofDKK54

millionwhichisonlevelwiththefirsthalfofthe2011/12fi-

nancialyear.ThegrossmarginwithintheICEpowersegment

was53.9percentinthesecondquarterofthe2012/13

financialyearagainstagrossmarginof46.3percentforthe

sameperiodlastyear.




gross margin by segment Q2 – B2B (%)

0

10

20

30

40

50

60

ICEpower

Q2 11/12


Q2 12/13

gross margin by segment YTd – B2B (%)

0

10

20

30

40

50

60

ICEpower

YTD 11/12


YTD 12/13

development in capacity costs and balance sheet items

Duringthesecondquarterofthe2012/13financialyear,the

capacitycostsincreasedtoDKK332millionfromDKK293mil-

lioninthesameperiodlastyear.Theincreasemainlyrelatesto

higherdevelopmentcosts,whichincreasedduetolowercapi-

talisationandhigheramortisationofdevelopmentprojects,

andalsohigherdistributionandmarketingcosts.Duringthe

firsthalfofthe2012/13financialyear,theGroupincreasedits

capacitycostsbyDKK86millionfromDKK552millioninthe

sameperiodlastyeartoDKK638millionthisyear.

DistributionandmarketingcostswereDKK191millionin

thesecondquarterofthe2012/13financialyearcompared

toDKK175millioninthesameperiodlastyear.Thiscorre-

spondstoanincreaseofDKK16million,amongotherthings

asaresultofincreasedmarketingofnewlylaunchedprod-

ucts.Asnotedinthefirstquarter,costshavealsoincreased

comparedtotheprioryearduetotheestablishmentofa

nationalsalesofficeinshanghai,theacquisitionofactivities

andowndistributioninHongKongandsouthernChinain

Q32011/12,andtheestablishmentofaB&OPLAYsalesor-

ganisationduringthecourseofthe2011/12financialyear.

Administrationcostsetc.totalledDKK23millioninthesec-

ondquarterofthe2012/13financialyearcomparedtoDKK

30millionincurredinthesecondquarterofthe2011/12

financialyear.

TheGroupincurreddevelopmentcostsofDKK131million

forthesecondquarterofthe2012/13financialyear(of

whichDKK66millionwerecapitalised)againstDKK123mil-

lion(ofwhichDKK74millionwerecapitalised)forthesame

periodlastyear.Theactivitylevelinproductdevelopment

remainshigh.

Expenseddevelopmentcosts(incl.amortisationandimpair-

mentlosses)wereDKK117millionforthesecondquarter

ofthe2012/13financialyear,whileexpenseddevelopment

costsforthesameperiodlastyearwereDKK87million.

Totalamortisationchargesandimpairmentlossesondevel-

opmentprojectswereDKK51millioncomparedtoDKK38

millionlastyear.Theincreaseinamortisationchargesmainly

relatestoamortisationonthevideoengine,whichwas

launchedinthefourthquarter2011/12(inBeoPlayV1)and

toamortisationonnewlylaunchedautomotivemodels.The

neteffectofcapitalisationwaspositiveDKK14millioncom-

paredtoapositiveeffectofDKK36millionlastyear–anad-

verseimpactfromcapitalisationofDKK22millioncompared

tothesameperiodlastyear.




Capitalised development costs and carrying amount

(DKKmillion)–YTD2012/13

2012/13 B2C B2B Total

Capitalised,net 61 52 113

Carryingamount,net 425 215 640

(DKKmillion)–YTD2011/12

2011/12 B2C B2B Total

Capitalised,net 79 51 130

Carryingamount,net 402 167 569

Inthesecondquarterofthe2012/13financialyearthecapi-

taliseddevelopmentcostswereDKK66million,ofwhich

DKK27millionrelatetoAutomotiveprojects.Forthefirst

halfofthe2012/13financialyearthecapitaliseddevelop-

mentcostswereDKK113million,ofwhichDKK47million

relatetoAutomotiveprojects.

DuringthesecondquarterreimbursementsofDKK6million

werereceivedfromAutomotivepartnersfordevelopment

projectscomparedtoDKK6millioninthesameperiodlast

year.Thereimbursementsreceivedhavebeenoffsetdirectly

inintangibleassets.

FreecashflowinthequarterwasnegativeatDKK208mil-

lioncomparedtopositiveDKK17millioninthesameperiod

lastyear.TheGroup’snetworkingcapitalwasDKK927

millionbytheendofthesecondquarterofthe2012/13

financialyear,comparedtoDKK533millionattheendof

thesecondquarterofthe2011/12financialyearandDKK

703millionattheendofthefirstquarterofthe2012/13

financialyear.Theincreasecomparedtothepreviousquarter

mainlyrelatestohighertradereceivablesrelatedtoproduct

launchesduringthequarter.Asindicatedintheinterimre-

portforthefirstquarter,itisexpectedthatnetworkingcap-

itallevelswillremainhighwellintothethirdquarterasthe

decreaseininventorylevelswillbeoffsetbyanincreasein

tradereceivablesduetohigherrevenuelevels.Itisexpected

thatnetworkingcapitalwillbereducedinthesecondhalf

ofthe2012/13financialyear.

ThenetinterestbearingdebtincreasedtoDKK422million

fromDKK219millionbytheendofthesecondquarterof

the2011/12financialyear.Theincreaseinthenetinterest

bearingdebtisprimarilycausedbyhighernetworkingcapi-

tal.

TheGroup’sequityhasincreasedfromDKK1,581million,

attheendofthefinancialyear2011/12,toDKK1,772mil-

lion,whichprimarilyisduetoacapitalincreasethrougha

directedshareissuetosparkleRollandACAPITALinOcto-

ber2012,whereby3,026,421newsharesofDKK10each,

correspondingtoatotalnominalcapitalincreaseofDKK

30,264,210,havebeenissued.sparkleRollHoldingsLimited

hassubscribedfor2,404,186sharesandACapitalBravo

Holdings.à.r.l.hassubscribedfor622,235sharesatamar-

ketpriceofDKK60.22pershare.Afterthecapitalincrease

thetotalnumberofsharesamountsto39,270,435shares.

Theequityisalsoaffectedbythenetresultfortheperiod.

Theequityratiois55.6percent.




1)EuropecoversDenmark,Norway,sweden,UnitedKingdom,Netherlands,Belgium,Germany,switzerland,Austria,spain,ItalyandFrance.

2)NorthAmericacoversUsA,CanadaandMexico.3)BRICcoversBrazil,Russia,India,China,Taiwan,HongKongand

Korea.

The development in Bang & Olufsen distribution by

region

revenue growth by region (Q2 and YTd)

-40

-30

-20

-10

0

10

20

30

Q2YTD

%

Europe1) North America2) BRIC3) Rest of World Total

Inthesecondquarterofthe2012/13financialyearrevenue

inRegionEurope1)increasedbyDKK47million–corre-

spondingto12percent–fromDKK407millionforthe

sameperiodlastyeartoDKK454milliondrivenbyCentral

Europe.AccumulatedEuroperecordedrevenueofDKK734

millioninthefirsthalfofthe2012/13financialyear.

NorthAmerica2)recordedrevenueofDKK41millioncom-

paredtoDKK40millionlastyear,anincreaseof2percent,

mainlydrivenbyB&OPLAY.AccumulatedNorthAmerica

recordedrevenueofDKK83millioninthefirsthalfofthe


TheBRIC3)countriesdecreasedfromDKK81milliontoDKK

63million.Thedeclineismainlyduetotheongoingtransi-

tionfromamasterdealerset-uptodirectdistributioninthe

mid-Chinaregion(includingBeijingandshanghai)andBra-

zilregardingtheacquisitionofactivities(seefurtherdetails

inthe“subsequentevents”section).AccumulatedBRIC



RevenueinRestofWorlddecreasedfromDKK79million

forthesameperiodlastyeartoDKK62millionduetolater

introductionofnewproducts.AccumulatedRestofWorld



RevenuethroughthirdpartychannelswasDKK16million

comparedtoDKK12millionforthesameperiodlastyear.

Accumulatedrevenuethroughthirdpartychannelshas

increasedfromDKK17milliontoDKK27million.Inthe

secondquarterofthe2012/13financialyear,distribution

agreementshavebeenmaderegardingB&OPLAYwith36

thirdpartystores,aswellasoneonlinestoreinAsia.


revenue ytd · THe develOpMenT In Bang & Olufsen dIsTrIBuTIOn BY regIOn · product launches · distribution development expectations to the future

Anchor#2-U


product launches

Inthesecondquarterofthe2012/13financialyear,Bang&OlufsenlaunchedBeoVision11andBeoLab12-1.BeoPlayA9

waslaunchedundertheB&OPLAYbrand.

Beovision 11

Bang&OlufsenlaunchedBeoVision11atamajorglobalpresslaunchin

October.BeoVision11isanewgenerationofBang&OlufsenTVsequipped

withthenewvideoengineandbuildingonthecompany’swellknown

designvirtuesandacousticalexpertise.Bang&Olufsen’smostambitiousTV

todateincorporates3Dtechnology,HybridbroadbandTV(HbbTV),optional

harddisk,DLNAcompatibility,andanumberofpictureimprovement

technologies.BeoVision11isalsothefirstTVtofeatureBang&Olufsen

smartTV.Thisinnovativeplatformmakesitpossibletoswitcheasilybetween

broadcasttelevisionandinternetcontent.BeoVision11isavailablein40”,

46”and55”.

Beolab 12-1

InNovember,Bang&OlufsenlaunchedBeoLab12-1.BeoLab12-1sharesthe

samedesignDNAasitspredecessorslaunchedearlierthisyear,BeoLab12-3

and12-2.TheBeoLab12familyisthecompany’sfirstdedicatedwallspeakers.

AlongwiththelaunchofBeoLab12-1,Bang&Olufsenintroducedafullrange

offloorstandsfortheentireBeoLab12collection.

Beoplay a9

BeoPlayA9wasannouncedinOctoberandavailableinshopsin

thesecondhalfofNovember.Thewirelesssoundsystemoffers

streamingviaAirPlayorDLNA.BeoPlayA9integratesdedicated

speakerunitsandamplifiers–deliveringatotaloutputof480

watts–withtimelessscandinavianinspireddesign.Thesound

systemcanbecontrolledbyremotecontrol,smartphoneortablet

orviaanewtouchsensorbuiltintothetop.


revenue ytd · the development in bang & olufsen distribution by region · prOduCT launCHes · distribution development expectations to the future

Anchor#3-U


distribution development

Bytheendofthesecondquarter,therewere637B1shops

acrosstheworldagainst642attheendofthefirstquarter

ofthe2012/13financialyear.Thus,thenetmovementfor

thesecondquarterwasareductionoffiveshops,withseven

openingsand12closures.

number of B1 shops and shop-in-shops

0

100

200

300

400

500

600

700

800

B1 shops

31.08.12

Shop-in-shops

30.11.12

Inaccordancewiththecommunicatedstrategy,theGroup

expectsareductioninthenumberofshopsinEuropeand

anincreaseinthenumberofshopsingrowthmarketsover

thecomingyears.

BytheendofNovember2012,therewere426B1shopsin

RegionEuropeagainst428attheendofthefirstquarter

2012/13.ThenetmovementinEuropeforthesecondquar-

terthereforeamountstoareductionoftwoshops,with

threeopeningsandfiveclosures.

InRegionNorthAmerica,therewere50B1shops,compared

to49attheendofthefirstquarterofthefinancialyear

2012/13.ThenetmovementinNorthAmericaforthesec-

ondquarterwasthereforeoneopening.

IntheBRICmarketstherewere74B1shopsagainst76at

theendofthefirstquarterofthefinancialyear2012/13.

Thenetmovementforthesecondquarteristwoclosures.

InRestofWorldtherewere87B1shopsagainst89atthe

endofthefirstquarterofthefinancialyear2012/13.The

netmovementforthesecondquarteramountstothree

openingsandfiveclosures.

B1 shops by region

0

50

100

150

200

250

300

350

400

450

500

31.08.1230.11.12

Europe North America BRIC Rest of World

Thenumberofshop-in-shopsis222against228attheend

ofthefirstquarterofthefinancialyear2012/13.Theshare

ofrevenueforB1shopsis85percentcomparedto84per

centinthefirsthalfofthe2011/12financialyear.

Theorganicrevenuedecline/growthinBang&Olufsen

shopswithmorethan24monthsofoperationswasade-

clineof6.5percentforB1shopsandanincreaseof5.0

percentforshop-in-shopsforthesecondquarterofthe



revenue ytd · the development in bang & olufsen distribution by region · product launches · dIsTrIBuTIOn develOpMenT expectations to the future

Anchor#4-U


strategy review

Duringthesecondquarter,Bang&Olufsenhasperformed

astrategicreviewofthe“Leaner,Faster,stronger”strategy.

Itismanagement’sviewthatthesix“Must-winBattles”,set

outatthelaunchofthestrategyinAugust2011,remain

thestrategicprioritiestorealisethefullpotentialofBang&

Olufsen.

The“Must-winBattles”ingeneralareprogressingas

planned,whichisillustratedbythesuccessfulnewproduct

launchesduring2012,whichhavebeenbettertimedand

moreimpactful,aswellaswithimprovedquality.However,

thethirdandfourthmust-winbattles,“OptimiseRetail

Network”and“GrowBRIC”arenotprogressingwiththe

pacesetforthinthe“Leaner,Faster,stronger”strategy.It

hasthereforebeendecidedtotakeinitiativestoaccelerate

thestoreopeningsingrowthmarketsandproactivelyclose

storesinmaturemarkets.Theaimistoimprovetheoverall

healthoftheretailnetwork.

Thenumberofextra-ordinarystoreclosings(B1andshop-

in-shops)isinitiallyexpectedtoexceedthenumberofstore

openings.Wewillacceleratetheclosureofupto125stores

withinthenext12-18months,ofwhichasignificantnum-

berofclosureswillhappenwithinthe2012/13financialyear.

Thisisestimatedtohaveanadverserevenueimpactofup

toDKK100millioninthe2012/13financialyear.Toacceler-

atetheopeningofnewstores,Bang&Olufsenwillinitially

openstoresinkeylocationsaswellascontinuetoworkon

attractingnewretailpartners.

ToensureacceleratedgrowthintheBRICmarkets

Bang & Olufsenhasproactivelydecidedtotakecontrolof

themasterdealernetworkinmid-ChinaandBrazil.There-

forenegotiationshavebeenon-goingwiththerespective

masterdealersofthesetwolocations.Aftertheendofthe

secondquarter,aletterofintenthasbeensignedwiththe

masterdealerinmid-China,andanagreementhasbeen

madewiththemasterdealerinBrazil(seealsothesection

‘subsequentEvents’below).Thisisestimatedtohavean

adverserevenueimpactofuptoDKK100millioninthe


TheopeningofBang&Olufsenownedstoresaswellasthe

acquisitionoftheabovementionedmasterdealers,areex-

pectedtobefundedbyinternalsourcesoffunding.

Toensurequickdecisionmakingandexecutionadedi-

catedtaskforceofretailspecialistsreportingdirectlyto

theexecutivemanagementwillperformtheretailnetwork

restructuring.Thenetworkrestructuringisestimatedto

take12-18months,whichimpliesthatthetransitionphase

inthe“Leaner,Faster,stronger”strategywillbeoneyear

longerthananticipatedatthelaunchofthe“Leaner,Faster,

stronger”strategy.Thestrategyimplementationperiodwill

thereforebeextendedfromfivetosixyears.

The group’s expectations to the future

Comparedtotheexpectationsatthebeginningofthe

2012/13financialyear,theexpectationshavebeenadversely

impactedbythefollowing:

• Upto125storesareestimatedtobeclosedwithinthe

next12-18months,ofwhichasignificantnumberof

closingswillhappenwithinthe2012/13financialyear.

Thisisestimatedtohaveanadverserevenueimpactof

uptoDKK100millioninthe2012/13financialyear.

• Theacquisitionofthemasterdealeroperationsinmid-

ChinaandBrazilisexpectedtohaveanadverseeffecton

revenueofuptoDKK100million

Asaconsequenceoftheabovementionedactionsandthe

continuedmacroeconomicheadwind,werevisetherevenue

outlookfrompreviouslydoubledigitgrowthtorevenue

exceedingthe2011/12financialyearrevenueofDKK3,008

million.

ThelowerrevenuewilladverselyimpactEBIT.Thiswillbe

partlyoffsetbyadditionalefficiencymeasuresandanin-

creasedgrossmargininthe2012/13financialyear.The

outlookforEarningsbeforeinterestandtax(EBIT)isrevised,

sothattheEBIT-marginisexpectedtoremainpositive,com-

paredtothepreviousstatementofanEBIT-marginhigher

thanthe2011/12financialyear.


revenue ytd · the development in bang & olufsen distribution by region · product launches · distribution development expeCTaTIOns TO THe fuTure

Anchor#5-U


TheEBITguidanceincludesanexpectedadverseimpactof

morethanDKK100millioncomparedtolastyearfromhigh-

eramortisationandlowercapitalisation,whilecontinuinga

highlevelofproductdevelopmentactivity.

Thenetworkrestructuringisestimatedtotake12-18

months,whichimpliesthatthetransitionphaseinthe

“Leaner,Faster,stronger”strategywilltakeoneyearlonger

thananticipatedatthelaunchofthe“Leaner,Faster,strong-

er”strategy.Thetransitionphasewillthereforebethree

years(previouslytwoyears)andconsequentlythestrategy

implementationperiodwillbeextendedfromfivetosix

yearsrunningfromthefinancialyear2011/12tothefinan-

cialyear2016/17.

subsequent events

AftertheendofthereportingperiodBang&Olufsenhas

signedaletterofintentfortheacquisitionoftheactivities

fromthemasterdealerinthemid-Chinaregion(including

Beijingandshanghai).Thecurrentmasterdealerhas21B1

shopsintheregion,andBang&Olufsenwilltakeownership

of16storesandtheremainingshopswillbeclosed.Bang&

Olufsenhasalsomadeanagreementtoacquiretheactivities

fromthemasterdealerinBrazil.

Distributionagreementshavealsobeenmaderegarding

B&OPLAYwith24thirdpartystoresinEuropeandHong

Kong,aftertheendofthereportingperiod.


revenue ytd · the development in bang & olufsen distribution by region · product launches · distribution development expeCTaTIOns TO THe fuTure


struer,9January2013

executive Management:

TueMantoni HenningBejerBeck

CEO ExecutiveVicePresident&CFO

JohnChristianBennett-Therkildsen

ExecutiveVicePresident

Board of directors:

OleAndersen JimHagemannsnabe

Chairman DeputyChairman

JesperJarlbæk AndréLoesekrug-Pietri

RolfEriksen AlbertoTorres

KnudOlesen JesperOlesen

PerØstergaardFrederiksen

Wehavetodayconsideredandapprovedtheinterimre-

portfortheperiod1June2012–30November2012for

Bang & Olufsena/s.

TheinterimreportispresentedinaccordancewithIAs34,

InterimFinancialReporting,asendorsedbytheEUandfur-

therDanishdisclosurerequirementsforinterimreportsfor

listedcompanies.

Itisouropinionthattheinterimreportprovidesatrueand

fairviewoftheGroup’sassets,liabilitiesandfinancialposi-

tionasat30November2012andtheresultsoftheGroup’s

operationsandcashflowsfortheperiod1June2012–30

November2012.

Itisalsoouropinionthatthemanagementreportgivesa

trueandfairviewofdevelopmentsintheGroup’sactivities

andfinancialsituation,theearningsfortheperiodandthe

Group’sfinancialpositioningeneralaswellasadescription

ofthemostsignificantrisksanduncertaintiestowhichthe

Groupisexposed.

MANAGEMENT’s STaTEMENT

highlights · key figures · management report · sTaTeMenT · financial review · additional informationAnchor#4-R


CONSOliDaTED iNCOME STaTEMENT

2nd quarter 1st half-year Year

(DKKmillion) Note 2012/13 2011/12 2012/13 2011/12 2011/12

revenue 819.0 775.5 1,419.4 1,374.1 3,007.7Productioncosts (461.2) (436.2) (816.6) (803.8) (1,792.0)gross profit 357.8 339.3 602.8 570.3 1,215.7Grossmargin,% 43.7 43.8 42.5 41.5 40.4 Developmentcosts 3 (117.0) (87.4) (228.8) (178.4) (337.4)Distributionandmarketingcosts (191.3) (175.4) (366.5) (323.2) (654.3)Administrationcostsetc. (23.3) (29.7) (42.6) (50.4) (101.6)earnings before interest and tax (eBIT) 26.2 46.8 (35.1) 18.3 122.4 shareofresultaftertaxinassociatedcompanies 0.6 (0.9) 0.6 (1.8) (2.1) Financialincome 1.8 2.0 4.4 3.6 9.4Financialcosts (5.7) (7.1) (11.2) (11.9) (25.5)Financialitems,net (3.9) (5.1) (6.8) (8.3) 16.1 earnings before tax (eBT) 22.9 40.8 (41.3) 8.2 104.2 Taxfortheperiod (7.5) (12.0) 9.5 (6.4) (30.9)earnings after tax for the period 15.4 28.8 (31.8) 1.8 73.3 Attributableto: shareholdersinBang&Olufsena/s 15.4 28.8 (31.8) 1.8 73.3 15.4 28.8 (31.8) 1.8 73.3 earnings per share Earningspershare(EPs),DKK 0.4 0.8 (0.9) 0.0 2.0Dilutedearningspershare(EPs-D),DKK 0.4 0.8 (0.9) 0.0 2.0

highlights · key figures · management report · statement · fInanCIal revIew · additional information

InCOMe sTaTeMenT · statement of comprehensive income · balance sheets · cash flow statement · statement of changes in equity

notes · appendix

Anchor#5-R

Anchor#6-U


CONSOliDaTED STaTEMENT Of COMPREhENSiVE iNCOME


(DKKmillion) 2012/13 2011/12 2012/13 2011/12 2011/12

earnings for the period 15.4 28.8 (31.8) 1.8 73.3Exchangerateadjustmentofinvestmentsin foreignsubsidiaries (3.2) (9.4) 2.4 (6.0) 0.0Changeinfairvalueofderivativefinancialinstruments usedascashflowhedges (3.9) 9.4 (9.3) 11.9 25.7Transfertotheincomestatementoffairvalue adjustmentsofderivativefinancialinstrumentsused ascashflowhedges,realisedcashflows:–Transfertorevenue (1.6) (0.5) (6.2) (3.4) (10.8)–Transfertoproductioncosts 1.2 0.7 5.6 0.0 4.3Taxonothercomprehensiveincome 1.1 (2.4) 2.5 (2.1) (4.8)Other comprehensive income, net of tax (6.4) (2.2) (5.0) 0.4 14.4 Comprehensive income for the period 9.0 26.6 (36.8) 2.2 87.7 Attributableto: shareholdersinBang&Olufsena/s 9.0 26.6 (36.8) 2.2 87.7 9.0 26.6 (36.8) 2.2 87.7


income statement · sTaTeMenT Of COMpreHensIve InCOMe · balance sheets · cash flow statement · statement of changes in equity

notes · appendix

Anchor#7-U


CONSOliDaTED BalaNCE ShEET

30/11 30/11 31/05 (DKKmillion) 2012 2011 2012

Goodwill 47.8 44.7 47.8Acquiredrights 25.1 31.9 27.8Completeddevelopmentprojects 430.7 279.1 296.8Developmentprojectsinprogress 209.0 289.6 338.9Total intangible assets 712.6 645.3 711.3 Landandbuildings 205.2 215.5 210.3Plantandmachinery 147.3 151.5 145.6Otherequipment 30.1 30.1 29.3Leaseholdimprovements 20.2 16.1 17.5Tangibleassetsincourseofconstructionandprepaymentsoftangibleassets 76.1 80.3 96.8Total tangible assets 478.9 493.5 499.5 Investment property 40.6 42.0 41.3 Investmentsinassociates 5.6 5.7 5.6Otherfinancialreceivables 40.4 48.3 46.6Total financial assets 46.0 54.0 52.2 deferred tax assets 216.5 142.5 139.9Total non-current assets 1,494.6 1,377.3 1,444.2 Inventories 848.2 612.3 665.0 Tradereceivables 628.6 470.7 539.9Receivablesfromassociates 5.0 1.0 2.4Corporationtaxreceivable 15.8 18.6 12.4Otherreceivables 40.7 32.1 50.4Prepayments 54.8 31.1 18.8Total receivables 744.9 553.5 623.9 Cash 101.8 155.3 159.1 Total current assets 1,694.9 1,321.1 1,448.0 Total assets 3,189.5 2,698.4 2,892.2


income statement · statement of comprehensive income · BalanCe sHeeTs · cash flow statement · statement of changes in equity

notes · appendix

Anchor#8-U


CONSOliDaTED BalaNCE ShEET

30/11 30/11 31/05 (DKKmillion) 2012 2011 2012

sharecapital 392.7 362.4 362.4Translationreserve 27.5 19.2 25.1Reserveforcashflowhedges (1.2) (9.3) 8.3Retainedearnings 1,352.6 1,168.0 1,230.2Total equity 1,771.6 1,540.3 1,626.0 Pensions 10.7 10.0 9.8Deferredtax 41.6 6.6 15.4Provisions 71.4 86.8 86.2Mortgage loans 209.5 216.2 212.9Othernon-currentliabilities 1.0 0.8 0.9Total non-current liabilities 334.2 320.4 325.2 Mortgage loans 7.0 6.7 6.6Loansfrombanks 260.0 100.0 150.0Overdraftfacilities 47.2 42.1 37.8Provisions 51.7 50.7 54.8Tradepayables 323.1 302.7 384.8Corporationtaxpayable 67.1 23.5 27.8Otherliabilities 275.4 266.6 259.9Deferredincome 52.2 45.4 19.3Total current liabilities 1,083.7 837.7 941.0 Total liabilities 1,417.9 1,158.1 1,266.2 Total equity and liabilities 3,189.5 2,698.4 2,892.2


income statement · statement of comprehensive income · BalanCe sHeeTs · cash flow statement · statement of changes in equity

notes · appendix


CONsOLIDATEDCAsHFLOWsTATEMENT


(DKKmillion) Note 2012/13 2011/12 2012/13 2011/12 2011/12

Earningsfortheperiod 15.4 28.8 (31.8) 1.8 73.3Amortisation,depreciationandimpairmentlosses 79.3 58.8 158.5 118.2 256.2Adjustmentsfornon-cashitems 4 (2.6) 31.7 (15.0) 33.6 81.6Changeinreceivables (251.6) (105.8) (115.0) (129.4) (204.7)Changeininventories 8.2 (15.2) (183.3) (49.3) (94.8)Changeintradepayablesetc. 18.0 121.0 (17.3) 96.7 144.5Cashflowsfromoperations (133.3) 119.3 (203.9) 71.6 256.1 Interestreceivedandpaid,net (3.9) (5.2) (6.8) (8.4) (16.1)Incometaxpaid (1.9) (10.0) (2.9) (12.0) (14.7)Cash flows from operating activities (139.1) 104.1 (213.6) 51.2 225.3 Purchaseofintangiblenon-currentassets (65.0) (79.8) (113.1) (130.8) (280.1)Purchaseoftangiblenon-currentassets (16.4) (24.8) (38.2) (58.9) (136.8)Acquisitionofactivity - - - - (12.9)saleoftangiblenon-currentassets - 19.2 0.1 20.0 45.6Receivedreimbursements,intangiblenon-currentassets 5.6 6.2 6.1 6.7 12.1Capitalincrease,Bang&OlufsenMedicoma/s - - - - (1.7)Changeinfinancialreceivables 7.3 (7.9) 6.3 (8.2) (6.5)Cash flows from investing activities (68.5) (87.1) (138.8) (171.2) (380.3) free cash flow (207.6) 17.0 (352.4) (120.0) (155.0) Repaymentoflong-termloans (1.6) (1.3) (3.0) (2.9) (6.4)Proceedsfromshort-termborrowings - 50.0 110.0 100.0 150.0Capitalincrease 180.4 - 180.4 - -Paymentofdebtregardingpurchaseof minorityinterestanddividend - (2.3) - (2.3) (5.7)salesofownshares 0.5 - 0.5 - -Purchaseofownshares - - (1.3) - (4.3)Cash flow from financing activities 179.3 46.4 286.6 91.4 133.6 Change in cash and cash equivalents (28.3) 63.4 (65.8) (28.6) (21.4) Cashandcashequivalents,openingbalance 82.8 49.9 121.3 141.4 141.4Exchangerateadjustment,cashandcashequivalents 0.1 (0.1) (0.9) 0.4 1.3Cash and cash equivalents, closing balance 54.6 113.2 54.6 113.2 121.3 Cash and cash equivalents: Cash 101.8 155.3 101.8 155.3 159.1Currentoverdraftfacilities (47.2) (42.1) (47.2) (42.1) (37.8)Cash and cash equivalents, closing balance 54.6 113.2 54.6 113.2 121.3


income statement · statement of comprehensive income · balance sheets · CasH flOw sTaTeMenT · statement of changes in equity

notes · appendix

Anchor#9-U


CONSOliDaTED STaTEMENT Of CHANGEsINEQUITY

30/11 30/11 31/05 (DKKmillion) 2012 2011 2012

equity, opening balance 1,626.0 1,538.3 1,538.3Earningsfortheperiod (31.8) 1.8 73.3Othercomprehensiveincome,netoftax (5.0) 0.4 14.4Comprehensiveincomefortheperiod (36.8) 2.2 87.7 Capitalincrease*) 179.0 - -Employeeshares - - 1.2Purchaseofminorityinterestanddistributeddividend - (2.9) (2.9)Grantofshareoptions 4.2 2.7 6.0salesofownshares 0.5 - -Purchaseofownshares (1.3) - (4.3)equity, closing balance 1,771.6 1,540.3 1,626.0 *)AllnewshareshavebeensubscribedforbysparkleRollHoldingsLimitedandACapitalBravoHoldings.à.r.l.atamarketpriceofDKK

60.22pershareofDKK10.


income statement · statement of comprehensive income · balance sheets · cash flow statement · sTaTeMenT Of CHanges In eQuITY

notes · appendix

Anchor#10-U


NOTES

1 accounting principles

TheinterimreportforBang&Olufsena/sispreparedasacondensedsetoffinancialstatementsinaccordancewithIAs34‘InterimFinancialReporting’,asendorsedbytheEuropeanUnionandfurtherDanishdisclosurerequirementsforinterimreportsforlistedcompanies.Theinterimreporthasnotbeenauditedorreviewedbythecompany’sexternalauditors.Aninterimreportfortheparentcompanyhasnotbeenprepared.TheinterimreportisstatedinDanishkroner(DKK)whichisthefunctionalcurrencyoftheparentcompany.

TheAnnualReport2011/12containsafulldescriptionofappliedaccountingprinciples.

Accountingprinciplesandcomputationmethodsappliedintheinterimreportareunchangedcomparedtotheprinciplesappliedinthe2011/12AnnualReport,withtheexceptionofsomeneworamendedstandards(IFRsandIAs)andInterpretations(IFRICs)whichhavebe-comeeffective.ThenewstandardsandInterpretationshavenothadamaterialimpactonrecognitionandmeasurement.

2 significant estimates and assessments by management

Thepreparationofinterimreportsrequiresthatmanagementmakesestimatesandassessmentswhichaffecttheapplicationofaccountingprinciplesandrecognisedassets,liabilities,incomeandexpenses.Actualresultsmaydeviatefromtheseestimates.

Thematerialestimatesthatmanagementmakeswhenapplyingtheaccountingprinciplesofthegroup,andthematerialuncertaintycon-nectedwiththeseestimatesandassessmentsareunchangedinthepreparationoftheinterimreportcomparedtothepreparationoftheAnnualReportasat31May2012.

3 development costs


(DKKmillion) 2012/13 2011/12 2012/13 2011/12 2011/12

Incurreddevelopmentcostsbeforecapitalisation 131.2 123.1 239.7 240.0 471.5Hereofcapitalised (65.5) (74.1) (113.1) (130.3) (279.9)Totalamortisationchargesandimpairmentlosses ondevelopmentprojects 51.3 38.4 102.2 68.7 145.8development costs recognised in the consolidated income statement 117.0 87.4 228.8 178.4 337.4Capitalisation(%) 49.9 60.2 47.2 54.3 59.4


income statement · statement of comprehensive income · balance sheets · cash flow statement · statement of changes in equity

nOTes · appendix

Anchor#11-U


NOTES

4 adjustments for non-cash items in the cash flow statement


(DKKmillion) 2012/13 2011/12 2012/13 2011/12 2011/12

Changeinotherliabilities (19.2) (2.0) (16.8) 0.5 3.9Financialitems,net 3.9 5.1 6.8 8.3 16.1shareofresultaftertaxinassociatedcompanies (0.6) 0.9 (0.6) 1.8 0.1Gain/lossonsaleofnon-currentassets (0.2) - (0.4) - (8.2)Taxonearningsfortheperiod 7.5 12.0 (9.5) 6.4 30.9Variousadjustments 6.0 15.7 5.5 16.6 38.8adjustment for non-cash items (2.6) 31.7 (15.0) 33.6 81.6

5 segment information

2nd quarter 1st half-year Change, %

(DKKmillion) 2012/13 2011/12 2012/13 2011/12 YTD

revenue by segment and business area

Consumer business (B2C):AV 475.7 552.0 817.3 978.9 (16.5)B&O PLAY 159.3 65.3 257.9 116.8 120.8Totalconsumerbusiness(B2C) 635.0 617.3 1,075.2 1,095.7 (1.9) Business to business (B2B): Automotive 153.9 133.2 287.6 230.7 24.7ICEpower 27.7 29.8 54.4 54.1 0.6Totalbusinesstobusiness(B2B) 181.6 163.0 342.0 284.8 20.1 Eliminationofinternalrevenue (2.9) (6.3) (6.8) (8.4)Exchangerateadjustments 5.3 1.5 9.0 2.0revenue, group 819.0 775.5 1,419.4 1,374.1 3.3 gross margin by business area, % Consumer business (B2C): aV 48.7 45.8 48.4 43.2 B&O PLAY 32.8 33.9 28.4 34.2 Business to business (B2B): Automotive 38.4 39.5 36.3 36.4ICEpower 53.9 46.3 54.5 47.7gross margin-%, group 43.7 43.8 42.5 41.5



nOTes · appendix


NOTES

5 segment information (continued)

2nd quarter 1st half-year Change, %

(DKKmillion) 2012/13 2011/12 2012/13 2011/12 YTD

revenue by region

Consumer business (B2C)Bang&Olufsendistribution: Europe 454.4 407.1 733.8 737.7 (0.5)NorthAmerica 40.6 39.7 82.6 77.7 6.3BRIC 62.5 80.5 114.0 129.2 (11.8)RestofWorld 61.5 78.5 117.8 134.5 (9.3)TotalBang&Olufsendistribution 619.1 605.8 1,048.2 1,079.1 (2.5) 3rdpartydistributionande-commerce: B&O PLAY 15.9 11.5 27.0 16.6 37.3Total3rdpartydistributionande-commerce 15.9 11.5 27.0 16.6 37.3 Total consumer business (B2C) 635.0 617.3 1,075.2 1,095.7 (1.9) Business to business (B2B) Automotive 153.9 133.2 287.6 230.7 24.7ICEpower 27.7 29.8 54.4 54.1 0.6Total business to business (B2B) 181.6 163.0 342.0 284.8 20.1 Eliminationofinternalrevenue (2.9) (6.3) (6.8) (8.4)Exchangerateadjustments 5.3 1.5 9.0 2.0revenue, group 819.0 775.5 1,419.4 1,374.1 3.3

(DKKmillion) YTd 2012/13 internal revenue Consumerbusiness(B2C) Businesstobusiness(B2B) andadj. Total

AV B&O PLAY Automotive ICEpower

revenue 817.3 257.9 287.6 54.4 2.2 1,419.4Productioncosts (421.7) (184.7) (183.2) (24.8) (2.2) (816.6)gross profit 395.6 73.2 104.4 29.6 - 602.8Unallocatedcosts - - - - - (644.1)earnings before tax (eBT) - - - - - (41.3)



nOTes · appendix


6 shops by region – Bang & Olufsen distribution (B1 and shop-in-shop)

Number(units) shareofrevenue(%)

30.11.2012 31.08.2012 31.05.2012 yTD 2012/13 yTD 2011/12 Europe4 644 651 680 70.0% 68.3%NorthAmerica5 52 50 53 7.9% 7.2%BRiC6 75 78 80 10.9% 12.0%RestofWorld7 88 91 105 11.2% 12.5% 859 870 918 100% 100%

4)shop-in-shop;218(31.08.2012;223)5)shop-in-shop;2(31.08.2012;1)6)shop-inshop;1(31.08.2012;2)7)shop-in-shop;1(31.08.2012;2)

NOTES



nOTes · appendix


aPPENDix 1

earnings by quarter 2012/13:

2012/13

(DKKmillion) Q1 Q2 Q3 Q4 revenue 600.4 819.0 gross profit 245.0 357.8 earnings before interest and tax (eBIT) (61.3) 26.2 shareofresultaftertaxinassociatedcompanies - 0.6 Financialitems,net (2.9) (3.9) earnings before tax (eBT) (64.2) 22.9 Taxfortheperiod 17.0 (7.5) earnings after tax for the period (47.2) 15.4

accumulated earnings by quarter 2012/13:

2012/13

(DKKmillion) Q1 Q2 Q3 Q4 revenue 600.4 1,419.4 gross profit 245.0 602.8 earnings before interest and tax (eBIT) (61.3) (35.1) shareofresultaftertaxinassociatedcompanies - 0.6 Financialitems,net (2.9) (6.8) earnings before tax (eBT) (64.2) (41.3) Taxfortheperiod 17.0 9.5 earnings after tax for the period (47.2) (31.8)



notes · appendIx

Anchor#12-U


aPPENDix 1

earnings by quarter 2011/12:

2011/12

(DKKmillion) Q1 Q2 Q3 Q4 revenue 598.6 775.5 766.3 867.4 gross profit 231.0 339.3 293.2 352.4 earnings before interest and tax (eBIT) (28.5) 46.8 22.7 81.4shareofresultaftertaxinassociatedcompanies (0.9) (0.9) (0.2) (0.1)Financialitems,net (3.2) (5.1) (3.7) (4.1)earnings before tax (eBT) (32.6) 40.8 18.8 77.2Taxfortheperiod 5.6 (12.0) (1.8) (22.7)earnings after tax for the period (27.0) 28.8 17.0 54.5

accumulated earnings by quarter 2011/12:

2011/12

(DKKmillion) Q1 Q2 Q3 Q4 revenue 598.6 1,374.1 2,140.3 3,007.7 gross profit 231.0 570.3 863.3 1,215.7 earnings before interest and tax (eBIT) (28.5) 18.3 41.0 122.4shareofresultaftertaxinassociatedcompanies (0.9) (1.8) (2.0) (2.1)Financialitems,net (3.2) (8.3) (12.0) (16.1)earnings before tax (eBT) (32.6) 8.2 27.0 104.2Taxfortheperiod 5.6 (6.4) (8.2) (30.9)earnings after tax for the period (27.0) 1.8 18.8 73.3



notes · appendIx


aDDiTiONal iNfORMaTiON

for further information please contact:

CEOTueMantoni,tel.:+4596845000

IRManagerClausHøjmarkJensen,tel.:+4523251067

financial calendar

Friday5April2013 InterimReport(3rdquarter2012/13)

Friday16August2013 AnnualReport2012/13

Thursday19september2013 AnnualGeneralMeeting

Wednesday2October2013 Interimreport(1stquarter2013/14)

safe Harbour statement

Thereportcontainsstatementsrelatingtoexpectationsforfuturedevelopments,includingfuturerevenueandearnings,as

wellasexpectedbusiness-relatedevents.suchstatementsareuncertainandcarryanelementofrisksincemanyfactors,

ofwhichsomearebeyondBang&Olufsen’scontrol,canmeanthatactualdevelopmentswilldeviatesignificantlyfromthe

expectationsexpressedinthereport.Withoutbeingexhaustive,suchfactorsincludeamongothersgeneraleconomicand

commercialfactors,includingmarketandcompetitivematters,supplierissuesandfinancialissuesintheformofforeignex-

change,interestrates,creditandliquidityrisks.

applicable version

TheinterimreporthasbeentranslatedfromDanish.IncaseofdoubttheDanishversionshallapplyatalltimes.

about Bang & Olufsen

Bang&Olufsenwasfoundedinstruer,Denmark,in1925byPeterBangandsvendOlufsen,twoinnovative,youngengineers

devotedtohighqualityaudioreproduction.sincethen,thebrandhasbecomeaniconofperformanceanddesignexcel-

lencethroughitslong-standingcraftsmanshiptraditionandthestrongestpossiblecommitmenttohigh-techresearchand

development.stillattheforefrontofdomestictechnology,Bang&Olufsenhasextendeditscomprehensiveexperiencewith

integratedaudioandvideosolutionsforthehometootherareassuchasthehospitalityandautomotiveindustriesinrecent

years.Consequently,itscurrentproductrangeepitomisesseamlessmediaexperiencesinthehomeaswellasinthecarand

onthemove.

for additional information refer to www.bang-olufsen.com.

highlights · key figures · management report · statement · financial review · addITIOnal InfOrMaTIOnAnchor#6-R

interim report, 1 half-year 2012/13 1 june 2012 – 30...

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