Bang & Olufsen

Earnings Release • Jun 19, 2014

Struer, 2014-06-19 08:50 CEST (GLOBE NEWSWIRE) -- Company Announcement 14.01

Preliminary results for the fourth quarter of the 2013/14 financial year

Bang & Olufsen a/s' ("Bang & Olufsen") revenue for the fourth quarter of the
2013/14 financial year (1 March 2014 - 31 May 2014) amounted to DKK 801
million, corresponding to a growth of 8.2 per cent compared to the same quarter
in the 2012/13 financial year.

Revenue in the AV segment was DKK 483 million in the fourth quarter compared to
DKK 470 million in the same quarter last financial year corresponding to 2.9
per cent growth. The turnover in the AV segment in the fourth quarter of this
financial year was generated through Bang & Olufsen's distribution network
consisting of 692 B1/SiS stores (ex. Sparkle Roll SiS) compared to 816 stores
in the same quarter last year. Thus, the increase in the AV sales per store in
the quarter was 21 percent. The reception of the new TV, BeoVision Avant,
launched on 8 May 2014 has been very positive, and early indications of
customer demand are promising. Revenue impact in the fourth quarter from
BeoVision Avant was limited due to the launch of it being late in the quarter.

Revenue in the B&O PLAY segment was DKK 127 million in the fourth quarter
compared to DKK 113 million in the same quarter last financial year,
corresponding to 12.4 per cent growth. Especially third party channels
demonstrated strong performance and reached total revenue of DKK 31 million in
the fourth quarter, corresponding to a growth of 106 per cent.

The Automotive segment revenue was DKK 169 million in the fourth quarter
compared to DKK 140 million in the same quarter last financial year,
corresponding to 20.7 per cent growth. The Automotive segment continues to show
solid growth driven by new car models launched by cooperation partners as well
as increased take-rates.

Revenue in ICEpower was DKK 27 million in the fourth quarter compared to DKK 19
million in the same quarter last financial year, corresponding to a growth of
42.1 per cent.

Total revenue for Bang & Olufsen for the 2013/14 financial year was DKK 2,864
million compared to DKK 2,814 million in the 2012/13 financial year,
corresponding to a growth of 1.8 per cent.

The group gross margin was significantly higher in the fourth quarter of the
2013/14 financial year, compared to the same quarter last financial year, and
therefore the gross margin for the full year is expected to be significantly
above last year’s gross margin.

The combination of revenue growth, improved gross margin and disciplined cost
management led to a strong EBIT performance in the fourth quarter. For the full
year, an EBIT around break-even is therefore expected, which is in line with
the company's previous guidance.

Preliminary outlook for the financial year 2014/15

For the AV segment, focus will be on creating a growth momentum based on the
revitalised product portfolio. The expected growth in 2014/15 will be highly
dependent on the success of the newly launched IWS speaker range, the BeoVision
Avant as well as other key products launched in the AV segment during 2014/15.

The B&O PLAY segment will focus on accelerating new product launches as well as
expanding third party retail distribution, which is expected to ensure growth
in the 2014/15 financial year.

Automotive is expected to continue the stable growth through the launch of new
car models launched by cooperation partners as well as by increasing
take-rates.

Bang & Olufsen expects an increase in the Group EBIT margin compared to the
last financial year.

The Leaner, Faster, Stronger strategy

2014/15 will be the first year in the second phase of the Leaner, Faster,
Stronger strategy. With many of the legacy issues fixed during the last three
years, the aim in the next three years will be to accelerate growth by building
on new products like BeoVision Avant and the Immaculate Wireless Sound
speakers. Further, the company will continue to lift the level of innovation
and agility of the company to respond to the rapidly changing market
conditions. Bang & Olufsen will in connection with the publication of the
Annual Report for 2013/14 present details of the plans and targets for the next
phase of the strategy.

Potential strengthening of the capital base

Referring to the Company Announcement no. 13.14 (11 April 2014), Bang & Olufsen
is still considering various possibilities for strengthening the company’s
capital base with the objective of accelerating growth through:

-- Increasing the investment in retail, marketing and the revitalization of
the Bang & Olufsen brand
-- Maintaining a high level of R&D investment to continue the
strengthening of the product portfolio
-- Stimulating growth through other initiatives, e.g. expansion in the US and
third-party distribution for B&O PLAY

On this basis Bang & Olufsen has decided to investigate the possibility of
strengthening the capital base through an accelerated book building offering
during the period until the announcement of the annual report for the 2013/14
financial year.

Annual Report

Bang & Olufsen will publish the annual report for the 2013/14 financial year on
Wednesday, 13 August 2014.

Conference call

Bang & Olufsen will host a conference call on 19 June 2014 at 10:00 CET

Dial-in details:

-- Denmark: +45 3544 5583
-- International: +44 203 194 0544

Bang & Olufsen a/s

Ole Andersen Tue Mantoni

Chairman of the Board CEO

For further information, please contact:

Tue Mantoni Claus Højmark Jensen

CEO Investor Relations
Manager

Phone: +45 96 84 50 00 Phone: + 45 23 25 10 67

Disclaimers

The announcement was prepared based solely on information obtained from Bang &
Olufsen and public sources on or prior to the date hereof and has not been
independently verified. The announcement contains only summary information and
no representation or warranty, express or implied, is or will be made in
relation to, and no reliance should be placed on, the fairness, accuracy,
correctness or completeness of the information or opinions contained herein.
Moreover, the announcement may include statements and illustrations concerning
risks, plans, objectives, goals, strategies, future events or performance, and
underlying assumptions and other statements, which are other than statements of
historical facts. This announcement contains forward-looking statements
concerning Bang & Olufsen’s financial condition, results of operations and
business. All statements other than statements of historical fact are, or may
be deemed to be, forward-looking statements. Forward-looking statements are
statements of future expectations that are based on management’s current
expectations and assumptions and involve known and unknown risks and
uncertainties that could cause actual results, performance or events to differ
materially from those expressed or implied in these statements.

Forward-looking statements include, among other things, statements concerning
Bang & Olufsen’s potential exposure to market risks and statements expressing
management’s expectations, beliefs, estimates, forecasts, projections and
assumptions. There are a number of factors that could affect Bang & Olufsen’s
future operations and could cause Bang & Olufsen’s results to differ materially
from those expressed in the forward-looking statements included in this
announcement, including (without limitation): (a) changes in demand for Bang &
Olufsen’s products; (b) currency and interest rate fluctuations; (c) loss of
market share and industry competition; (d) environmental and physical risks;
(e) legislative, fiscal and regulatory developments, including changes in tax
or accounting policies; (f) economic and financial market conditions in various
countries and regions; (g) political risks, including the risks of
expropriation and renegotiation of the terms of contracts with governmental
entities, and delays or advancements in the approval of projects; (h) ability
to enforce patents; (i) product development risks; (j) cost of commodities; (k)
customer credit risks; (l) supply of components from suppliers and vendors; and
(m) customer readiness and ability to accept delivery and installation of
products and transfer of risk.

All forward-looking statements contained in this announcement are expressly
qualified by the cautionary statements contained or referenced to in this
statement. Undue reliance should not be placed on forward-looking statements.
Additional factors that may affect future results will be contained in Bang &
Olufsen‘s annual report for 2013/2014 and subsequent interim reports, and these
factors should be considered.

Furthermore, and without prejudice to liability for fraud, Bang & Olufsen
accepts or will accept no liability, responsibility or obligation (whether in
contract, tort or otherwise) in relation to these matters. Any prospective
investor should make its own investigation of Bang & Olufsen and all
information provided and is advised to seek professional advice on legal,
financial, tax and other matters relating to Bang & Olufsen and any transaction
contemplated herein.

Any information and views contained herein do not purport to be comprehensive
and are based on financial, economic, market and other conditions prevailing as
of the date of the announcement and are subject to change without notice. No
person is under any obligation to update or keep current the information
contained in the announcement other than as required under applicable laws or
stock exchange regulations.

The announcement does not constitute nor is intended to form part of any offer,
or the solicitation of any offer, to buy, subscribe for or sell any shares in
Bang & Olufsen or any other securities. Nor shall the announcement or any part
hereof form the basis of, or be relied on in connection with, any contract,
commitment or investment decision, nor does it constitute any form of financial
opinion or recommendation regarding shares or other securities of Bang &
Olufsen.