Bang & Olufsen — M&A Activity 2016

Apr 6, 2016

As announced in Company announcement 14.26, Bang & Olufsen a/s ("Bang &
Olufsen") initiated a review to identify future ownership alternatives for
ICEpower a/s (“ICEpower”), in accordance with the strategy to reduce complexity
and focus on the consumer activities.

Today, Bang & Olufsen has signed an agreement to divest 100 per cent of the
shares in ICEpower in a management buyout supported by Industri Udvikling.
ICEpower will continue to provide class D audio solutions to manufacturers of
professional and consumer audio products, including Bang & Olufsen. The
ICEpower management team and Industri Udvikling aim to develop ICEpower further
and consolidate its position as a leader in the audio engineering market.

The brand licensing business area including the right to use the Bang & Olufsen
brand name on selected products e.g. for embedded audio in laptops and mobile
phones, has historically accounted for a significant part of ICEpower’s
earnings. Over the last 12 months, as the licensing business has become a focus
area for Bang & Olufsen, all licensing activities related to the Bang & Olufsen
brand have been transitioned to Bang & Olufsen.

The enterprise value received by Bang & Olufsen is DKK 32 million and the free
cash flow impact is expected to be DKK 23 million. As part of the transaction,
Bang & Olufsen is entitled to a potential earn-out payment dependent on the
future performance of ICEpower. As a result of the transaction, Bang & Olufsen
expects to book a non-recurring, non-cash accounting loss of DKK 31 million in
the fourth quarter of the 2015/16 financial year, which will be recognised in
discontinued operations.

The divestment does not impact the financial outlook for 2015/16.

Ole Andersen Tue
Mantoni

Chairman of the Board President
and CEO

For further information, please contact:

Investors: Claus Højmark Jensen, tel: +45 9684 1251