Beter Bed Holding N.V. — Interim / Quarterly Report 2009

Oct 30, 2009

PRESS RELEASE

Uden, the Netherlands, 30 October 2009

BETER BED ACHIEVES 34% INCREASE IN NET PROFIT IN THIRD QUARTER 2009

Highlights:

• Net profit totals € 5.8 million in third quarter of 2009 (2008: € 4.3 million) with a 2.2% increase in revenue.
• Net total of 18 stores opened in the first nine months of 2009, bringing the number of stores to 1,054 at the end of the third quarter of 2009.
• Interim dividend of € 0.35 per share (last year: € 0.29).
• Outlook: Revenue and net profit are also expected to be higher in the fourth quarter of 2009 than in the same period of 2008.

Beter Bed Holding N.V. achieved net profit of € 12.0 million in the first nine months of 2009 (same period in 2008: € 15.2 million). Revenue in the first nine months of 2009 amounted to € 259.6 million, compared to € 265.2 million in the same period of 2008. This represents a decrease of 2.1%.

Third quarter

Following three quarters of decreases in revenue, Beter Bed Holding was once again able to realise an increase in revenue in the third quarter of 2009. Revenue totalled € 91.9 million, which represents a 2.2% increase in comparison to the same period of 2008 (€ 89.9 million). Revenue at comparable stores nonetheless decreased by 3.1%. This decrease was not, however, as strong as in the first and second quarters when revenue at comparable stores fell by 12.6% and 4.8% respectively. Gross profit rose from 53.9% to 54.2% in the third quarter of 2009. Despite the 5% increase in the average number of stores, the company was still able to maintain operating expenses in the third quarter of 2009 at virtually the same level as in the third quarter of 2008. Expenses totalled € 41.9 million, which means that the average expenses per store decreased by 5%. Beter Bed Holding achieved operating profit (EBIT) of € 8.0 million, compared to € 6.7 million in 2008. Net profit of € 5.8 million was realised in the third quarter of 2009, compared to € 4.3 million in the same period of 2008. Revenue and profit are normally lower in the second and third quarters than in the first and fourth quarters due to the seasonal pattern.

First nine months

Revenue performance in the first nine months of 2009 on a per country basis was as follows:

Netherlands:	-11%
Germany:	+4%
Austria:	+21%
Switzerland:	+15%
Spain:	-10%
Belgium:	+74% (activities launched in September 2007)
Poland:	comparative figures not yet available (activities launched in December 2008)

70 new stores were opened and 52 stores were closed in the first nine months of 2009. This brought the total number of stores to 1,054 at the end of September 2009. Revenue at comparable stores decreased by 6.7% in the first nine months of 2009. The disadvantageous effect this had on operating profit (EBIT) could largely be compensated for by lowering the average expenses per store by 5%.

Total revenue amounted to € 259.6 million in the first nine months of 2009. This is 2.1% less than in the first nine months of 2008 when revenue amounted to € 265.2 million. Gross profit remained unchanged in comparison to the same period of 2008 at 53.9%. Operating expenses rose from € 121.3 million in the first nine months of 2008 to € 123.1 million in the same period of 2009. While the average number of stores increased by 6.7%, operating expenses rose by only 1.5%. Operating profit (EBIT) amounted to € 16.9 million (6.5% of revenue) in the first nine months of 2009 compared to € 21.6 million (8.1% of revenue) in the same period of 2008. Net profit amounted to € 12.0 million in the first nine months of 2009, compared to € 15.2 during the same period of 2008. The net profit in the first nine months of 2008 included a tax gain of € 0.2 million.

Balance sheet

Solvency amounted to 46.7% at the end of the third quarter of 2009. The balance of liquid assets and bank debts was € 8.8 million positive on a balance sheet total of € 106.9 million on 30 September 2009.

Interim dividend

The company will pay out an interim dividend as it did last year. The amount of the interim dividend has been set at € 0.35 per share (2008: € 0.29). The dividend will be made available for payment on 18 November 2009 and the share will be listed ex-dividend on 2 November 2009. The record date has been set at 4 November 2009.

Outlook

The company expects to achieve higher revenue in the fourth quarter of 2009 compared to the same period of 2008. In combination with the continuing focus on cost-savings the company expects to achieve growth in net profit in the fourth quarter of 2009. This is barring unforeseen circumstances.

Profile

Beter Bed operates in the European bedroom furnishings market. Its activities include retail trade through a total of approximately 1,050 stores that operate via the chains Beter Bed (active in the Netherlands), Matratzen Concord (active in Germany, the Netherlands, Austria, Switzerland, Belgium and Poland), El Gigante del Colchón (active in Spain), BeddenReus, Dormaël and Slaapgenoten (all three active in the Netherlands) and MAV (active in Germany). Beter Bed Holding is also active in the field of developing and wholesaling branded products in the bedroom furnishings sector in the Netherlands, Belgium, Germany and Spain via its subsidiary DBC International. Beter Bed Holding achieved net revenue of € 358.6 million in 2008. The company has been listed on Euronext Amsterdam since December 1996. The Beter Bed Holding share is included in the Amsterdam Small Cap Index.

Appendix:

• Results third quarter 2009

For more information, please contact: Frans Geelen, Chief Executive Officer Tel. +31 (0)413 338819 / Fax +31 (0)413 338829 / Mob. +31 (0)6 29565517 E-mail: frans.geelen@beterbed.nl / Website: www.beterbedholding.com

BETER BED HOLDING N.V.

THIRD QUARTER RESULTS

2009

Contents

1.	Consolidated balance sheet ……………….………………………………………….	5
2.	Consolidated profit & loss account …………………………………………………	6
3.	Consolidated cash flow statement …….……………………………………	7
4.	Consolidated statement of comprehensive income …………………………	8
5.	Consolidated statement of changes in equity ……….…….………………………	9

1. Consolidated balance sheet

(* EUR 1.000)	30-9-2009	30-9-2008	31-12-2008
Fixed assets	29.973	31.492	31.940
Intangible fixed assets	3.811	3.811	3.811
Financial fixed assets	755	-	528
Stocks	48.549	47.965	49.393
Debtors	5.482	6.245	6.110
Cash and cash equivalents	18.290	4.615	5.196
TOTAL ASSETS	106.860	94.128	96.978
Equity attributable to equityholders of the parent	49.950	41.513	42.703
Long term liabilities	9.248	1.660	1.748
Short term bankloans	2.000	8.104	16.337
Short term liabilities	45.662	42.851	36.190
TOTAL LIABILITIES	106.860	94.128	96.978

The accounting principles for the interim results are unchanged compared to the 2008 financial statements.

2. Consolidated profit and loss account

		(* EUR 1.000)
Third Quarter				Cumulative
2009	2008		2009	2008
91.890	89.903	Revenue	259.613	265.154
(42.053)	(41.408)	Cost of sales	(119.563)	(122.225)
49.837	48.495	Gross profit	140.050	142.929
54,2%	53,9%		53,9%	53,9%
19.632	19.593	Wage and salary costs	58.090	57.697
		Depreciation of tangible fixed
1.952	1.789	assets	5.805	5.382
20.266	20.444	Other operating expenses	59.211	58.257
(41.850)	(41.826)	Total operating expenses	(123.106)	(121.336)
-45,5%	-46,5%		-47,4%	-45,8%
7.987	6.669	Operating profit (EBIT)	16.944	21.593
8,7%	7,4%		6,5%	8,1%
(184)	(346)	Financial income and expenses	(503)	(676)
7.803	6.323	Profit before taxation	16.441	20.917
(1.990)	(1.999)	Income tax expense	(4.412)	(5.738)
5.813	4.324	Net profit	12.029	15.179
6,3%	4,8%		4,6%	5,7%
0,28	0,20	Earnings per share in €	0,57	0,71
0,27	0,20	Diluted earnings per share in €	0,56	0,71

The accounting principles for the interim results are unchanged compared to the 2008 financial statements.

3. Consolidated cash flow statement

(* EUR 1.000)

		Cumulative
	2009		2008
Cash flow from operating activities
Net profit	12.029		15.179
Depreciation	5.805		5.382
Movements in capital and reserves related to
expenses employee stock options	136		387
Exchange differences	(39)		(29)
Movement in:
Stocks	844		1.798
Debtors	628		(907)
Trade creditors	9.472		8.594
Deferred tax liabilities	45		(112)
Deferred tax assets	(227)
		28.693		30.292
Cash flow from investing activities
Additions to tangible fixed assets	(4.560)		(7.332)
Disposals of tangible fixed assets	547		146
		(4.013)		(7.186)
Cash flow from financing activities
Long term loan	10.000		-
Reclassified to short term bankloans	(2.000)		-
Repayment of long-term liabilities	(500)		-
Income from the issue of shares	148		-
Dividend paid	(4.897)		(14.894)
Share buy back program	-		(4.196)
		2.751		(19.090)
Movements in cash and cash equivalents		27.431		4.016
Cash and cash equivalents at the beginning of the reporting period		(11.141)		(7.505)
Cash and cash equivalents at the end of the reporting period		16.290		(3.489)

The accounting principles for the interim results are unchanged compared to the 2008 financial statements.

4. Consolidated statement of comprehensive income

		(* EUR 1.000)
Third Quarter			Cumulative
2009	2008		2009	2008
5.813	4.324	Net profit	12.029	15.179
(130)	0	Revaluation Change in reserve for currency	(130)	-
(52)	(29)	translation differences	(38)	(29)
5.631	4.295	Total recognised income and expense	11.861	15.150

The accounting principles for the interim results are unchanged compared to the 2008 financial statements.

The company land was appraised in the third quarter. This appraisal has led to a decrease in the revaluation of these tangible fixed assests with € 175.

As a result of this appraisal the revaluation reserve in the equity decreased by € 130. The provision for deferred taxation decreased by € 45.

5. Consolidated overview of movements equity

(* EUR 1.000)				Reserve for
		Issued	Share	currency
		share	premium	translation	Revaluation	Other	Retained
	Total	capital	reserve	differences	reserve	reserves	earnings
Balance on January 1, 2008	45.066	436	16.145	(10)	2.852	(1.929)	27.572
Total recognised income and expense for 2008-Q3	15.150	-	-	(29)	-	-	15.179
Profit appropiation 2007	(14.894)	-	-	-	-	12.678	(27.572)
Share buy back program Expenses employee stock	(4.196)	-	-	-	-	(4.196)	-
options	387	-	-	-	-	387	-
Balance on September 30, 2008	41.513	436	16.145	(39)	2.852	6.940	15.179
				Reserve for
		Issued	Share	currency
		share	premium	translation	Revaluation	Other	Retained
	Total	capital	reserve	differences	reserve	reserves	earnings
Balance on January 1, 2009	42.703	436	16.145	130	2.852	1.014	22.126
Total recognised income and expense for 2009-Q3	11.861	-	-	(38)	(130)	-	12.029
Profit appropiation 2008	(4.897)	-	-	-	-	17.229	(22.126)
Share issue Expenses employee stock	147	-	-	-	-	147	-
options	136	-	-	-	-	136	-

The accounting principles for the interim results are unchanged compared to the 2008 financial statements.

Balance on September 30, 2009 49.950 436 16.145 92 2.722 18.526 12.029