Beter Bed Holding N.V. — Interim / Quarterly Report 2012

May 10, 2012

BETER BED HOLDING N.V.

PRESS RELEASE

FIRST QUARTER RESULTS 2012

Uden, the Netherlands, 10 May 2012

Contents

1.	Press release – first quarter results 2011 ……………………………………………………	3
2.	Consolidated balance sheet………………………………………………………………….	6
3.	Consolidated profit and loss account…………………………………………………	7
4.	Consolidated cash flow statement……………………………………………………	8
5.	Consolidated statement of comprehensive income ………………………………………	9
6.	Consolidated overview of movement equity…………………………………………	9

1. Press release

Beter Bed realises 7% growth in revenue and increased operating profit in Q1 2012

• Growth in revenue mainly due to positive developments in Germany.
• Challenging market conditions continue in the Netherlands and in Spain.
• 3.5% growth in operating profit despite increased marketing activities.
• Net profit virtually the same as in Q1 2011 at € 8.9 million (Q1 2011: € 9.0 million).
• Expansion continued unabated: Net total of 23 stores opened in Q1 2012.

Beter Bed Holding N.V. realised revenue totalling € 108.5 million in the first quarter of 2012. This represents an increase of nearly 7% compared to the first quarter of 2011 (first quarter 2011: € 101.4 million). Operating profit grew by 3.5% to € 12.3 million (first quarter 2011: € 11.9 million). Net profit remained virtually the same as in the first quarter of 2011 at € 8.9 million (first quarter 2011: € 9.0 million). The increased revenue, a fractionally lower gross profit and strongly increased marketing costs, with unchanged average expenses per store, led to an increase of the operating profit by 3.5%. Net profit in the first quarter of 2012 is marginally lower due to the higher tax burden.

(in millions of € unless stated otherwise)	Q1 2012	Q1 2011	Change
Revenue	108.5	101.4	6.9%
Gross profit (%)	55.8%	56.0%
Operating profit/EBIT	12.3	11.9	3.5%
Net profit	8.9	9.0	(0.7%)
Earnings per share (in €)	0.41	0.42	(2.4%)
Solvency (%)	57.9%	55.7%

Key figures for first quarter

Ton Anbeek, Chief Executive Officer:

'We are very satisfied with the developments in Germany. The company has succeeded in realising strong growth in revenue in comparable stores for the third consecutive quarter. This increase has amounted to more than 9% over the last three quarters. Market share in Germany also rose again in the first quarter. The company does, however, continue to be faced with markets in Spain and the Netherlands that once again contracted in the first quarter. Despite this contraction, market shares in both countries nonetheless grew as a result of strengthened promotional activities and the increase in the number of stores.'

First Quarter 2012

There was limited growth in revenue in comparable stores of 0.3% in the first quarter of 2012. There continued to be differing performance between the two key markets of the Netherlands and Germany in the first quarter of 2012. Revenue in comparable stores rose by 8% in Germany, while it decreased by 7% in the Netherlands.

Revenue rose by 12% in Germany in the first quarter of 2012 (including new stores). Despite the decrease in revenue in comparable stores in the Netherlands, the total decrease in revenue in the country could be limited to 2% due to the growth in the number of stores.

Beter Bed Holding N.V. – Q1 results 2012 3

This has also led to continuing growth in market share.

The decrease in revenue in comparable stores amounted to 17% in Spain. Total revenue in Spain rose by 5% thanks to the opening of new stores.

The change in revenue per country in the first quarter of 2012 compared to the first quarter of 2011 is as follows:

Netherlands	-2%
Germany	+12%
Austria	+14%
Switzerland	+23%
Spain	+5%
Belgium	+52% (from 9 to 10 stores)
Poland	+49% (from 4 to 6 stores)

Total +7%

38 stores were opened and 15 stores were closed in the first quarter of 2012. This brings the total number of stores to 1,210 at the end of March 2012. The new stores are mainly Matratzen Concord stores in Germany and El Gigante del Colchón stores in Spain.

Number of stores	31.12.2011	Closed	Opened	31.3.2012
Matratzen Concord	963	7	29	985
Beter Bed	87	-	-	87
El Gigante del Colchón	67	-	6	73
BeddenREUS	39	-	1	40
Slaapgenoten/
Dormaël Slaapkamers	16	-	1	17
Matratzen-AbVerkauf (MAV)	15	8	1	8
Total	1,187	15	38	1,210

Financial

Revenue rose by 6.9% in the first quarter of 2012 compared to the first quarter of 2011. Gross profit decreased by 0.2 percentage points in the first quarter of 2012 to 55.8%. Gross profit decreased primarily as a result of more aggressive promotions during the important winter sales period, principally in the Netherlands. The increase in operating expenses from € 44.9 million in the first quarter of 2011 to € 48.2 million in the first quarter of 2012 is in line with the growth in the number of stores from 1,127 at the end of March 2011 to 1,210 at the end of March 2012.

Operational expenses as a percentage of revenue increased from 44.3% in the first quarter of 2011 to 44.5% in the comparable period of 2012. Operating profit totalling € 12.3 million or 11.4% of the revenue was achieved in the first quarter of 2012 (first quarter 2011: € 11.9 million, 11.8% of the revenue). Due in part to the growth in the share of the profit realised in Germany, the tax burden rose from 24.4% in the first quarter of 2011 to 27.2% in the first quarter of 2012.

Net profit in the first quarter of 2012 amounted to € 8.9 million compared to € 9.0 million in the same period of last year. Earnings per share in the first quarter of 2012 amounted to € 0.41 (same period 2011: € 0.42).

Solvency totalled 57.9% at the end of the first quarter of 2012 (end first quarter 2011: 55.7%, end 2011: 54.1%).

Outlook for six months of 2012

In April the company was able to benefit in the Netherlands from an early Easter with favourable weather conditions, which resulted in more visitors. There are not, however, any signs of structural recovery yet. In Germany the positive trend also continued in the second quarter. Nevertheless, the order portfolio for the entire group at the beginning of the second quarter was € 2 million lower than a year before. Based on these developments, the company expects to realise a virtually unchanged or lower operating profit in the first half of 2012 compared to the first half of 2011.

Profile

Beter Bed Holding N.V. operates in the European bedroom furnishings market. Its activities include retail trade through a total of 1,210 stores at the end of March 2012 that operate via the chains Beter Bed (the Netherlands and Belgium), Matratzen Concord (Germany, Switzerland, Austria, the Netherlands, Belgium and Poland), El Gigante del Colchón (Spain), BeddenREUS, Dormaël Slaapkamers and Slaapgenoten (all three active in the Netherlands) and MAV (Germany). Beter Bed Holding is also engaged in developing and wholesaling branded products in the bedroom furnishings sector in the Netherlands, Germany, Belgium, Spain, Austria, Switzerland and Turkey via its subsidiary DBC International. Beter Bed Holding achieved net revenue of € 397.0 million in 2011. A total of 63% of the group's net revenue is generated outside the Netherlands. The company has been listed on NYSE Euronext Amsterdam since December 1996. Beter Bed Holding shares are traded on the Amsterdam Small Cap Index.

Financial Calendar

Publication Q2 2012 trading statement	week 28	20.07.2012
Publication half-year results 2012	week 35	30.08.2012
Analysts' Meeting half-year results 2012	week 35	30.08.2012
Publication Q3 2012 results	week 43	26.10.2012
Publication Q4 2012 trading statement	week 3	18.01.2013

For more information, please contact: Ton Anbeek, Chief Executive Officer Tel. +31 (0)413 338819 / Fax +31 (0)413 338829 / Mob. +31 (0)6 53662838 E-mail: ton.anbeek@beterbed.nl / Website: www.beterbedholding.com

2. Consolidated balance sheet

(* EUR 1.000)	31-03-2012	31-3-2011	31-12-2011
Tangible fixed assets	34.544	30.169	33.986
Intangible fixed assets	3.811	3.811	3.811
Financial fixed assets	1.928	1.729	1.930
Stocks	61.285	55.807	59.461
Debtors	6.379	6.131	8.308
Cash and cash equivalents	14.544 28.819		7.075
TOTAL ASSETS	122.491	126.466	114.571
Equity attributable to equity holders of the parent	70.945	70.462	62.015
Long-term liabilities	4.500	6.424	5.000
Credit institutions	2.000	2.000	5.314
Other current liabilities	45.046	47.580	42.242
TOTAL LIABILITIES	122.491	126.466	114.571

3. Consolidated profit and loss account

(* EUR 1.000)

	First quarter
	2012	2011
Revenue	108.474	101.436
Cost of sales	(47.904)	(44.587)
Gross profit	60.570	56.849
	55,8%	56,0%
Wage and salary costs	22.175	21.230
Depreciation of tangible fixed assets	2.332	2.024
Other operating expenses	23.720	21.672
Total operating expenses	(48.227)	(44.926)
	-44,5%	-44,3%
Operating profit (EBIT)	12.343 11,4%	11.923 11,8%
Financial income and expenses	(76)	(22)
Profit before taxation	12.267	11.901
Income tax expense	(3.332)	(2.900)
Net profit	8.935	9.001
	8,2%	8,9%
Earnings per share in €	0,41	0,42
Diluted earnings per share in €	0,41	0,42

Beter Bed Holding N.V. – Q1 results 2012 7

4. Consolidated cash flow statement

First quarter (* EUR 1.000)
	2012		2011
Cash flow from operating activities
Operating result	12.343		11.923
Financing income received	124		239
Financing expenses paid	(200)		(261)
Income taxes paid	(1.511)		(1.627)
Depreciation	2.332		2.024
Costs employee stock options	79		114
Movements in:
Stocks	(1.824)		826
Debtors	1.929		(479)
Short-term liabilities	983		2.105
Other	(148)		(46)
		14.107		14.818
Cash flow from investing activities
Additions to tangible fixed assets	(2.945)		(2.856)
Disposals of tangible fixed assets	62		68
Changes in long-term accounts receivable	2		(14)
		(2.881)		(2.802)
Cash flow from financing activities
Repayment of loan	(500)		(500)
Income from the reissuance of shares	57		542
		(443)		42
Change in net cash and cash equivalents		10.783		12.058
Cash and cash equivalents at the end of the reporting
period		14.544		28.819
Current bank overdraft not including repayment obligations
at the end of the reporting period		-		-
Net cash and cash equivalents at the end of the reporting
period		14.544		28.819
Cash and cash equivalents at the start of the reporting period	7.075		16.761
Current bank overdraft not including repayment obligations
at the start of the reporting period	(3.314)		-
		3.761		16.761
Change in net cash and cash equivalents		10.783		12.058

5. Consolidated statement of comprehensive income

(* EUR 1.000)

	First quarter
	2012	2011
Net profit	8.935	9.001
Change in revaluation reserve due to a change in the tax rate	-	-
Movements in reserve for currency translation differences	(141)	(46)
Total comprehensive income	8.794	8.955

6. 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 1 January 2011	60.851	436	16.145	504	2.722	13.107	27.937
Net profit for 2011	9.001	-	-	-	-	-	9.001
Other components of comprehensive income 2011	(46)	-	-	(46)	-	-	-
Profit appropriation 2010	-	-	-	-	-	27.937	(27.937)
Reissuance of shares	542	-	-	-	-	542	-
Costs of employee stock options	114	-	-	-	-	114	-
Balance on 31 March 2011	70.462	436	16.145	458	2.722	41.700	9.001
Balance on 1 January 2012	62.015	436	16.145	768	2.740	13.901	28.025
Net profit for 2012	8.935	-	-	-	-	-	8.935
Other components of comprehensive income 2012	(141)	-	-	(141)	-	-	-
Profit appropriation 2011	-	-	-	-	-	28.025	(28.025)
Reissuance of shares	57	-	-	-	-	57	-
Costs of employee stock options	79	-	-	-	-	79	-
Balance on 31 March 2012	70.945	436	16.145	627	2.740	42.062	8.935

Beter Bed Holding N.V. – Q1 results 2012 9