Q1 Highlights

”The start to the year with moderate growth was anticipated due to delayed
product launches, and the decline in the Bang & Olufsen segment was in line
with our expectations. B&O PLAY continued the double-digit growth and delivered
a good start to the year. Overall, we see solid progress ahead, supported by
strong and relevant products in our pipeline,” says CEO, Henrik Clausen.

-- The group realised a moderate revenue growth of 2 per cent. The Bang &
Olufsen segment revenue declined by 16 per cent due to delayed product
launches, whereas the B&O PLAY revenue increased by 41 per cent.
-- The Group gross margin increased to 33.4 per cent from 32.5 margin last
year, primarily due to improved gross margins in B&O PLAY.
-- EBITDAC was negative DKK 67 million in the quarter compared to negative DKK
50 million last year. The decline in profitability was primarily a result
of the decline in revenue in the Bang & Olufsen segment. The
anticipated growth in the Bang & Olufsen segment, along with the
continued growth in B&O PLAY, is expected to contribute to an improved
EBITDAC for the full year.
-- Free cash flow was negative DKK 32 million compared to negative DKK 168
million last year. The change was mainly related to an improved net working
capital.
-- The outlook for 2016/17 remains unchanged. Revenue for the Group is
expected to grow compared to 2015/16, driven by double-digit growth in
B&O PLAY and moderate growth in the Bang & Olufsen segment. EBITDAC
for the underlying business is expected to improve compared to the EBITDAC
of DKK 14 million in the underlying business in the 2015/16 financial year.
-- On 12 September 2016, HARMAN and Ford Motor Company announced a
collaboration that entails Ford offering B&O PLAY audio solutions for
Ford’s vehicle lineup worldwide. This is expected to generate license fee
income for the Group in the coming years.
-- Launch of exciting new products including two new Bang & Olufsen TV
models is expected to drive revenue growth in the segment in the coming
quarters.


Any enquiries about this announcement can be addressed to:

Investor contact, Claus Højmark Jensen, tel.: +45 2325 1067

Press contact, Morten Juhl Madsen, tel.: +45 4030 8986


A webcast will be hosted on 4 October 2016 at 10:00 CET. Access to the webcast
is obtained through our website www.bang-olufsen.com

Interim report Q1_16-17.pdf