BO and Loewe by ZM95ea0

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									Classifications                          Income Statement in EUR million (IFRS)

Sales                                    Sales
Cost of Sales (function)                 Cost of sales
                                         Gross margin

Other Operating Income, Net of Other     Amortization of capitalized development costs
Operating Expenses (function)
SG&A (function)                          Selling expenses
SG&A (function)                          General and administrative expenses
Other Operating Income, Net of Other     Other operating income
Operating Expenses (function)
Other Operating Income, Net of Other     Other operating expenses
Operating Expenses (function)
Investment Income                        Income from investments
                                         EBIT
Net Interest Expense or Income           Interest and similar income
Net Interest Expense or Income           Interest and similar expense
                                         Profit from ordinary activities (EBT)
Tax Expense                              Income tax expense
                                         Net income before minority interests
Minority Interest                        Minority interest
Net Profit/Loss                          Net income

Classifications                          Pro forma IS items in EUR million (IFRS)
Cost of Materials (nature)               Raw materials and supplies
Cost of Materials (nature)               Merchandise
Personnel Expenses (nature)              Purchased services
Personnel Expenses (nature)              Personnel and social security costs
Depreciation and Amortization (nature)   Depreciation of property, plant and equipment and
                                         amortization of software
Other Operating Income, Net   of Other   Amortization of capitalized development costs
Operating Expenses (nature)
Other Operating Income, Net   of Other   Capitalized development costs
Operating Expenses (nature)
Other Operating Income, Net   of Other   Other non-personnel costs
Operating Expenses (nature)
Other Operating Income, Net   of Other   Advertising costs
Operating Expenses (nature)
Other Operating Income, Net   of Other   Freight
Operating Expenses (nature)
Other Operating Income, Net   of Other   Warranty expenses
Operating Expenses (nature)
Other Operating Income, Net   of Other   Contributions, charges and fees
Operating Expenses (nature)
Other Operating Income, Net   of Other   Travel and hospitality expenses
Operating Expenses (nature)

Classifications                          Balance Sheet in EUR million (IFRS)

Non-Current Intangible Assets            Intangible assets
Non-Current Tangible Assets              Property, plant and equipment
Other Non-Current Assets                     Financial assets
Other Non-Current Assets                     Income tax assets
Other Non-Current Assets                     Miscellaneous non-current assets
Deferred Taxes - Non-Current Asset           Deferred taxes
                                             Total non-current assets

Inventories                                  Inventories
Trade Receivables                            Trade accounts receivable
Other Current Assets                         Income tax assets
Other Current Assets                         Miscellaneous current financial assets
Cash and Marketable Securities               Cash and cash equivalents
                                             Total current assets

Total Assets                                 Total assets

Ordinary Shareholders'   Equity              Subscribed capital
Ordinary Shareholders'   Equity              Capital reserve
Ordinary Shareholders'   Equity              Retained earnings
Ordinary Shareholders'   Equity              Other reserve
Ordinary Shareholders'   Equity              Accumulated profit
Minority Interest                            Minority interests
                                             Shareholders' equity

Non-Current Debt                             Provisions for pensions and similar obligations
Non-Current Debt                             Other non-current provisions
Non-Current Debt                             Non-current financial liabilities
                                             Non-current liabilities

Other Current Liabilities                    Income tax provisions
Other Current Liabilities                    Other current provisions
Current Debt                                 Current financial liabilities
Trade Payables                               Trade accounts payable
Other Current Liabilities                    Miscellaneous current financial liabilities
                                             Total current liabilities

Total Liabilities and Shareholders' Equity   Total liabilities and shareholders' equity


Classifications                              Balance Sheet in EUR million (IFRS)

                                             Operating activities
Profit Before Tax                            EBIT
                                             Adjustment for:
Profit Before Tax                            Interest paid
Profit Before Tax                            Interest received
Non-Current Operating Accruals               Depreciation and amortization of non-current assets
Non-Operating Gains (Losses)                 Other non-cash items
Non-Current Operating Accruals               Decrease (+) of non-current receivables
Non-Current Operating Accruals               Increase (+) in pension provisions
Non-Current Operating Accruals               Increase (+)/decrease (-) of other non-current
                                             provisions
Taxes Paid                                   Income taxes paid
Net (Investments in) or Liquidation   of   Decrease (+) in inventories
Operating Working Capital
Net (Investments in) or Liquidation   of   Decrease (+)/increase (-) in trade accounts receivable
Operating Working Capital                  and other assets
Net (Investments in) or Liquidation   of   Increase (+) in other current provisions
Operating Working Capital
Net (Investments in) or Liquidation   of   Increase (+)/decrease (-) in trade accounts payable and
Operating Working Capital                  other liabilities
                                           Net cash from operations

Net (Investments in) or Liquidation of     Payments for purchases of intangible assets and
Operating Non-Current Assets               property, plant and equipment
Net (Investments in) or Liquidation of     Payments for purchases of financial assets
Operating Non-Current Assets
Net (Investments in) or Liquidation of     Proceeds from disposals of intangible assets and
Operating Non-Current Assets               property, plant and equipment
                                           Net cash from investing activities

Net Share (Repurchase) or Issuance         Decline in minority interest
Dividend (Payments)                        Dividend payment
Net Debt (Repayment) or Issuance           Repayment (-) of loans
                                           Net cash from financing activities

                                           Cash-effective change in liquidity




Sales
Cost of Sales (function)
SG&A (function)
Cost of Materials (nature)
Personnel Expenses (nature)
Depreciation and Amortization (nature)
Other Operating Income, Net of Other
Operating Expenses (function)
Other Operating Income, Net of Other
Operating Expenses (nature)
Net Interest Expense or Income
Investment Income
Other Income
Other Expense
Tax Expense
Minority Interest
Net Profit/Loss

Cash and Marketable Securities
Trade Receivables
Inventories
Deferred Taxes - Current Asset
Other Current Assets
Non-Current Tangible Assets
Non-Current Intangible Assets
Deferred Taxes - Non-Current Asset
Other Non-Current Assets
Total Assets
Current Debt
Trade Payables
Other Current Liabilities
Deferred Taxes - Current Liability
Non-Current Debt
Deferred Taxes - Non-Current Liability
Other Non-Current Liabilities (non interest
bearing)
Minority Interest
Preference Shares
Ordinary Shareholders' Equity
Total Liabilities and Shareholders' Equity

Profit Before Tax
Taxes Paid
Net Profit
Non-Operating Gains (Losses)
Non-Current Operating Accruals
Net (Investments in) or Liquidation of
Operating Working Capital
Net (Investments in) or Liquidation of
Operating Non-Current Assets
Net Debt (Repayment) or Issuance
Dividend (Payments)
Net Share (Repurchase) or Issuance
 2008      2007      2006

 374.0     372.5     341.9
(255.7)   (268.2)   (255.7)
118.3     104.3      86.2


  (6.7)     (7.1)     (6.7)
 (75.9)    (68.3)    (56.5)
  (9.5)     (9.4)     (8.9)

   9.0       8.9      13.9

  (6.6)     (7.4)    (14.9)
   0.0       0.0       0.1
 28.5      21.1      13.2
   1.8       0.5       0.2
  (2.8)     (2.7)     (2.9)
 27.5      18.9      10.5
  (8.5)    (11.5)     (3.6)
 19.0       7.4       6.9
  (0.2)     (0.2)     (0.3)
 18.9       7.2       6.5

  2008      2007     2006
 -193.0    -210.5   -206.8
  -14.1     -14.0    -10.6
   -1.6      -1.5     -1.2
  -65.4     -58.2    -50.8

  -13.8     -12.0     -10.9

   -6.7      -7.1      -6.7

    6.0       7.5       6.3

  -12.4     -15.7     -13.8

  -21.8     -20.1     -16.6

   -9.1      -8.1      -8.3

   -8.0      -6.1      -5.0

   -3.4      -3.4      -2.6

   -2.4      -2.1      -1.8

 2008      2007      2006

   5.9       6.0       5.5
  42.6      39.6      36.3
   1.1      0.8      0.7
   0.3      0.4      0.0
   0.3      0.4      1.0
  11.3     16.6     24.1
 61.6     63.7     67.6

  51.1     52.3     59.9
  88.8     98.1     81.9
   0.2      0.2      0.0
   3.9      1.7      2.2
  37.2      3.9      6.5
181.2    156.2    150.4

242.8    219.9    218.0

  13.0     13.0     13.0
  47.0     47.0     47.0
  13.5      3.6      0.0
   1.5     -0.5      0.0
  13.5      8.0      4.4
   1.2      1.1      1.7
 89.7     72.2     66.1

  41.0     39.4     37.9
  17.0     15.2     13.1
   2.3      3.3      4.2
 60.3     57.9     55.2

   4.4      4.1      4.0
  49.2     45.7     46.0
   1.0      2.3      5.8
  29.0     29.9     34.2
   9.3      7.8      6.8
 92.8     89.8     96.7

242.8    219.9    218.0


2008     2007     2006


 28.5     21.1     13.2

 (0.9)    (1.0)    (1.3)
  1.8      0.5      0.2
 20.4     19.1     17.6
 (1.7)    (1.7)    (1.6)
  0.0      0.2      0.0
  1.5      1.5      1.1

  1.8      2.0     (2.1)
 (3.6)    (3.9)    (2.4)
  1.2       7.7     (20.5)

 10.0     (17.8)      9.4

  3.4      (0.1)     11.1

 1.1       (2.7)    (10.5)
63.7      24.9      14.2


(23.6)    (23.1)    (18.5)

 (0.4)     (0.1)     (0.0)

  0.1       0.1       0.1
(23.8)    (23.1)    (18.4)

   0.0      (0.8)      0.0
  (3.5)      0.0      (0.0)
  (0.9)     (0.9)     (5.3)
 (4.5)     (1.7)     (5.3)

35.4        0.1      (9.6)
Classifications                          Income Statement in DKK million (IFRS)

Sales                                    Net turnover
Cost of Sales (function)                 Production costs
                                         Gross profit

Other Operating Income, Net of Other     Development costs
Operating Expenses (function)
SG&A (function)                          Distribution and marketing costs
SG&A (function)                          Administration costs
                                         Operating profit
Investment Income                        Result of investments in associates after tax
Investment Income                        Gain on sale of shares in subsidiary
Other Operating Income, Net of Other     Exchange rate gains (losses)
Operating Expenses (function)
Net Interest Expense or Income           Interest and other financial income
Net Interest Expense or Income           Interest and other financial costs
                                         Result before tax
Tax Expense                              Tax on result for the year
                                         Group profit
Minority Interest                        Minority interests
Net Profit/Loss                          Group profit attributable to shareholders of B&O


Classifications                          Pro Forma IS Items in DKK million (IFRS)
Cost of Materials (nature)               Cost of materials
Other Operating Income, Net of Other     Amortisation of development costs
Operating Expenses (nature)
Depreciation and Amortization (nature)   Amortisation of other intangible non-current assets
Other Operating Income, Net of Other     Impairment losses on intangible non-current assets
Operating Expenses (nature)
Depreciation and Amortization (nature)   Depreciation of tangible non-current assets
Other Operating Income, Net of Other     Impairment on tangible non-current assets
Operating Expenses (nature)
Depreciation and Amortization (nature)   Depreciation of investment property
Personnel Expenses (nature)              Remuneration to the Board of Directors
Personnel Expenses (nature)              Remuneration to the Board of Management
Personnel Expenses (nature)              Share-based payment
Personnel Expenses (nature)              Wages, salaries and fees
Personnel Expenses (nature)              Pensions
Personnel Expenses (nature)              Other statutory contributions

Classifications                          Balance Sheet in DKK million (IFRS)

Non-Current   Intangible Assets          Goodwill
Non-Current   Intangible Assets          Acquired rights
Non-Current   Intangible Assets          Completed development projects
Non-Current   Intangible Assets          Development projects in progress
Non-Current   Tangible Assets            Land and Buildings
Non-Current   Tangible Assets            Plant and machinery
Non-Current   Tangible Assets            Other equipment
Non-Current   Tangible Assets            Leasehold improvements
Non-Current Tangible Assets                   Tangible assets in progress and prepayments for
                                              tangible assets
Other Non-Current Assets                      Investment property
Other Non-Current Assets                      Investments in associates
Other Non-Current Assets                      Other financial receivables
Deferred Taxes - Non-Current Asset            Deferred tax assets
                                              Total non-current assets

Inventories                                   Inventories
Trade Receivables                             Trade receivables
Other Current Assets                          Receivables from associates
Other Current Assets                          Income tax receivables
Other Current Assets                          Other receivables
Other Current Assets                          Prepayments
Cash and Marketable Securities                Cash
                                              Total current assets

Other Non-Current Assets                      Non-current assets classified as held for sale

Total Assets                                  Total assets

Ordinary   Shareholders'   Equity             Share capital
Ordinary   Shareholders'   Equity             Share premium
Ordinary   Shareholders'   Equity             Translation reserve
Ordinary   Shareholders'   Equity             Reserve for cash flow hedges
Ordinary   Shareholders'   Equity             Retained earnings
                                              Equity attributable to shareholders of the parent
                                              company
Minority Interest                             Minority interests
                                              Total equity

Non-Current Debt                              Pensions
Deferred Taxes - Non-Current Liability        Deferred tax
Non-Current Debt                              Provisions
Non-Current Debt                              Mortgage Loans
Non-Current Debt                              Loans from banks etc.
Other Non-Current Liabilities (non interest   Other non-current liabilities
bearing)
                                              Non-current liabilities

Current Debt                                  Mortgage loans, short term part
Current Debt                                  Loans from banks etc., short term part
Current Debt                                  Other loans from banks
Other Current Liabilities                     Provisions
Trade Payables                                Trade Payables
Other Current Liabilities                     Payables to associates
Other Current Liabilities                     Income tax
Other Current Liabilities                     Other payables
Other Current Liabilities                     Deferred income
                                              Total current liabilities

Total Liabilities and Shareholders' Equity    Total equity and liabilities
Classifications                            Cash flow statement in DKK million (IFRS)

                                           Operating activities
Profit Before Tax                          Result for the year
                                           Adjustment for:
Non-Current Operating Accruals             Depreciations, amortisations and impairment losses
Non-Current Operating Accruals             Change in liabilities
Profit Before Tax                          Financial income
Profit Before Tax                          Financial costs
Non-Current Operating Accruals             Share of associates' result after tax
Non-Operating Gains (Losses)               Gain on sale of non-current assets
Non-Operating Gains (Losses)               Gain on disposal of activities
Profit Before Tax                          Tax on result for the year
Non-Current Operating Accruals             Various adjustments
Net (Investments in) or Liquidation of     Change in receivables
Operating Working Capital
Net (Investments in) or Liquidation of     Change in inventories
Operating Working Capital
Net (Investments in) or Liquidation of     Change in accounts payables etc.
Operating Working Capital
Profit Before Tax                          Interest received
Profit Before Tax                          Interest paid
Taxes Paid                                 Income tax paid
                                           Cash flow from operating activities

Net (Investments in) or Liquidation   of   Purchase of intangible non-current assets
Operating Non-Current Assets
Net (Investments in) or Liquidation   of   Purchase of tangible non-current assets
Operating Non-Current Assets
Net (Investments in) or Liquidation   of   Sale of intangible non-current assets
Operating Non-Current Assets
Net (Investments in) or Liquidation   of   Sale of tangible non-current assets
Operating Non-Current Assets
Net (Investments in) or Liquidation   of   Disposals (acquisitions) of activities
Operating Non-Current Assets
Net (Investments in) or Liquidation   of   Change in financial receivables
Operating Non-Current Assets
                                           Cash flow from investment activities

Net Debt (Repayment) or Issuance           Proceeds from long-term loans
Net Debt (Repayment) or Issuance           Repayment of long-term loans
Net Debt (Repayment) or Issuance           Other bank loans
Dividend (Payments)                        Dividend paid
Net Share (Repurchase) or Issuance         Dividend, own shares
Net Share (Repurchase) or Issuance         Repurchase of own shares
Net Share (Repurchase) or Issuance         Subscription of employee shares
Net Share (Repurchase) or Issuance         Sale of own shares
                                           Cash flow from financing activities

                                           Change in cash and cash equivalents
                                              Cash and cash equivalents 1 June
                                              Cash and cash equivalents 31 May




Sales
Cost of Sales (function)
SG&A (function)
Cost of Materials (nature)
Personnel Expenses (nature)
Depreciation and Amortization (nature)
Other Operating Income, Net of Other
Operating Expenses (function)
Other Operating Income, Net of Other
Operating Expenses (nature)
Net Interest Expense or Income
Investment Income
Other Income
Other Expense
Tax Expense
Minority Interest
Net Profit/Loss

Cash and Marketable Securities
Trade Receivables
Inventories
Deferred Taxes - Current Asset
Other Current Assets
Non-Current Tangible Assets
Non-Current Intangible Assets
Deferred Taxes - Non-Current Asset
Other Non-Current Assets
Total Assets
Current Debt
Trade Payables
Other Current Liabilities
Deferred Taxes - Current Liability
Non-Current Debt
Deferred Taxes - Non-Current Liability
Other Non-Current Liabilities (non interest
bearing)
Minority Interest
Preference Shares
Ordinary Shareholders' Equity
Total Liabilities and Shareholders' Equity

Profit Before Tax
Taxes Paid
Net Profit
Non-Operating Gains (Losses)
Non-Current Operating Accruals
Net (Investments in) or Liquidation of
Operating Working Capital
Net (Investments in) or Liquidation of
Operating Non-Current Assets
Net Debt (Repayment) or Issuance
Dividend (Payments)
Net Share (Repurchase) or Issuance
   2008        2007        2006

 4,092.0     4,375.7     4,225.2
(2,199.6)   (2,338.0)   (2,281.1)
1,892.4     2,037.7     1,944.1


  (545.5)    (458.8)     (442.9)
(1,003.5)    (910.2)     (920.3)
  (148.7)    (138.7)     (142.0)
  194.7      530.0       438.9
   (11.2)      (1.1)       (1.0)
     0.0       11.5         0.0

  (12.3)       (7.6)       (9.5)
   20.0        15.7        17.7
  (37.5)      (24.1)      (15.4)
 153.7       524.4       430.7
  (41.4)     (151.9)     (134.7)
 112.3       372.5       296.0
   (7.6)       (5.1)       (2.0)

 104.7       367.4       294.0

    2008        2007        2006
(1,743.4)   (1,920.4)   (1,900.8)

  (151.7)     (110.2)      (89.7)
    (2.0)       (5.4)       (7.0)

    (2.4)        0.0       (10.0)
  (139.5)     (126.5)     (125.5)

     0.0        (3.0)        0.0
    (3.6)       (3.8)       (0.1)
    (3.6)       (2.8)       (2.8)
   (16.0)       (7.5)       (6.9)
   (20.6)      (19.9)      (22.0)
  (835.6)     (840.4)     (791.3)
   (39.5)      (44.7)      (50.5)
   (36.4)      (35.9)      (42.3)

   2008        2007        2006

    44.8        44.8        18.0
    41.1        44.4        12.1
   218.8       244.6       216.3
   112.5       116.2       109.8
   274.4       252.1       332.8
   221.8       203.8       200.7
    50.0        70.7        58.2
    28.7        29.1        26.6
    80.8        62.2        49.1
    52.8        56.4         0.7
     6.3        15.8         6.0
    52.0        88.2        28.8
    22.7        21.2        36.4
1,206.7     1,249.5     1,095.5

   801.4       694.3       567.4
   593.0       733.8       655.1
     0.0         8.5         0.0
    39.7        27.0        16.6
    38.9        30.0        51.4
    30.5        22.8        25.5
   107.1       196.4       502.5
1,610.6     1,712.8     1,818.5

    0.0         0.0         1.1

2,817.3     2,962.3     2,915.1

   120.8       120.8       124.5
    14.6        14.6        14.6
   (42.9)      (17.3)       (4.7)
     0.0         0.1         0.0
 1,379.2     1,557.7     1,603.6

1,471.7     1,675.9     1,738.0
    12.1        6.0         4.1
1,483.8     1,681.9     1,742.1

    9.5          9.7       15.5
   64.2         67.8       63.7
   77.3         97.0       91.9
  235.7         93.4      107.2
  101.1         97.1      129.7

   6.6         6.1         0.0
 494.4       371.1       408.0

    8.5        14.0        13.8
   42.9        32.4        32.5
   53.7        39.5         0.0
   46.0        33.3        31.1
  216.0       213.7       196.3
    1.8         0.0         0.0
   66.3       122.3        78.3
  320.0       356.2       361.4
   83.9        97.9        51.6
 839.1       909.3       765.0

2,817.3     2,962.3     2,915.1
  2008       2007       2006


  112.3      372.5      296.0

  299.2      248.9      232.3
   (6.7)       4.5       10.2
  (20.0)     (15.7)     (17.7)
   49.8       31.7       24.9
   11.2        1.1        1.0
    0.0        0.0        3.3
    0.0      (11.5)       0.0
   41.4      151.9      134.7
   16.9        0.6        5.7

  131.9      (93.2)    (122.0)

 (107.1)    (131.4)    (112.8)

 (47.0)      82.4       46.6
  20.0       15.7       17.7
 (49.8)     (31.7)     (24.9)
(120.3)    (105.0)    (100.4)
331.8      520.8      394.6


 (124.9)    (210.1)    (171.4)

 (190.4)    (157.6)    (185.2)

    1.5        0.7        0.0

   23.3        9.8       13.5

    0.0       32.7      (27.7)

   36.2      (53.9)      (7.7)
(254.3)    (378.4)    (378.5)

  200.0        0.0       74.6
  (48.7)     (46.3)     (38.8)
   14.2       39.5        0.0
 (247.7)    (200.2)    (149.0)
   14.0       11.3        5.7
 (100.2)    (271.3)    (148.9)
    0.0        0.0        5.6
    1.6       18.5        5.3
(166.8)    (448.5)    (245.5)

 (89.3)    (306.1)    (229.4)
 196.4    502.5    731.9
107.1    196.4    502.5
                                Item           Development       of which    Development

                                               costs incurred capitalized costs expensed
      Loewe (EURm)                2008                     7.2         6.0            1.2
      Loewe (EURm)                2007                     8.5         7.5            1.0
      Loewe (EURm)                2006                     6.7         6.3            0.4
      Loewe (EURm)                2005                     5.5         5.2            0.3


       B&O (DKKm)                 2008                  529.9        103.9             426.0
       B&O (DKKm)                 2007                  493.5        142.2             351.3
       B&O (DKKm)                 2006                  510.8        165.1             345.7
       B&O (DKKm)                 2005                  412.0        111.7             300.3
       B&O (DKKm)                 2004                  364.0        127.6             236.4
       B&O (DKKm)                 2003                  321.0        100.9             220.1


                                  Loewe            Loewe          Loewe      B&O (DKKm)          B&O
                                 (EURm)           (EURm)         (EURm)                        (DKKm)
                                   2008             2007           2006         2008            2007
Adjustments:
Non-current intangible assets
                                         1.1               0.9         0.4             759.5      665.6
Deferred tax liability                   0.3               0.2         0.1             227.8      199.7
Equity                                   0.8               0.6         0.3             531.6      465.9

Other operating expenses               -0.2              -0.5                          -93.9      -59.3
Tax expense                             0.1               0.1                           28.2       17.8
Net profit                              0.2               0.4                           65.7       41.5
Proportion Proportion Proportion Proportion Proportion
capitalized capitalized capitalized amortized amortized
  2008        2007        2006        2008      2007
         0.9                               0.3
         0.3         0.8                   0.5       0.3
                     0.1         0.3       0.1       0.2
                                 0.1                 0.1
         1.1         0.9         0.4       0.9       0.5

     372.8                               53.3
     219.6       307.4                   87.8       43.9
     129.6       216.1      302.5        86.4       86.4
      37.5       112.6      187.7        75.1       75.1
                  29.6       88.7        29.6       59.1
                             27.5                   27.5
     759.5       665.6      606.3       332.1      292.0

   B&O
 (DKKm)
  2006


     606.3
     181.9
     424.4
                             Loewe         Loewe         Loewe          B&O         B&O       B&O
                            (EURm)        (EURm)        (EURm)        (DKKm)      (DKKm)    (DKKm)
Future values                 2008          2007          2006         2008        2007      2006
                        1          3.5           2.7           2.5         75.9        68.8     80.9
                        2          0.8           0.7           0.7         44.9        39.8     45.4
                        3          0.8           0.7           0.7         44.9        39.8     45.4
                        4          0.8           0.7           0.7         44.9        39.8     45.4
                        5          0.8           0.7           0.7         44.9        39.8     45.4
                        6          0.8           0.7           0.7         44.9        38.9     44.7
                        7          0.8           0.5           0.3         35.1         0.0        0
                        8          0.1           0.0           0.0          0.0         0.0        0
                        9          0.0           0.0           0.0          0.0         0.0        0
                       10          0.0           0.0           0.0          0.0         0.0        0
                       11          0.0           0.0           0.0          0.0         0.0        0

Effective interest rate
(discount rate
pensions)                       5.00%         4.75%         4.50%        5.00%       4.25%     4.25%

Present values               2008          2007          2006          2008        2007       2006
                        1           3.3           2.5           2.4        72.3        66.0      77.6
                        2           0.7           0.6           0.6        40.7        36.6      41.8
                        3           0.7           0.6           0.6        38.8        35.1      40.1
                        4           0.7           0.6           0.6        36.9        33.7      38.4
                        5           0.6           0.5           0.6        35.2        32.3      36.9
                        6           0.6           0.5           0.5        33.5        30.3      34.8
                        7           0.6           0.3           0.2        24.9         0.0       0.0
                        8           0.1           0.0           0.0         0.0         0.0       0.0
                        9           0.0           0.0           0.0         0.0         0.0       0.0
                       10           0.0           0.0           0.0         0.0         0.0       0.0
                       11           0.0           0.0           0.0         0.0         0.0       0.0

Total present value                 7.4           5.7           5.5       282.4       234.0     269.6
Actual minimum lease
payment                             2.5           2.4                      78.5        70.6      48.7
New lease
commitments                         4.1           2.4                     119.7        26.8

Depreciation expense                1.3           1.0                      51.5        47.2
Interest expense                    0.1           0.1                       7.1         8.2
Lease repayment                     2.4           2.2                      71.4        62.4

Adjustments:
Non-current tangible
assets                              8.5           7.0           5.5       302.2       249.3     269.6
Non-current debt                    7.4           5.7           5.5       282.4       234.0     269.6
Deferred tax liability              0.3           0.4                       6.0         4.6
Equity                              0.8           0.9                      13.9        10.7

Cost of sales (Lease
expense)                            2.5           2.4                      78.5        70.6
Cost of sales
(Depreciation
expense)           -1.3   -1.0   -51.5   -47.2
Interest expense   -0.1   -0.1    -7.1    -8.2
Tax expense        -0.3   -0.4    -6.0    -4.6
Net profit          0.8    0.9    13.9    10.7
Income Statement Items                    Loewe         Loewe         Loewe          B&O
                                         (EURm)        (EURm)        (EURm)        (DKKm)
                                           2008          2007          2006         2008
Sales                                         374.0         372.5         341.9       4,092.0
Cost of Sales (function)                     (255.7)       (268.2)       (255.7)     (2,199.6)
SG&A (function)                               (85.5)        (77.7)        (65.4)     (1,152.2)
Cost of Materials (nature)                      0.0           0.0           0.0           0.0
Personnel Expenses (nature)                     0.0           0.0           0.0           0.0
Depreciation and Amortization (nature)          0.0           0.0           0.0           0.0
Other Operating Income, Net of Other
Operating Expenses (function)                  (4.4)         (5.6)         (7.7)      (557.8)
Other Operating Income, Net of Other
Operating Expenses (nature)                    0.0            0.0           0.0          0.0
Net Interest Expense or Income                (1.0)          (2.2)         (2.7)       (17.5)
Investment Income                              0.0            0.0           0.1        (11.2)
Other Income                                   0.0            0.0           0.0          0.0
Other Expense                                  0.0            0.0           0.0          0.0
Tax Expense                                   (8.5)         (11.5)         (3.6)       (41.4)
Minority Interest                             (0.2)          (0.2)         (0.3)        (7.6)
Net Profit/Loss                              18.9            7.2           6.5        104.7

Operating profit                             28.5           21.1          13.1        182.4
Profit before taxes                          27.5           18.9          10.5        153.7
Profit after taxes                           19.0            7.4           6.9        112.3

Pro forma Income Statement Items          Loewe         Loewe         Loewe          B&O
                                         (EURm)        (EURm)        (EURm)        (DKKm)
                                           2008          2007          2006         2008
                                             (345.5)       (351.5)       (328.8)     (2,994.3)
Cost of Materials (nature)                   (207.1)       (224.6)       (217.4)     (1,743.4)
Personnel Expenses (nature)                   (67.0)        (59.7)        (52.1)       (951.7)
Depreciation and Amortization (nature)        (13.8)        (12.0)        (10.9)       (145.1)
EBITDA                                         42.3          33.1          24.0         182.4

Balance Sheet Items                       Loewe         Loewe         Loewe          B&O
                                         (EURm)        (EURm)        (EURm)        (DKKm)
                                           2008          2007          2006         2008
                                             1456.8        1319.3        1308.1       18375.5
Cash and Marketable Securities                 37.2           3.9           6.5         107.1
Trade Receivables                              88.8          98.1          81.9         593.0
Inventories                                    51.1          52.3          59.9         801.4
Deferred Taxes - Current Asset                  0.0           0.0           0.0           0.0
Other Current Assets                            4.1           1.9           2.2         109.1
Non-Current Tangible Assets                    42.6          39.6          36.3         655.7
Non-Current Intangible Assets                   5.9           6.0           5.5         417.2
Deferred Taxes - Non-Current Asset             11.3          16.6          24.1          22.7
Other Non-Current Assets                        1.8           1.5           1.7         111.1
Total Assets                                 242.8         219.9         218.0        2817.3
Current Debt                                    1.0           2.3           5.8         105.1
Trade Payables                                 29.0          29.9          34.2         216.0
Other Current Liabilities                      62.8          57.7          56.8         518.0
Deferred Taxes - Current Liability              0.0           0.0           0.0           0.0
Non-Current Debt                                    60.3         57.9          55.2         423.6
Deferred Taxes - Non-Current Liability               0.0          0.0           0.0          64.2
Other Non-Current Liabilities (non interest
bearing)                                             0.0          0.0           0.0           6.6
Minority Interest                                    1.2          1.1           1.7          12.1
Preference Shares                                    0.0          0.0           0.0           0.0
Ordinary Shareholders' Equity                       88.4         71.1          64.4        1471.7
Total Liabilities and Shareholders'
Equity                                            242.8        219.9         218.0        2817.3

Total non-current assets                           61.6         63.7          67.6        1206.7
Total current assets                              181.2        156.2         150.4        1610.6
Shareholders' equity                               88.4         71.1          64.4        1471.7
Minority Interest                                   1.2          1.1           1.7          12.1
Total non-current liabilities                      60.3         57.9          55.2         494.4
Total current liabilities                          92.8         89.8          96.7         839.1


Cash flow statement items                      Loewe        Loewe         Loewe          B&O
                                              (EURm)       (EURm)        (EURm)        (DKKm)
                                                2008         2007          2006         2008
                                                    70.8           0.2        -19.1          35.6
Profit Before Tax                                  29.4         20.6          12.1         153.7
Taxes Paid                                         (3.6)         (3.9)         (2.4)      (120.3)
Net Profit                                          0.0           0.0           0.0          0.0
Non-Operating Gains (Losses)                       (1.7)         (1.7)         (1.6)         0.0
Non-Current Operating Accruals                     23.8         22.9          16.6         320.6
Net (Investments in) or Liquidation of
Operating Working Capital                          15.7         (13.0)        (10.5)       (22.2)
Net (Investments in) or Liquidation of
Operating Non-Current Assets                      (23.8)        (23.1)        (18.4)      (254.3)
Net Debt (Repayment) or Issuance                   (0.9)         (0.9)         (5.3)       165.5
Dividend (Payments)                                (3.5)          0.0          (0.0)      (247.7)
Net Share (Repurchase) or Issuance                  0.0          (0.8)          0.0        (84.6)
Net change in cash and cash
equivalents                                       35.4           0.1          (9.6)       (89.3)
  B&O           B&O
(DKKm)        (DKKm)
 2007          2006
   4,375.7       4,225.2
  (2,338.0)     (2,281.1)
  (1,048.9)     (1,062.3)
       0.0           0.0
       0.0           0.0
       0.0           0.0

   (466.4)       (452.4)

      0.0           0.0
     (8.4)          2.3
     10.4          (1.0)
      0.0           0.0
      0.0           0.0
   (151.9)       (134.7)
     (5.1)         (2.0)
   367.4         294.0

   522.4         429.4
   524.4         430.7
   372.5         296.0

  B&O           B&O
(DKKm)        (DKKm)
 2007          2006
  (3,120.5)     (3,048.9)
  (1,920.4)     (1,900.8)
    (951.2)       (915.8)
    (135.7)       (132.6)
     522.4         429.4

  B&O           B&O
(DKKm)        (DKKm)
 2007          2006
   19449.7       19227.5
     196.4         502.5
     733.8         655.1
     694.3         567.4
       0.0           0.0
      88.3          93.5
     617.9         667.4
     450.0         356.2
      21.2          36.4
     160.4          36.6
   2962.3        2915.1
      85.9          46.3
     213.7         196.3
     609.7         522.4
       0.0           0.0
    297.2        344.3
     67.8         63.7

      6.1          0.0
      6.0          4.1
      0.0          0.0
   1675.9       1738.0

  2962.3       2915.1

  1249.5       1096.6
  1712.8       1818.5
  1675.9       1738.0
     6.0          4.1
   371.1        408.0
   909.3        765.0


  B&O          B&O
(DKKm)       (DKKm)
 2007         2006
    -219.4        546.2
    524.4        430.7
   (105.0)      (100.4)
      0.0          0.0
    (11.5)         3.3
    255.1        249.2

   (142.2)      (188.2)

   (378.4)      (378.5)
     (6.8)        35.8
   (200.2)      (149.0)
   (241.5)      (132.3)

  (306.1)      (229.4)
                                                            Prior           adjustments
                                                                               to
                                                                               B&O
                                           Loewe (€m) Loewe (€m) Loewe (€m) (DKKm)
                                             2008               2007                2006           2008
 Sales                                           374.0               372.5             341.9        4,092.0
 Cost of sales                                  (255.7)             (268.2)           (255.7)      (2,199.6)
 Gross profit                                   118.3               104.3               86.2        1,892.4
 SG&A expense                                   (85.5)              (77.7)             (65.4)      (1,152.2)
 Other operating income, net of other
 operating expense                                  (4.4)              (5.6)               (7.7)    (557.8)
 Operating profit                                   28.5               21.1                13.1      182.4
 Investment income                                    0.0                0.0                 0.1     (11.2)
 Other income, net of other expense                   0.0                0.0                 0.0        0.0
 Net interest expense (income)                      (1.0)              (2.2)               (2.7)     (17.5)
 Profit before taxes                                27.5              18.9                 10.5      153.7
 Tax expense                                        (8.5)            (11.5)                (3.6)     (41.4)
 Profit after taxes                                 19.0                7.4                 6.9      112.3
 Minority interest                                  (0.2)              (0.2)               (0.3)      (7.6)
 Net profit                                         18.9                7.2                 6.5      104.7

Items by nature
  Cost of materials (nature)                    (207.1)             (224.6)           (217.4)      (1,743.4)
  Personnel expense (nature)                     (67.0)              (59.7)            (52.1)        (951.7)
  Depreciation and amortization (nature)         (13.8)              (12.0)            (10.9)        (145.1)
  Other operating income, net of other
  operating expense                              (57.6)              (55.2)            (48.5)      (1,069.4)

ASSETS
 Non-Current Tangible Assets                        42.6               39.6                36.3       655.7
 Non-Current Intangible Assets                       5.9                6.0                 5.5       417.2
 Deferred Tax Asset                                 11.3               16.6                24.1        22.7
 Other Non-Current Assets                            1.8                1.5                 1.7       111.1
 Total non-current assets                           61.6               63.7                67.6    1,206.7

 Trade Receivables                                  88.8               98.1                81.9       593.0
 Inventories                                        51.1               52.3                59.9       801.4
 Other Current Assets                                4.1                1.9                 2.2       109.1
 Cash and Marketable Securities                     37.2                3.9                 6.5       107.1
 Total current assets                           181.2               156.2              150.4       1,610.6

  TOTAL ASSETS                                  242.8               219.9              218.0       2,817.3
LIABILITIES AND SHAREHOLDERS’
EQUITY
  Preference Shares                                  0.0                0.0                 0.0         0.0
  Ordinary Shareholders’ equity                     88.4               71.1                64.4     1,471.7
 Total shareholders’ equity                         88.4               71.1                64.4    1,471.7
 Minority Interest                                   1.2                1.1                 1.7       12.1

 Non-Current Debt                                   60.3               57.9                55.2       423.6
 Deferred Tax Liability                              0.0                0.0                 0.0        64.2
Other Non-Current Liabilities (non interest
bearing)                                         0.0      0.0      0.0        6.6
Total non-current liabilities                  60.3     57.9     55.2     494.4

Current Debt                                    1.0      2.3      5.8      105.1
Trade Payables                                 29.0     29.9     34.2      216.0
Other Current Liabilities                      62.8     57.7     56.8      518.0
Total current liabilities                      92.8     89.8     96.7     839.1

TOTAL LIABILITIES AND
SHAREHOLDERS’ EQUITY                          242.8    219.9    218.0    2,817.3



Profit before tax                              29.4     20.6     12.1      153.7
Taxes paid                                     (3.6)    (3.9)    (2.4)    (120.3)
Net profit                                     25.9     16.7       9.7      33.4
After-tax net interest expense (income)          0.7      0.9      1.8       12.8
Non-operating losses (gains)                   (1.7)    (1.7)    (1.6)        0.0
Non-current operating accruals                  23.8     22.9     16.6      320.6
Operating cash flow before working
capital investments                            48.7     38.7     26.5     366.8

Net (investments in) or liquidation of
operating working capital                      15.7    (13.0)   (10.5)     (22.2)
Operating cash flow before
investment in non-current assets               64.4     25.8     16.0     344.6
Net (investment in) or liquidation of
operating non-current assets                  (23.8)   (23.1)   (18.4)    (254.3)
Free cash flow available to debt and
equity                                         40.5      2.7    (2.5)       90.3
After-tax net interest expense (income)        (0.7)    (0.9)    (1.8)     (12.8)
Net debt (repayment) or issuance               (0.9)    (0.9)    (5.3)      165.5
Free cash flow available to equity             38.9      0.9    (9.6)      243.0
Dividend (payments)                            (3.5)      0.0    (0.0)    (247.7)
Net share (repurchase) or issuance               0.0    (0.8)      0.0     (84.6)
Net increase (decrease) in cash
balance                                        35.4      0.1    (9.6)     (89.3)




Sales                                         374.0    372.5    341.9    4,092.0
Net Operating Profit after Tax                 19.5      8.0      8.3       117.5
Net profit                                     18.9      7.2      6.5       104.7
+ Net interest expense after tax                0.7      0.9      1.8        12.8
= Net operating profit after tax               19.5      8.0      8.3     117.5
– Net Interest Expense after Tax                0.7      0.9      1.8      12.8
 = Net interest expense (income)                 1.0      2.2      2.7      17.5
x (1 – Tax expense/pre-tax income)            69.1%    39.0%    65.4%     73.1%
 = Net Interest Expense after Tax               0.7      0.9      1.8      12.8
 = Net Profit                                  18.9      7.2      6.5      104.7
– Preferred stock dividends                     0.0      0.0      0.0        0.0
  = Net Profit to Common                       18.9      7.2      6.5     104.7




 Ending Net Working Capital
 Trade receivables                             88.8     98.1     81.9      593.0
 + Inventories                                 51.1     52.3     59.9      801.4
 + Other current assets                         4.1      1.9      2.2      109.1
 – Trade payables                              29.0     29.9     34.2      216.0
 – Other current liabilities                   62.8     57.7     56.8      518.0
  = Ending Net Working Capital                 52.1     64.8     53.0     769.5
 + Ending Net Non-Current Assets
 Non-current tangible assets                    42.6     39.6     36.3     655.7
 + Non-current intangible assets                 5.9      6.0      5.5     417.2
 + Other non-current assets                      1.8      1.5      1.7     111.1
 – Minority interest                             1.2      1.1      1.7      12.1
 – Deferred taxes                             (11.3)   (16.6)   (24.1)      41.5
      – Other non-current liabilities (non-
      interest- bearing)                        0.0      0.0      0.0        6.6
  = Ending Net Non-Current Assets              60.3     62.6     65.9    1,123.8
  = Total Assets                              112.5    127.4    118.9    1,893.3
 Ending Net Debt
 Current debt                                   1.0      2.3      5.8      105.1
 + Non-current debt                            60.3     57.9     55.2      423.6
 – Cash                                        37.2      3.9      6.5      107.1
 = Ending Net Debt                             24.0     56.3     54.5      421.6
 + Ending Preference Shares                     0.0      0.0      0.0        0.0
 + Ending Shareholders’ Equity                 88.4     71.1     64.4    1,471.7
 = Total Net Capital                          112.5    127.4    118.9    1,893.3


Dividend                                        6.5      3.5      0.0       36.2
adjustments                                                               Adjustments
                B&O          B&O                                                            B&O           B&O
              (DKKm)       (DKKm)       Loewe (€m)       Loewe (€m)       Loewe (€m)      (DKKm)        (DKKm)
               2007         2006          2008             2007              2006          2008          2007
                4,375.7      4,225.2
               (2,338.0)    (2,281.1)             1.3              1.4                        27.0          23.4
                2,037.7      1,944.1              1.3              1.4                        27.0          23.4
               (1,048.9)    (1,062.3)

                (466.4)      (452.4)              0.2              0.5                        93.9          59.3
                 522.4        429.4               1.5              2.0                       120.9          82.7
                   10.4        (1.0)
                    0.0          0.0
                  (8.4)          2.3             (0.1)            (0.1)                       (7.1)         (8.2)
                 524.4        430.7               1.3              1.8                       113.7          74.5
                (151.9)      (134.7)             (0.4)            (0.5)                      (34.1)        (22.4)
                 372.5        296.0               1.0              1.3                        79.6          52.2
                  (5.1)        (2.0)
                 367.4        294.0               1.0              1.3                        79.6          52.2



               (1,920.4)    (1,900.8)
                 (951.2)      (915.8)
                 (135.7)      (132.6)            (1.3)            (1.0)                      (51.5)        (47.2)

                (846.0)      (846.6)              2.8              2.9                       172.4         129.9



                  617.9        667.4              8.5              7.0              5.5      302.2         249.3
                  450.0        356.2              1.1              0.9              0.4      759.5         665.6
                   21.2         36.4
                  160.4         36.6
               1,249.5      1,096.6               9.6              7.8              5.9    1,061.7         914.9

                  733.8        655.1
                  694.3        567.4
                   88.3         93.5
                  196.4        502.5
               1,712.8      1,818.5               0.0              0.0              0.0           0.0           0.0

               2,962.3      2,915.1               9.6              7.8              5.9    1,061.7         914.9



                    0.0          0.0
                1,675.9      1,738.0              1.6              1.6              0.3      545.5         476.6
               1,675.9      1,738.0               1.6              1.6              0.3      545.5         476.6
                   6.0          4.1

                  297.2        344.3              7.4              5.7              5.5      282.4         234.0
                   67.8         63.7              0.6              0.6              0.1      233.8         204.3
     6.1        0.0
 371.1       408.0      8.0     6.3    5.6    516.2     438.2

   85.9        46.3
  213.7       196.3
  609.7       522.4
 909.3       765.0      0.0     0.0    0.0       0.0       0.0



2,962.3    2,915.1      9.6     7.8    5.9   1,061.7    914.9



  524.4      430.7     1.3     1.8            113.7      74.5
 (105.0)    (100.4)
  419.4      330.3      1.3     1.8           113.7       74.5
     6.0       (1.6)    0.1     0.1             5.0        5.7
  (11.5)         3.3
   255.1      249.2      2.2     1.5           383.6     339.2

 669.0       581.2      3.6     3.4           502.4     419.5


 (142.2)    (188.2)

 526.8       393.0      3.6     3.4           502.4     419.5

 (378.4)    (378.5)    (2.8)   (1.2)          (474.4)   (315.7)

 148.4        14.5      0.8     2.2             28.0    103.7
  (6.0)        1.6     (0.1)   (0.1)           (5.0)     (5.7)
  (6.8)       35.8     (0.7)   (2.1)           (23.0)    (98.0)
  135.6       51.9      0.0     0.0              0.0       0.0
 (200.2)    (149.0)
 (241.5)    (132.3)

(306.1)    (229.4)




4,375.7    4,225.2
   373.4      292.4
   367.4      294.0
     6.0       (1.6)
 373.4       292.4
   6.0        (1.6)
    8.4       (2.3)
 71.0%       68.7%
    6.0       (1.6)
  367.4       294.0
    0.0         0.0
 367.4     294.0




  733.8     655.1
  694.3     567.4
   88.3      93.5
  213.7     196.3
  609.7     522.4
 693.0     597.3

  617.9     667.4
  450.0     356.2
  160.4      36.6
    6.0       4.1
   46.6      27.3

    6.1       0.0
1,169.6   1,028.8
1,862.6   1,626.1

   85.9      46.3
  297.2     344.3
  196.4     502.5
  186.7   (111.9)
    0.0       0.0
1,675.9   1,738.0
1,862.6   1,626.1

  247.7     200.2
                               After           Adjustments
  B&O                                             B&O        B&O                          B&O
(DKKm)        Loewe (€m) Loewe (€m) Loewe (€m) (DKKm)      (DKKm)                       (DKKm)
 2006           2008              2007           2006           2008        2007         2006
                    374.0               372.5       341.9        4,092.0     4,375.7      4,225.2
                   (254.4)             (266.8)     (255.7)      (2,172.6)   (2,314.6)    (2,281.1)
                   119.6               105.8         86.2        1,919.4     2,061.1      1,944.1
                   (85.5)              (77.7)       (65.4)      (1,152.2)   (1,048.9)    (1,062.3)

                       (4.1)             (5.1)          (7.7)    (463.9)     (407.1)      (452.4)
                       30.0              23.0           13.1      303.3       605.1        429.4
                         0.0               0.0            0.1     (11.2)        10.4        (1.0)
                         0.0               0.0            0.0        0.0         0.0          0.0
                       (1.1)             (2.3)          (2.7)     (24.6)      (16.6)          2.3
                       28.9              20.7           10.5      267.4       598.9        430.7
                       (8.9)            (12.0)          (3.6)     (75.5)     (174.3)      (134.7)
                       20.0               8.7            6.9      191.9       424.7        296.0
                       (0.2)             (0.2)          (0.3)      (7.6)       (5.1)        (2.0)
                       19.8               8.5            6.5      184.3       419.6        294.0



                   (207.1)             (224.6)     (217.4)      (1,743.4)   (1,920.4)    (1,900.8)
                    (67.0)              (59.7)      (52.1)        (951.7)     (951.2)      (915.8)
                    (15.1)              (13.0)      (10.9)        (196.6)     (182.9)      (132.6)

                    (54.8)              (52.3)      (48.5)       (897.0)     (716.1)      (846.6)



   269.6               51.0              46.6           41.8       957.9       867.2        937.0
   606.3                7.0               6.8            5.8     1,176.7     1,115.6        962.5
                       11.3              16.6           24.1        22.7        21.2         36.4
                        1.8               1.5            1.7       111.1       160.4         36.6
   875.9               71.1              71.5           73.4    2,268.4     2,164.4      1,972.5

                       88.8              98.1           81.9       593.0       733.8        655.1
                       51.1              52.3           59.9       801.4       694.3        567.4
                        4.1               1.9            2.2       109.1        88.3         93.5
                       37.2               3.9            6.5       107.1       196.4        502.5
        0.0        181.2               156.2        150.4       1,610.6     1,712.8      1,818.5

   875.9           252.4               227.7        223.9       3,879.0     3,877.2      3,791.0



                        0.0               0.0            0.0         0.0         0.0          0.0
   424.4               90.0              72.7           64.7     2,017.2     2,152.5      2,162.4
   424.4               90.0              72.7           64.7    2,017.2     2,152.5      2,162.4
                        1.2               1.1            1.7       12.1         6.0          4.1

   269.6               67.7              63.6           60.7       706.0       531.2        613.9
   181.9                0.6               0.6            0.1       298.0       272.1        245.6
           0.0      0.0      0.0        6.6        6.1        0.0
451.5    68.3     64.2     60.8    1,010.6     809.3       859.5

          1.0      2.3      5.8      105.1       85.9        46.3
         29.0     29.9     34.2      216.0      213.7       196.3
         62.8     57.7     56.8      518.0      609.7       522.4
  0.0    92.8     89.8     96.7     839.1      909.3       765.0



875.9   252.4    227.7    223.9    3,879.0    3,877.2    3,791.0



         30.8     22.4     12.1      267.4      598.9      430.7
         (3.6)    (3.9)    (2.4)    (120.3)    (105.0)    (100.4)
         27.2     18.5       9.7     147.1      493.9      330.3
           0.8      1.0      1.8       17.8       11.7       (1.6)
         (1.7)    (1.7)    (1.6)        0.0     (11.5)         3.3
          26.0     24.4     16.6      704.2      594.3      249.2

         52.3     42.1     26.5     869.1     1,088.4      581.2


         15.7    (13.0)   (10.5)     (22.2)    (142.2)    (188.2)

         68.0     29.1     16.0     846.9      946.2       393.0

        (26.7)   (24.3)   (18.4)    (728.7)    (694.1)    (378.5)

         41.3      4.9    (2.5)     118.3       252.1       14.5
         (0.8)    (1.0)    (1.8)    (17.8)      (11.7)       1.6
         (1.6)    (3.0)    (5.3)     142.5     (104.8)      35.8
         38.9      0.9    (9.6)      243.0      135.6       51.9
         (3.5)      0.0    (0.0)    (247.7)    (200.2)    (149.0)
           0.0    (0.8)      0.0     (84.6)    (241.5)    (132.3)

         35.4      0.1    (9.6)     (89.3)    (306.1)    (229.4)




        374.0    372.5    341.9    4,092.0    4,375.7    4,225.2
         20.6      9.5      8.3       202.0      431.3      292.4
         19.8      8.5      6.5       184.3      419.6      294.0
          0.8      1.0      1.8        17.7       11.7       (1.6)
         20.6      9.5      8.3     202.0      431.3       292.4
          0.8      1.0      1.8      17.7       11.7        (1.6)
           1.1      2.3      2.7      24.6       16.6       (2.3)
        69.2%    41.9%    65.4%     71.8%      70.9%       68.7%
          0.8      1.0      1.8      17.7       11.7        (1.6)
         19.8      8.5      6.5      184.3      419.6       294.0
          0.0      0.0      0.0        0.0        0.0         0.0
 19.8      8.5      6.5     184.3     419.6     294.0




 88.8     98.1     81.9      593.0     733.8     655.1
 51.1     52.3     59.9      801.4     694.3     567.4
  4.1      1.9      2.2      109.1      88.3      93.5
 29.0     29.9     34.2      216.0     213.7     196.3
 62.8     57.7     56.8      518.0     609.7     522.4
 52.1     64.8     53.0     769.5     693.0     597.3

  51.0     46.6     41.8     957.9     867.2     937.0
   7.0      6.8      5.8   1,176.7   1,115.6     962.5
   1.8      1.5      1.7     111.1     160.4      36.6
   1.2      1.1      1.7      12.1       6.0       4.1
(10.7)   (16.0)   (24.0)     275.3     250.9     209.2

  0.0      0.0      0.0        6.6       6.1       0.0
 69.3     69.9     71.7    1,951.7   1,880.2   1,722.8
121.4    134.6    124.7    2,721.2   2,573.2   2,320.1

  1.0      2.3      5.8      105.1      85.9      46.3
 67.7     63.6     60.7      706.0     531.2     613.9
 37.2      3.9      6.5      107.1     196.4     502.5
 31.4     61.9     60.0      704.0     420.7     157.7
  0.0      0.0      0.0        0.0       0.0       0.0
 90.0     72.7     64.7    2,017.2   2,152.5   2,162.4
121.4    134.6    124.7    2,721.2   2,573.2   2,320.1
TABLE 5.1 Return on equity for Bang & Olufsen and Loewe
Ratio                             B & O 2008       B & O 2007      Loewe 2008      Loewe 2007
Return on equity                     8.6%            19.4%           27.3%           13.1%

TABLE 5.2 Traditional decomposition of ROE
Ratio                             B & O 2008       B & O 2007      Loewe 2008      Loewe 2007
Net profit margin (ROS)              4.5%             9.6%            5.3%            2.3%
× Asset turnover                     1.06             1.15            1.64            1.66
 = Return on assets (ROA)            4.8%            11.1%            8.7%            3.8%
× Financial leverage                 1.80             1.75            3.13            3.46
 = Return on equity (ROE)            8.6%            19.4%           27.3%           13.1%

TABLE 5.4 Distinguishing operating and financing components in ROE decomposition
Ratio                             B & O 2008       B & O 2007      Loewe 2008      Loewe 2007
Net operating profit margin          4.9%             9.9%            5.5%            2.5%
× Net operating asset turnover       1.59             1.89            2.78            2.99
 = Operating ROA                     7.8%            18.6%           15.3%            7.6%
Spread                               3.6%            11.1%           14.1%            5.9%
× Net financial leverage             0.20             0.07            0.85            0.93
 = Financial leverage gain           0.7%             0.8%           12.0%            5.5%
ROE = Operating ROA +
Financial leverage gain              8.6%            19.4%           27.3%           13.1%

TABLE 5.5 Common-sized income statement and profitability ratios
                                  B & O 2008       B & O 2007      Loewe 2008      Loewe 2007
Line items as a percent of
sales
Sales                               100.0%           100.0%          100.0%          100.0%
Cost of materials                   -42.6%           -43.9%          -55.4%          -60.3%
Personnel expense                   -23.3%           -21.7%          -17.9%          -16.0%
Depreciation and amortization        -4.8%            -4.2%           -4.0%           -3.5%
Other operating expense             -21.9%           -16.4%          -14.7%          -14.0%
Net interest expense/income          -0.6%            -0.4%           -0.3%           -0.6%
Tax expense                          -1.8%            -4.0%           -2.4%           -3.2%
Profit from discontinued
operations                           0.0%             0.0%            0.0%            0.0%
Net profit                           4.5%             9.6%            5.3%            2.3%
Operating expense by function
Cost of sales                       -53.1%           -52.9%          -68.0%          -71.6%
Selling, general, and admin.
expense                             -28.2%           -24.0%          -22.9%          -20.9%
Other operating income/expense
                                    -11.3%           -9.3%           -1.1%           -1.4%
Key profitability ratios
Gross profit margin                  46.9%           47.1%           32.0%           28.4%
EBITDA margin                        12.2%           18.0%           12.1%            9.7%
NOPAT margin                          4.9%            9.9%            5.5%            2.5%
Net profit margin                     4.5%            9.6%            5.3%            2.3%

TABLE 5.6 Asset management ratios
Ratio                             B & O 2008       B & O 2007      Loewe 2008      Loewe 2007
Operating working capital/Sales
                                      16.9%        13.7%        17.3%        14.2%
Net non-current assets/Sales          52.9%        45.1%        19.1%        19.7%
PP&E/Sales                            21.2%        21.4%        12.5%        11.2%
Operating working capital
turnover                               5.90         7.33         5.78         7.03
Net non-current asset turnover         1.89         2.22         5.23         5.07
PP&E turnover                          4.72         4.67         8.03         8.92
Trade receivables turnover             5.58         6.68         3.81         4.55
Days’ receivables                      64.6         53.9         94.4         79.1
Inventories turnover                   2.51         3.38         3.96         3.75
Days’ inventories                     143.4        106.4         90.9         96.1
Trade payables turnover                8.16         9.78         6.93         6.56
Days’ payables                         44.1         36.8         51.9         54.8

TABLE 5.7 Liquidity ratios
Ratio                               B & O 2008   B & O 2007   Loewe 2008   Loewe 2007
Current ratio                          1.88         2.38         1.74         1.55
Quick ratio                            1.02         1.51         1.14         0.91
Cash ratio                             0.22         0.66         0.04         0.07
Operating cash flow ratio              0.93         1.24         0.76         0.30

TABLE 5.8 Debt and coverage ratios
Ratio                               B & O 2008   B & O 2007   Loewe 2008   Loewe 2007
Liabilities-to-equity                  0.80         0.75         2.13         2.46
Debt-to-equity                         0.29         0.31         0.91         1.03
Net debt-to-equity                     0.20         0.07         0.85         0.93
Debt-to-capital                        0.22         0.23         0.48         0.51
Net debt-to-net capital                0.16         0.07         0.46         0.48
Interest coverage (earnings
based)                                11.54        36.86        26.98         9.76
Interest coverage (cash flow
based)                                10.68        22.57        65.77        15.14

TABLE 5.9 Sustainable growth rate
Ratio                               B & O 2008   B & O 2007   Loewe 2008   Loewe 2007
ROE                                    8.6%        19.4%        27.3%        13.1%
Dividend payout ratio                 34.6%        67.4%        34.5%        49.0%
Sustainable growth rate                5.6%         6.3%        17.9%         6.7%
Sales growth

 Forecast year     2009       2010       2011       2012       2013       2014       2015       2016
TV sales           0.0%       5.0%       10.0%      12.0%      10.5%      9.0%       7.5%       6.0%
Other sales        -1.0%      0.9%       3.0%       4.0%       4.0%       4.0%       4.0%       4.0%
Overall Sales
Growth             -0.1%      4.5%       9.1%       11.0%      9.8%       8.5%       7.1%       5.8%

Sales

 Forecast year     2009       2010       2011       2012       2013       2014       2015       2016
TV sales              323.6      339.8      373.8      418.6      462.6      504.2      542.0      574.5
Other sales            49.9       50.3       51.9       53.9       56.1       58.3       60.7       63.1
Total sales           373.5      390.1      425.6      472.5      518.6      562.5      602.7      637.6

NOPAT margin

  Forecast year    2009       2010       2011       2012       2013       2014       2015       2016
Gross margin       32.0%      33.0%      34.0%      35.0%      36.0%      37.0%      37.0%      36.5%
SG&A expense       -23.0%     -23.3%     -23.6%     -23.9%     -24.2%     -24.5%     -24.8%     -24.8%
Other expense       -1.5%      -2.0%      -2.5%      -3.0%      -3.5%      -4.0%      -4.5%      -4.5%
Tax expense
(net of interest
tax shield)        -2.3%      -2.4%      -2.5%      -2.5%      -2.6%      -2.6%      -2.4%      -2.3%
NOPAT margin       5.2%       5.3%       5.4%       5.6%       5.7%       5.9%       5.3%       4.9%

Non-current assets

  Forecast year    2009       2010       2011       2012       2013       2014       2015       2016
Initial value      18.5%      18.5%      18.5%      18.5%      18.5%      18.5%      18.5%      18.5%
Effect of
increased
development        0.0%       0.5%       1.0%       2.0%       2.5%       3.0%       3.5%       4.0%
Other changes      0.0%       0.5%       1.0%       1.5%       1.5%       1.5%       1.5%       1.5%
New value          18.5%      19.5%      20.5%      22.0%      22.5%      23.0%      23.5%      24.0%
2017       2018
4.5%       4.0%
4.0%       4.0%

4.5%       4.0%




2017       2018
   600.4      624.4
    65.6       68.2
   666.0      692.6




2017       2018
 36.0%     35.5%
-24.8%     -24.8%
 -4.5%      -4.5%


-2.1%      -2.0%
4.6%       4.2%




2017       2018
18.5%      18.5%


4.5%       5.0%
1.5%       1.5%
24.5%      25.0%
Cost of equity                                    10.0%


                                               2008R          2009E          2010E         2011E         2012E
Analyst forecasts (averages)
Sales                                             374.0          364.5          368.7              0.0
EBIT                                               30.0           25.2           26.0              0.0
Pretax net interest expense (imputed)                  -1.1           -1.0       -0.4              0.0
Pretax profit (imputed)                            28.9           24.2           25.6              0.0
Tax expense                                            -8.9           -7.3       -7.6              0.0
Net profit                                         19.8           16.9           18.0              0.0


Tax rate                                          30.8%          30.2%         29.7%         29.7%
Net interest expense after tax                         0.8            0.7            0.3           0.0


Sales growth                                                     -2.5%          1.2%
NOPAT margin                                       5.5%           4.8%          4.9%
After-tax interest expense to sales                0.2%           0.2%          0.1%
Ending net working capital to sales ratio         13.9%          13.9%         13.9%
Ending net non-current assets to sales ratio      18.5%          18.5%         18.5%
Ending net debt to capital ratio                  25.9%          25.9%         25.9%


Ending net working capital                         52.1           50.8           51.4              0.0
Ending net non-current assets                      69.3           67.5           68.3              0.0
Ending net operating assets                       121.4          118.3          119.7              0.0
Ending net debt                                    31.4           30.6           30.9              0.0
Ending shareholders' equity                        90.0           87.7           88.8              0.0
Ending net capital                                121.4          118.3          119.7              0.0



Dividends                                                         19.2           16.9          88.8
Discount factor                                                  0.909          0.826         0.751
Discounted dividends                                              17.5           14.0          66.7
Value                                              98.1
Share price                                            7.5


Net profit                                                        16.9           18.0              0.0
Beginning shareholders' equity                                    90.0           87.7          88.8
Normal earnings                                                       9.0            8.8           8.9
Abnormal earnings                                                     7.9            9.2       -8.9
Discount factor                                                  0.909          0.826         0.751
Discounted abnormal earnings                                          7.2            7.6       -6.7
Value                                              98.1
Share price                                            7.5


Prior year's reinvested profits                                                  -2.3              1.0      -88.8
Normal earnings growth                                                           -0.2              0.1       -8.9
Actual earnings growth                                                               1.0      -18.0              0.0
Abnormal earnings growth                                                             1.3      -18.1              8.9
Discount factor                                                                 0.909         0.826         0.751
Discounted abnormal earnings growth                                                  1.2      -14.9              6.7
                                                       9.8
Value                            98.1
Share price                       7.5



NOPAT                                    17.6    18.2      0.0
Change in net operating assets           -3.1     1.4   -119.7
Free cash flow to debt                   20.7    16.9   119.7
Net interest expense after tax            0.7     0.3      0.0
Change in net debt                       -0.8     0.4    -30.9
Free cash flow to equity                 19.2    16.9    88.8
Discount factor                         0.909   0.826   0.751
Discounted FCF to equity                 17.5    14.0    66.7
Value                            98.1
Share price                       7.5
Cost of equity                                    0.125
Sales growth beyond terminal year                  0.04
WACC                                               0.09

                                                   2009     2010     2011     2012     2013

Sales growth                                      -0.1%     4.5%     9.1%    11.0%     9.8%
NOPAT margin                                       5.2%     5.3%     5.4%     5.6%     5.7%
After-tax interest expense                         2.6%     2.6%     2.6%     2.6%     2.6%
Beginning net working capital to sales ratio      14.0%    14.0%    14.0%    14.0%    14.0%
Beginning net non-current assets to sales ratio   18.5%    19.5%    20.5%    22.0%    22.5%
Beginning net debt to capital ratio               25.9%    37.9%    37.9%    37.9%    37.9%

Beginning net working capital                      52.1     54.5     59.4     66.0     72.4
Beginning net non-current assets                   69.3     76.3     87.5    104.2    117.0
Net operating assets                              121.4    130.7    146.9    170.2    189.4
Net debt                                           31.4     49.5     55.6     64.4     71.7
Shareholders' equity                               90.0     81.2     91.3    105.8    117.7
Net capital                                       121.4    130.7    146.9    170.2    189.4

Sales                                             373.5    390.1    425.6    472.6    518.7
NOPAT                                              19.3     20.7     23.2     26.4     29.7
Net interest expense after tax                      0.8      1.3      1.4      1.7      1.9
Net profit                                         18.5     19.4     21.7     24.7     27.9

Operating ROA                                     15.9%    15.8%    15.8%    15.5%    15.7%
ROE                                               20.5%    23.9%    23.8%    23.4%    23.7%
BV of Assets Growth Rate                          -9.8%     7.7%    12.4%    15.9%    11.3%
BV of Equity Growth Rate                          23.9%    -9.8%    12.4%    15.9%    11.3%
Net Operating Asset Turnover                         3.1      3.0      2.9      2.8      2.7

Net profit                                         18.5      19.4     21.7     24.7     27.9
- change in net working capital                    -2.3      -5.0     -6.6     -6.4     -6.1
- change in net non-current assets                 -7.0     -11.2    -16.7    -12.8    -12.7
+ change in net debt                               18.1       6.1      8.8      7.3      7.1
Free cash flow to equity                           27.3       9.4      7.3     12.8     16.2

Net operating profit after tax                     19.3      20.7     23.2     26.4     29.7
- change in net working capital                    -2.3      -5.0     -6.6     -6.4     -6.1
- change in net non-current assets                 -7.0     -11.2    -16.7    -12.8    -12.7
Free cash flow to capital                          10.0       4.6     -0.1      7.2     10.9

Free cash flow to capital                          10.0       4.6     -0.1     7.2     10.9
Free cash flow to equity                           27.3       9.4      7.3    12.8     16.2

Abnormal earnings                                    7.2      9.3     10.3     11.5     13.2
Abnormal ROE                                       8.0%    11.4%    11.3%    10.9%    11.2%
Free Cash flow to equity                            27.3      9.4      7.3     12.8     16.2
Abnormal earnings growth                                      2.0      1.1      1.2      1.6

Abnormal NOPAT                                       8.0      8.5      9.5     10.6     12.1
Abnormal ROA                                       6.6%     6.5%     6.5%     6.2%     6.4%
Free Cash flow to capital                           10.0      4.6     -0.1      7.2     10.9
Abnormal NOPAT growth                                         0.6      1.0      1.1      1.5

Discount rates:
  Equity                                          0.889    0.790    0.702    0.624    0.555
  Assets                                          0.915    0.837    0.766    0.701    0.641
Growth factors:
 Equity                               1.00          0.90         1.01          1.17          1.31
 Assets                               1.00          1.08         1.21          1.40          1.56

Discounted abnormal earnings           6.4            7.3          7.3          7.2           7.3
Discounted ROE                       7.1%           8.1%         8.1%         8.0%          8.1%
Discounted FCFE                       24.2            7.4          5.1          8.0           9.0
Discounted AEG                                        1.8          0.9          0.8           1.0

Discounted abnormal NOPAT              7.3            7.1          7.3          7.4           7.8
Discounted ROA                       6.0%           5.9%         6.0%         6.1%          6.4%
Discounted FCFC                        9.1            3.8         -0.1          5.1           7.0
Discounted ANOPATG                                    0.5          0.8          0.8           1.1




                               Beginning     Capitalized     Value       Terminal     Total value

                                                            between

                                                            2009 and

Equity Value                   book value     NP2006         2018         value

Abnormal earnings                  € 90.03        € 0.00       € 56.74      € 21.37      € 168.14
Abnormal ROE                       € 90.03        € 0.00       € 56.74      € 21.37      € 168.14
Free Cash flows to equity           € 0.00        € 0.00       € 93.00      € 75.14      € 168.14
Abnormal earnings growth            € 0.00      € 147.73       € 13.02       € 7.40      € 168.14



                               Beginning     Capitalized     Value       Terminal     Total value

                                                            between

                                                            2009 and

Asset Value                    book value    NOPAT2006       2018         value

Abnormal NOPAT                    € 121.42        € 0.00       € 60.04      € 33.80      € 215.26
Abnormal ROA                      € 121.42        € 0.00       € 60.04      € 33.80      € 215.26
Free Cash flows to capital          € 0.00        € 0.00       € 65.98     € 149.28      € 215.26
Abnormal NOPAT growth               € 0.00      € 207.34       -€ 7.35      € 15.28      € 215.26
 2014     2015     2016     2017     2018     2019

 8.5%     7.1%     5.8%     4.5%     4.0%     4.0%
 5.9%     5.3%     4.9%     4.6%     4.2%     4.2%
 2.6%     2.6%     2.6%     2.6%     2.6%     2.6%
14.0%    14.0%    14.0%    14.0%    14.0%    14.0%
23.0%    23.5%    24.0%    24.5%    25.0%    25.0%
37.9%    37.9%    37.9%    37.9%    37.9%    37.9%

 78.5     84.1     89.0     93.0     96.7    100.6
129.7    141.9    153.3    163.5    173.5    180.4
208.2    226.1    242.4    256.5    270.2    281.0
 78.8     85.6     91.7     97.1    102.3    106.4
129.4    140.5    150.6    159.4    167.9    174.6
208.2    226.1    242.4    256.5    270.2    281.0

562.5    602.7    637.6    666.0    692.7    720.4
 33.1     32.0     31.6     30.6     29.3     30.5
  2.0      2.2      2.4      2.5      2.7      2.8
 31.0     29.8     29.2     28.0     26.7     27.7

15.9%    14.1%    13.0%    11.9%    10.9%    10.9%
24.0%    21.2%    19.4%    17.6%    15.9%    15.9%
 9.9%     8.6%     7.2%     5.8%     5.4%     4.0%
 9.9%     8.6%     7.2%     5.8%     5.4%     4.0%
   2.7      2.7      2.6      2.6      2.6      2.6

  31.0     29.8     29.2     28.0    26.7
  -5.6     -4.9     -4.0     -3.7    -3.9
 -12.3    -11.4    -10.2    -10.0    -6.9
   6.8      6.2      5.3      5.2     4.1
  19.9     19.6     20.4     19.5    19.9

  33.1     32.0     31.6     30.6    29.3
  -5.6     -4.9     -4.0     -3.7    -3.9
 -12.3    -11.4    -10.2    -10.0    -6.9
  15.2     15.7     17.4     16.9    18.5

 15.2     15.7     17.4     16.9     18.5
 19.9     19.6     20.4     19.5     19.9

  14.8     12.2     10.3      8.1      5.7
11.5%     8.7%     6.9%     5.1%     3.4%
  19.9     19.6     20.4     19.5     19.9
   1.7     -2.7     -1.9     -2.2     -2.5

  13.7     11.0      9.0      6.7      4.2
 6.6%     4.8%     3.7%     2.6%     1.6%
  15.2     15.7     17.4     16.9     18.5
   1.6     -2.7     -1.9     -2.3     -2.5



0.493    0.438    0.390    0.346    0.308
0.587    0.537    0.491    0.449    0.411
1.44              1.56   1.67          1.77   1.87
1.71              1.86   2.00          2.11   2.23

  7.3           5.3        4.0          2.8     1.7
8.1%          5.9%       4.5%         3.1%    1.9%
  9.8           8.6        7.9          6.8     6.1
  0.9          -1.3       -0.8         -0.9    -0.9

  8.0           5.9        4.4          3.0     1.7
6.6%          4.8%       3.6%         2.5%    1.4%
  8.9           8.4        8.6          7.6     7.6
  1.0          -1.6       -1.0         -1.1    -1.1




        Total value              Value per             Value per
        with AE = 0                                    share (no
         beyond                                       AE beyond
         terminal                                         TY
           year                   share               assumption)

           € 146.78                 € 12.92               € 11.28
           € 146.78                 € 12.92               € 11.28
           € 146.78                 € 12.92               € 11.28
           € 146.78                 € 12.92               € 11.28



        Total value
        with AE = 0
         beyond
         terminal
           year

           € 181.46
           € 181.46
           € 181.46
           € 181.46

								
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