Re: COMPANY ANNOUNCEMENT ON STRATEGY & NEW PRODUCTS (from April)

vikinger — Wed, 05 Aug 2009 13:26:36 GMT

Is anyone aware of a change in the published strategy since April?

COMPANY ANNOUNCEMENT ON STRATEGY & NEW PRODUCTS (from April)

vikinger — Wed, 05 Aug 2009 03:20:28 GMT

Apologies if this has been reported on the forum before, but the April statement to investors (on B&O website) helps to clear up one or two issues repeatedly raised on the forums.

From this, for example, I get the impression that B&O are getting out of the phone business after the next phone is produced. (At least until the board decides on a further change in strategy.)

Graham

BANG & OLUFSEN A/S ANNOUNCEMENT NO. 08.21
14 APRIL 2009

Pole Position strategy plan: A focused product development
As part of the Pole Position strategy plan, which was presented in October 2008, Bang & Olufsen therefore
focused the product development aimed at launching more successful new products.

Consequently, Bang & Olufsen launched the digital music system, BeoSound 5, globally which, through an
intelligent and advanced multi-dimensional mathematical algorithm (MOTS), analyses the music library and
selects music that corresponds to the music listened to. In contrast to other services in the market, which
typically compares genres, artists and the like, MOTS analyses the music based on parameters such as
syncopation, key tonality and rhythm. The MOTS algorithm is owned by Bang & Olufsen.

In line with the company’s strategy to offer complete integration of different products and functions in the
home, Bang & Olufsen also launched Master Link Gateway, which links the BeoLink system to those of 120
manufacturers of Home Automation systems such as LK/Schneider, Lutron, Crestron and Busch Jaeger.

During the period under review, Bang & Olufsen also extended the flexible concept for BeoVision 7 to include
the 40 inch version in several variants, which makes for a more flexible price structure.

Finally, the company launched a DVB-HD module, which supports MPEG2 and MPEG4, in order to meet the new
standards within digital TV transmission. The new DVB-HD module has been successfully integrated and
launched in the first TV models.

Immediately after the end of the quarter, Bang & Olufsen launched BeoVision 4-103, which in size and function
sets new standards. The BeoVision 4-103 concept is the core in the “intelligent home” due to its numerous
opportunities for combining the sound and picture experience with the Home Automation systems via Master
Link Gateway and the TV’s Beo5 remote control.

Shortly after the end of the quarter, Bang & Olufsen also launched BeoVision 8-40, which is offered at a very
attractive price level. BeoVision 8-40 is equipped with a 40 inch glare LCD screen, Full HD, digital surround
sound, MPEG4 DVB receiver and a range of technologies that produces impressive picture and sound quality.

In the third quarter of 2008/09, Automotive expanded its portfolio for both Audi and Aston Martin.
Furthermore, the company has just announced that Bang & Olufsen's sound system in the future will be
available as an option to yet two Aston Martin Models: Aston Martin DB9 and Aston Martin DB9 Volante. In
addition, Automotive has signed a contract with a potential new partner in the premium segment regarding the
first phases in the development of sound systems for this partner.

Moreover, the Group expects to roll out a range of new, important product launches:

New TV family
Towards the end of the 2009 calendar year, Bang & Olufsen expects to launch a new TV family with
considerable placement flexibility in that it will allow the viewer to adjust the screen on the wall for a direct view
of the screen from different angles, and it can also be mounted on an elegant stand. The new TV family will be
launched with integrated stereo loudspeakers and digital surround sound module, and the DVB-HD (Full HD)
module will be an option.

New model for the BeoVision 7 family
Bang & Olufsen is also far along with the development of an entirely new TV model for the BeoVision 7 family.
This TV will be a 55 inch Full HD model, which among other things builds on 100/120 Hz technology. Among
the other functions are integrated LED light, which improves the contrast, and sublime sound quality with built-
in digital surround sound module and integrated Adaptive Sound Technology. This TV will also have an
integrated DVB-HD (Full HD) module and Blu-ray player as an option.

New audio product
A new audio product for playing digitally stored music is also under development. It is a plug and play solution
with user-friendly operations that can be linked to an iPod. The product can also be connected to a BeoSound 5
system.

Addition to the acoustic portfolio
The loudspeaker porfolio will be expanded by a new subwoofer, which among other things builds on a new
technology that makes it vibration-free. The tulip-shaped subwoofer will offer a number of positioning options
as it can be placed on the floor or mounted on the wall.

New telephone
For many years, Bang & Olufsen’s telephones have enjoyed considerable success. However, in line with the
Group’s strategy plan, the management does not expect to continue to start development projects for this
product category. Consequently, the Group has initiated its final concept for landline telephony in the form of a
telephone with loudspeakers for among others hands-free conversations and conference calls. The telephone is
also intended for internet telephony. This concept also allows the user to select colours in the full graphic
display.

BeoTime
Bang & Olufsen is about to roll out a watch as part of the Group’s range of gift articles. The Management
believes that the design differs from everything else on the market. The watch can also be used as a remote
control for other Bang & Olufsen products and comprises a built-in movement sensor which enables the in-built
display to be revolved so that it suits left-hand use. (My note: 'watch' actually meant 'timer')

General Forum

Re: COMPANY ANNOUNCEMENT ON STRATEGY & NEW PRODUCTS (from April)

COMPANY ANNOUNCEMENT ON STRATEGY & NEW PRODUCTS (from April)