1. Bang & Olufsen Annual Report 2002/03

2. Bang & Olufsen Headlines Pretax profit of DKK 290 million Strong cash flow of DKK 296 million Disappointing turnover development -6% The Group’s relative and absolute profitability has improved

3. Bang & Olufsen Net turnover UK is now the Group’s largest market with a turnover of DKK 582 million. Growth in local currency of 10%. Turnover growth in Italy, Spain/Portugal, Denmark, Belgium and Expansion Markets. Central Europe disappointed. Turnover declines in: Germany: 16%. Holland: 21%. Switzerland: DKK 19 million. US - turnover decline of DKK 66 million (DKK 50 million due to exchange rate). Decline in local currency of 4%. -

4. Bang & Olufsen Net turnover/Operating profit by segment 2001/02 - 2002/03

5. Bang & Olufsen Operating profit The Group’s profitability has improved: Gross margin increased by 3,6%. Development activities and marketing continues with undiminished strength. Trading loss of DKK 73 million in the US. -

6. Bang & Olufsen Result from ordinary operations before tax Positive development in the financial items due to the Group’s improved cash flow and lower currency adjustments.

7. Bang & Olufsen Result for the year The tax expense for the year was DKK 97 million corresponding to a tax percentage at 33,6%. The Group continues not to capitalise deferred tax relating to the US market.

8. Bang & Olufsen Total assets Liquid funds increased by DKK 281 million to DKK 445 million. Inventories reduced by DKK 123 million. Receivables reduced by DKK 57 million.

9. Bang & Olufsen Cash flow The strongest cash flow for 5 years. No new loans during the year. Re-payment of loans amounted to DKK 59 million.

10. Bang & Olufsen Turnover (A/V)

11. Bang & Olufsen Turnover per market 2002/03 (A/V)

12. Bang & Olufsen Growth rate per market 2002/03 - local currency (A/V)

13. Bang & Olufsen Shops world-wide 1998/99 - 2002/03 (A/V)

14. Bang & Olufsen Number of B1 shops per market (A/V)

15. Bang & Olufsen Turnover share of B1 shops in 2002/03 (A/V)

16. Bang & Olufsen Development in the B1 shop segment Overall growth of 1% in mature shops (A/V)

17. New products BeoVision 5 US BeoSound 3200 BeoLab 5 Bang & Olufsen AudioVisual a/s

18. New products BeoCom 4 EarSet 1 Bang & Olufsen AudioVisual a/s

19. Bang & Olufsen Medicom a/s Turnover and result from ordinary operations before tax

20. Bang & Olufsen ICEpower a/s Turnover and result from ordinary operations before tax

21. Bang & Olufsen Product launches 2003/04 BeoLab 5 - high end loudspeaker BeoCenter 2 - audio/video center BeoVision 6 - 22” LCD-TV - flat-screen TV High reproduction, compact loudspeaker Technological and design updates 2003/04 MX 4200, 21” BeoVision 3, 28” BeoCom 1 EarSet 1 Mobile

22. Bang & Olufsen Expectations and actions Very moderate growth in turnover A pretax result in the range of DKK 300-330 million Intensified product development Maintained marketing pressure Dividend increase from DKK 3,50 to 7,00 per nominal share of DKK 10 Share buy back and subsequent cancellation