BoConcept Holding A/S Retail seminar 5 September 2012, Handelsbanken Capital Markets

Agenda

• BoConcept in short • Strategy • Growing the business despite extreme market conditions • Latest financial development and looking ahead

Forward-looking statement This presentation includes forward-looking statements, including forecasts for revenue, earnings and cash flow. BoConcept Holding stresses that forecasts are subject to considerable uncertainty with respect to the level of activity we will see in the future due to high global macro-economic volatility and subsequently reduced revenue visibility. The revenue generated by the franchise chain and BoConcept will thus be sensitive to fluctuations in macro-economic factors such as GDP growth, number of home sales, consumer confidence, and disposable income trends in the group's markets. Should these variables deteriorate, the franchise chain will have even tougher sales conditions to contend with, and thus management's expectations with respect to future financial trends may not be realised.

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Contacts: Torben Paulin, President & CEO E-mail: tp@boconcept.com Hans Barslund, EVP & CFO E-mail: hb@boconcept.com

BoConcept – a global brand founded in 1952

• From manufacturer to international retail-oriented concept holder within furniture

• Affordable luxury products offered via 252 franchise-based brand stores in 58 countries

• Wholesale turnover of DKK +1bn and retail turnover of DKK +2.5bn (FY2011/12)

• Strong track-record in creating and launching highly coordinated and commercial collections reflecting global trends

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Growth oriented business model with high efficiency and considerable leverage potential

• Strong global brand and concept with high growth and expansion capability

• A dedicated and highly skilled organisation

• Excellent market positioning and market platform

• World class supply chain and distribution set-up

• Asset-light business model – Very high marginal earnings – Low capital requirements – Solid cash flow

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Positioned to reduce exposure to price competition

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Strong post-financial crisis recovery due to focus, flexibility and execution

37%38%39%40%41%42%43%44%45%

500

600

700

800

900

1.000

1.100

1.200

2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12

Revenue (DKKm, LHS) and Gross margin

100

150

200

250

300

2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12

Number of BoConcept Brand Stores

20,0%

25,0%

30,0%

35,0%

40,0%

45,0%

100

200

300

400

500

600

2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12

Assets (DKKm, LHS) and equity ratio

Current assets Fixed assets Equity ratio

-6%

-3%

0%

3%

6%

9%

12%

2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12

EBIT% and Cash flow/rev. EBIT%

Cash flow/rev.

Business model based on refined core skills and award-winning franchise model

Sourcing and

own-prod.

Supply chain mgt.

Design and

product dev.

Marketing and comm.

IT, training

and specialist support

Business dev. and admin.

BoConcept A/S

Franchisees

Brand, concept and products

Market organisations

Sales, delivery and after-sales services

General support

Customers

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Three-column strategy to secure long-term objectives

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Global exposure value driver and risk minimizer

Europe 65% of rev. 149 stores

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• Urban philosophy, global organisation and distribution set-up provide constant expansion possibilities – the 400 largest cities in the world are our main markets

• By addressing both traditional Western markets and emerging markets, BoConcept is more independent of regional macro economic development than European based retailers

North America 12% of rev. 28 stores

Latin America 4% of rev. 18 stores

MENA 3% of rev. 11 stores

Asia Pacific 16% of rev. 49 stores

Brand awareness and macro economic climate are key factors in franchise chain expansion

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• Expansion is a strategic top priority to BoConcept – considerable resources are allocated to support an increase in number of stores in the chain

– Building brand awareness – Scouting, head-hunting and proactive initiatives by local market organisations – Financing package (location involvement) in selected markets

• Macro economic climate decides pace and potential – hence, majority of new openings the

coming years are expected in emerging markets – Growing middle classes with increasing purchase power – European products, concepts and business styles in huge demand – Profitability at same level (or higher) as mature markets

Constant roll-out of sales-generating activities to support sales in existing stores

• Same-store-sales is THE critical component in the existing franchise chain

• All branding, design and marketing activities are designed to increase

– Traffic – Hit rate – Basket size

• Traffic and basket size have been under severe

pressure in Western regions as consumer confidence and real estate markets have declined during the financial crisis

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Impressive increase in SSS the last 3 quarters, but local variations remain high

• Increase in SSS between 6.6-10.0% the last 3 quarters

• Increase driven by hit rate and basket size – Optimizing collections – Introducing bi-annual updates – Launch of Multi channel retail – Education and interior decoration

• Substantial branding and marketing efforts

have increased knowledge and market position, but traffic has declined rapidly during the crisis and has just begun to stabilize this year

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Home Creator

Product Creator

My BoConcept

E-Commerce

Multi channel retail by BoConcept

Strong Q1 2012/13 but volatility remains high

• Market conditions remain challenging – High volatility and decreasing consumer confidence in

Europe – US stable – Asia and Latin America continue growth

• Execution and increasing knowledge of brand

drive BoConcept progress – Revenue up 12.7% to DKK 247m – Same-store-sales grew by 6.6% – Gross margin at 45.5% (42.5%) – EBIT increased to DKK 9m (DKK -1m) – Cash flow at DKK 4m

• Early part of pipeline affected by difficulties

getting bank financing for new stores

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No immediate upturn for retail in sight – uncertainty remains and hard work continues

• The ongoing European debt crisis and

downgraded global GDP-growth projections continue to create uncertainty

• BoConcept expects regional volatility to remain

high for at least 12-18 months

• To counteract, BoConcept will on short and medium term continue to strengthen business model and act opportunistic to utilize all growth options

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Source: IMF (April 2012)

Managements focus in 2012/13 – 'Beating yesterday'

• Store and pipeline expansion at top of strategic agenda – Focus on markets in Germany, France and the US and growth markets in Asia and Latin America – Added resources to store involvement

• Launch of important 60-years anniversary collection in September 2012 and increased brand

awareness to strengthen market position and support traffic

• Store optimization via support and further education of staff

• MCR roll-out to continue with increasing momentum + ERP upgrade

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Revenue growth Same-store-sales (order

intake) Net chg. # brand stores EBIT-margin Investments Cash flow in % of rev.

5-7% 3-5% 35 openings (net addition of 10) 5% DKK 30m App. 2%

2% (DKK 1,022m) 5.0% 23 openings (Net reduction of 1) 3.6% DKK 23m 3%

FY2012/13E* FY2011/12R Guidance

*Assuming constant market conditions and exchange rates

A global business model creating profitable growth and high returns

• Strong global designer brand with attractive positioning

• Geographical diversification provides growth potential

independently of regional cyclicality

• Scalable, efficient and non-capital intensive growth platform capable of delivering high marginal earnings and cash flows

• Growth strategy based on three tracks: – Expansion of franchise chain in emerging markets and

further penetration of mature markets – Organic growth in same-store-sales via branding, concept

development, MCR and support – Efficiency and leverage in capital employment

• Business model and capitalisation enables value creation via

high returns and dividends

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FOR MORE INFORMATION VISIT

www.boconcept.com Financial calendar for FY 2012/13 • 5 December 2012 – Interim announcement 2012/2013 (Q2) • 6 March 2013 – Interim announcement 2012/2013 (Q3)