LG Electronics and Bang & Olufsen Sign Strategic OLED TV Partnership Agreement

Strategic partnership with LG Electronics

As previously announced, Bang & Olufsen a/s ("Bang & Olufsen") initiated a review to identify strategic and structural options to increase scale and further reduce complexity within Bang & Olufsen.

As a result of this review, Bang & Olufsen has entered a strategic technology partnership with LG, one of the world’s largest producers of TVs and a technological frontrunner with its leading OLED technology and WebOS. The agreement entails that Bang & Olufsen will focus on its unique competencies within design, acoustics and smart home integration within TV development, and combine this with LG’s technological leadership within OLED technology.

“This partnership with LG will enable Bang & Olufsen to stay at the forefront of innovation in the TV category, a category which is currently undergoing significant change and which is very important to Bang & Olufsen. The partnership will address Bang & Olufsen’s key challenges related to scale and complexity”, says CEO Tue Mantoni.

The partnership will help solve a key strategic challenge as Bang & Olufsen will achieve technological capabilities and scale needed to improve the long-term profitability of the company. The partnership will allow Bang & Olufsen to focus on core competencies within acoustics and design, while further optimizing the company’s supply chain, development, production and service.

The first OLED TV produced by LG for Bang & Olufsen as a result of the partnership is expected to be launched in 2017. Further, the partnership involves collaboration in other areas such as license and product bundle activities.

As a consequence of the partnership, Bang & Olufsen expects to improve gross margins and reduce capacity costs. The agreement has an annual savings potential of DKK 150-200m when fully implemented over the next three years. As such, the partnership is an important step towards achieving the financial targets set out for 2017/18 of an EBIT-margin of approximately 7% and a positive free cash flow.

As a result of the partnership Bang & Olufsen expects to realize restructuring costs of DKK 10 to 15 million (US $1.51 million to US $2.27 million), of which up to DKK 5 million will be realized in the fourth quarter of 2015/16. The restructuring costs have not been included in the current outlook for the 2015/16 financial year.

Dialogue regarding a potential launch of a takeover offer

In continuation of company announcement no. 15.07 dated Nov.26. 2015, Bang & Olufsen can inform that a dialogue is ongoing with one potential offeror that may or may not lead to an offer for the whole or part of the issued share capital of Bang & Olufsen.

At present, Bang & Olufsen has not entered into any binding commitments, and uncertainty remains as to the outcome of the dialogue with the potential offeror.

Ole Andersen                                                              Tue Mantoni

Chairman of the Board                                                CEO

Disclaimers of Warranties
1. The website does not warrant the following:
1.1 The services from the website meets your requirement;
1.2 The accuracy, completeness, or timeliness of the service;
1.3 The accuracy, reliability of conclusions drawn from using the service;
1.4 The accuracy, completeness, or timeliness, or security of any information that you download from the website
2. The services provided by the website is intended for your reference only. The website shall be not be responsible for investment decisions, damages, or other losses resulting from use of the website or the information contained therein<
Proprietary Rights
You may not reproduce, modify, create derivative works from, display, perform, publish, distribute, disseminate, broadcast or circulate to any third party, any materials contained on the services without the express prior written consent of the website or its legal owner.

Nichia further demonstrates its commitment in UV-C LED technology with its release of the high output NC4U334BR. Tokushima, Japan — 6 October 2021: NICHIA, the world’s largest LED manufacturer and inventor of the high-brightness bl... READ MORE

With up to 2000lm per LED, LUXEON 7070 delivers the power, efficacy and solution cost reductions luminaire manufacturers need   San Jose, CA – August 31, 2021 – More lumens, higher efficacy, and lower system costs are the... READ MORE