ESTABLISHING A RETAIL BRAND IN EMERGING MARKETSBoConcept Holding A/S

BeyondBRIC

Wednesday, December 8th 2010

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BoConcept anno 2010 – a global brand & business

International retail-oriented concept holder within furniture and lifestyle products for private homes

Affordable luxury products primarily sold via 240 franchise-based BoConcept Brand Stores in approx. 50 countries

Strong brand and highly coordinated and commercial collection with attractive market positioning

Turnover of DKK 1bn (retail turnover DKK 2.5bn)

530 employees (2,500 incl. retail staff)

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Our history – from furniture producer to retail concept owner

Phase 1 (1952-1992) - From cabinet maker to furniture productionProduce and sell furniture products to product customers

Phase 2 (1993-2003) - Furniture producer with franchise-based retail chainOne Company – One brand strategy deployed in 1999- Close down furniture production and cooporation with product customers

Phase 3 (2004-) - International retail-oriented conceptholderFocus on brand development and brand store expansion

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Collections positioned to reduce exposure to price competition

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Business model based on refined core skills and award winning franchisee model

Sourcing and

own-prod.

Supplychainmgt.

Design and

productdev.

Marketing and

comm.

IT, training

and specialist support

Business dev. and admin.

BoConcept A/S

Franchisees

Brand, conceptand products

Franchise masters

Sales, delivery and after-sales services

General support

Customers

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The world is our marketplace

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Americas

17% of revenue

42 brand stores

EMEA

65% of revenue

152 brand stores

ASIA

18% of revenue

46 brand stores

Development of a global brand store chain

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1 1 3 10 20

35

56

84 86

107119

139 141

163

193

224

246240

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

France China Spain

CypprusGreeceEcuador

GermanyPortugalSwedenUSAJapanPhilippines

PolandUK

DenmarkHolland

HungaryIrelandCosta RicaKuwait

MaltaPanamaNew Zealand

CroatiaSlovakia

RussiaColumbiaUAE

BulgariaCzech Rep.IcelandLuxemburgRomaniaCanadaGuatemalaVenezuela

Belgium

ItalySwitzerlandDom. Rep.SingaporeEgyptLebanon

FinlandMexicoIndiaQatarSaudi Ar.

VietnamMalaysia

Actually, it went from emerging marketsto developed markets...

BoConcept’s current business model was first developed to B&C-markets (= emerging markets)

- Same concept

- Same collection of products (no critical mass on special products)

- Same distribution channels (and same tools to optimise)

- Online marketing

18% of turnovers are today generated in emerging markets

Pipeline of new openings contains 42% projects in emerging markets

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Emerging markets are very attractivefor BoConcepts

Growing middle classes with increasing purchase power

European products, concepts and business styles are in huge demand in Asia, but position may vary

- Affordable luxury in Europe is High end in emerging markets

Very large interest from potential franchisees in emerging markets to become part of a concept

- Entrepreneurial by nature

- Accustomed to brand import and marketing

- Lower start-up costs than developed markets

- Limited competition at this stage

Short time-to-market and target groups easy to communicate to

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...but certain requirements are needed to succeed

People with local knowledge are crucial in process

- Approvals

- Toll and regulations

- Financials

Master organisation in place to handle special challenges and development needs

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Strategy focused on utilising strong business model and market uptake to increase growth

STRATEGY FOR PROFITABLE GROWTH

Growth though increased

same-store-sales•Collection updates•Multi Channel Retail•E-learning and training

TRACK l TRACK ll TRACK lll

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Growth though more brand stores

•A-markets and new markets •New store concept•Stimulation package to accelerate pipeline build-up

Cost reduction through increased

productivity•Attractive sourcing agreements•Optimise supply chain•Asset light model with low overheads

Continuously growing business in emerging markets important part of overall strategy

Further penetration of emerging markets are key element in BoConcept’ growth plan for 2014/15 (10-15% growth in revenues p.a.)

Strong focus on increasing same-store-sales

Grow number of stores from 240 (54 in emerging markets) to 350-400 (app. 100 in emerging markets)

Penetration of new markets supported by global distribution centers – special focus on Asia and Latin America

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Thank you for your attention For further information, please visit our website

www.boconcept.com

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Hans Barslund, EVP & CFOE-mail: hb@boconcept.com