Hello, everyone, and thank you for joining today's webcast. I will start by taking you through the highlights of the past year and provide an overview of the developments across the business.

I will then walk through the financial performance with focus on the fourth quarter as well as our outlook for the coming year before we open the line up for questions.

Let us begin by looking at our full year performance and how the financial year progressed. In '25-'26, we continued to drive transformation, improving our retail network and operating model while adapting to a challenging macroeconomic environment.

The financial year '25-'26 marked our centenary, a proud milestone celebrating our legacy and century-long commitment to sound, design and craftsmanship while shaping the future as a global leader in luxury audio. We delivered another record high gross margin and the highest gross profit in 8 years, and we advanced in key strategic initiatives.

During the first half of the year, we launched 3 product innovations. The earpieces Beo Grace showcased Bang & Olufsen at its best and had a strong commercial performance that validated market demand.

In parallel, the introduction of the Reloved program reinforced our leadership in circular design and sold out monthly drops confirmed strong client interest. In contrast, the launch of the soundbar Beosound Premiere was challenged and highlighted improvements were needed in the commercial operating model.

We ended the year with a clear ambition to continue investing in the development of the business. As the year progressed, external market conditions became more challenging than expected, and that, in combination with sales of Beosound Premiere being significantly lower than anticipated, we adjusted our full year outlook in March '26.

At the same time, we withdrew our midterm ambitions through 2028.

All in all, revenue for the year was DKK 2.5 billion, corresponding to a decline of 1.6% in local currencies in line with the adjusted outlook. EBIT margin before special items was negative 0.5%, and free cash flow was negative DKK 141 million.

The development in EBIT margin before special items was impacted by the planned strategic investments in retail optimization, development of the product portfolio and marketing investments. In Q2, we had extraordinary marketing costs of around DKK 38 million for activation across the globe, celebrating our centennial.

During the second half of the financial year, we adjusted elements of our strategic execution and implemented efficiency and cost measures, including an adjustment of the cost base. Finally, and as stated in our annual report, the Board expects to announce a permanent CEO during Q1 '26-'27.

Today, we will have no further comments regarding this topic.

During the year, we launched 3 product innovations. In November '25, we launched the Beo Grace earpieces — crafted from hand-polished aluminum and built on our proprietary Amadeus software platform.

The product was well received and sales performance has been strong, driving double-digit growth in the earphone revenue. In December '25, we launched Beosound Premiere, adding a soundbar to the portfolio designed for TVs from 42 inches and above and centered on spatial audio and system connectivity.

The sales performance was lower than anticipated, and the product was relaunched in March '26 with 2 additional colorways, improved in-store display and a revised lower price point. Sales performance improved during Q4, although still at a lower-than-expected level.

In October '25, we launched the Reloved program, offering inspected, refurbished and certified pre-owned products with a Bang & Olufsen warranty through our own e-commerce channel. Across 8 monthly drops from October to May, all products sold out before the next drop and some were sold out within 24 hours.

In addition, we presented our outdoor speaker Beosound Haven expected to launch in '27, underpinning our vision to provide fully integrated solutions for our clients' homes.

In addition to product innovations, we engaged in several product collaborations this year with Tokyo-based design studio Fragment Design, Korean-based global artist G-DRAGON, and British-based design house Vollebak. Throughout the year, we cemented our global brand presence through marketing activations, collaborations, partnerships, cultural initiatives and centenary celebrations — window takeover in Harrods in London, digital out-of-home activations in Times Square New York, and our centennial exhibition 100 Years and Counting, which premiered in Shanghai and attracted more than 10,000 visitors alongside activities in Copenhagen, Tokyo, Hong Kong, London and many other cities worldwide.

A reinterpretation of the iconic Beolab 90 was introduced in 5 Atelier Anniversary Editions, unveiled through activations across global cities including London and San Francisco.

Our Win City concept was implemented in Tokyo, San Francisco and Los Angeles, increasing the total number of active Win Cities to 7 by year-end. The Win Cities delivered double-digit sell-out growth of 18%, while further elevating the brand experience.

We are pleased to report double-digit Win City sell-out growth for 8 consecutive quarters. Our latest brand equity results also support this.

We continued our ambitious retail plans with flagship openings in Paris, San Francisco and Los Angeles, plus a new store in Hamburg and upgrading the first 2 stores in Asia to a culture store concept.

Across our network, we are strengthening our position in high potential locations by relocating selected stores and opening new sites in key cities while closing underperforming locations not aligned with our brand ambition. In parallel, we are enhancing our distribution model through closer collaboration with like-minded monobrand partners, combining the strength of company-owned stores with a strong partner network.

We are improving store productivity by driving consistency in retail execution, including optimized visual merchandising and store design, focused sales training and a more structured approach to clienteling. To support the client journey throughout the store network, we are implementing a new retail IT platform to replace current systems.

In '26-'27, the platform will be rolled out across all company-owned stores, with the first 2 stores piloted during the last month. During the year, we made more than 65 retail footprint adjustments.

To secure continued investment in the development of the business for future profitable growth, we have in the second half of the financial year adjusted elements of our strategic execution and implemented efficiency and cost measures. We are evolving our commercial operating model and have significantly improved the coordination of marketing planning and investments, retail execution and product launches during the second half of this financial year.

We expect this to enhance our go-to-market execution across both existing products and new launches. At the same time, we are reallocating our cultural partnerships towards music in line with our ambition to deliver beautiful sound and elevating our heritage and brand distinctiveness.

I'm pleased that we have recently signed an agreement with a global brand ambassador, which we will announce shortly.

We have revised our product development model and, amongst others, rebalanced the use of external suppliers while sharpening our focus on core strengths and improving speed and cost efficiency. This will enable us to better serve aspirational clients in future offerings without compromising our strong gross margin.

The changes made ensure we are able to prioritize continued investments and transformation, and we trust the new ways of working will be effectively led by our newly appointed Chief Product Officer Janne Jakobsen and Chief Marketing Officer Peter Hobolt Jensen.

In the last part of the year, changes have been made to simplify the organization and focus efforts on strategically important areas. Efficiency measures have reduced our underlying cost base and include a rightsizing of the organization — this has resulted in a workforce reduction of around 60 people, corresponding to around 5% of the total number of employees.

Saying goodbye to dedicated and talented people is certainly not easy, and we do so with gratitude for their valuable contributions. With the changes introduced during the last 6 months, we have cleaned up, we have regrouped and we have put the company in a better position to drive long-term profitable growth.

Now on our Q4 numbers. Starting with sell-out — we delivered positive like-for-like growth of 11% at group level.

This led to a full year like-for-like sell-out growth of 4%. For the quarter, positive sell-out growth was reported across regions and 13% growth was reported for our branded channels.

For both EMEA and Americas, like-for-like sell-out grew by 4%. Sell-out reported from the eTail channel declined in both regions.

It is encouraging to see positive like-for-like sell-out while revenue growth in these 2 regions was negative — in general, the difference between sell-out and sell-in was caused by inventory depletion among our partners. For APAC, sell-out grew by 28% and like-for-like sell-out for China grew by 14%.

Double-digit sell-out growth was also reported for eTail and multi-brand in China as our own operations have delivered improved commercial impact on JD and Tmall. Our active Win Cities continue to perform strongly, delivering double-digit sell-out growth for the eighth consecutive quarter.

On group performance — revenue decreased by 3.1% in local currencies, while reported revenue declined by 3.8%. While the sales performance of Beosound Premiere improved after the relaunch and price adjustment, its performance continued at a lower-than-expected level and was the primary reason for the decline.

The decline was driven by the monobrand channel in EMEA. Within branded channels, revenue declined by 3.7% in local currencies while our company-owned stores delivered double-digit growth.

Gross margin continued its positive trajectory improving to 58.7% in Q4, up 2.9 percentage points year-on-year. A refund of paid U.S.

tariffs had a positive impact of DKK 20 million. EBIT margin before special items was 5.7%, reflecting the higher quality of revenue and a positive impact of the mentioned DKK 20 million from tariff refunds.

Special items related to EBIT amounted to negative DKK 30 million, mainly comprising the reorganization announced during the quarter.

On product revenue — product revenue declined by 2.7% in local currencies. In EMEA and Americas, revenue declined by 11.9% and 5% in local currencies, respectively.

In APAC, revenue increased by 15.5% in local currencies, driven by strong momentum in China. Gross margin improved across regions.

In the Americas, gross margin was 78.5% in the quarter, reflecting the DKK 20 million tariff refund — excluding the refund, the gross margin was 50.1%, an increase of 1.4 percentage points compared to last year. In APAC, we continue to see a positive effect on the gross margin from the direct operation of the Tmall flagship store, which had a positive impact of around 1 percentage point on the APAC regional gross margin.

Revenue from brand partnering and other activities declined year-on-year — HP license income was discontinued as expected, and TCL revenue declined year-on-year due to quarterly fluctuations, though the TCL partnership is ramping up as planned on a full year basis.

On cash flow and working capital — free cash flow for the quarter was positive at DKK 5 million, reflecting improved operating performance and a lower level of operational investments, partly offset by working capital developments. Net working capital increased by DKK 78 million to DKK 349 million, driven by lower payables and higher receivables, with the receivables increase related to the U.S.

tariff refund and higher sales than in Q3. Inventories ended the quarter at DKK 418 million, down by DKK 33 million compared to the end of Q3, reflecting our continued focus on inventory management.

Capital resources amounted to DKK 294 million at the end of the quarter compared to DKK 262 million at the end of Q3. Of the DKK 294 million, available liquidity was DKK 94 million.

Before I present the outlook for '26-'27, I would like to give a bit of detail on how we currently see the memory chip situation impacting our business. Memory chips, specifically DDR4 RAMs, are currently facing critical supply constraints driven by sustained demand growth from AI and data center applications.

At the same time, 3 of our 4 suppliers have scaled back or ceased DDR4 production to prioritize higher-margin DDR5 capacity. We are in the process of securing supply to cover production and maintain operations for products where DDR4 RAM is required and we have initiated the development of an upgraded Mozart hardware platform.

The impact on cost is partly mitigated by price adjustments on July 1, reducing the net impact on the gross margin to approximately 0.5 percentage point. An expected cash impact of around DKK 35 million to DKK 45 million is included in the outlook for next year.

Turning to the outlook for the full financial year — while uncertainty persists in the external environment, our differentiated strategy and ongoing transformation position us well for the future. Our focus remains on executing our strategy through improving our go-to-market operating model, implementing our new product development methods, reshaping our retail execution and footprint and continue to focus on prudency on cost, CapEx and cash management.

Revenue growth is expected to be in the range of 1% to 5%. EBIT margin before special items is expected to range from 1% to 3%.

And the free cash flow is expected to be in the range of DKK 25 million to DKK 100 million.

In '26-'27, that investment goes into our retail network, the rollout of our new IT platform for retail and our product pipeline. As a result, we expect capital expenditure to increase to around DKK 270 million to DKK 310 million, while capacity costs are expected to remain broadly flat compared to '25-'26.

On retail specifically, we expect a positive contribution next year from openings and upgrades. The plan we laid out in '24-'25 is unchanged and remains the right one, though some openings have taken longer to execute than originally planned.

At the same time, we continue to be affected by market uncertainty. On tariffs and the outlook for the U.S.

market, we are currently seeing some hesitance and caution among our monobrand partners. The broader geopolitical backdrop, including the wars in Ukraine and in the Middle East, adds to that uncertainty.

The U.S. tariff refund has not yet been received, so there's a cash timing effect still to come.

Finally, within our outlook, we assume the launch of 3 or more products during the financial year. The first, the Recreated Classics, was launched in June, and we expect the remaining product launches no earlier than the fourth quarter, impacting seasonality over the year.

And with that, I will open up for questions.

I have a few ones. If you come back to the organizational changes you made in May — can you put a little more color on what you changed and what kind of functions you have taken out of the 60 positions?

Yes, most certainly. It's fairly broad-based.

We've been looking at our strategy and prioritizing to continue to invest and have the right level of capacity in the areas of retail execution and our COCO stores where we're opening more — we'll also see more headcounts coming in. So we have reduced across the board in the more back-end related functions — in administration of course, across some of our product development function as part of our new way of working with developing products where we will use external suppliers in a different way, and also on the marketing side globally as part of reviewing our go-to-market operating model.

A question on product development — you're changing the way you're using external partners. Does it mean that you are doing more external partnerships now than doing in-house development, and why?

It means that we are adjusting on specific product offerings, especially within the Bluetooth category. We are adjusting the split of work between our in-house development functions and the development functions of the partners.

We are doing that because we want to achieve a faster development cycle in Bluetooth products and a lower cost of developing. Our analysis has shown us that if we adjust the split of work between us and our suppliers, we will be able to achieve this.

Has this temporarily meant that you have longer development processes? I'm thinking about Haven — I think earlier it was indicated that it would come to market this year and now you say '27.

Haven is not really a good example of that because it's a different type of product. But if we look at the Bluetooth category, which includes headphones, earphones and Bluetooth speakers, we have seen quite long development cycles in our in-house development model, and this is what we want to shorten in the future.

If we then come to the European market, is it business as usual what we have seen in the last 12 months or has there been any changes during the last quarter? And I can see you have reduced the number of European branded stores from 280 to 220 over 2 years — where do you see it flattening out before you have a stable or net-increase situation?

I expect for the coming years that we will still see a small decrease in the European store network. Net-net, we will not reduce with as many stores as we have done this year, but there will still be a little bit of a reduction.

At the same time, we are also opening next year flagship stores in really key locations across the world, but especially also in Europe. So we will have a much stronger network when we are looking 1 year ahead than we have today.

And the market sentiment?

Sentiment in Europe has been challenging for most of this financial year. It's still very centered around the Northern and Central European countries — the DACH region, and Germany specifically, have been challenging.

The Nordics has not been easy. As I said before, the U.K.

outside London has also not been easy, while we see better traction in Southern Europe. That has not changed materially in the fourth quarter.

Okay, so it's business as usual for the last 12 months?

Broadly, it's business as usual.

Then about the new IT platform — you say you'll roll out to COCO stores in '27. You still have more than 300 where it won't be rolled out.

When will it be across all stores? And secondly, what new opportunities will it give you?

On timing, we will properly roll it out to the most important markets first, taking a staggered approach focused on the high potential markets and key partners. We are doing COCO as I said in '26-'27.

After that, and after taking our own medicine and making sure the platform works exactly as it should, we will roll it out to the monobrand partners afterwards.

What it will give us is one point-of-sale system across the stores, one unified CRM system across the stores, enhanced operations in the stores where store staff will use much less time on admin work and can spend more time on client-facing work, and it will enable proper CRM and clienteling activities as we will have a much more unified view on all our clients. It will also enable, when rolled out to the monobrand partners, seamless reporting of the important key metrics we need to run a retail and luxury business — sell-out, inventory data, traffic data, CRM data, client data.

So it will create a basis for really professionalizing the retail operations of our business.

A final question on the guidance — you narrowed it, you said there is still high uncertainty, but you narrowed the revenue growth range to a spread of 4 points from earlier 6 to 10 points in previous years. How should we look at this?

You're more certain? Or are you taking a conservative view?

We felt it was the right thing to be more precise in our information to the market. With the wide range we had in the past, we also received some feedback on having a very wide range.

So we have been diligent in doing our estimations for the coming year and would like to be as precise as possible for letting our investors and shareholders know what we're expecting for the next year.

And in the recent years, your partners have reduced inventories. What kind of assumption do you put in on the difference between sell-in and sell-out in that outlook?

Our key assumption in the outlook is focusing on the sell-out performance with a stable inventory.

And just for clarification — you say the RAM impact would be 0.5 percentage points on your gross margin, that's about DKK 12 million. But you have a cash flow impact of DKK 35 million to DKK 45 million.

What's the difference?

The difference is that what we are working on right now is to secure enough supply for the next 2 years at one go — kind of buying an insurance on the supply of RAM so we have ample time to develop a new hardware platform not constrained by DDR4 RAMs. That's why the cash flow impact is bigger than the margin impact.

Another element to the margin impact is that we are also increasing our prices on July 1, which covers around half of the gross impact on the elevated COGS cost for this year.

My first question is on the effect of store closures in fiscal '27. Can you talk about what the expected effect of store closures in the coming year will be?

You recorded a negative effect of minus 1.5 percentage points in fiscal '26. Also, would you have any material receivables buildup in your balance sheet related to the stores that you have closed?

We expect the effect of store closures next year to be smaller than the impact this year because we are closing fewer stores. So less than the 1.5 percentage points, which is an all else equal calculation assuming that revenue is not picked up elsewhere.

We do not have any material provisions for store closures on the balance sheet. We have a pretty good model of how we handle these closures without incurring any losses on bad debt.

Can you talk about your assumptions behind tariff payments for fiscal '27? Have you included any reoccurrence of tariffs to the U.S.

in your guidance for '27? And would you still have tariff refunds that you will book in fiscal '27 as you did here in quarter 4?

Our assumption is that the tariff refund was booked in quarter 4 and we will have a cash effect next year. We have not included any expectations to get additional tariff refunds.

It's not impossible that there will be more to come, but the process on next tariff refunds is much more complicated because of rules around the timing of when you incur the tariffs — the longer it dates back, the more complicated it is to get the returns. Our expectation of tariffs for next year is more or less falling back to the tariff situation before Liberation Day in April.

These IEEPA tariffs are void, but there is still a minor tariff on certain products from China, around 7.5% on certain tariff products. We've done that basically since the current President's first presidential term because those tariffs were never removed under Biden.

So in a way, it's back to business as usual.

Could you just talk about the phasing of growth and profitability in the year to come? Do you expect normal seasonality or some kind of back-end loading?

We expect back-end loading, maybe to a higher degree than normal. The reason for that is, as I said, the product launches that we still have to come are planned for the fourth quarter.

That will, of course, have an impact on seasonality.

And how about the cost reductions that you implemented in quarter 4? How is that going to feed into fiscal '27?

They are feeding in from more or less from the beginning. We will see probably the biggest impact on the distribution cost line as a lot of the cost reduction lies within sales and marketing — we've taken a number of initiatives beyond the headcount reduction within this area to really optimize our spending in sales and marketing in relation to a new go-to-market operating model.

Well, thank you all for your interest in Bang & Olufsen and for joining today's webcast. If you have any follow-up questions, please don't hesitate to reach out to our Investor Relations team.

Thank you, and have a good day.