Annual Report 2019

Expectations and outlook

Following the transformation during the past year, we can now fully focus on our continuing business. The positive trend in revenues from 2019 has continued into the first months of 2020. Given the current social and economic circumstances, which have no relation to the business operations year to date, we believe our business could be impacted for a period of time. Looking ahead, we see increased uncertainties following the COVID-19 worldwide outbreak and market volatility. We have no indication whether the governmental measures will have an effect in preventing a further spread around the world. Therefore we currently do not know whether these measures will be effective and what kind of duration we will be faced with. Such situation, especially when it takes longer, may have an effect on the financial performance of the Company.

During the year, we intend to further optimise our financing structure, as the current credit facilities will expire mid-2020. We are currently in discussion with the banks to successfully agree new credit facilities and the establishment of a fit-for-the-future Group financing structure. Current uncertainty might delay this process.

Beter Bed Holding starts 2020 from a stable financial position, with a significantly smaller scale, a lower asset base and lower revenues. The changes in the company structure will lead to a revision and update on the strategy for mid-term and longer-term goals. An update of the strategic direction will be presented on 13 May 2020. We are confident that we are well positioned for the growing trend of consumers increasingly recognising quality sleep as a key component of a healthier and more enjoyable lifestyle.

Uden, the Netherlands, 17 March 2020

A.J.G.P.M. Kruijssen,