New Wave Group Ab Class B · OMXSTO:NEWA_B
New Wave Group Ab Class B — Q2 2009 Earnings Presentation
28 slides from New Wave Group Ab Class B's earnings presentation, 2009
Slide 1: Interim report – Q2 2009
a VewS Live G R ° U P Interim report — Q2 2009
Slide 2: This is New Wave Group
This is New Wave Group • New Wave Group is a growth company. We create, acquire and develop brand articles for the Corporate Promo- and Retail sales channels. • We have three business areas: Promo; work wear, promo wear, and gifts & giveaways to independent promo companies, Sports & Leisure and Gift
Slide 3: Business Area - Corporate Promo
Business Area - Corporate Promo Our vision is to • Become Europe’s leading supplier of Corporate Promo Products by offering - A unique and complete concept to our resellers - High quality products and strong brands - High competence and service
Slide 4: Business Area - Sports & Leisure
Business Area - Sports & Leisure Our vision is to • Become the Nordic countries main supplier of Sports & Leisure Wear • Develop Craft and Seger into international functional sportswear brands • Develop Cutter & Buck into one of the world’s leading brands within golf & leisure wear
Slide 5: Business Area - Gifts & Home Interior
Business Area - Gifts & Home Interior Our vision is to •Develop Orrefors and Kosta Boda into world leading brands within glass & crystal
Slide 6: Interim Report Q2 2009
Interim Report Q2 2009
Slide 7: Consolidated Q2, April-June 2009
Consolidated Q2, April-June 2009 • Sales amounted to MSEK 1 023 (1 245), -18% • Profit after tax MSEK 60.5 (85.8) • Cash flow from operating activities +401 to MSEK 373 (-28) • Equity ratio increased to 35.8 (27.1) % • Net debt–equity ratio decreased considerably to 129.7 (200.1)%
Slide 8: Comments Q2, April-June 2009: Sales and gross margin
Comments Q2, April-June 2009 • Sales -18% MSEK 1 023 (1 245) – Weak market, primarily in Sweden and USA – Promo - 20% and Sport & Leisure -18% • Promo: general weak economy • Sport & Leisure: European Football Champ, weak market in USA – Currency effect MSEK +108. • Gross margin 49.2 (49.7) % – Weak
Slide 9: Comments Q2, April-June 2009: Profit and operating margin
Comments Q2, April-June 2009 • Profit after tax 60.5 (85.8) – Lower volume, savings and sale of Orrefors glass collection and properties • Operating margin 9.4 (11.9) % – Lower volume, savings and higher income from sale of Orrefors glass collection and properties • Result per share SEK 0.91 (1.22)
Slide 10: Comments Q2, April-June 2009: Cash flow
Comments Q2, April-June 2009 • Cash flow from operating act. +401 to MSEK 373 (-28) – Decrease in stock primarily but also Acc Rec and credit terms • Equity ratio amounted to 35.8 (27.1) % – Debt repayment • Net debt-equity ratio amounted to 129.7 (200.1) % – Debt repayment
Slide 11: Business Areas – Sales, Apr-Jun 2009
Business Areas – Sales, Apr-Jun 2009 • Promo: -20% to MSEK 499 (626) – Nordic countries weak, especially Sweden and Finland. • Sports & Leisure: -18% to MSEK 368 (451) – Craft on same level, C&B affected by weak american economy – Prior year’s sale in connection with EC in football • Gifts & Home In
Slide 12: Business Areas – EBITDA, Apr-Jun 2009
Business Areas – EBITDA, Apr-Jun 2009 • Promo: MSEK 71.3 (127.7) – Volume related • Sports & Leisure: MSEK 28.7 (46.2) – Volume related – Margin and costs • Gifts & Home Interior: MSEK 14.4 (-8.4) – Gain in connection with sale of Orrefors glass collection and properties MSEK 16.4 – Savings
Slide 13: Geographical Allocation of Turnover
Geographical Allocation of Turnover
Slide 14: Sales
| 2004 m 2005 | 2006 | ©2007 m 2008 | ™ 2009
Slide 15: Result Before Tax
Result Before Tax 200 150 100 2004 = 2005 » 2006 50 | = 2007 = 2008 0 - ) 2009 -50 -100
Slide 16: Income Statement
Income Statement 3 mths 3 mths APR-JUN APR-JUN SEK Mkr 2009 2008 Net sales 10229 1 245 4 Goods for resale 6133 -626 8 Gross margin 503,6 49 2% 618,6 497% Other operating income 22,0 6,4 External costs -220,1 -270,6 Personnel costs -182,8 -186,9 Depreciation and amortization -19,0 -16,7 Other costs -
Slide 17: Financing
Financing • New agreement agreed with creditors – Main agreement ending 30 april, 2011 – Equity ratio covenant continues and Creditfacility goes from MSEK 3.425 to 2.875 per 31 december, 2009 and then continue to decrease to 2.475 per 30 April, 2011. • This agreement replaces earlier agreement and c
Slide 18: Consolidated Q2, January-June 2009
Consolidated Q2, January-June 2009 • Sales -11% to MSEK 2 002 (2 260) • Profit after tax MSEK 7.2 (70.8) – Restructuring costs affected MSEK -56.4 • Cash flow from operating activities +452 to MSEK 235 (-217)
Slide 19: Comments Q2, January-June 2009: Sales and gross margin
Comments Q2, January-June 2009 • Sales -11% MSEK 2 002 (2 260) – Weak market, primarily in Sweden and USA – Promo - 14%, Sport & Leisure -10%, Gifts & Home interior -6% • Promo: general weak economy • Sport & Leisure: strong in Europe but weak in USA • Gifts & Home Interior: weak retail sector in Sw
Slide 20: Comments Q2, January-June 2009: Profit and cash flow
Comments Q2, January-June 2009 • Profit after tax 7.2 (70.8) – Lower volume, restructuring costs of MSEK 56.4 • Operating margin 1.9 (7.3) % – Lower volume, but also higher income from sale of Orrefors glass collection and properties • Result per share SEK 0.10 (1.07) • Cash flow from operating act.
Slide 21: Business Areas – Sales, Jan-Jun 2009
Business Areas – Sales, Jan-Jun 2009 • Promo: -14% to MSEK 941 (1 100) – Nordic countries weak, especially Sweden and Finland. • Sports & Leisure: -10% to MSEK 781 (862) – Europe growth, USA weak – Craft increases, C&B affected by weak market in USA – Prior year’s sale in connection with EC in footb
Slide 22: Business Areas – EBITDA, Jan-Jun 2009
Business Areas – EBITDA, Jan-Jun 2009 • Promo: MSEK 94.1 (156.1) – Volume related • Sports & Leisure: MSEK 48.1 (78.4) – Volume related – Margin and costs • Gifts & Home Interior: MSEK -66.6 (-40.9) – Restructuring costs of -70.1 MSEK – Gain in connection with sale of Orrefors glass collection/prope
Slide 23: Geographical Allocation of Turnover
Geographical Allocation of Turnover
Slide 24: Financial Highlights
Financial Highlights ANewNitwe JAN-JUN JAN- JUN JAN-DEC JAN-DEC 2009 2008 2008 2007 Sales growth % -11,4 30,1 9,8 18,8 Gross margin % 47,7 48,7 48,5 47,6 Operating margin before depreciation % 3,8 8,6 9,4 11,0 Operating margin % 1,9 73 8,0 9,7 Net profi t margin % 0,4 3,1 3,2 5,9 Retum on equity % 0
Slide 25: CEO comments
CEO comments • Focus during Q2 has been to reduce capital tied up in stock, create cash flow and pay down debt. • Sales within Promo and Sport & Leisuire lower then expected. • Strong cash flow from operating activities 373 (-28) MSEK • Not really satisfied with the result during Q2. • New agreement
Slide 26: Views on 2009
Views on 2009 Continued weak market conditions for the rest of the year. Continued strong focus on reducing stock, creating cash flow and decrease debt. Evaluate certain markets. Despite savings and deductions in personnel, New Wave expects profits before tax to be lower then 2008. Q3 is expected to
Slide 27: Views on 2010 - 2012
Views on 2010 - 2012 2010: First half, continued focus on reducing stock and creating cash flow, Second half, improve in sales and result, with continued focus on working capital and cash flow. Expected focus on Europe and North America. 2011&2012: Growth in sales and result, with better focus on ca
Slide 28: We aim to make everyone who buys our products a happy customer
We aim to make everyone who buys our products a happy customer. If you choose to invest in New Wave Group, we want you to know that we promise to take care of your investment in the best possible way we know how — through long-term thinking, growth, stability, and hard work!