New Wave Group Ab Class B · OMXSTO:NEWA_B
New Wave Group Ab Class B — Q2 2007 Earnings Presentation
31 slides from New Wave Group Ab Class B's earnings presentation, 2007
Slide 1: Financial highlights Q2 - Interim report Q2 2007
Financial highlights Q2 Interim report New Wave Group Q2 2007
Slide 2: Business idea
Business idea New Wave Group designs, acquires and develops quality articles and trademarks for the promo and retail market, mainly in the clothing, accessories and gifts areas. New Wave Group concentrates on two business areas: ✔ The Promo business area – the products are distributed via indepe
Slide 3: Large companies synergies - small companies flexibilities
Large companies synergies - small companies flexibilities Promo HIGH END Promo wear PRODUCTS Promo gifts Warehouse Logistic Work wear NEW WAVE GROUP Design / Product Purchasing Retail development Sports & Leisure Gifts & BASIC Home Interior PRODUCTS
Slide 4: Strategy
Strategy Establish and develop existing trademarks Establish new operations in new geographical markets Develop and acquire products and companies within the promo and retail business segment Spread the Group's values to newly established and acquired companies
Slide 5: Vision - Promo
Vision - Promo To become Europe’s leading supplier of promotion products by offering ✔ good products ✔ strong trademarks ✔ high competence and service ✔ a unique and complete concept for our re-sellers
Slide 6: European promo market
European promo market Fragmented market with a total size of SEK 112,000,000,000 New Wave’s turnover within corporate promo is SEK 2,146,000,000 With only 2 % market share New Wave is the second biggest player in the European promo market European Promo market New Wave´s product mix - product
Slide 7: Promo Wear
Promo Wear Classic Sports General
Slide 8: Promo Gifts
Promo Gifts
Slide 9: Promo Work wear
Promo Work wear WORKWEAR
Slide 10: Vision – Retail
Vision – Retail To become the Nordic countries main supplier of sports and leisure wear. To develop Orrefors and Kosta Boda into the leading trademarks in the world within glass and crystal. To develop Sagaform into one of the leading trademarks in Europe on kitchen, china and gifts. To deve
Slide 11: Retail
Retail New Wave’s retail area is divided into two categories Sports & Leisure Owned trademarks Licensed trademarks Gifts and Home Interior Owned trademarks
Slide 12: Sports & Leisure
Sports & Leisure Owned trademarks: Functional sportswear Golf and leisure wear Basic wear, T-shirts etc Socks, caps etc Children shoes Licensed trademarks: Hockey equipment Indoor bandy and skiing equip. Football clothes and equip. Skiing equip. Inlines
Slide 13: Gifts and Home Interior
Gifts and Home Interior Owned trademarks Gifts, interior design Gifts, interior design Gifts, interior design Gifts, interior design Crystal and glass Glass Glass
Slide 14: Financial statements Q2 2007
Financial statements Q2 2007
Slide 15: Q2 April – June 2007
Q2 April – June 2007 Sales +9% to MSEK 978 (897) Organic growth, i.e. excl. Cutter & Buck, amounted to 2% Promo:+3% to 632 (584) Retail:+10% to 346 (313) Profit MSEK +11.4 to MSEK 100.5 (89.1) Cutter & Buck contributed with MSEK 6.7 Promo: EBITDA MSEK +3.7 to MSEK 119.0 (115.3) R
Slide 16: Comments Q2
Comments Q2 Acquisition of Cutter & Buck finalized Cutter & Buck contributed with MSEK 60 in sales and MSEK 6.7 in result after finance net Sales affected by: World Champion in soccer last year Lower trading orders Continued improved gross margin 48.0% (47.7%) Improved operating profit
Slide 17: Sales
2007 ford [2005 Ml 2006 Qs [2004 2003 2002 Qo [2000 2001 Qi M1999 Mike [e908 1100 Sales
Slide 18: Result after finance net
Result after finance net Mkr 160 140 120 100 80 60 40 20 + [nose Qi 1999 a2 [12000 12001 [2002 [2003 Qs 2004 a4 [32005 m2006 ml 2007
Slide 19: Q2 January – June 2007
Q2 January – June 2007 Sales +5% to MSEK 1 738 (1 652). Organic growth, i.e. excl Cutter & Buck, amounted to 2% Promo:+6% to MSEK 1 106 (1 040) Retail:+3% to MSEK 632 (612) Profit MSEK +26.1 to MSEK 112.3 (86.2) Cutter & Buck contributed with MSEK 6.7 after finance net Promo: EBITD
Slide 20: Geographical allocation of turnover
Geographical allocation of turnover JAN - JUN Part of JAN - JUN Part of Change % 2007 turnover 2006 turnover MSEK Nordic countries 951 55% 953 58% -3 0 Central Europé 391 22% 386 23% 5 1 South Europé 190 11% 194 12% -4 -2 USA 131 8% 65 4% 66 102 Other countries 76 4% 54 3% 22 41 Totalt 1 738 100% 1
Slide 21: Key numbers
Key numbers Key numbers JAN - JUN JAN - JUN JAN - DEC JAN - DEC 2007 2006 2006 2005 Sales growth % 5,2 31,6 15,4 32,9 No of employees 2 247 2 197 2 207 2 032 Gross margin % 47,8 46,9 47,9 46,4 Operating margin % 8,4 6,7 9,8 9,7 Profit marginal % 6,5 5,2 8,2 8,3 R eturn on equity % 12,7 11,2 18,7 20,
Slide 22: Important events after Q2
Important events after Q2 3 years partnership agreement signed with COOP Well established business relationship since 2003 through Clique distribution now extended to a long-term co-operation. New Wave brands; Clique, Craft, Seger, Umbro etc will be exposed to more than 1 billion visitors per
Slide 23: Cutter & Buck Synergies with New Wave
Cutter & Buck Synergies with New Wave Product development: - Using Craft’s knowledge on technical fabric for sports and rain wear Product portfolio - Widen C&B’s product portfolio with Clique and New Wave, complimentary Assortment - A new exclusive assortment for New Wave in Europe
Slide 24: Cutter & Buck Synergies with New Wave
Cutter & Buck Synergies with New Wave Purchase: - Integration with New Wave’s buying offices. Will reduce buying prices with some $7m (-08) $12m (-09) Cost saving: - De-listed from NASDAQ $3,5m (-08) Distribution - Distribution of Clique and New Wave in US via Cutter & Buck’s existing clients
Slide 25: Cutter & Buck Extra costs
Cutter & Buck Extra costs Working capital - Need to build up stock in US and Europe = increase in working capital with approx. MSEK 50 – 75. Finance net - Interest cost for new bank debt is approx MSEK 40 (using current interest rate levels)
Slide 26: Cutter & Buck – P&L
Cutter & Buck – P&L (historical in TUSD) Year ended 30 April 2004 2005 2006 2007 Net sales 128 374 126 560 131 298 140 450 COSG 69 784 65 954 71 632 75 521 Gross Profit 58 590 60 606 59 666 64 929 Gross Margin 45,6% 47,9% 45,4% 46,2% Selling, administrative and general costs 49 983 48 532 51 047 55
Slide 27: Cutter & Buck Summary – financial impact
Cutter & Buck Summary – financial impact In MSEK 2008 2009 Purchase 47,0 80,0 Cost savings 23,5 23,5 Total savings 70,5 103,5 Interest costs -40,0 -40,0 Working capital increase -50,0 -75,0 In addition to the above items, we expect additional synergies in the product development and revenues in re
Slide 28: Views of 2007
Views of 2007 Result and turnover above last year Fully Integrate Cutter & Buck in the coming 12 months New acquisitions in profiling / retailing Rollout of Clique and New Wave in USA Rollout of Cutter & Buck in Europe
Slide 29: How to reach growth?
How to reach growth? Increase competitiveness ✔ Better buying ✔ Better logistic ✔ Co-operation between and within different concepts Continues organic growth Establishment of existing brands through existing subsidiaries Entering new countries ✔ Poland ✔ Greece ✔ Eastern Europe Acquisition
Slide 30: Vision
Vision Since start in 1990, New Wave has delivered: An average annual turnover growth of 35% An yearly increased financial net result of 36% Our vision is to reach within a foreseen future: A turnover of SEK 10 billion A profit before taxes of SEK 1 billion A total value of SEK 10 billion
Slide 31: We hope that everybody who buys our products is a content customer
We hope that everybody who buys our products is a content customer and we want you to know that if you choose to invest in New Wave Group we promise that we will take care of your investment in the best possible way through long-term thinking, growth, stability and hard work!