Slide 1: PRESENTATION
PRESENTATION New Wave Group AB (publ)
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 Promo wear HIGH END Promo gifts PRODUCTS Work wear Warehouse Logistics NEW WAVE GROUP Retail Sports & Leisure Gifts & Design / Product Purchasing Home Interior BASIC development 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: Worldwide operations
Worldwide operations
Slide 6: 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 7: Promowear
Promowear Classic Sports General
Slide 8: Promo Gifts
Promo Gifts
Slide 9: Promo Workwear
Promo Workwear WORKWEAR
Slide 10: Promo market in Europe
Promo market in Europe • 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 Gifts Textile/clothes Bags Gifts Bus. Acc. Pens, etc Te
Slide 11: New Wave's promo market share
New Wave’s promo market share • Still opportunities for growth…
Slide 12: Promo market operators
Promo market operators • 9 biggest operators have 15% of the market
Slide 13: 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 14: Retail
Retail • New Wave’s retail area is divided into two categories: – Sports & Leisure • Owned trademarks • Licensed trademarks – Gifts & Home Interior • Owned trademarks
Slide 15: Sports & Leisure
Sports & Leisure • Owned trademarks: • Licensed trademarks: – CRAFT – functional – EASTON – hockey equip. sportswear – EXEL – indoor bandy and – CUTTER & BUCK – golf skiing equip. and leisurewear – UMBRO – football clothes – CLIQUE – basicwear, T- and equip. shirts etc – NORDICA – skiing equip. – SE
Slide 16: Gifts and Home Interior
Gifts and Home Interior • Owned trademarks: – SAGAFORM – gifts, interior design – ORREFORS – crystal and glass – KOSTA BODA – glass – SEA – glass – KOSTA LINNEWÄFVERI – gifts, interior design – ORREFORS JERNVERK – gifts, interior design – DJ FRANTEXTIL – gifts, interior design
Slide 17: Financial statements Q3 2007
Financial statements Q3 2007
Slide 18: Total Q3 July – September 2007
Total Q3 July – September 2007 • Sales +41% to MSEK 1 125 (800) – Acquired units contributed with MSEK 282 – Organic growth amounted to +6% • Profit Before Tax MSEK +32.7 to MSEK 80.6 (47.9) – Acquired units contributed with MSEK +17.0 Sales Profit Before Tax 1200 1125 90 80,6 acquired units (282) 8
Slide 19: Comments Q3
Comments Q3 • Organic growth 6%, sales affected by: – Restructuring units and currency development – Excluding above, organic growth 10% • Continued improved gross margin 47.4% (47.0%) • Improved operating profit 9.6% (7.8%) • Improved profit per share SEK 0.87 (0.56) • Integration with Cutter & Buc
Slide 20: Sales
Mer Sales 1. 1000 900 800 700 600 500 400 300 + 200 + 100 + o WU Qi Q2 Qs Qs [1998 MB 1990 2000 [2001 = EJ 2002 HH 2003 HB2004 [2008 M2006 E2007
Slide 21: Result after finance net
Result after finance net oo a~ 60 40 — 20 5 - 6 lll ai a2 es as [Srecn mb iov2 «}2000 «2001 «2002 MB 2008 M2004 2005 ME2006 ME 2007
Slide 22: Business areas Q3 July – September 2007
Business areas Q3 July – September 2007 • Sales Promo: +30% to MSEK 579 (444) • Sales Retail: +53% to MSEK 546 (356) • EBITDA Promo: MSEK +34.1 to MSEK 87.7 (53.6) • EBITDA Retail: MSEK +14.9 to MSEK 36.5 (21.6) Sales EBITDA 700 100 579 87,7 600 546 90 80 500 444 70 400 356 2007 60 53,6 2007 50 300
Slide 23: Income Statement
Income Statement 3 months 3 months 9 months 9 months JUL -SEPT JUL -SEPT JAN-SEPT JAN-SEPT MSEK 2007 2006 2007 2006 Net sales 1 124,7 799,6 2 862,6 2 451,6 Goods for resale -591,8 -424,0 -1 499,6 -1 300,5 Gross profit 532,9 47,4% 375,6 47,0% 1 363,0 47,6% 1 151,1 47,0% Other operating income 6,8 5,7
Slide 24: Total January – September 2007
Total January – September 2007 • Sales +17% to MSEK 2 863 (2 452). – Acquired units contributed with MSEK 342 – Organic growth amounted to + 3% • Profit Before Tax MSEK +58.8 to MSEK 192.9 (134.1) – Acquired units contributed with MSEK + 23.7 Sales Profit Before Tax 3000 2863 250 acquired units (342
Slide 25: Business areas January – September 2007
Business areas January – September 2007 • Sales Promo: +14% to MSEK 1 685 (1 484) • Sales Retail: +22% to MSEK 1 178 (968) • EBITDA Promo: MSEK +74.1 to MSEK 246.7 (172.6) • EBITDA Retail: MSEK +12.3 to MSEK 44.9 (32.6) Sales EBITDA 3000 300 246,7 2500 250 2000 1685 200 172,6 1484 2007 1500 2007 117
Slide 26: Comments year to date – September
Comments year to date – September • Continued improved gross margin 47.6% (47.0%) • Improved operating profit 8.9% (7.2%) • Improved profit per share SEK 2.11 (1.55) • Sales affected by: – World championship in soccer last year – Lower trading orders – Restructuring units and currency development •
Slide 27: Financial highlights
Financial highlights JAN-SEP JAN-SEP JAN-DEC JAN-DEC 2007 2006 2006 2005 Sales growth % 16,8 20,8 15,4 32,9 Number of employees 2 303 2 144 2 207 2 032 Gross margin % 47,6 47,0 47,9 46,4 Operating margin % 8,9 7,2 9,8 9,7 Profit margin % 6,7 5,5 8,2 8,3 Return on equity % 14,4 12,0 18,7 20,3 Return
Slide 28: Geographical allocation of turnover
Geographical allocation of turnover JAN - SEP Part of JAN - SEP Part of Change % 2007 turnover 2006 turnover MSEK Nordic countries 1 431 50% 1 412 58% 19 1 Central Europe 619 22% 587 24% 32 6 South Europe 285 10% 287 12% -2 -1 USA 445 16% 120 5% 325 271 Other countries 83 3% 46 2% 37 80 Totalt 2 863
Slide 29: Views of 2007–2008
Views of 2007–2008 • Result and turnover above last year • Fully Integrate Cutter & Buck in the coming 12 months • New acquisitions in Promo / Retailing • Rollout of Clique and New Wave in USA • Rollout of Cutter & Buck in Europe
Slide 30: 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 31: 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
Slide 32: 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!