Slide 1: Interim Report April - June 2011
Presentation 12 August Interim Report April - June 2011
Slide 2: This is New Wave Group
This is New Wave Group • New Wave Group is a growth company. We design, acquire and develop brands and products in the corporate promotion, gifts and home furnishings sectors. • Our three main business areas are: Promo; promo wear, workwear and gifts sold to independent promo resellers, Sports & Lei
Slide 3: Historical Development
Historical Development 4 800 340 4 600 320 4 400 4 200 300 4 000 280 3 800 3 600 260 3 400 240 3 200 220 3 000 2 800 200 2 600 180 2 400 2 200 160 2 000 140 1 800 120 1 600 1 400 100 1 200 80 1 000 800 60 600 40 400 200 20 0 0 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 Sales, MSEK PBT, MSEK
Slide 4: New Wave Group…
New Wave Group… …has more than 40 brands …has subsidiaries in 20 countries …is Sweden’s major supplier of sports articles, with brands like Craft, Seger, Umbro, Speedo and Clique …is the second largest supplier of promo products in Europe with 18 fully owned brands
Slide 5: Promo
Promo • Promowear • Gifts and giveaways • Workwear
Slide 6: Vision – Promo
Vision – Promo Our vision is to become Europe and North America's leading supplier of promo products by offering: ✔ High quality products ✔ Strong brands ✔ High knowledge and service ✔ A superior overall concept to our resellers Expansion through: üAcquisitions üGeographical expansion of existing
Slide 7: Retail
Retail üGifts retail üHome furnishings üHome textiles üSports retail üShoe retail
Slide 8: Retail
Retail • New Wave’s retail operation is divided into two categories: – Sports & Leisure • Fully owned brands • Licensed brands – Gifts & Home Interior • Fully owned brands
Slide 9: Vision – Retail
Vision – Retail ü Become the Nordic regions leading supplier of sports and leisurewear ü Make Craft and Seger international functional sportswear brands ü Develop Orrefors and Kosta Boda into world leading glass and crystal suppliers Expansion ü Sports & Leisure – through acquisitions and geogra
Slide 10: April – June 2011
April – June 2011 q Sales amounted to SEK 1 021 million, which was 3% higher than last year in local currencies and 4% lower in SEK (SEK 1 065 million). q Gross profit margin amounted to 48.8 (47.1) % q Profit after tax amounted to SEK 72.7 million (SEK 87.9 million), incl non- recurring items of
Slide 11: Comments April – June 2011
Comments April – June 2011 q Sales -4 %, SEK 1 021 million (SEK 1 065 million) – Sales in local currencies +3% (currency effect SEK -74 million or -7%) – Promo increased, Sports & Leisure on par with last year, Gifts & Home Furnishings weak – The Nordic Countries, Europe growth, weaker U.S. market
Slide 12: Sales per region
Sales per region APR-JUN Part of APR-JUN Part of Change % 2011 turnover 2010 turnover MSEK Sweden 328 32% 318 30% 10 3 USA 200 20% 257 24% -57 -22 Nordic count. excl Swe 173 17% 174 16% -1 -1 Mid-Europe 177 17% 173 16% 4 2 South Europe 113 11% 112 11% 1 1 Other countries 30 3% 31 3% -1 -3 Total 1 02
Slide 13: Comments April – June 2011
Comments April – June 2011 q Operating margin amounted to 7.1% (8.3%) – Excluding non-recurring items 10.1% q Profit margin amounted to 6.0% (7.8%) – Excluding non-recurring items 9.0% q Result per share amounted to SEK 0.55 (SEK 0.90) – Excluding posts affecting comparability SEK 0.99
Slide 14: Income Statement
Income Statement 3 mths 3 mths Apr-Jun Apr-Jun SEK Million 2011 2010 Net sales 1020.9 1065.3 Goods for resale -522.7 -563.7 Gross profit 498.2 501.6 Other operating income 8.4 5.1 External costs -241.6 -230.6 Personnel costs -173.2 -171.7 Depreciation/amortization -13.2 -15.1 Other operating costs -
Slide 15: Income statement – business area
Income statement – business area q EBITDA – Corporate Promo amounted to SEK 74.8 million (SEK 77.3 million) • Excl non-recurring item SEK 98.3 million (+27%). – Sports & Leisure amounted to SEK 25.9 million (SEK 30.1 million) • Lower sales – Gifts & Home Furnishings amounted to SEK -14.8 million (S
Slide 16: Sales
Sales 1500 1200 900 600 300 (0) Q2 2006 2007 [ij 2008 [J 2009 = 2010 _ 2011
Slide 17: Profit before tax
Profit before tax O 2007
Slide 18: Cash Flow April – June 2011
Cash Flow April – June 2011 3 mths 3 mths Apr-Jun Apr-Jun SEK Million 2011 2010 Cash flow from operating act. before changes in working capital 62.0 82.4 Changes in working capital -35.8 35.1 Cash flow from operating activities 26.2 117.5 Investing activitites -19.6 -6.7 Cash flow after investing ac
Slide 19: January – June 2011
January – June 2011 q Sales amounted to SEK 1 948 million, which was 5% higher than last year in local currencies and 2% lower in SEK (SEK 1 981 million) q Operating profit amounted to SEK 90.4 million (SEK 104.8 million) – Excluding non-recurring items SEK 120.9 million (+15%) q Profit after tax
Slide 20: Comments January – June 2011
Comments January – June 2011 q Sales -2%, SEK 1 948 million (SEK 1 981 million) – Sales in local currencies +5% (currency effect SEK -136 million or -7%) – Promo, Sports & Leisure growth and Gifts & Home Furnishings weak (local currencies) – All our geographical regions are showing signs of growth
Slide 21: Sales per region
Sales per region JAN-JUN Part of JAN-JUN Part of Change % 2011 turnover 2010 turnover MSEK Sweden 600 31% 581 29% 19 3 USA 371 19% 432 22% -61 -14 Nordic countries ex Swe 324 17% 319 16% 5 2 Mid-Europe 374 19% 374 19% 0 0 South Europe 216 11% 214 11% 2 1 Other countries 64 3% 61 3% 3 5 Total 1 949 1
Slide 22: Comments January – June 2011
Comments January – June 2011 q Operating margin amounted to 4.6% (5.3%) – Excluding non-recurring items 6.2% q Profit margin amounted to 3.6% (4.7%) – Excluding non-recurring items 5.1% q Result per share amounted to SEK 0.63 (SEK 1.01) – Excluding non-recurring items SEK 1.06
Slide 23: Income Statement
Income Statement 6 mths 6 mths Jan-Jun Jan-Jun SEK Million 2011 2010 Net sales 1948.5 1980.6 Goods for resale -1016.6 -1041.6 Gross profit 931.9 939.0 Other operating income 21.0 10.2 External costs -483.1 -471.0 Personnel costs -341.4 -338.7 Depreciation/amorization -24.3 -30.0 Other operating cost
Slide 24: Income statement – business area
Income statement – business area q EBITDA – Corporate Promo amounted to SEK 99.4 million (SEK 91.0 million) • Excl non-recurring item SEK 122.9 million (+35%). – Sports & Leisure amounted to SEK 62.3 million (SEK 70.5 million) • Lower turnover • Higer sales- and marketing activities – Gifts & Home
Slide 25: Cash Flow January – June 2011
Cash Flow January – June 2011 6 mths 6 mths Jan - Jun Jan - Jun SEK Million 2011 2010 Cash flow from operating act. before changes in working capital 39.4 102.5 Changes in working capital -155.8 80.4 Cash flow from operating activities -116.4 182.9 Investing activitites -46.7 -22.7 Cash flow after i
Slide 26: Stock
Stock q Amounted to SEK 1 778 million (SEK 1 579 million) per 30 June, 2011 ─ Merchandise on stock SEK 1 571 million (SEK 1 384 million) ─ Raw materials etc. SEK 207 million (SEK 195 million) ─ Provision for obsolescence SEK 61 million (SEK 61 million) Supply conditions are continually improving.
Slide 27: Financial Highlights – Summary
Financial Highlights – Summery 6 mths 6 mths 12 mths 12 mths Jan - Jun Jan - Jun Jan - Dec Jan - Dec 2011 2010 2010 2009 Sales growth % -1.6 -1.1 3.8 -11.2 Number of employees 2 162 2 159 2 196 2 203 Gross margin % 47.8 47.4 47.1 46.5 Operating margin bef. depreciation % 5.9 6.8 9.1 5.9 Operating ma
Slide 28: Events after the end of the quarter: Acquisition of AHEAD
Events after the end of the quarter Acquisition of AHEAD q Acquiring the entire operation and all assets in the American cap and clothing company Ahead for USD 17.4 million, as well as accounts receivable amounting to roughly USD 5 million q In 2010, the company ‘s turnover was about USD 32 millio
Slide 29: Views on 2011 - 2014
Views on 2011 - 2014 2011 – We expect a higher turnover and a somewhat better profit 2012-2014 – Sales increase and better result Better focus on cash flow than in previous years
Slide 30: We strive to make everyone who buys our products happy customers
We strive to make everyone who buys our products happy customers. 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!