New Wave Group Ab Class B · OMXSTO:NEWA_B
New Wave Group Ab Class B — Q1 2010 Earnings Presentation
29 slides from New Wave Group Ab Class B's earnings presentation, 2010
Slide 1: New Wave Group
Slide 2: This is New Wave Group
This is New Wave Group • New Wave Group is a growth company. We create, acquire and develop brands and articles for the Corporate Promo and Retail sales channels. • We have three business areas: Promo; workwear, promo wear, and gifts & giveaways to independent promo companies, Sports & Leisure and G
Slide 3: New Wave Group…
New Wave Group… … has more than 40 brands in its brand portfolio. … has subsidiaries in 20 countries. … is Sweden’s largest supplier of sports articles, brands include Craft, Seger, Umbro, Speedo and Clique. … is Europe’s second largest supplier of promo articles with more than 18 fully owned brands
Slide 4: Historical development
Historical development 4800 + + 340 4600 + 7 a 4400 + 320 4200 + __ 7 300 3800 { ie 3600 + sr 260 3.400 + + 240 3200 + 3000 + y 220 2800 + 7 200 2600 + + 180 2400 + 2200 + 7 160 2000 + + 140 1800 + 1600 + y 120 1400 + + 100 1200 + + 80 1000 + 800 + + 60 600 + + 40 400 + _ 200 + 7 20 ofoyFiyltiyiiy 0
Slide 5: Promo – promo wear
Promo – promo wear Classic Sports Volume
Slide 6: Promo – gifts
Promo – gifts
Slide 7: Promo - workwear
Promo - workwear
Slide 8: Promo – workwear
Promo — workwear WORKWEAR
Slide 9: Vision - promo
Vision - promo Our vision is to become Europe’s leading supplier of promo articles by offering: ✔ high quality products ✔ strong brands ✔ knowledge and service ✔ a superior overall concept to resellers
Slide 10: Retail
Retail • Specialised stores for gifts • Home interior • Home textiles • Specialised stores for sports articles • Specialised stores for shoes
Slide 11: 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 12: Retail – Sports & Leisure
Retail – Sports & Leisure Fully owned brands! Functional sports wear Leisure wear, T-shirts etc. Knitted socks, hats, etc. Children’s and women’s shoes Golf and leisure wear
Slide 13: Retail – Sports & Leisure
Retail – Sports & Leisure Licensed brands! Football wear and equipment Swimwear
Slide 14: Retail – Gifts & Home Interior
Retail – Gifts & Home Interior Fully owned brands! Gifts and home interior Gifts and home interior Gifts and home interior Gifts and home interior Glass and crystal Art glass Glass
Slide 15: Vision – Retail
Vision – Retail • We shall become the Nordic countries’ leading supplier of sports and leisure wear. • Make the fully owned brands Craft and Seger internationally renowned functional sportswear brands. • Develop Sagaform into one of Europe’s leading brands on kitchenware, chinaware and gifts. • Deve
Slide 16: The larger Group’s synergies – the smaller companies’ flexibility
The larger Group’s synergies – the smaller companies’ flexibility Promo HIGH END Promo wear PRODUCTS Promo gifts Warehouse Logistics Workwear NEW WAVE GROUP Retail Design / Product Purchasing development Sportswear Textiles Gifts BASIC Home interior PRODUCTS
Slide 17: January – March 2010
January – March 2010 Sales amounted to SEK 915 million, which was unchanged copared to previous year in local currencies, but 7% lower in SEK (979 million) Profit after tax SEK 7.6 (-53.3) million Cash flow from operating activities + SEK 204 million to SEK 65 (-139) million Equity ratio inc
Slide 18: Rolling 12 months
Rolling 12 months Sales amounted to SEK 4 023 (4 569) million, -12% EBITDA amounted to SEK 313.6 (366.1) million Profit before tax SEK 209.3 (176.5) million Profit after tax SEK 148.7 (109.6) million Cash flow from operating activities amounted to SEK 1 010 (-218) million
Slide 19: Comments January – March 2010
Comments January – March 2010 Sales -7%, SEK 915 (979) million – Currency effect SEK -66 million or -7 % – More stable markets in both Europe and the U.S. – Activity in Promo sales channel more stable, but still low. Retail has done better. Business Areas – Promo -10% to SEK 398 (442) million •
Slide 20: Sales per region
Sales per region JAN-MAR Share of JAN-MAR Share of Change 2010 turnover 2009 turnover SEK million % Nordic countries 408 45% 404 41% 4 1% Central Europe 177 19% 197 20% -20 -10% Southern Europe 102 11% 120 12% -19 -16% Northern Europe 174 19% 204 21% -31 -15% Other countries 54 6% 53 5% 1 2% Total 9
Slide 21: Comments January – March 2010
Comments January – March 2010 Operating margin 1.9 (-5.9) % – Savings and personnel reductions and the fact that last year was burdened with restructuring costs Profit margin 1.1 (-7.4) % – Lower net debt – Savings last year’s restructuring costs Profit after tax SEK 7.6 (-53.3) million – Exte
Slide 22: Income statement
Income statement 3 months 3 months Jan-Mar Jan-Mar SEK million 2010 2009 Net sales 915.3 973.5 Goodsforresale A779 -528.1 Gross profit 437.4 451.4 Other income* >.) 22.9 External costs -240.4 -267.7 Personnel costs -167.0 -231.2 Depreciatoin of tangible and intangible fixed assets -14.9 -18,5 Other
Slide 23: Turnover
Turnover 1500 1200 900 600 __ = 300 — = _—— —_ Q1 Q2 Q3 Q4 2005 2006 [2007 J 200s J 2009 MM 2010
Slide 24: Result before tax
Result before tax 75 150 125 100 75 50 = = = 25 0 — -25 -50 “75 Qi Qu Q3 Q4 2005 2006 (MM 2007 2008 2009 MM 2010
Slide 25: Cash-flow January – March 2010
Cash-flow January – March 2010 Cash-flow from operating activities + SEK 204.1 million to SEK 65.4 (-138.7) million
Slide 26: Inventory
Inventory Amounted to SEK 1 587 million as of March 31, 2010 ─ Goods for resale SEK 1 420 (2 145) million ─ Raw materials etc. SEK 167 (158) million ─ Provision for obsolete goods SEK 67 (106) million ….but inventory too low in some product areas ….and too high in Orrefors Kosta Boda
Slide 27: Financial highlights – summary
Financial highlights – summary
Slide 28: Views on 2010-2012
Views on 2010-2012 2010 – We expect profit growth and a somewhat higher turnover than 2009 – Positive cash-flow 2011-2012 – Sales and earnings growth. Better focus on sales flow than previous numbers indicate.
Slide 29: 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!