Slide 1: Presentation 12 november – Interim report July–September 2010
Presentation 12 november Interim report July – September 2010
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 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 Sales, MSEK PBT, MSEK
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: July - September 2010
July - September 2010 q Sales amounted to SEK 1 061 million, which was 9% higher then previous year in local currencies and 6% higher in SEK (SEK 1 002 million). q Operational profit amounted to SEK 84.7 (37.7) million q Profit after tax SEK 55.5 (19.3) million q Cash flow from operations amount
Slide 18: Comments July-September 2010
Comments July-September 2010 q Sales 6%, SEK 1 061 (1 002) million – Sales in local currencies +9% (currency effect SEK -33 million or -3%) – Sport & Leisure strong growth, especially in USA but also improvement within Promo – A majority of our markets are showing growth. – Both sales channels(Prom
Slide 19: Sales per region
Sales per region JUL-SEP Part of JUL-SEP Part of Change % 2010 turnover 2009 turnover MKR Nordic countries 475 45% 456 46% 19 4 Central Europe 182 17% 180 18% 2 1 South Europe 96 9% 102 10% -6 -6 North America 273 26% 225 22% 48 21 Other countries 35 3% 39 4% -4 -10 Total 1 061 100% 1 002 100% 58 6
Slide 20: Comments July-September 2010
Comments July-September 2010 q Operating margin 8.0 (3.8) % q Profit margin 7.3 (2.6) % q Profit after tax improved with SEK 36.2 million and amounted to SEK 55.5 (19.3) million – Result per share SEK 0.83 (0.29)
Slide 21: Income statement
Income statement 3 mths 3 mths juli-sep juli-sep SEK Million 2010 2009 Net sales 1 060,7 1 002,2 Goods for resale -581,2 -555,5 Gross profit 479,5 446,7 Other income 12,6 2,1 External costs -222,3 -226,5 Personnel costs -161,1 -166,6 Depreciation/amorization -14,2 -17,1 Other costs -9,8 -0,9 Operati
Slide 22: Sales (in SEK million)
Sales (in SEK million) 1500 1200 900 600 300 0 Q1 Q2 Q3 Q4 2005 2006 2007 2008 2009 2010
Slide 23: Profit before tax, SEK million
Profit before 200 tax, SEK million 175 150 125 100 75 50 25 0 -25 -50 -75 Q1 Q2 Q3 Q4 2005 2006 2007 2008 2009 2010
Slide 24: Cash flow July-September 2010
Cash flow July-September 2010 3 mths 3 mths july-sept july-sept SEK Million 2010 2009 Cash flow from operating act. before changes in working capital 115,5 34,2 Changes in working capital -157,0 107,1 Cash flow from operating activities -41,5 141,3 Investing activitites -19,0 -35,3 Cas h flow after
Slide 25: January - September 2010
January - September 2010 q Sales amounted to SEK 3 041 million, which was 6% higher then previous year in local currencies and +1% in SEK (3 005 million). q Operating profit amounted to SEK 189.5 million (75.8) q Previous year was charged with a net of SEK 60.8 million (restructuring costs deduct
Slide 26: Comments January-September 2010
Comments January-September 2010 q Sales +1%, SEK 3 041 million (3 005) – Sales in local currencies +6% (currency effect SEK -152 million or -5 %) – Sport & Leisure has a good development. – Sales channel Promo is continuing its improvment and has growth but still on a low level. Sales channel Retai
Slide 27: Sales per region
Sales per region JAN-SEP Part of JAN-SEP Part of Change % 2010 turnover 2009 turnover MSEK Nordic countries 1 375 45% 1 342 45% 33 2 Central Europe 555 19% 566 19% -11 -2 South Europe 310 10% 353 12% -43 -12 USA 704 23% 638 21% 66 10 Other countries 97 3% 106 3% -9 -8 Total 3 041 100% 3 005 100% 36
Slide 28: Comments Januari-September 2010
Comments Januari-September 2010 q Operating margin 6.2 (2.5) % – Previous year was charged with a net of SEK 60.8 million (restructuring costs deducted with capital gains) q Profit margin 5.6 (1.2) % – Previous year was charged with a net of SEK 60.8 million (restructuring costs deducted with capi
Slide 29: Income statement
Income statement 9 mths 9 mths jan-sept jan-sept SEK Million 2010 2009 Net sales 3 041,3 3 004,6 Goods for resale -1 622,8 -1 602,9 Gross profit 1 418,5 1 401,7 Other income 22,8 47,0 External costs -693,3 -714,3 Personnel costs -499,8 -580,6 Depreciation/amorization -44,2 -54,6 Other costs -14,5 -2
Slide 30: Cash flow Januari-September 2010
Cash flow Januari-September 2010 9 mths 9 mths jan - sept jan - sept SEK Million 2010 2009 Cash flow from operating act. before changes in working capital 218,0 19,1 Changes in working capital -76,6 356,9 Cash flow from operating activities 141,4 376,0 Investing activitites -41,7 -41,9 Cas h flow af
Slide 31: Stock
Stock q Amounted to SEK 1 623 (1 849) million per 30 september 2010 ─ Goods for resale SEK 1 424 million (1 714) ─ Raw materials, good in transit etc SEK 199 million (135) ─ Provision for obsolete goods SEK 70 million (80) Stock per 30 september to low in certain segments. Improvements are made but
Slide 32: Financial highlights – summary
Financial highlights – summary 1 jan - 30 sept 1 jan - 30 sept 1 jan - 31 dec 1 jan - 31 dec 2010 2009 2009 2008 Sales growth % 1,2 -11,0 -11,2 9,8 Number of employees 2 174 2 241 2 203 2 562 Gross margin % 46,6 46,7 46,5 48,5 Operating margin bef. depreciation % 7,7 4,3 5,9 9,4 Operating margin % 6
Slide 33: Outlook for 2010-2012
Outlook for 2010-2012 2010 – We expect profit growth and a higher turnover than 2009 – Positive cash-flow 2011-2012 – Sales and earnings growth. Better focus on cash flow than previous years.
Slide 34: 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!