New Wave Group Ab Class B · OMXSTO:NEWA_B
New Wave Group Ab Class B — Q1 2004 Earnings Presentation
40 slides from New Wave Group Ab Class B's earnings presentation, 2004
Slide 1: Presentation of New Wave Group
© 2003 New Wave Group AB ENG C-12 Presentation of
Slide 2: Q1 2004 turnover and result
Q1 2004 ✔ Turnover: +13 % to SEK 469 (415) m Profiling: +18 % to SEK 284 (241) m Retailing: +6 % to 185 (175) m ✔ Result: + SEK 0.7 m to SEK 13.2 (12.5) m Profiling: – SEK 0.6 m to SEK 1.9 (2.5) m Retailing: + SEK 1.3 m to SEK 11.3 (10.0) m © 2003 New Wave Group AB C-37 ENG
Slide 3: Sales
Sales SEK MkrM 600 500 400 300 200 100 © 2002 New Wave Group AB 0 Q1 Q2 Q3 Q4 1997 1998 1999 2000 2001 2002 2003 2004 ENG 32
Slide 4: Profit/loss after net financial items
Profit/loss after net financial items SEK M © 2002 New Wave Group AB ENG 33
Slide 5: Turnover per country
Turnover per country JAN–MAR JAN–MAR CHANGE CHANGE COUNTRY 2004 2003 SEK M % Sweden 204.4 204.2 0.2 0.1 Benelux 60.6 42.3 18.3 43.3 Norway 33.4 35.0 -1.6 -4.6 Finland 32.2 31.9 0.3 0.9 Germany 31.0 20.7 10.3 49.8 Italiy 26.0 21.3 4.7 22.1 Spain 22.2 15.2 7.0 46.1 France 16.5 8.1 8.4 103.7 England 12
Slide 6: Important events during Q1
Importent events during Q1 ✔ The integration of Swedish Match’s promowear distribution (Texet) is according to plan. ✔ The establishment and sales start in Switzerland is according to plan. ✔ Results are charged by SEK 2.5 million, by Switzerland, China, workwear and the integration of Swedish Match
Slide 7: Jobman: a strong actor in promowear, workwear and give-aways
Will make us a strong actor within the three business areas promowear, workwear and give-aways. © 2004 New Wave Group AB JOBMAN-1
Slide 8: Purchase price
Purchase price Purchase price: SEK 176 million in basic purchase price + additional purchase price during three years. With unchanged results, a total of SEK 194 million. Shareholders’ equity ........................ SEK 114 m. Goodwill towards basic purchase price ... SEK 62 m. P/E ratio, basic pur
Slide 9: Positive
Positive ✔ Great potential for international expansion. ✔ Improves and facilitates the potential for Projob. ✔ Adds great competence. ✔ Strengthens our offer to customers – including the current. ✔ Can, together with Projob, become a challenger in Sweden. ✔ Reasonable price. © 2004 New Wave Group AB
Slide 10: Financing
Financing ✔ SEK 20 million through issuing a security on a privileged subscription basis to the seller. ✔ SEK 156 million cash. ✔ New issue of SEK 150 million. ✔ The major owner, Torsten Jansson, guarantees his share of approximately SEK 55 million. ✔ The new issue creates opportunities for Jobman t
Slide 11: New issue
New issue ✔ A total of approximately SEK 151 million. ✔ 25 share rights entitles the holder to subscribe for two Series B shares in New Wave. ✔ Subscription price is SEK 130 per share. ✔ Record date is May 3rd 2004. ✔ Subscription and payment is May 6th–21st 2004. ✔ The major owner, Torsten Jansson,
Slide 12: New issue – time schedule
New issue – time schedule 28 April: Last day including right to participate. 29 April: First day excluding right to participate. 3 May: Record day for participation in the new issue. 6 May: First day for trading with subscription rights as well as subscription and payment of Series B shares. 17 May:
Slide 13: Income Statements
Income Statements 3 months 3 months 12 months 12 months JAN–MAR JAN–MAR JAN–DEC JAN–DEC SEK million 2004 2003 2003 2002 Net sales 468.8 415.2 1 881.9 1 687.3 Other income 3.1 0.4 13.5 2.2 Goods for resale -256.7 -239.4 -1 047.2 -980.7 Gross profit 215.2 176.2 848.2 708.8 Gross margin 45.9 % 42.4 % 4
Slide 14: Financial Highlights
Financial Highlights JAN–MAR JAN–MAR JAN–DEC JAN–DEC JAN–DEC SEK MILLION 2004 2003 2003 2002 2001 Sales growth % 12.9 26.8 11.5 32.0 20.2 Employees 851.0 735.0 806.0 729.0 422.0 Gross profit margin % 45.2 42.4 45.0 42.0 40.6 Operating margin % 4.0 4.1 10.9 10.6 10.0 Profit margin % 2.1 2.5 7.1 6.2 6
Slide 15: Heavy growth 2004–2005
Heavy growth 2004–2005 ✔ Switzerland: Sales start January 15, 2004 – good start! ✔ Projob: Sales start August 15, 2004. ✔ Warehouse for Harvest/Printer in Spain March 1, 2004. ✔ Warehouse for Harvest/Printer in Switzerland September 1, 2004. ✔ Warehouse for Sagaform Profiling in Benelux September 1,
Slide 16: Heavy growth 2004–2005, continuation
Heavy growth 2004–2005, continuation ✔ Increased international focus from Craft on other countries. ✔ The Czech republic and Poland are prepared for start during next year. ✔ Last year’s establishments in China take shape. ✔ D&J was established in Benelux January 1, 2003. Our pace has never been hig
Slide 17: Growth
Growth ✔ These establishments will increase the organic growth to 10–15% in approximately 6–12 months. ✔ A change in the Nordic countries will come. The question is when? Great potential! ✔ SMAP in January 1, 2004. We have the capacity to make more acquisitions. This will give a high level of growth
Slide 18: Goal
Goal ✔ Sales: 20 % or more per year ✔ Profit: Increasing ✔ We are well prepared for the future and we feel optimistic! © 2003 New Wave Group AB C-49 ENG
Slide 19: This is New Wave
© 2003 New Wave Group AB ENG C-43 This is New Wave
Slide 20: Business idea
Business idea New Wave Group is a growing company that designs, acquires and develops quality articles for the profiling market (business market) and the consumers’ market, mainly in the clothing, accessories and gifts areas. New Wave Group concentrates on two business areas: ✔ The Retailing busines
Slide 21: Strategic distribution – business areas
Strategic distribution – business areas ✔ Corporate Profiling 60–80% Retailing 20–40%. ✔ Risk spread. © 2002 New Wave Group AB ENG 4
Slide 22: Did you know...
Did you know... ...that New Wave Group through its trademarks (2003) sold approximately… ✔ 4.2 million one-coloured T-shirts in Sweden and 5.0 million in the rest of Europe? ✔ 480 thousand piqué shirts in Sweden and 1.7 million in the rest of Europe? ✔ 266 thousand shirts in Sweden and 520 thousand
Slide 23: New Wave – history
✔ 1990 • New Wave – history ✔ 1994 • Sweden and Norway Finland and Italy ✔ 1996 • Acquisition of Craft AB Sales ✔ 1997 • Denmark, Spain and Result after net financial items Germany ✔ 1998 • Acquisition of Hefa AB ✔ 1999 • Acquisition in Holland and England ✔ 2000 • Acquisition of Texet AB, establish
Slide 24: Vision – The Profiling business area
Vision – The Profiling business area To become Europe’s leading supplier of promotion products by offering... ✔ good products. ✔ strong trademarks. ✔ high compentence and service. ✔ a unique and complete concept for our retailers, including e- business and marketing solutions etc. The total market c
Slide 25: Range coverage
Range coverage Existing Possible New Wave Distributors Promowear Give-aways Working clothes • Shirts • Bags • Overalls • T-shirt • Gifts • Jackets • Sweatshirt • Terry towels • etc. • etc. • Pens • Calculators • Lighters • Keyrings © 2003 New Wave Group AB • etc. FULL COVERAGE GOOD COVERAGE NO COVER
Slide 26: Owned trademarks in the Profiling business area
The following owned trademarks are distributed within the Profiling business area: © 2002 New Wave Group AB ENG 11
Slide 27: Turnover for the profiling and gifts market
Turnover for the profiling and gifts market Estimated total market* SEK m New Wave’s prof. sales 2002 New Wave’s market share Sweden 2 944 465 15.8 % Norway 1 472 110 7.5 % Finland 1 693 86 5.1 % Denmark 1 472 14 1.0 % Germany 22 816 46 0.2 % England 16 928 45 0.3 % France 16 928 15 0.1 % Italy 11 0
Slide 28: The Corporate Profiling market
© 2003 New Wave Group AB ENG C-44 The Corporate Profiling market
Slide 29: How shall we succeed with working clothes?
How shall we succeed with working clothes? Our competitors have: ✔ Strong trademarks (Fristad, Snickers, Blåkläder, Jobman etc.) ✔ Good profitability ✔ High groos profit (some more than 50 percent) ✔ Good products ✔ Loyal customers ✔ Enough capital to be persistent © 2003 New Wave Group AB ENG C-2
Slide 30: How shall we succeed with working clothes?
How shall we succeed with working clothes? ✔ We have international distribution ✔ We will create many new retailers of working clothes, i.e. customers that do not sell working clothes today but want to. In Sweden, approximately 300 retailers are concerned. ✔ We will offer working clothes to our exis
Slide 31: Vision – The Retailing business area
Vision – The Retailing business area ✔ To become the Nordic countries’ main supplier of sports- and leisurewear. ✔ To become one of the main suppliers of quality shoes and gifts. ✔ To develop the owned trademarks Craft and Seger into international trademarks on functional sportswear. © 2002 New Wave
Slide 32: The Retailing business area
The Retailing business area These owned trademarks are distributed within the Retailing business area: ✔ – functional sportswear ✔ – basicwear, T-shirts etc, for the sports trade. ✔ – basic ware, T-shirts etc, for the everyday commodities trade. ✔ – socks, caps etc. ✔ – children’s shoes ✔ – ladies’
Slide 33: The Retailing business area: licence and agent trademarks
The Retailing business area The following licence or agent trademarks are distributed in Sweden: ✔ – skiing equipment ✔ – inlines ✔ – indoor bandy and skiing equipment ✔ – football clothes and equipment © 2002 New Wave Group AB 2003–2008 ENG 9
Slide 34: Continuous growth “The sky is the limit”
Continuous growth New Wave Group expects the growth to continue at the same pace as earlier, if the result allows it, through… ✔ continuous organic growth ✔ continuous establishments of current trademarks abroad ✔ new establishments/product broadening/acquisitions within gifts ✔ new establishments/p
Slide 35: What we have accomplished so far speaks for itself
What we have accomplished so far speaks for itself... Year Sales SEK m Increase SEK m Increase % 1992 53 1993 74 21 39.7 % 1994 102 28 37.8 % 1995 151 49 48.0 % 1996 246 95 62.9 % 1997 351 105 42.7 % 1998 721 370 105.4 % 1999 799 78 10.8 % 2000 1,063 264 33.0 % 2001 1,278 215 20.2 % © 2002 New Wave
Slide 36: Profit has increased every year
...especially considering the fact that the profit has increased every year... Year Net profit SEK m Increase SEK m Increase % 1992 3.8 1993 7.5 3.7 97.4 % 1994 9.7 2.2 29.3 % 1995 14.5 4.7 48.5 % 1996 17.9 3.4 23.5 % 1997 21.6 3.7 20.7 % 1998 24.5 2.9 13.4 % 1999 54.1 29.6 120.8 % 2000 86.6 32.5 60
Slide 37: New Wave’s success factors
New Wave’s success factors ✔ Early integration ✔ Advantages of scale ✔ Synergies between the business areas ✔ Leads progress ✔ Good service/quality ✔ The customer is the most important ✔ The ”New Wave culture” © 2003 New Wave Group AB C-34 ENG
Slide 38: Three goals at the introduction in December 1997
Three goals at the introduction in December 1997 (Sales of that time was app. SEK 350 million, the stock value was app. SEK 300 millon and the profit/loss before taxes was SEK 21.6 million) ✔ Sales: SEK 1 b (met 2000) (2003 SEK 1,882 million) ✔ Stock value: SEK 1 b (met 2000) (2003 SEK >2,000 millio
Slide 39: Three new goals
Three new goals ✔ Sales: SEK 5 b. ✔ Stock value: SEK 5 b. ✔ Profit/loss before taxes: SEK 500 m. ...and without these goals, which might seem crazy now, we will not be © 2003 New Wave Group AB able to come as far as we plan to in the future! (When we have reached these goals, or just before we reach
Slide 40: We hope 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! © 2002 New Wave Group A