Slide 1: Presentation of New Wave Group
© 2003 New Wave Group AB ENG C-12 Presentation of
Slide 2: Q2 April–June 2004 Heavy growth
Q2 April–June 2004 Heavy growth ✔ Sales: +27 % to SEK 595 (469) m Profiling: +38 % to SEK 458 (333) m Retailing: +2 % to SEK 138 (135) m ✔ Results: + SEK 13.4 m to SEK 70.1 (56.7) m Profiling: + SEK 9.9 m to SEK 65.1 (55.2) m Retailing: + SEK 3.5 m to SEK 5.0 (1.5) m © 2003 New Wave Group AB C-37 EN
Slide 3: January–June 2004
January–June 2004 ✔ Sales: +20 % to SEK 1 065 (884) m Profiling: +29 % to SEK 742 (574) m Retailing: +4 % to SEK 323 (310) m ✔ Results: + SEK 14.1 m to SEK 83.3 (69.2) m Profiling: + SEK 9.3 m to SEK 67.0 (57.7) m Retailing: + SEK 4.8 m to SEK 16.3 (11.5) m © 2003 New Wave Group AB C-91 ENG
Slide 4: Sales
Sales SEK Mkr M 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 5: Profit/loss after net financial items
Profit/loss after net financial items SEK M © 2002 New Wave Group AB ENG 33
Slide 6: Important events during Q2
Importent events during Q2 ✔ Acquisition of Jobman Workwear carried out. ✔ The integration of Swedish Match’s promowear distribution (Texet) is according to plan. ✔ The establishment and sales start in Switzerland is very good. ✔ The establishments of more trademarks in Spain, Benelux and Italy are
Slide 7: Income Statements
Income Statements 6 months 6 months 12 months 12 months JAN-JUN JAN-JUN JUL-JUN JAN-DEC SEK m 2004 2003 2003/04 2003 Net sales 1 064.6 884.0 2 062.5 1 881.9 Other income 7.2 1.8 18.9 13.5* Goods for resale -574.5 -499.9 -1 121.8 -1 047.2 Gross profit 497.3 385.9 959.6 848.2 Gross margin 46.0% 43.5%
Slide 8: Financial Highlights
Financial Highlights JAN–JUN JAN–JUN JAN–DEC JAN–DEC JAN–DEC SEK m 2004 2003 2003 2002 2001 Sales growth % 20.4 19.7 11.5 32.0 20.2 Employees 970.0 747.0 806.0 729.0 422.0 Gross profit margin % 46.0 43.4 45.0 42.0 40.6 Operating margin % 9.1 8.9 10.9 10.6 10.0 Profit margin % 5.9 5.6 7.1 6.2 6.4 Ret
Slide 9: Sales per country
Sales per country JAN–MAR JAN–MAR CHANGE CHANGE COUNTRY 2004 2003 SEK m % Sweden 465 413 52 13 Benelux 131 83 48 58 Finland 89 84 5 6 Norway 86 86 0 0 Italy 68 54 14 26 Germany 66 49 17 35 Spain 53 36 17 47 France 32 14 18 128 England 28 35 -7 -21 Switzerland 20 4 17 483 Denmark 9 7 2 23 © 2003 New
Slide 10: New Wave's workwear investments
New Wave’s workwear investments ProJob/Jobman: Differentiated profiling Jobman: Belgium, Norway and Italy at the beginning of 2005 ProJob: Sales start in Sweden in August, Finland and Denmark at the end of 2005 Thereafter approx. 3 new countries/year. © 2003 New Wave Group AB C-88 ENG
Slide 11: Through ProJob/Jobman we will get
Through ProJob/Jobman we will get: ✔ A wide range of workwear. ✔ An international distribution network growth. ✔ High competence, not least within purchasing. ✔ Synergies with New Wave’s other operations within purchasing, logistics and sales. And ✔ We will be the only overall supplier within all of
Slide 12: ProJob
ProJob ✔ Sales start on August 15th. ✔ High quality and service with more design and functionality high level. ✔ Swedish profile. ✔ Large request for ”new” customer category. Accepted by key customers. ✔ More retailers will open shops. ✔ Powerful start: Full range; 166 different articles incl. colou
Slide 13: Heavy growth 2004–2005
Heavy growth 2004–2005 ✔ Switzerland: Sales start January 15, 2004 – NWG:s best start so far! ✔ 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
Slide 14: Heavy growth 2004–2005, continuation
Heavy growth 2004–2005, continuation Our pace has never been higher! ✔ Increased international focus from Craft. ✔ The Czech republic and Poland are prepared for start during next year. ✔ Last year’s establishments in China take shape. ✔ Jobman will be introduced in Norway, Belgium and Italy at the
Slide 15: Growth
Growth ✔ These establishments will increase the organic growth to 10–15% in approximately 6–12 months (+11% for Q2). We have the capacity to make more acquisitions. This will give a high level of growth for the next-coming years. © 2003 New Wave Group AB C-48 ENG
Slide 16: Goal
Goal ✔ Profit: Increasing ✔ We are well prepared for the future and we feel optimistic! © 2003 New Wave Group AB C-49 ENG
Slide 17: 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 18: 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 19: 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 20: 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 21: Design and product development
Design and product development Two of the most important things for a successful company within our line of business are good design (without concern taken to fashion) and good products. © 2002 New Wave Group AB Clique Bike – a classic design that’s sold in over 1.2 million pieces. ENG 5
Slide 22: Purchasing – quality control
Purchasing – quality control New Wave Group has purchasing offices (with equipment for extensive quality control) in Sweden, China and Bangladesh. Producing products with a even, high quality is very important. © 2002 New Wave Group AB ENG 6
Slide 23: 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 24: 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 GOOD COV
Slide 25: 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 2 944 482 15.8% Norway 1 472 100 7.5% Finland 1 693 83 5.1% Denmark 1 472 15 1.0% Germany 22 816 54 0.2% England 16 928 35 0.3% France 16 928 15 0.1% Italy 11 040 103
Slide 26: End-users' demands on retailers
End-users’ demands on retailers 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% © 2003 New Wave Group AB Quality Time of delivery/ Low price Service Relationship Range Serious Kvalitet Leveranstid/ Lågt Service Relation Sortiment Seriöst Security of delivery company leveranssäkerhet pris företag C-87 EN
Slide 27: Owned trademarks in Corporate Profiling business area
The following owned trademarks are distributed within the Corporate Profiling business area: © 2002 New Wave Group AB ENG 11
Slide 28: 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 29: 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 30: The Retailing business area
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 31: New Wave's success factors
New Wave’s success factors ✔ Early integration ✔ Economies 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 32: 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 33: 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! © 2002 New Wave Group A