Slide 1: Interim Report – Q3 2008
NewSViave G R ° U 4 Interim Report — Q3 2008
Slide 2: This is New Wave Group
This is New Wave Group • New Wave Group is a growth company. We deliver workwear, promo wear, and gifts & giveaways to independent promo companies, and sports & leisure wear, gifts & interior design, and shoes to consumers through resellers working with specialized stores. We achieve this by establi
Slide 3: New Wave Group on the Promo Market
New Wave Group on the Promo Market We divide our promo market brands into 6 concepts and our concepts into 3 segments Work Wear Promo Wear Gifts & Giveaways Our vision is to • Become Europe’s leading supplier of promo products by offering - A unique and complete concept to our resellers - High quali
Slide 4: New Wave Group within Retail
New Wave Group within Retail We divide our brands within retail into 3 segments Sports & Leisure Gifts & Interior Design Shoes Our vision is to • Become the Nordic countries’ main supplier of sports & leisure wear * • Develop Craft and Seger into international functional sportswear * brands • Develo
Slide 5: Interim Report Q3 2008
Interim Report Q3 2008
Slide 6: Consolidated Q3, July-Sept 2008
Consolidated Q3, July-Sept 2008 • Sales -1% to MSEK 1 117 (1 125) – The exchange rates, mainly the weak US Dollar, have affected sales negatively by MSEK 21. • Profit Before Tax MSEK +23.0 to MSEK 103.6 (80.6)
Slide 7: Comments Q3, July-Sept 2008: Sales and gross margin
Comments Q3, July-Sept 2008 • Sales -1%, MSEK 1 117 ( 1 125) – Growth in Nordic area and in Europe – Weak American market – Growth excl USA +5% – Growth in Promo, decrease in Retail – Currency effect -2%, mainly due to USD • Gross margin 50.8 (47.4) – Growth on most markets, American market effected
Slide 8: Comments Q3, July-Sept 2008: Profit and operating profit
Comments Q3, July-Sept 2008 • Profit before tax +23.0 to 103.6 (80.6) – Strong gross margin – Sale of property and insurance remuneration • Operating profit 12.8 (9.6) % – Excl sale of property etc 11.5% • Result per share SEK 1.13 (0.87)
Slide 9: Business Areas July-Sept 2008
Business Areas July-Sept 2008 • Sales Promo: +4% to MSEK 604 (579) – European region strong, US weak • Sales Retail: -6% to MSEK 514 (546) – Orrefors Kosta Boda US negative impact • EBITDA Promo: MSEK +24 to MSEK 112 (88) • EBITDA Retail: MSEK +10 to MSEK 47 (37)
Slide 10: Geographical Allocation of Turnover
Geographical Allocation of Turnover July-Sept Part of July-Sept Part of Change Change % 2008 turnover 2007 turnover MSEK Nordic countries 496 44% 478 42% 18 4 Mid-Europe 200 18% 188 17% 12 7 Southern Europe 114 10% 108 10% 6 6 USA 269 24% 316 28% -46 -15 Other countries 38 4% 32 3% 5 17 Total 1 118
Slide 11: Sales
1400 4200 4000 2003 m 2004 800 2005 m 2007 400 -- = 2008 200 + 0
Slide 12: Result After Finance Net
Result After Finance Net 180 160 140 120 100 80 Q2 Q3 Q4 2003 m 2004 2005 m= 2006 m 2007 = 2008
Slide 13: Income Statement
Income Statement 3 mths 3 mths 9 mths 3 mths JUL-SEP JUL-SEP JAN-SEP JAN-SEP SEK Mkr 2008 2007 2008 2007 Net sales 11173 1 124,7 3377 7 28626 Goods for resale -549 8 -591 8 -17089 -14996 Gross margin 567,5 508% 532,9 47 4% 16688 494% 13630 Other operating income 23,2 68 35 8 270 External costs -259
Slide 14: Consolidated Q3 Jan-Sept, 2008
Consolidated Q3 Jan-Sept, 2008 • Sales +18% to MSEK 3 378 (2 863) – Organic growth amounted to +5% • Profit Before Tax MSEK +6.7 to MSEK 199.6 (192.9)
Slide 15: Business Areas Jan-Sept, 2008
Business Areas Jan-Sept, 2008 • Sales Promo: +16% to MSEK 1 947 (1 685) – Primarily regions outside Sweden • Sales Retail: +21% to MSEK 1 431 (1 178) – One off revenue positive effect – 1st quarter OKB higher production costs negative effect • EBITDA Promo: MSEK +56 to MSEK 303 (247) • EBITDA Retail
Slide 16: Geographical Allocation of Turnover
Geographical Allocation of Turnover Jan-Sept Part of Jan-Sept Part of Change Change % 2008 turnover 2007 turnover MSEK Nordic countries 1 566 46% 1 431 50% 135 9 Mid-Europe 599 18% 550 19% 49 9 Southern Europe 378 11% 354 12% 24 7 USA 715 21% 444 16% 272 61 Other countries 119 4% 82 3% 36 44 Total 3
Slide 17: Income Statement
Income Statement 3 mths 3 mths 12 mths 12 mths JAN-SEP JAN-SEP JAN-DEC JAN- DEC SEK Mkr 2008 2007 2007 2006 Net sales 33777 2 862.6 41940 35305 Goods for resale -1 7089 -1 499 6 -2 196 1 -18396 Gross margin 1668,8 494% 1 363,0 476% 1997.9 476% 16909 479% Other operating income 358 277 37 / 231 Exter
Slide 18: Financial Highlights
Financial Highlights JAN-SEP JAN-SEP JAN-DEC JAN-DEC 2008 2007 2007 2006 Sales growth % 180 168 188 15,4 Gross margin % 49,4 47,6 47,6 47,9 Operating margin before depreciation % 10,4 10,2 11,0 10,9 Operating margin% 1 B9 Q7 98 Profi tmargin% 5,9 6,7 7,5 82 Retum on equity % 12,8 14,4 17,1 187 Retum
Slide 19: Views on 2008
Views on 2008 For 2008, New Wave expects higher turnover and profit than previous years. However, the current market conditions and economic situation have increased the forecast’s uncertainty.
Slide 20: Sales and Profit after net financial items, MSEK
Sales, MSEK Profit after net financial items MSEK SSSPSSPSSESSSEES oR SSSSSERSES EEE EE EEE EE (WN Sales MSEK = em Profit after net financial items MSEK Newtiwe oft Oo
Slide 21: Moving Forward
Moving Forward • Continued high gross margin • Improve working capital, profitability and efficiency • Prepared action plans in order to quickly reduce costs if forecasted turnover is not met • Historically good development even during downturns, mainly due to: – High stock and service level (the cu
Slide 22: 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!