Slide 1: Interim Report January - June
2018 INTERIM REPORT January - June
Slide 2: This is New Wave Group
THIS IS NEW WAVE GROUP New Wave Group is a growth company. We design, acquire and develop brands and products in the corporate promotion, sports, gifts and home furnishings sectors. Our three operating segments are: Corporate Promo, with promowear, promotional gifts and workwear, Sports & Leisure an
Slide 3: Operating segments and markets
OPERATING SEGMENTS AND MARKETS PROMO Our brands are categorised according to which of our three operating segments it belongs to: Corporate Promo, Sports & Leisure or Gifts & Home Furnishings. SPORTS & LEISURE The brands are distributed in both the promo market and the retail market to achieve good
Slide 4: Corporate Promo - Vision
CORPORATE PROMO - VISION The vision for the Corporate Promo operating segment is to become the leading supplier in Europe and one of the leading suppliers in the USA of promotional products by offering retailers a broad product range, strong brands, advanced expertise and service, and a superior all
Slide 5: Sports and Leisure - Vision
SPORTS AND LEISURE - VISION The vision for the Sports & Leisure operating segment involves establishing Craft as a world-leading sportswear brand, and making Cutter & Buck a world-leading golf apparel brand. The brand Auclair should take a leading position on gloves in Europe and we will also use Pa
Slide 6: Gifts & Home Furnishings - Vision
GIFTS & HOME FURNISHINGS - VISION The vision for the Gifts & Home Furnishings operating segment area is to make Orrefors and Kosta Boda world leading glass and crystal suppliers. Part of the vision also involves utilising innovative and playful design to make Sagaform a prominent player in Northern
Slide 7: Craft Teamwear
CRAFT TEAMWEAR
Slide 8: Germany Brands: sponsor social media fanbase
Keep > Ss PO RT| Gl GERMANY Brands f¥vyoo TOTAL FANBASE 7.2M BUNDESLIGA Potential Social Media exposition of the TECH BRANDS on jerseys in relation to the total fanbase of the 18 sponsored 2.BUNDESLIGA Football Clubs. from September 15, 2018 to October 15, 2018) {e200 001 satu conTenTs OFT tS PROPER
Slide 9: Germany Brands: tech brands jersey coverage
ele]|b>S PORT) Hl GERMANY Brands CLUBS 18 TECH BRANDS, 11 TECH BRANDS on jersey coverage in relation to the 18 sponsored 2.BUNDESLIGA Football Clubs. “rom September 15, 2018 to October 15, 208} (62018 oun se Te CONTENTS OF THs LEIS PROPERTY GF OUI fT CANNOTEE, COPED, REPRODUCED, Funuisnen of DsTRIEU
Slide 10: Financial Information
FINANCIAL INFORMATION a/ { cot Va O€ eo
Slide 11: July - September: Sales
JULY - SEPTEMBER SALES Sales SEK 1,551.2 (1,331.1) million Sales increased by 17 % (9 % in local currencies) Corporate Promo 25 %, Sports & Leisure 15 %, Gifts & Home Furnishings -5 % Growth in all regions Promo sales channel 23 %, retail 10 %
Slide 12: Net Sales
NET SALES ™2013 @2014 ™2015 ™2016 M2017 2018 GR OU P
Slide 13: July - September: Net sales per geographic area
JULY - SEPTEMBER NET SALES PER GEOGRAPHIC AREA SEK million Jul - Sep Part of Jul - Sep Part of Change Change 2018 net sales 2017 net sales MSEK % Sweden 350.9 23% 342.2 26% 8.7 3% USA 408.6 26% 359.5 27% 49.1 14% Nordic countries excluding Sweden 195.0 13% 179.3 13% 15.6 9% Central Europe 250.1 16%
Slide 14: July - September: Income statement
JULY - SEPTEMBER Gross profit margin amounted to 46.1 (47.9) % SEK million Jul – Sep Jul – Sep External costs and personnel costs amounted to a 2018 2017 total of SEK -581.2 (-482.5) million – More sales and service oriented activities Net sales 1 551.2 1 331.1 Goods for resale -835.3 -692.8 – More
Slide 15: Result for the period
RESULT FOR THE PERIOD 160 140 120 100 1 Q2 Q3 ™2013 M2014 M2015 M2016 M2017 M2018 Q4 GR OU P
Slide 16: July - September: EBITDA per operating segment
JULY - SEPTEMBER EBITDA PER OPERATING SEGMENT Sports & Leisure amounted to SEK 78.3 (98.9) million Corporate Promo amounted to SEK 55.4 (49.9) million – Higher turnover – Higher turnover – Improved gross profit margin – Increased marketing activities – Higher marketing costs Gifts & Home Furnishings
Slide 17: July - September: Cash flow
JULY - SEPTEMBER CASH FLOW SEK million Jul - Sep Jul - Sep 2018 2017 Cash flow from operating activities before changes in working capital 116.1 153.3 Change in working capital -199.1 -163.7 Cash flow from operating activities -83.0 -10.4 Investing activities -42.1 -36.9 Cash flow after investing ac
Slide 18: CEO Comments
CEO COMMENTS ” The quarter Strong growth of 17 % (9 % in local currency) Promo sales channel 23 %, retail 10 %. 17th quarter in a row with growth. Our investments in marketing Strong Sales – continued activities gave us high costs. investments gave us Operating result decreased and amounted to SEK 1
Slide 19: January - September: Sales
JANUARY - SEPTEMBER SALES Sales amounted to SEK 4 347.2 (3 967.0) million Sales increased by 10 % (7 % in local currencies) Corporate Promo 15 %, Sports & Leisure 6 %, Gifts & Home Furnishings 0 % Growth in all regions Promo sales channel 15 %, retail 3 %
Slide 20: January - September: Net sales per geographic area
JANUARY - SEPTEMBER NET SALES PER GEOGRAPHIC AREA SEK million Jan - Sep Part of Jan - Sep Part of Change Change 2018 net sales 2017 net sales MSEK % Sweden 1 021.5 23% 988.1 25% 33.4 3% USA 1 097.7 25% 1 061.2 27% 36.5 3% Nordic countries excluding Sweden 580.4 13% 531.0 13% 49.4 9% Central Europe 6
Slide 21: January - September: Income statement
JANUARY - SEPTEMBER Gross profit margin amounted to 46.7 (46.3) % SEK million Jan – Sep Jan – Sep 2018 2017 External costs and personnel costs amounted to a total of SEK -1,710.8 (-1,502.3) million Net sales – More sales and service oriented activities 4 347.2 3 967.0 Goods for resale -2 317.0 -2 13
Slide 22: January - September: EBITDA per operating segment
JANUARY - SEPTEMBER EBITDA PER OPERATING SEGMENT Sports & Leisure amounted to SEK 133.9 (160.6) million Corporate Promo amounted to SEK 208.1 (179.1) million – Improved gross profit margin – Higher turnover – Higher costs – Increased marketing activities Gifts & Home Furnishings amounted to SEK -12.
Slide 23: January - September: Cash flow
JANUARY - SEPTEMBER CASH FLOW SEK million Jan - Sep Jan - Sep 2018 2017 Cash flow from operating activities before changes in working capital 245.6 296.1 Change in working capital -197.4 -222.8 Cash flow from operating activities 48.2 73.3 Investing activities -123.5 -72.8 Cash flow after investing
Slide 24: Financial Highlights
FINANCIAL HIGHLIGHTS SEK million Jan – Sep Jan – Sep Jan – Dec Jan – Dec 2018 2017 2017 2016 Net sales growth, % 9.6 7.6 6.9 5.5 Number of employees 2 571 2 469 2 495 2 396 Gross profit margin, % 46.7 46.3 46.1 46.0 Operating margin before depreciation, % 7.6 8.7 9.5 8.7 Operating margin, % 6.3 7.5
Slide 25: CEO Comments: The future
CEO COMMENTS ” The future Crafts’ sales orders for spring 2019 increased by over 30 % and we are continuely contracting new clubs for Craft Teamwear Crafts’ sales orders +30 % for spring 2019 - Torsten Jansson, CEO The Corporate Promo segment has a stunning growth We have invested strongly in recent
Slide 26: We strive to make everyone who buys our products a happy customer
We strive 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 can through long term thinking, growth, stability and hard work!
Slide 27: Thank you!
THANK YOU! G Rk O U P