Slide 1: Presentation 9 February – Year end Report January-December 2011
Presentation 9 February Year end Report January - December 2011
Slide 2: This is New Wave Group
is is New Wave Group • New Wave Group is a growth company. We design, acquire and develop brands and products in the corporate promotion, gifts and home furnishings sectors. • Our three main business areas are: Promo; promo wear, workwear and gifts sold to independent promo resellers, Sports & Leis
Slide 3: 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 10 Sales, MSEK PBT, MSEK
Slide 4: Promo
Promo • Promowear • Gifts and giveaways • Workwear
Slide 5: New Wave Group…
New Wave Group… …has more than 40 brands …has subsidiaries in 18 countries …is Sweden’s major supplier of sports articles, with brands such as Craft, Seger, Umbro, Speedo and Clique …is the second largest supplier of promo products in Europe with more than 18 fully owned brands
Slide 6: Vision – Promo
Vision – Promo Our vision is to become Europe’s and North America's leading supplier of promo products by offering: • High quality products • Strong brands • High knowledge and service • A superior overall concept to our resellers Expansion through: • Acquisitions • Geographical expansion of existing
Slide 7: Retail
Retail • Gifts retail • Home furnishings • Home textiles • Sports retail • Shoe retail
Slide 8: 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 9: Vision – Retail
Vision – Retail • Become the Nordic regions leading supplier of sports and leisurewear • Make Craft and Seger international functional sportswear brands • Develop Orrefors and Kosta Boda into world leading glass and crystal suppliers Expansion • Sports & Leisure – through acquisitions and geographic
Slide 10: October – December 2011
October – December 2011 • Sales amounted to SEK 1,188 million, which was on par with last year (SEK 1,202 million) • Acquired units contributed by SEK 56 million (5%) • Gross profit margin amounted to 48.9% (48.4%) • Operating profit amounted to SEK 130.3 million (SEK 138.1 million) • Profit after t
Slide 11: Comments October – December 2011
Comments October – December 2011 Sales -1%, SEK 1,188 million (SEK 1,202 million) – Sales in local currencies -1% – Acquired units contributed by SEK 56 million (5%) – Promo somewhat lower, Sports & Leisure (excl. acquisitions) -10%, Gifts & Home Furnishings -7% – U.S. and the Nordic countries (excl
Slide 12: Sales per Region
Sales per Region OCT-DEC Part of OCT-DEC Part of Change % 2011 turnover 2010 turnover MKR Sweden 362 30% 404 34% -42 -10 USA 250 21% 196 16% 54 28 Nordic countries excl Sweden 165 14% 161 14% 4 2 Central Europe 222 19% 243 20% -21 -9 South Europe 129 11% 158 13% -29 -18 Other countries 60 5% 40 3% 2
Slide 13: Comments October – December 2011
Comments October – December 2011 • Operating margin amounted to 11.0% (11.5%) • Profit margin amounted to 9.6% (10.8%) • Result per share amounted to SEK 1.25 (SEK 1.47)
Slide 14: Income Statement
Income Statement 3 mths 3 mths Oct-Dec Oct-Dec SEK Million 2011 2010 Income 1187.5 1202.1 Goods for resale -607.3 -620.7 Gross profit 580.2 581.4 Other operating income 6.9 9.4 External costs -256.0 -252.9 Personnel costs -184.5 -179.4 Depreciation/amortization -13.6 -14.2 Other operating costs -4.7
Slide 15: Income Statement – Operating segments
Income Statement – Operating segments EBITDA – Promo amounted to SEK 102.7 million (SEK 86.2 million) • +19% – Sports & Leisure amounted to SEK 36.3 million (SEK 72.2 million) • Lower sales due to the mild winter • Acquired units SEK -3 million – Gifts & Home Furnishings amounted to SEK 4.9 million
Slide 16: Sales
Sales 1500 1200 900 600 300 0 Q1 Q2 Q3 Q4 2006 2007 [200s J 2000 Ff 2010 J 20n
Slide 17: Profit before tax
Profit before tax 200 150 100 50 | -100 Qi Q2 Q3 Q4 2006 2007
Slide 18: Cash Flow October – December 2011
Cash Flow October – December 2011 3 mths 3 mths Oct-Dec Oct-Dec SEK Million 2011 2010 Cash flow from operating act. before changes in working capital 125.2 124.2 Changes in working capital 153.9 78.0 Cash flow from operating activities 279.1 202.2 Investing activitites -126.1 -15.9 Cash flow after i
Slide 19: January – December 2011
January – December 2011 • Sales amounted to SEK 4,237 million, which was 4% higher than last year in local currencies and on par with last year in SEK (SEK 4,243 million) • Acquired units contributed by SEK 89 million (2%) • Operating profit amounted to SEK 326.9 million (SEK 327.6 million) • Exclud
Slide 20: January – December 2011
January – December 2011 • Cash flow from operations SEK 66.8 million (SEK 343.6 million) • Equity ratio amounted to 43.5% (44.8%) • Net debt to equity ratio increased to 85.9% (72.8%) • Net debto to working capital ratio increased to 78.6% (75.3%)
Slide 21: Comments January – December 2011
Comments January – December 2011 • Sales +-0 %, SEK 4,237 million (SEK 4,243 million) – Sales in local currencies +4% (currency effect SEK -176 million or -4%) – Acquired units contributed by SEK 89 million (2%) – Promo growth in the Nordic countries and the U.S., weaker in Europe; Sports & Leisure t
Slide 22: Sales per Region
Sales per Region JAN-DEC Part of JAN-DEC Part of Change % 2011 turnover 2010 turnover MSEK Sweden 1 285 30% 1 288 30% -3 0 USA 894 21% 893 21% 1 0 Nordic countries. excl Sweden 661 16% 651 15% 10 2 Central Europe 781 18% 798 19% -17 -2 South Europe 443 11% 468 11% -25 -5 Other countries 173 4% 145 4
Slide 23: Comments January – December 2011
Comments January – December 2011 • Operating margin amounted to 7.7% (7.7%) – Excluding posts affecting comparability 8.6% • Profit margin amounted to 6.5% (7.1%) – Excluding posts affecting comparability 7.4 % • Result per share amounted to SEK 2.99 (SEK 3.31) – Excluding posts affecting coparability
Slide 24: Income Statement
Income Statement 12 mths 12 mån Jan-Dec Jan-Dec SEK Million 2011 2010 Income 4236.9 4243.4 Goods for resale -2214.1 -2243.5 Gross profit 2022.8 1999.9 Other operating income 39.4 32.2 External costs -970.5 -946.2 Personnel costs -691.1 -679.2 Depreciation/amorization -50.6 -58.4 Other operating cost
Slide 25: Income Statement – Operating Segments
Income Statement – Operating Segments EBITDA – Promo amounted to SEK 251.7 million (SEK 209.6 million) • Excl. posts affecting comparability SEK 275.2 million (+31%) – Sports & Leisure amounted to SEK 177.3 million (SEK 220.1 million) • Acquired units SEK -5 million, incl acquisition costs • Lower tu
Slide 26: Cash Flow January – December 2011
Cash Flow January – December 2011 12 mths 12 mths Jan - Dec Jan - Dec SEK Million 2011 2010 Cash flow from operating act. before changes in working capital 277.2 332.1 Changes in working capital -210.4 11.5 Cash flow from operating activities 66.8 343.6 Investing activitites -338.2 -57.6 Cash flow a
Slide 27: Stock
Stock • Amounted to SEK 1,974 million (SEK 1,595 million) as of 31 December, 2011 ─ Merchandise on stock 1,825 (1,388) SEK million ─ Raw materials etc. 149 (207) SEK million ─ Provision for obsolence 77 (61) SEK million e increase is planned since historically we have had too little merchandise on
Slide 28: Financial Highlights – Summary
Financial Highlights – Summary 12 months 12 months 12 months 12 months 12 months Jan-Dec Jan-Dec Jan-Dec Jan-Dec Jan-Dec 2011 2010 2009 2008 2007 Sales growth, % -0.2 3.8 -11.2 9.8 18.8 Number of employees 2 470 2 196 2 203 2 562 2 350 Gross profit margin, % 47.7 47.1 46.5 48.5 47.6 Operating margin
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Slide 30: Acquisition of Paris Glove of Canada Inc.
Acquisition of Paris Glove of Canada Inc. • On 30 November, 2011 we acquired all shares in the Canadian glove company Paris Glove for CAD 16.5 million. e acquisition was carried out through a newly established subsidiary in Canada as well as Switzerland. • e majority of the acquisition is financed
Slide 31: Acquisition of Paris Glove of Canada Inc.
Acquisition of Paris Glove of Canada Inc. • e company’s turnover was about CAD 28 million in 2010 and an operating profit of CAD 2.8 million. e company has 129 employees. • eir turnover is higher in the second half of the year. • Consolidated from the day of acquisition and has contributed SEK 15
Slide 32: Views on 2012
Views on 2012 We expect a higher turnover and a somewhat better result than 2011.
Slide 33: We strive to make everyone who buys our products happy customers
We strive to make everyone who buys our products happy customers. 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!