New Wave Group Ab Class B · OMXSTO:NEWA_B
New Wave Group Ab Class B — Q1 2008 Earnings Presentation
24 slides from New Wave Group Ab Class B's earnings presentation, 2008
Slide 1: Q1 2008 financial report
Q1 2008 financial report
Slide 2: Business idea
Business idea • New Wave Group designs, acquires and develops quality articles and trademarks for the promo and retail market, mainly in the clothing, accessories and gifts areas. • New Wave Group concentrates on two business areas: – The Promo business area – the products are distributed via indepe
Slide 3: Strategy
Strategy • Establish and develop existing trademarks • Establish new operations in new geographical markets • Develop and acquire products and companies within the promo and retail business segment • Spread the Group's values to newly established and acquired companies
Slide 4: Vision – Promo
Vision – Promo • To become Europe’s leading supplier of promotion products by offering – good products – strong trademarks – high competence and service – a unique and complete concept for our re- sellers
Slide 5: Promo market in Europe
Promo market in Europe • Fragmented market with a total size of SEK 112,000,000,000 • New Wave’s turnover within corporate promo is SEK 2,243,000,000 • With only 2% market share New Wave is the second Totalmarknaden biggest player in the European promo market European Promo market New Wave’s product
Slide 6: Promo market operators
Promo market operators • 9 biggest operators have 15% of the market
Slide 7: Vision – Retail
Vision – Retail • To become the Nordic countries main supplier of sports and leisure wear. • To develop Orrefors and Kosta Boda into the leading trademarks in the world within glass and crystal. • To develop the owned trademarks Craft and Seger into international trademarks on functional sportswear
Slide 8: Retail
Retail • New Wave’s retail area is divided into two categories: – Sports & Leisure • Owned trademarks • Licensed trademarks – Gifts & Home Interior • Owned trademarks
Slide 9: Sports & Leisure
Sports & Leisure • Owned trademarks: • Licensed trademarks: – CRAFT – functional sportswear – EASTON – hockey equip. – CUTTER & BUCK – golf and – EXEL – indoor bandy and skiing leisurewear equip. – CLIQUE – basicwear, T-shirts etc – UMBRO – football clothes and – SEGER – socks, caps etc equip. – PAX
Slide 10: Gifts and Home Interior
Gifts and Home Interior • Owned trademarks: – SAGAFORM – gifts, interior design – ORREFORS – crystal and glass – KOSTA BODA – glass – SEA – glass – KOSTA LINNEWÄFVERI – gifts, interior design – ORREFORS JERNVERK – gifts, interior design – DJ FRANTEXTIL – gifts, interior design
Slide 11: Financial statements Q1 2008
Financial statements Q1 2008
Slide 12: Total Q1 Jan – Mar 2008
Total Q1 Jan – Mar 2008 • Sales +33% to MSEK 1 015 (760) – Acquired units contributed with MSEK 197 – Organic growth amounted to +8% • Profit Before Tax MSEK -28,3 to MSEK -16,5 (11,8) – Acquired units MSEK -15 (incl interest) Sales 1200 1015 1000 Profit Before Tax acquired units (197) 15 11,8 800 7
Slide 13: Comments Q1
Comments Q1 • Organic growth 8%, sales affected by: – Growth in all regions except in the USA – Restructuring units: Sagaform, DJ Frantextil and Dahetra developing as expected but no material changes yet • Gross margin 47.6% (47.5%) – Weak USD effecting Orrefors Kosta Boda Inc – Production difficult
Slide 14: Sales
Sales 1400 1200 1000 2003 2004 800 2005 600 2006 2007 400 2008 200 0 Q1 Q2 Q3 Q4
Slide 15: Result after finance net
Result after finance net 180 160 140 120 2003 100 2004 80 2005 60 2006 40 2007 20 2008 0 -20 Q1 Q2 Q3 Q4 -40
Slide 16: Income Statement
Income Statement 3 mth 3 mth 12 mth 12 mth JAN-MAR JAN-MAR JAN-DEC JAN-DEC SEK Mkr 2008 2007 2007 2006 Net sales 1 015,0 760,4 4 194,0 3 530,5 Goods for resale -532,3 -399,5 -2 196,1 -1 839,6 Gross margin 482,7 47,6% 360,9 47,5% 1 997,9 47,6% 1 690,9 47,9% Other operating income* 6,2 2,3 37,7 23,1 E
Slide 17: Business areas Jan – Mar 2008
Business areas Jan – Mar 2008 • Sales Promo: +23% to MSEK 581 (474) • Sales Retail: +51% to MSEK 434 (287) • EBITDA Promo: MSEK +3.1 to MSEK 43.1 (40.0) • EBITDA Retail: MSEK -12.4 to MSEK -15.0 (-2.6)
Slide 18: Financial highlights
Financial highlights JAN - MAR JAN - MAR JAN - DEC JAN - DEC 2008 2007 2007 2006 Sales growth % 33,5 0,7 18,8 15,4 Number of employees 2 587 2 169 2 350 2 207 G ross margin % 47,6 47,5 47,6 47,9 Operating margin before depreciation % 2,8 4,9 11,0 10,9 Operating margin % 1,5 3,5 9,7 9,8 Profit margin
Slide 19: Geographical allocation of turnover
Geographical allocation of turnover JAN-MAR Part of JAN-MAR Part of Change % 2008 turnover 2007 turnover MSEK Nordic countries 456 45% 416 55% 40 10 Central Europé 216 21% 198 26% 18 9 South Europé 92 9% 86 11% 6 7 USA 211 21% 36 5% 175 484 Other countries 39 4% 24 3% 15 63 Totalt 1 015 100% 760 100
Slide 20: New Wave Sports
New Wave Sports – Cutter & Buck • Profit in line with expectations • Strong market position • Good possibilities in Europe – CRAFT • Good development • Strong assortment development (alpine launch) • Good international growth – SEGER EUROPE • Stable development • Profitable and efficient Swedish pro
Slide 21: Gifts & Home Interior
Gifts & Home Interior – ORREFORS KOSTA BODA • Sales in the USA down • Production cost in focus • Expanding business in China – SAGAFORM • Turn-around half way through • Promising new assortment – DJ Frantextil • Turn-around half way through
Slide 22: PROMO
PROMO – PROMO WEAR • Launch of Cutter & Buck going well • Sales in line with expectations – Work Wear • Sales in line with expectations • Two concepts now focusing on international sales
Slide 23: Views of 2008....
Views of 2008…. • Improve working capital, profitability and efficiency – Fully Integrate Cutter & Buck in the coming 12 months – Rollout of Clique and New Wave in USA and Cutter & Buck in Europe – Improve working capital – Finalize restructuring work of “weak performers” – Launch of New Wave Sports
Slide 24: We hope that everybody who buys our products is a content customer and we
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!