Slide 1: Year-End Report January–December 2017
2017 YEAR-END REPORT January–December
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; promowear, promotional gifts and workwear, Sports & Leisure and Gif
Slide 3: Operating Segments and Markets
CORPORATE PROMO OPERATING SEGMENTS AND MARKETS New Wave Group distributes 49 different brands. Each brand is categorised according to which of our three operating segments it belongs to; Corporate SPORT & LEISURE Promo, Sports & Leisure or Gifts & Home Furnishings. The brands are distributed in both
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: Sport & Leisure – vision
SPORT & 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 Paris
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 worldleading glass and crystal suppliers. Part of the vision also involves utilising innovative and playful design to make Sagaform a prominent player in Northern Eu
Slide 7: Financial Information
~ FINANCIAL INFORMATION
Slide 8: October–December
OCTOBER–DECEMBER Net sales SEK 1 630.3 million (1 548.6) Net sales per Operating segment Sales increased 5% (8% in local currencies) Corporate Promo 6% to SEK 828.8 million (779.9) Promo sales channel Corporate Promo 6%, Sports & Leisure 5%, Sweden, South Europe and Asia Gifts & Home Furnishings 3%
Slide 9: October–December Net sales per geographical area
OCTOBER–DECEMBER Net sales per geographical area Oct-Dec Part of Oct-Dec Part of Change SEK million 2017 income 2016 income SEK million % Sweden 449.3 28% 419.0 27% 30.3 7% USA 370.5 23% 373.1 24% -2.6 -1% Nordic countries excluding Sweden 184.4 11% 186.9 12% -2.5 -1% Central Europe 323.2 20% 306.3
Slide 10: Net Sales
NET SALES 1 800 1 600 1 400 1 200 1 000 800 600 400 200 0 Q1 Q2 Q3 Q4 2013 2014 2015 2016 2017
Slide 11: October–December
OCTOBER–DECEMBER Gross profit margin amounted to 45.6 (46.3)% External costs and personnel costs amounted to a total of SEK -567.1 million (-542.8) Marketing activities and employments within sales, warehouse and customer service Operating result amounted to SEK 172.5 million (167.0) Higher net sale
Slide 12: October–December Income statement
OCTOBER–DECEMBER Income statement Oct - Dec Oct - Dec SEK Million 2017 2016 Net sales 1 630.3 1 548.6 Goods for resale -886.8 -832.3 Gross profit 743.5 45.6% 716.3 46.3% Other operating income 22.9 14.9 External costs -304.9 -299.9 Personnel costs -262.2 -242.9 Depreciation/amortization -18.2 -15.2
Slide 13: October–December EBITDA per operating segment
OCTOBER–DECEMBER EBITDA per operating segment Corporate Promo amounted to SEK 110.6 million (109.9) Higher turnover More marketing activities Sport & Leisure amounted to SEK 69.7 million (55.0) Higher turnover Improved gross profit margin Gifts & Home Furnishings amounted to SEK 10.4 million (17.3)
Slide 14: Result for the Period
RESULT FOR THE PERIOD 160 140 120 100 80 60 40 20 0 -20 Q1 Q2 Q3 Q4 2013 2014 2015 2016 2017
Slide 15: October–December Cash flow
OCTOBER–DECEMBER Cash flow Oct-Dec Oct-Dec SEK million 2017 2016 Cash flow from operating activities before changes in working capital 154.9 132.0 Change in working capital -20.4 148.9 Cash flow from operating activities 134.5 208.9 Investing activities -37.7 -24.5 Cash flow after investing activiti
Slide 16: January–December
JANUARY–DECEMBER Net sales SEK 5 597.3 million (5 237.1) Net sales per Operating segment Sales increased 7% (6% in local currencies) Corporate Promo 11% to SEK 2 648.7 million (2 388.6) Both sales channels Corporate Promo 11%, Sports & Leisure 2%, Growth in all geographical areas Gifts & Home Furnis
Slide 17: January–December Net sales per geographical area
JANUARY–DECEMBER Net sales per geographical area Jan-Dec Part of Jan-Dec Part of Change SEK million 2017 income 2016 income SEK million % Sweden 1 317.0 24% 1 236.4 24% 80.6 7% USA 1 400.5 25% 1 381.1 26% 19.4 1% Nordic countries excluding Sweden 760.5 14% 739.5 14% 21.0 3% Central Europe 1 062.5 19
Slide 18: January–December
JANUARY–DECEMBER Gross profit margin amounted to 46.1% (46.0) External costs and personnel costs amounted to SEK -2 069.2 million (-1 979.4) Higher sales related activities More personnel in sales, warehouse and customer service Operating result amounted to SEK 469.1 million (400.2) Result for the p
Slide 19: January–December Income statement
JANUARY–DECEMBER Income statement Jan - Dec Jan - Dec SEK Million 2017 2016 Net sales 5 597.3 5 237.1 Goods for resale -3 018.1 -2 826.9 Gross profit 2 579.2 46.1% 2 410.2 46.0% Other operating income 51.2 51.0 External costs -1 128.9 -1 097.8 Personnel costs -940.3 -881.6 Depreciation/amortization
Slide 20: January–December EBITDA per operating segment
JANUARY–DECEMBER EBITDA per operating segment Corporate Promo amounted to SEK 289.7 million (250.8) Higher net sales Increased marketing activities Sport & Leisure amounted to SEK 230.3 million (194.5) Higher net sales Improved gross profit margin Gifts & Home Furnishings amounted to SEK 14.4 millio
Slide 21: January–December Cash flow
15 par 20-25 123333 JANUARY–DECEMBER Cash flow Jan-Dec Jan-Dec SEK million 2017 2016 Cash flow from operating activities before changes in working capital 451.0 333.4 Change in working capital -243.2 115.5 Cash flow from operating activities 207.8 448.9 Investing activities -110.6 -89.6 Cash flow af
Slide 22: Financial Highlights
FINANCIAL HIGHLIGHTS Jan - Dec Jan - Dec Jan - Dec Jan - Dec Jan - Dec 2017 2016 2015 2014 2013 Net sales growth, % 6.9 5.5 16.2 5.6 -5.4 Number of employees 2 495 2 396 2 358 2 212 2 123 Gross profit margin, % 46.1 46.0 45.1 45.7 46.2 Operating margin before depreciation, % 9.5 8.7 6.3 7.1 8.5 Oper
Slide 23: CEO Summary
CEO SUMMARY October–December January–December Continued growth and increase in operating profit Net sales amounted to SEK 5 597 million – all time high All three operating segments and both sales channels are increasing Since 2014; Net sales growth in fifteen of sixteen quarters and Marketing campai
Slide 24: CEO Summary – Future
CEO SUMMARY Future We stand very strong in almost all areas and are well-equipped The promo sales channel develops very well. Positive effect of previous investments in inventory capitalization, service and products
Slide 25: Some of our ventures right now: Craft Teamwear
SOME OF OUR VENTURES RIGHT NOW Craft Teamwear
Slide 26: Svenska Spel
a Svenska Spel F-19 a “"
Slide 27: Some of our ventures right now: Craft running shoes
SOME OF OUR VENTURES RIGHT NOW Craft running shoes
Slide 28: Craft V175 Lite test reviews
XA bunert a | gee eee —— der Laufiaden Se Test: Craft V175 lite Enkel och effektiv vii Grats forstalopsko le mycket tyekad. “Less is more" verkx fra vant tanken bakom preducten = och det funkar KEEP IT SIMPLE” in Perfektion! ‘som bce esr yt ‘Strearh nga ch et strat ibeKedung b ‘Sew st Ont fr var Ox
Slide 29: Ongoing marketing activities
SOME OF OUR VENTURES RIGHT NOW Ongoing marketing activities Welcome to New York Welcome to Boston
Slide 30: Layer Up in Style
lo) LAYER UP IN STYLE
Slide 31: Planning for further distribution center in North America
SOME OF OUR VENTURES RIGHT NOW Planning for further distribution center in North America Success for the new warehouse in Canada
Slide 32: New product lines for Jobman and ProJob
SOME OF OUR VENTURES RIGHT NOW New product lines for Jobman and ProJob
Slide 33: 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 34: Thank You!
THANK YOU! ¢ kr oO UP