New Wave Group Ab Class B · OMXSTO:NEWA_B
New Wave Group Ab Class B — Q3 2004 Earnings Presentation
37 slides from New Wave Group Ab Class B's earnings presentation, 2004
Slide 1: Presentation of New Wave Group
© 2003 New Wave Group AB ENG C-12 Presentation of
Slide 2: Business idea
Business idea New Wave Group is a growing company that designs, acquires and develops quality articles for the profiling market (business market) and the consumers’ market, mainly in the clothing, accessories and gifts areas. New Wave Group concentrates on two business areas: ✔ The Retailing busines
Slide 3: Strategic distribution – business areas
Strategic distribution – business areas ✔ Corporate Profiling 60–80 %. Retailing 20–40 %. ✔ Risk spread. © 2002 New Wave Group AB ENG 4
Slide 4: Did you know...
Did you know... ...that New Wave Group through its trademarks (2003) sold approximately… ✔ 4.2 million one-coloured T-shirts in Sweden and 5.0 million in the rest of Europe? ✔ 480 thousand piqué shirts in Sweden and 1.7 million in the rest of Europe? ✔ 266 thousand shirts in Sweden and 520 thousand
Slide 5: New Wave – history
✔ 1990 • New Wave – history ✔ 1994 • Sweden and Norway Finland and Italy ✔ 1996 • Acquisition of Craft AB Sales ✔ 1997 • Denmark, Spain and Result after net financial items Germany ✔ 1998 • Acquisition of Hefa AB ✔ 1999 • Acquisition in Holland and England ✔ 2000 • Acquisition of Texet AB, establish
Slide 6: Design and product development
Design and product development Two of the most important things for a successful company within our line of business are good design (without concern taken to fashion) and good products. © 2002 New Wave Group AB Clique Bike – a classic design that’s sold in over 1.2 million pieces. ENG 5
Slide 7: Purchasing – quality control
Purchasing – quality control New Wave Group has purchasing offices (with equipment for extensive quality control) in Sweden, China and Bangladesh. Producing products with a even, high quality is very important. © 2002 New Wave Group AB ENG 6
Slide 8: Vision – The Profiling business area
Vision – The Profiling business area To become Europe’s leading supplier of promotion products by offering... ✔ good products. ✔ strong trademarks. ✔ high compentence and service. ✔ a unique and complete concept for our retailers, including e- business and marketing solutions etc. The total market c
Slide 9: New Wave has established a factory for production of clothes for the Chinese market
© 2003 New Wave Group AB New Wave has established a factory for production of clothes for the Chinese C-101 ENG market in Shanghai, China.
Slide 10: Interior from New Wave’s factory in Shanghai, China
© 2003 New Wave Group AB Interior from New Wave’s factory in Shanghai, China. C-102 ENG
Slide 11: Embroidery machine in New Wave’s factory in Shanghai
© 2003 New Wave Group AB Embroidery machine in New Wave’s factory in Shanghai, China. The Chinese C-103 ENG customers are offered ready-embroidered promowear.
Slide 12: Range coverage
Range coverage Existing Possible New Wave Distributors Promowear Give-aways Working clothes • Shirts • Bags • Overalls • T-shirt • Gifts • Jackets • Sweatshirt • Terry towels • etc. • etc. • Pens • Calculators • Lighters • Keyrings © 2003 New Wave Group AB • etc. FULL COVERAGE GOOD COVERAGE GOOD COV
Slide 13: Sales per country
Sales per country Jan–sep 2004 Jan–sep 2003 Change SEK m. % Sweden 684 596 88 15 Benelux 194 127 67 53 Norway 124 122 2 2 Finland 125 120 5 4 Germany 126 87 39 45 Italy 97 78 19 25 Spain 65 55 10 18 France 44 20 24 117 England 36 40 -4 -10 Denmark 37 30 7 23 Switzerland 33 6 28 506 Other 25 17 8 47
Slide 14: Owned trademarks in Corporate Profiling business area
The following owned trademarks are distributed within the Corporate Profiling business area: © 2002 New Wave Group AB ENG 11
Slide 15: Vision – The Retailing business area
Vision – The Retailing business area ✔ To become the Nordic countries’ main supplier of sports- and leisurewear. ✔ To become one of the main suppliers of quality shoes and gifts. ✔ To develop the owned trademarks Craft and Seger into international trademarks on functional sportswear. © 2002 New Wave
Slide 16: The Retailing business area
The Retailing business area These owned trademarks are distributed within the Retailing business area: ✔ – functional sportswear ✔ – basicwear, T-shirts etc, for the sports trade. ✔ – basic ware, T-shirts etc, for the everyday commodities trade. ✔ – socks, caps etc. ✔ – children’s shoes ✔ – ladies’
Slide 17: The Retailing business area
The Retailing business area The following licence or agent trademarks are distributed in Sweden: ✔ – skiing equipment ✔ – inlines ✔ – indoor bandy and skiing equipment ✔ – football clothes and equipment © 2002 New Wave Group AB 2003–2008 ENG 9
Slide 18: Craft strengthens underwear collection and cycling
Craft has not only streghtened its collection of underwear with the line Pro Cool, but it also invests more in cycling by recruiting Tony Rominger as © 2003 New Wave Group AB Cycling Product Manager (ranked one of the world’s top 10 cyclists ever by Union Cyliste Internationale). C-100 ENG
Slide 19: Q3 July–September 2004 Heavy growth in profit and sales
Q3 July–September 2004 Heavy growth in profit and sales ✔ Sales: +27 % to SEK 525 (413) m. Profiling: +51 % to SEK 328 (217) m. Retailing: +0.5 % to SEK 197 (196) m. ✔ Profit: + SEK 8.8 m. to SEK 22.9 (14.1) m. Profiling: + SEK 8.3 m. to SEK 13.7 (5.4) m. Retailing: + SEK 0.5 m. to SEK 9.2 (8.7) m.
Slide 20: January–September 2004
January–September 2004 ✔ Sales: +23 % to SEK 1 590 (1 297) m. Profiling: +35 % to SEK 1 070 (791) m. Retailing: +3 % to SEK 520 (506) m. ✔ Profit: + SEK 22.9 m. to SEK 106.2 (83.3) m. Profiling: + SEK 17.6 m. to SEK 80.7 (63.1) m. Retailing: + SEK 5.3 m. to SEK 25.5 (20.2) m. © 2003 New Wave Group A
Slide 21: Sales
Sales SEK Mkr M 600 500 400 300 200 100 © 2002 New Wave Group AB 0 Q1 Q2 Q3 Q4 1997 1998 1999 2000 2001 2002 2003 2004 ENG 32
Slide 22: Profit/loss after net financial items
Profit/loss after net financial items SEK M © 2002 New Wave Group AB ENG 33
Slide 23: Important events during Q3
Importent events during Q3 ✔ Preparations for the launch of Jobman in Norway and Italy. ✔ The establishment of the trademarks Clique/New Wave and Harvest/Printer in Switzerland is going very well. ✔ Craft Switzerland SA was established in September. ✔ The establishment of Inside Out in Spain. ✔ The
Slide 24: Income Statement
Income Statement 9 Months 9 Months 12 Months 12 Months JAN-SEP JAN-SEP OCT-SEP JAN-DEC SEK m. 2004 2003 2003/04 2003 Net sales 1 589.9 1 297.2 2 174.6 1 881.9 Other income 12.8 1.5 24.8 13.5 Goods for resale -872.5 -736.6 -1 183.2 -1 047.2 Gross profit 730.2 562.1 1 016.2 848.2 Gross margin 45.1% 43
Slide 25: Financial Highlights
Financial Highlights JAN–SEP JAN–SEP JAN–DEC JAN–DEC JAN–DEC SEK m. 2004 2003 2003 2002 2001 Sales growth % 22.6 17.1 11.5 32.0 20.2 Employees 1 017.0 779.0 806.0 729.0 422.0 Gross profit margin % 45.1 43.3 44.4 42.0 40.5 Operating margin % 8.0 7.6 10.9 10.6 10.0 Profit margin % 4.9 4.8 7.1 6.2 6.4
Slide 26: Sales per country
Sales per country Jan–sep 2004 Jan–sep 2003 Change SEK m. % Sweden 684 596 88 15 Benelux 194 127 67 53 Norway 124 122 2 2 Finland 125 120 5 4 Germany 126 87 39 45 Italy 97 78 19 25 Spain 65 55 10 18 France 44 20 24 117 England 36 40 -4 -10 Denmark 37 30 7 23 Switzerland 33 6 28 506 Other 25 17 8 47
Slide 27: Heavy growth 2004–2005
Heavy growth 2004–2005 ✔ Switzerland: Sales start January 15, 2004 – NWG:s best start so far! ✔ ProJob: Sales start August 15, 2004. ✔ Warehouse for Harvest/Printer in Spain March 1, 2004. ✔ Warehouse for Harvest/Printer in Switzerland September 1, 2004. ✔ Warehouse for Sagaform Profiling in Benelux
Slide 28: Heavy growth 2004–2005, continuation
Heavy growth 2004–2005, continuation Our pace has never been higher! ✔ Increased international focus from Craft. ✔ The Czech republic and Poland are prepared for start during next year. ✔ Last year’s establishments in China take shape. ✔ Jobman will be introduced in Norway and Italy at the year-end.
Slide 29: Growth
Growth ✔ These establishments will give organic growth of 10–15 % (it was 11 % for Q2 and 10 % for Q3). We have the capacity to make more acquisitions. This will give a high level of growth for the next-coming years. © 2003 New Wave Group AB C-48 ENG
Slide 30: Goal
Goal ✔ Profit: Increasing ✔ We are well prepared for the future and we feel optimistic! © 2003 New Wave Group AB C-49 ENG
Slide 31: What says that we are going to succeed?
What says that we are going to succeed? © 2003 New Wave Group AB C-98 ENG
Slide 32: What we have accomplished so far speaks for itself...
What we have accomplished so far speaks for itself... Year Sales SEK m Increase SEK m Increase % 1992 53 1993 74 21 39.7 % 1994 102 28 37.8 % 1995 151 49 48.0 % 1996 246 95 62.9 % 1997 351 105 42.7 % 1998 721 370 105.4 % 1999 799 78 10.8 % 2000 1,063 264 33.0 % 2001 1,278 215 20.2 % © 2002 New Wave
Slide 33: ...the profit has increased every year...
...especially considering the fact that the profit has increased every year... Year Net profit SEK m Increase SEK m Increase % 1992 3.8 1993 7.5 3.7 97.4 % 1994 9.7 2.2 29.3 % 1995 14.5 4.7 48.5 % 1996 17.9 3.4 23.5 % 1997 21.6 3.7 20.7 % 1998 24.5 2.9 13.4 % 1999 54.1 29.6 120.8 % 2000 86.6 32.5 60
Slide 34: New Wave’s success factors
New Wave’s success factors ✔ Economies of scale ✔ Synergies between the business areas ✔ Leads progress ✔ Good service/quality ✔ The customer is the most important ✔ The ”New Wave culture” © 2003 New Wave Group AB C-34 ENG
Slide 35: Our goals
Our goals ✔ Sales: SEK 5 b. ✔ Stock value: SEK 5 b. ✔ Profit/loss before taxes: SEK 500 m. ...and without these goals, which might seem crazy now, we will not be © 2003 New Wave Group AB able to come as far as we plan to in the future! When we have reached these goals, or just before we reach them,
Slide 36: Our vision
Our vision ✔ Sales: 10 billion SEK ✔ Stock value: 10 billion SEK ✔ Profit/loss before taxes: 1 billion SEK © 2003 New Wave Group AB C-99 ENG
Slide 37: Closing message to investors
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! © 2002 New Wave Group A