New Wave Group Ab Class B · OMXSTO:NEWA_B
New Wave Group Ab Class B — Q4 2007 Earnings Presentation
31 slides from New Wave Group Ab Class B's earnings presentation, 2008
Slide 1: Q4 2007 financial report
NewNinve G Q4 2007 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: Increased turnover and profit for the 17th year in a row!
Increased turnover and profit for the 17th year in a row!
Slide 5: 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 6: Promo market in Europe
Promo market in Europe • Fragmented market with a total size of SEK 120,000,000,000 • New Wave’s turnover within corporate promo is SEK 2,243,000,000 • With only 2% market share New Wave is the second biggest player in the European promo market European Promo market New Wave’s product mix - product
Slide 7: Promo market operators
Promo market operators • 9 biggest operators have 15% of the market
Slide 8: 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 9: Retail
Retail • New Wave’s retail area is divided into two categories: – Sports & Leisure • Owned trademarks • Licensed trademarks – Gifts & Home Interior • Owned trademarks
Slide 10: 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 11: 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 12: Financial statements Q4 2007
Financial statements Q4 2007
Slide 13: Total Q4 Oct – Dec 2007
Total Q4 Oct – Dec 2007 • Sales +23% to MSEK 1331 (1079) – Acquired units contributed with MSEK 210 – Organic growth amounted to +4% • Profit Before Tax MSEK -34,0 to MSEK 122,1 (156,1) – Acquired units contributed with MSEK -4,4 acquired units (210)
Slide 14: Comments Q4
Comments Q4 • Organic growth 4%, sales affected by: – Weak performance within Retail division in general, Gifts & Home Interior specifically – Restructuring units: Sagaform, DJ Frantextil and Dahetra still not on track – Costs taken for new establishment • Promo division performing very well – stron
Slide 15: Sales
Sales oe 1300 1200 1100 1000 900 800 700 600 500 400 Hl ae | UT aT Q3 Qs [Sr998 M1299 Ejz000 «E2001 2002, 2003. E2004 }2005 2006 ml 2007
Slide 16: Result after finance net
Result after finance net 160 140 120 7 100 [| 80 60 rT
Slide 17: Business areas Q4 Oct – Dec 2007
Business areas Q4 Oct – Dec 2007 • Sales Promo: +21% to MSEK 788 (662) • Sales Retail: +30% to MSEK 543 (417) • EBITDA Promo: MSEK +23.8 to MSEK 139.1 (115.3) • EBITDA Retail: MSEK -35.4 to MSEK 29.0 (64.4)
Slide 18: Income Statement
Income Statement 3 months 3 months 12 months 12 months OKT-DEC OKT-DEC JAN-DEC JAN-DEC MSEK 2007 2006 2007 2006 Net sales 1 331,4 1 078,9 4194.0 3 530,5 Goods for resale -~696,5 -539,1 -2 196,1 -1 839,6 Gross profit 634,9 47,7% 539,8 50,0% 1997,9 47.6% 1690,9 47,9% Other operating income 10,0 10,1 3
Slide 19: Full year Jan – Dec 2007
Full year Jan – Dec 2007 • +19% to MSEK 4 194 (3 530). – Acquired units contributed with MSEK 552 – Organic growth amounted to + 3% • Profit Before Tax MSEK +24.8 to MSEK 315.0 (290.2) – Acquired units contributed with MSEK + 19.3 acquired units (552) acquired units (19,3)
Slide 20: Business areas Jan – Dec 2007
Business areas Jan – Dec 2007 • Sales Promo: +15% to MSEK 2 473 (2 146) • Sales Retail: +24% to MSEK 1 721 (1 385) • EBITDA Promo: MSEK +97.9 to MSEK 385.8 (287.9) • EBITDA Retail: MSEK -23.1 to MSEK 73.9 (97.0)
Slide 21: Comments 2007 – Jan to Dec
Comments 2007 – Jan to Dec • In general sales affected by: – Comparison effect of not being an event year as 2006 (world championship in soccer) – Lower trading orders – Restructuring of “weak performers” – Currency development • Strong performance in Promo division • Retail, specifically Gifts & Ho
Slide 22: Comments 2007 – Jan to Dec (II)
Comments 2007 – Jan to Dec (II) • Slightly decreased gross margins 47.6% (47.9%) – Three first quarters well aligned with expectation but disappointing fourth quarter due to energy price takeoff and salary levels in Swedish production plant (OKB) • Somewhat increased staffing costs 15.4% (14.8%) exp
Slide 23: Financial highlights
Financial highlights JAN - DEC JAN - DEC JAN - DEC JAN - DEC 2007 2006 2005 2004 Sales growth % 18,8 15,4 32,9 22,3 Number of employees 2 350 2161 2032 1 269 Gross margin % 47,6 47,9 46,4 45,9 Operating margin before depreciation % 11,0 10,9 10,7 12,7 Operating margin % 9,7 98 9,7 11,4 Profit margin
Slide 24: Geographical allocation of turnover
Geographical allocation of turnover
Slide 25: New Wave Sports
New Wave Sports – Cutter & Buck • Stable sales and kept margins • Strong market position • Good possibilities in Europe – CRAFT • Very strong top line growth with impressive margins • Strong assortment development (alpine launch) • Good international growth – SEGER • Stable development in 2007 • Pro
Slide 26: Gifts & Home Interior
Gifts & Home Interior – ORREFORS KOSTA BODA • Sales according to plan • Inventory build up according to plan • Production efficiency • Production cost now in focus • Expanding business in China and the US – SAGAFORM • Turn-around half way through • Weak sales but promising new assortment • Stable sa
Slide 27: PROMO
PROMO – PROMO WEAR • Strong growth and development, specially concepts in mid- Europe – Work Wear • Very good development in 2007 • Two concepts now focusing on international sales – GIFTS • Strong development in Toppoint • DJ Frantextil being restructured with now stronger sales
Slide 28: Views of 2008….
Views of 2008…. • Fully Integrate Cutter & Buck in the coming 12 months • Rollout of Clique and New Wave in USA and Cutter & Buck in Europe • Launch of New Wave Sports AB • Full push on expanding current concepts geographically – OKB in China – CRAFT in Europe – SEGER in Europe • Finalize restructur
Slide 29: Financial long term goals
Financial long term goals • NWG will on a long term basis – Continue to grow 20-40 % – Organic growth 5-10% – Gross margin 50% – Operating margin 15%
Slide 30: We will keep on growing!
We will keep on growing! • Since start in 1990, New Wave has delivered: – An average annual turnover growth of 35% – An yearly increased financial net result of 33% • Our vision is to reach within a foreseen future: – A turnover of SEK 10 billion – A profit before taxes of SEK 1 billion
Slide 31: We hope that everybody who buys our products is a content customer
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!