New Wave Group Ab Class B · OMXSTO:NEWA_B
New Wave Group Ab Class B — FY2019 Earnings Presentation
31 slides from New Wave Group Ab Class B's earnings presentation, February 2020
Slide 1: Year-End Report January - December 2019
2019 YEAR-END REPORT January - December
Slide 2: This is New Wave Group
THIS IS NEW WAVE GROUP Sweden Shanghai Dhaka Bangalore Ho Chi Minh New Wave Group is a growth company that designs, acquires and develops brands. To ensure good risk diversification, the Group will market its products in the promo market and the retail market. The Group’s growth target is 10-20 % pe
Slide 3: Operating Segments and Sales Channels
OPERATING SEGMENTS AND SALES CHANNELS CORPORATE Our brands are categorized according to which of our three operating segments it belongs to: Corporate, Sports & Leisure or Gifts & Home Furnishings. The brands are distributed in both the promo market and the retail market to achieve good risk diversi
Slide 4: Corporate - Vision
CORPORATE - VISION The vision for the Corporate operating segment is to become the leading supplier of promotional products to corporations in Europe and one of the leading suppliers in the United States by offering companies a broad product range, strong brands, advanced expertise and service, and
Slide 5: Sports & Leisure - Vision
SPORTS & 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 shall 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 is to make Orrefors and Kosta Boda world-leading glass and crystal suppliers. Part of the vision also involves utilising innovative and playful design to make Sagaform a prominent player in Northern Europ
Slide 7: Activities in Focus
ACTIVITIES IN FOCUS
Slide 8: Teamwear
CRAFT ::. TEAMWEAR
Slide 9: NWG Acquires ON Interiör
NWG ACQUIRES ON INTERIÖR New Wave Group has, by way of an asset acquisition, acquired ON Interiör’s business, including the trademarks ByON, Victorian and Vakinme.
Slide 10: Distribution Units
DISTRIBUTION UNITS Improvement of service level
Slide 11: Cutter & Buck
CUTTER & BUCK Good growth in Canada and Europe and our investments in the market continue!
Slide 12: Financial Information
FINANCIAL INFORMATION
Slide 13: October - December: Net Sales
OCTOBER - DECEMBER NET SALES Sales amounted to SEK 2,024.1 (1,943.4) million 2 500 Sales increased by 4 % (1 % in local currencies) 2 000 Promo sales channel 7 %, retail on same level 760.0 1 500 761.0 1 000 1,264.1 1,182.3 500 0 Q4 2019 Q4 2018 Promo Retail
Slide 14: Net Sales
NET SALES SEK MILLION 2.000 1800 -— 1600 1400 1200 1000 800 -- Ql Q2 Q3 Q4 m™2015 ©2016 m2017 2018 2019 New uve GR OU P
Slide 15: Net Sales per Operating Segment
NET SALES PER OPERATING SEGMENT Corporate +7 % Sports & Leisure +3 % Gifts & Home Furnishings -5 % 1 200 28.3 1 000 25.7 800 600 1,019.8 559.4 952.0 552.5 400 200 212.2 197.5 172.3 182.9 0 32.1 32.8 Q4 -19 Q4 -18 Q4 -19 Q4 -18 Q4 -19 Q4 -18 Promo Retail
Slide 16: Net Sales per Geographic Area
OCTOBER - DECEMBER NET SALES PER GEOGRAPHIC AREA SEK million Oct - Dec Share of Oct - Dec Share of Change Change 2019 net sales 2018 net sales MSEK % USA 488.1 24% 482.0 25% 6.1 1% Sweden 504.1 25% 508,5 26% -4.4 -1% Central Europe 326.9 16% 297.3 15% 29.6 10% Nordic countries excl. Sweden 236.5 12%
Slide 17: October - December
OCTOBER - DECEMBER Gross profit margin amounted to 46.7 (46.4) % SEK million Oct – Dec Oct – Dec External costs and personnel costs amounted to a 2019 2018 total of SEK -651.4 (-688.6) million – Costs in relation to net sales decreased Net sales 2,024.1 1,943.4 – Currency exchange rate effects incre
Slide 18: Result for the Period
RESULT FOR THE PERIOD SEK MILLION
Slide 19: EBITDA per Operating Segment
OCTOBER - DECEMBER EBITDA PER OPERATING SEGMENT Corporate – Higher net sales 200,0 – Higher sales and marketing activities, as well as improvements in distribution units 28.2 – IFRS 16 affected SEK 28.2 million 160,0 0.0 120,0 Sports & Leisure 8.8 – Higher net sales – Cost savings 80,0 156.9 0.0 145
Slide 20: Cash Flow
OCTOBER - DECEMBER CASH FLOW SEK million Oct - Dec Oct - Dec 2019 2018 Cash flow from operating activities before changes in working capital 262.1 184.1 Change in working capital 24.7 -9.7 Cash flow from operating activities 286.7 174.4 Investing activities -42.2 -39.7 Cash flow after investing acti
Slide 21: January - December: Net Sales
JANUARY - DECEMBER NET SALES Sales amounted to SEK 6,903.5 (6,290.6) million 8 000 Sales increased by 10 % (5 % in local currencies) 7 000 Promo sales channel 9 %, retail 10 % 6 000 2,790.6 5 000 2,532.8 Growth in all segments and regions 4 000 3 000 2 000 4,113.0 3,757.7 1 000 0 jan - dec 2019 jan
Slide 22: Net Sales per Operating Segment
NET SALES PER OPERATING SEGMENT Corporate +9 % Sports & Leisure +12 % Gifts & Home Furnishings +2 % 4 000 3 500 92.1 3 000 87.7 2 500 2 000 2,124.9 3,263.9 1,883.0 1 500 2,981.4 1 000 500 762.5 690.7 573.5 562.1 0 86.5 85.6 jan - dec 2019 jan - dec 2018 jan - dec 2019 jan - dec 2018 jan - dec 2019 j
Slide 23: Net Sales per Geographic Area
JANUARY - DECEMBER NET SALES PER GEOGRAPHIC AREA SEK million Jan - Dec Share of Jan - Dec Share of Change Change 2019 net sales 2018 net sales SEK million % USA 1,774.5 26% 1,579.7 25% 194.8 12% Sweden 1,610.0 23% 1,529.9 24% 80,1 5% Central Europe 1,078.1 16% 986.4 16% 91,7 9% Nordic countries excl
Slide 24: January - December
JANUARY - DECEMBER Gross profit margin amounted to 46.4 (46.6) % SEK million Jan – Dec Jan – Dec 2019 2018 External costs and personnel costs amounted to a total of SEK -2,472.6 (-2,399.4) million – Higher sales and marketing activities as well as volume- Net sales 6,903.5 6 290.6 related costs Good
Slide 25: EBITDA per Operating Segment
JANUARY - DECEMBER EBITDA PER OPERATING SEGMENT All segments have higher net sales Corporate 500,0 – Higher sales and marketing activities as well as distribution costs 88.0 400,0 – IFRS 16 affected SEK 88.0 million 0.0 300,0 37.9 Sports & Leisure – Higher costs for sales, marketing and 0.0 200,0 di
Slide 26: Cash Flow
JANUARY - DECEMBER CASH FLOW SEK million Jan - Dec Jan - Dec 2019 2018 Cash flow from operating activities before changes in working capital 605.0 429.7 Change in working capital -505.6 -207.1 Cash flow from operating activities 99.5 222.6 Investing activities -148.7 -163.2 Cash flow after investing
Slide 27: Financial Key Figures
FINANCIAL KEY FIGURES SEK million Jan – Dec excl Jan – Dec 2019 IFRS 16 2018 Net sales growth, % 9.7 12.4 Number of employees 2,579 2,566 Gross profit margin, % 46.4 46.6 Operating margin before depreciation, % 11.1 9.2 8.9 Operating margin, % 7.7 7.7 Return on shareholders’ equity, % 10.3 11.2 Retu
Slide 28: CEO Comments
CEO COMMENTS ” October - December Highest net sales ever in a quarter. Costs in line with prior year (excluding IFRS 16). Full year 2019 ”Highest net sales Net sales increase by 10 % (5 % in local currencies). ever in a quarter.” Operating result is 11 % higher than prior year. However, - Torsten Ja
Slide 29: CEO Comments: Balance Sheet, Cash Flow and Future
CEO COMMENTS ” Balance sheet, Cash flow and Future We will focus on earnings and positive cash flows instead of strong growth, investments and stock building. Craft teamwear brings with it a new market. ”The major investment we Craft develops very well in teamwear. made in club and teamwear We are s
Slide 30: 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 31: New Wave Group
NewNiawe G R fe) U P