Slide 1: Presentation of
© 2003 New Wave Group AB 2003-03-13 ENG C-12 Presentation of
Slide 2: Q1 2003 Result after net financial items
Q1 2003 Result after net financial items: ✔ Increased by SEK 15.4 m to SEK 12.5 (-2.9) m: • Corporate Profiling SEK 9.9 m to SEK 2.5 (-7.4) m • Retailing SEK 5.6 m to SEK 10.1 (4.5) m ✔ Best first quarter ever! ✔ 12 months moving SEK 160.5 (145.1 for 2002) m ✔ Increased by an average of 44 % for 12
Slide 3: Q1 2003 Turnover
Q1 2003 Turnover: ✔ Increased by 27 % to SEK 415.2 (327.6) m: • Corporate Profiling +33 % to SEK 240.6 (181.3) m • Retailing +19 % to SEK 174.6 (146.3) m ✔ 12 months moving SEK 1,775 (1,687 for 2002) m ✔ Increased by an average of 41,3 % for 12 years in a row © 2003 New Wave Group AB 2003-03-13 ENG
Slide 4: Sales
Sales 600 500 400 1997 1998 300 1999 2000 200 2001 2002 2003 100 0 © 2002 New Wave Group AB Q1 Q2 Q3 2002-11-28 ENG Q4 32
Slide 5: Profit/loss after net financial items
Profit/loss after net financial items Mkr 90 80 70 60 50 40 30 20 10 0 © 2002 New Wave Group AB -10 Q1 Q2 Q3 Q4 2002-11-28 ENG 1997 1998 1999 2000 2001 2002 2003 33
Slide 6: Important events during Q1
Important events during Q1 ✔ Strong growth in Germany again; New Wave GmbH +48 %. ✔ Reconstruction of New Wave Sportswear Ltd completed. Profitability expected during Q4 at the latest. ✔ Heavy increase of Craft’s sales for autumn 2003. ✔ Seger’s (Umbro’s) investment in the Swedish National Football
Slide 7: Income Statements
Income Statements 3 months 3 months 3 months 3 months 3 months JAN-MAR JAN-MAR APR-MAR JAN-DEC JAN-DEC SEK MILLION 2003 2002 2002/2003 2002 2001 Net sales 415.2 327.6 1 774.9 1 687.3 1 269.6 Other income 0.4 0.3 2.3 2.2 10.6 Goods for resale -239.4 -196.0 -1 024.1 -980.7 -760.1 Gross profit 176.2 13
Slide 8: Financial Highlights
Financial Highlights JAN-MAR JAN-MAR JAN-DEC JAN-DEC JAN-DEC SEK MILLION 2003 2002 2002 2001 2000 Sales growth % 26.8 22.3 32.0 20.2 33.1 Sales per employee 2.3 2.6 3.0 3.1 3.1 Gross profit margin % 42.4 40.2 44.2 41.0 38.8 Operating margin % 4.1 1.3 10.6 10.0 10.6 Profit margin % 2.5 -0.9 6.2 6.4 6
Slide 9: Turnover per country (SEK million)
Turnover per country (SEK million) JAN–MAR JAN–MAR CHANGE % COUNTRY 2003 2002 SEK M Denmark 6.9 4.7 2.2 46.8 England 16.2 10.5 5.7 54.3 Finland 20.9 18.2 2.7 14.8 France 6.2 3.5 2.7 77.1 Holland 42.3 6.1 36.2 593.4 Italy 20.3 16.2 4.1 25.3 Norway 30.0 26.6 3.4 12.8 Spain 15.2 13.1 2.1 16.0 Sweden 23
Slide 10: 2003 outlook
2003 ✔ Prognosis turnover: > SEK 2,000 million. ✔ Prognosis result: > 2002. ✔ Within Corporate Profiling we will continue gaining market shares: • Current concepts in current markets. • More Group concepts in current markets. • Establishments in new markets (China etc.). ✔ The investments made for M
Slide 11: 2003 continuation
2003 continuation ✔ Great potential for improvements in England. ✔ Toppoint’s integration will have effect: • DJ:s products are sold by Toppoint in Germany and Holland. • Toppoint’s products are sold by Group companies in the Nordic countries. ✔ Craft expects heavy international expansion. ✔ Seger’s
Slide 12: 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 13: Strategic distribution – business areas
Strategic distribution – business areas ✔ The main part of the distribution (60–80%) within Corporate Profiling has a lower risk when it comes to degree of fashion etc. ✔ Risk spread between Retailing and Corporate Profiling, as they have different business cycles. © 2002 New Wave Group AB 2002-11-2
Slide 14: The Corporate Profiling business area
The Corporate Profiling business area End-customer Subsidiary Retailer ✔ design ✔ purchasing ✔ logistics ✔ service Factory © 2003 New Wave Group AB 2003-03-13 ENG C-35
Slide 15: Did you know...
Did you know... ...that New Wave Group through its trademarks (2002) sold approximately… ✔ 4.1 million one-coloured T-shirts in Sweden and 4.4 million in the rest of Europe? ✔ 470 thousand piqué shirts in Sweden and 1.4 million in the rest of Europe? ✔ 265 thousand shirts in Sweden and 451 thousand
Slide 16: New Wave – history
✔ 1990 • New Wave – history ✔ 1994 • Sweden and Norway Finland and Italy ✔ 1996 • Acquisition of Craft AB ✔ 1997 • Denmark, Spain and Germany ✔ 1998 • Acquisition of Hefa AB 2000 150 ✔ 1999 • Acquisition in Holland 140 and England 1800 ✔ 2000 • Acquisition of Texet AB, 130 Sales establishments of 16
Slide 17: 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 2002-11-28 ENG Clique Bike – a classic design that’s sold in over 1.2 million pieces. 5
Slide 18: 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 2002-11-28 ENG 6
Slide 19: 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 20: 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 NO COVER
Slide 21: Owned trademarks in the Profiling business area
The following owned trademarks are distributed within the Profiling business area: © 2002 New Wave Group AB 2002-11-28 ENG 11
Slide 22: 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 23: 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 24: 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 2002-11-28 ENG 2003–2008 9
Slide 25: Share development against general index
Share development against general index SHARE DEVELOPMENT AGAINST CARNEGIE SMALL CAPS INDEX (CSX) & SX ALL-SHARE INDEX New Wave Group’s share Carnegie Small Caps Index (CSX) SX All-Share Index 100 100 80 80 60 60 40 40 20 20 © 2002 New Wave Group AB 2002-11-28 ENG 0 0 JAN MAR MAY JUL SEP NOV JAN MAR
Slide 26: Continuous growth “The sky is the limit”
Continuous growth New Wave Group expects the growth to continue at the same pace as earlier, if the result allows it, through… ✔ continuous organic growth ✔ continuous establishments of current trademarks abroad ✔ new establishments/product broadening/acquisitions within gifts ✔ new establishments/p
Slide 27: 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 28: ...especially considering the fact that 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 29: Growth...
Growth... ✔ During the last 12 years, New Wave’s average growth has been 41.3 percent per year. ✔ New Wave’s profit has increased during the 12 years, by an average of 44 percent per year. ✔ On 31 March 2003, the trade price for the New Wave share was SEK 92, which corresponds to P/E 12.6 estimated
Slide 30: New Wave’s success factors
New Wave’s success factors ✔ Early integration ✔ Advantages 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 2003-03-13 ENG C-34
Slide 31: The European Corporate Profiling market is still fragmental and fairly immature...
The European Corporate Profiling market is still fragmental and fairly immature... © 2003 New Wave Group AB 2003-03-13 ENG C-29
Slide 32: Turnover for the profiling and gifts market
Turnover for the profiling and gifts market Estimated total market* SEK m New Wave’s prof. sales 2002 New Wave’s market share Sweden 2 944 465 15.8 % Norway 1 472 110 7.5 % Finland 1 693 86 5.1 % Denmark 1 472 14 1.0 % Germany 22 816 46 0.2 % England 16 928 45 0.3 % France 16 928 15 0.1 % Italy 11 0
Slide 33: Three goals at the introduction in December 1997
Three goals at the introduction in December 1997 (Sales of that time was app. SEK 350 million, the stock value was app. SEK 300 millon and the profit/loss before taxes was SEK 21.6 million) ✔ Sales: SEK 1 b (met 2000) (2002 SEK 1,685 million) ✔ Stock value: SEK 1 b (met 2000) (2002 SEK 1,280 million
Slide 34: Three new goals
Three new 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 2003-03-13 ENG these goals, or just
Slide 35: How to reach our goals for Corporate Profiling
How to reach our goals for Corporate Profiling ✔ More green field projects in more countries Switzerland, Poland, the Czech Republic, Hungary, Portugal, Greece etc. ✔ More concepts/trademarks on the Group’s existing markets Italy, Germany, Benelux, Spain, England ✔ The very first establishment of Co
Slide 36: How shall we succeed with working clothes?
How shall we succeed with working clothes? Our competitors have: ✔ Strong trademarks (Fristad, Snickers, Blåkläder, Jobman etc.) ✔ Good profitability ✔ High groos profit (some more than 50 percent) ✔ Good products ✔ Loyal customers ✔ Enough capital to be persistent © 2003 New Wave Group AB 2003-03-1
Slide 37: How shall we succeed with working clothes?
How shall we succeed with working clothes? ✔ We have international distribution ✔ We will create many new retailers of working clothes, i.e. customers that do not sell working clothes today but want to. In Sweden, approximately 300 retailers are concerned. ✔ We will offer working clothes to our exis
Slide 38: Goal – working clothes
Goal – working clothes 2003 No turnover. Negative result. Only in Sweden. No stock. Large development costs (products, personnel etc.). 2004 Goal: Turnover of SEK 20 m in Sweden. Loss of up to SEK –5 m. 2005 Goal: Turnover of SEK 40 m in Sweden. Introduction in Norway and Denmark. Total turnover of
Slide 39: 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! © 2002 New Wave Group A