New Wave Group Ab Class B · OMXSTO:NEWA_B
New Wave Group Ab Class B — FY2014 Earnings Presentation
29 slides from New Wave Group Ab Class B's earnings presentation, February 2015
Slide 1: Year End Report 31 December 2014
For 2015, the New Wave Group implement Craft several new major initiatives, including a completely new collection from Cutter & Buck for the European market. Year End Report 31 December 2014 J.Harvest & Frost
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, gifts and home furnishings sectors. Our three operating segments are: Corporate Promo; promowear, promotional gifts and workwear, Sports & Leisure and Gifts &
Slide 3: Operating segments and markets
Corporate Promo Operating segments and markets New Wave Group distributes more than 40 different brands, 3 of which are licensed brands. The rest are fully owned. Sport & Leisure Each brand is categorised according to which of our three operating segments it belongs to; Corporate Promo, Sports & Lei
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-i
Slide 5: Sports & Leisure vision
Seger Sports & Leisure vision The vision for the Sports & Leisure operating segment involves establishing the wholly owned brands Craft and Seger as international functional sportswear brands, and making Cutter & Buck a world-leading golf apparel brand. The vision also entails to strengthening Speed
Slide 6: Gifts & Home Furnishings vision
Orrefors Gifts & Home Furnishings vision The vision for the Gifts & Home Furnishings operating segment area 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 N
Slide 7: Financial information
Craft Financial information J.Harvest & Frost
Slide 8: October – December 2014
October – December 2014 Sales SEK 1 260 (1 140) million Corporate Promo 21%, Sport & Leisure 0%, Gifts & Home 9%. Improvements in Sweden and Europe Promo sales channel 20%, retail 0% Operating segments Corporate Promo 21% to SEK 580 (479) million - Increase primarily in Sweden and Europe
Slide 9: October – December 2014: Sales per area
October – December 2014 Sales per area OKT-DEC Part of OKT-DEC Part of Change % 2014 turnover 2013 turnover MSEK Sweden 341 27% 309 27% 32 10 USA 298 24% 288 25% 10 3 Nordic countries excl Sweden 150 12% 140 12% 10 7 Central Europe 225 18% 198 18% 27 14 Southern Europe 120 9% 100 9% 20 20 Other coun
Slide 10: October – December 2014
October – December 2014 J. Harvest & Frost Gross profit margin amounted to 46.8 (45.1)% improved service level, but also mix of countries and customers Total costs amounted to SEK -465.2 (-397.9) million additional sales and marketing activities Operating profit amounted to SEK 112.2 (111.
Slide 11: October – December 2014: Income statement
October – December 2014 Income statement Oct-Dec Oct-Dec SEK Million 2014 2013 Income 1 259.5 1 139.8 Goods for resale -669.6 -626.2 Gross profit 589.9 46.8% 513.6 45.1% Other operating income 10.1 9.3 External costs -260.5 -215.2 Personnel costs -204.7 -182.7 Depreciation/amortization -14.2 -11.9 O
Slide 12: October – December 2014: EBITDA per operating segment
Kosta Linnewäfveri Kosta Boda October – December 2014 EBITDA per operating segment Corporate Promo amounted to SEK 77.3 (58.6) million Higher turnover Higher costs due to increased activity within sales and marketing Sports & Leisure amounted to SEK 32.7 (31.2) million Higher turnover for
Slide 13: Sales
Sales 1500 1200 900 600 300 ° Q1 Q2 Q3 | Q4 2009 [M2010 J 201. 2012 F203 Bf 2014
Slide 14: Result before tax
Result before tax fe) Lt _| | lj = 1 I l Q1 2 Q3 Q4 2009 [M2010 J 201 2012 F203 Bh 2014
Slide 15: October - December 2014: Cash flow
October - December 2014 Cash flow Oct-Dec Oct-Dec SEK Million 2014 2013 Cash flow from operating act. before changes in working capital 129.1 103.3 Changes in working capital -183.7 109.8 Cash flow from operations -54.6 213.1 Investing activitites -29.6 -7.0 Cash flow after investing activities -84.
Slide 16: CEO summary – fourth quarter
CEO summary – fourth quarter Sales and result Our actions are starting to bite. Corporate Promo +21% Sport & Leisure 0% Gifts & Home Furnishings +9% Promo sales channel +20%, retail sales channel 0% Despite all the investments we are making for growth, thereby increasing our costs, ope
Slide 17: January – December 2014
Cutter & Buck January – December 2014 Sales SEK 4,274 (4,047) million Corporate Promo 13%, Sport & Leisure 1%, Gifts & Home 0%. Improvements in Sweden, Europe and Asia Sales improved primarily in promo sales channel Acquired business SEK 14 million Operating segments Corporate Promo 13
Slide 18: January – December 2014: Sales per area
January – December 2014 Sales per area JAN-DEC Part of JAN-DEC Part of Change % 2014 turnover 2013 turnover MSEK Sweden 1 064 25% 1 036 26% 28 3 USA 1 124 26% 1 095 27% 29 3 Nordic countries 606 14% 589 15% 17 3 Central Europe 766 18% 710 17% 56 8 Southern Europe 365 9% 335 8% 30 9 Other countries 3
Slide 19: January – December 2014
Clique January – December 2014 Gross profit margin amounted to 45.7 (46.2)% higher freight costs and more expensive substitutes because of shortages in certain segments of our promo stock during first six months mix of countries and customers Total costs amounted to SEK -1 659.2 (-1 551.1) m
Slide 20: January – December 2014: Income statement
January – December 2014 Income statement Jan-Dec Jan-Dec SEK Million 2014 2013 Income 4 273.6 4 047.4 Goods for resale -2 321.0 -2 117.0 Gross profit 1 952.6 45.7% 1 870.4 46.2% Other operating income 27.7 33.3 External costs -923.5 -853.3 Personnel costs -735.7 -697.8 Depreciation/amortization -54.
Slide 21: January – December 2014: EBITDA per operating segment
Clique Clique January – December 2014 EBITDA per operating segment Corporate Promo amounted to SEK 173.8 (143.5) million Turnover related Lower gross profit margin Higher costs due to more activities within sales and marketing Sports & Leisure amounted to SEK 135.3 (154.8) million Lower
Slide 22: January - December 2014: Cash flow
January - December 2014 Cash flow Jan - Dec Jan - Dec SEK Million 2014 2013 Cash flow from operating act. before changes in working capital 253.9 226.6 Changes in working capital -538.1 131.9 Cash flow from operating activities -284.2 358.5 Investing activitites -74.3 -46.8 Cash flow after investing
Slide 23: Financial highlights - summary
Financial highlights - summary 12 months 12 months 12 months 12 months 12 months 12 months 12 months Jan-Dec Jan-Dec Jan-Dec Jan-Dec Jan-Dec Jan-Dec Jan-Dec 2014 2013 2012 2011 2010 2009 2008 Sales growth, % 5.6 -5.4 1.0 -0.2 3.8 -11.2 9.8 Number of employees 2 212 2 123 2 258 2 470 2 196 2 203 2 56
Slide 24: CEO summary - 2014
CEO summary - 2014 Full year 2014 Was characterised by Improving inventory value and service levels Product development Stimulate growth Not happy with a growth rate of 6%, but satisfied with the last months of the year. Incredibly gratifying that Orrefors Kosta Boda, for the second ye
Slide 25: CSR – Advisory board
CSR – Advisory board New Wave Group strives to attain sustainable growth through Corporate Social Responsibility (CSR). New Wave Group cooperates with well-known organizations like the BSCI, Fair Labour Association and Clean Shipping Network. We are also proud signatories of the Accord on Fire a
Slide 26: Cottover
Cottover In line with our CSR ambition, our subsidiary Hefa AB now launches (spring 2015) a new clothing collection under the brand Cottover with high focus on sustainability. The collection includes features such as; 100 % organic cotton 100 % Fairtrade cotton Recycled Polyester All produ
Slide 27: Cottover
Cottover As the supply of certified and sustainable clothing is limited on the market today, we are happy to be able to offer a collection that will be a competitive alternative to conventional clothing since The Cottover collection is a broad collection of basic garments in 10 different models.
Slide 28: Cutter & Buck
Cutter & Buck New Wave Group implement several new major initiatives, including a completely new collection from Cutter & Buck for the European market. Will be launched February 2015 Cutter & Buck
Slide 29: in the best possible way we can —
Craft offers sports lovers at all levels underwear, insulating mid layer, and outerwear within running, cross country skiing, bicycling and alpine skiing. 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