Slide 1: Interim Report January - September 2019
2019 INTERIM REPORT January - September
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
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Slide 9: Teamwear
Kategorie Teamsport uae Kategorie Running GEWAHLT VON HANDLERN ~ GEWAHLT VON HANDLERN
Slide 10: Full score in sustainability for New Wave Group
FULL SCORE IN SUSTAINABILITY FOR NEW WAVE GROUP New Wave Group is one of eight companies that received full marks - six points out of six possible - when Dagens Industri, Aktuell Hållbarhet and the School of Economics and Management at Lund University ranked how over 170 listed companies related to
Slide 11: Distribution units
DISTRIBUTION UNITS Improvement of service level
Slide 12: Cutter & Buck
CUTTER & BUCK Great growth opportunities and our investments in the market continue!
Slide 13: Financial information
FINANCIAL INFORMATION
Slide 14: July - September: Net sales
JULY - SEPTEMBER NET SALES Sales amounted to SEK 1,685.5 (1,551.2) million 1 800 Sales increased by 9 % (5 % in local currencies) 1 600 Promo sales channel 7 %, retail 11 % 1 400 778.4 1 200 703.2 Growth in all segments and regions 1 000 800 600 400 907.0 847.9 200 0 Q3 2019 Q3 2018 Promo Retail
Slide 15: Net sales
NET SALES Ql Q2 Q3 ™2015 ©2016 ™2017 2018 2019 Q4 GR OU P
Slide 16: Net sales per operating segment
NET SALES PER OPERATING SEGMENT Corporate +6 % Sports & Leisure +11 % Gifts & Home Furnishings +8 % 900 800 700 23.6 21.8 600 500 603.6 542.7 400 707.5 665.8 300 200 100 182.3 151.2 138.8 165.3 0 17.3 16.9 Q3 -19 Q3 -18 Q3 -19 Q3 -18 Q3 -19 Q3 -18 Promo Retail
Slide 17: July - September: Net sales per geographic area
JULY - SEPTEMBER NET SALES PER GEOGRAPHIC AREA SEK million Jul - Sep Share of Jul - Sep Share of Change Change 2019 net sales 2018 net sales SEK million % USA 451.4 27% 408.6 26% 42.8 10% Sweden 382.4 23% 350.9 23% 31.4 9% Central Europe 258.8 15% 250.1 16% 8.7 3% Nordic countries excl. Sweden 206.1
Slide 18: July - September
JULY - SEPTEMBER Gross profit margin amounted to 45.2 (46.1) % SEK million Jul – Sep Jul – Sep 2019 2018 External costs and personnel costs amounted to a total of SEK -579.0 (-581.2) million Net sales 1 685.5 1 551.2 – More employees primarily within sales and Goods for resale -923.2 -835.3 warehous
Slide 19: Result for the period
RESULT FOR THE PERIOD 180 160 140 120 100 80 TT | Ql Q2 Q3 Q4 m2015 ™2016 m2017 m2018 2019 GR OU P
Slide 20: July - September: EBITDA per operating segment
JULY - SEPTEMBER EBITDA PER OPERATING SEGMENT All segments have higher net sales 120,0 Corporate 10.8 100,0 – Higher sales and marketing activities as well as distribution costs – IFRS 16 affected SEK 20.3 million 80,0 0.0 20.3 60,0 Sports & Leisure 0.0 97.1 – Higher sales and marketing activities a
Slide 21: July - September: Cash flow
JULY - SEPTEMBER CASH FLOW SEK million Jul – Sep Jul – Sep 2019 2018 Cash flow from operating activities before changes in working capital 149.9 116.1 Change in working capital -281.0 -199.1 Cash flow from operating activities -131.1 -83.0 Investing activities -32.6 -42.1 Cash flow after investing a
Slide 22: January - September: Net sales
JANUARY - SEPTEMBER NET SALES Sales amounted to SEK 4,879.3 (4,347.2) million 6 000 Sales increased by 12 % (7 % in local currencies) 5 000 Promo sales channel 11 %, retail 15 % 4 000 Growth in all segments and regions 2,030.5 1,771.8 3 000 2 000 2,848.9 2,575.4 1 000 0 Jan - Sep 2019 Jan - Sep 2018
Slide 23: Net sales per operating segment
NET SALES PER OPERATING SEGMENT Corporate +10 % Sports & Leisure +16 % Gifts & Home Furnishings +5 % 2 500 63.9 62.1 2 000 1 500 1,565.4 2,244.1 1,330.4 1 000 2,029.4 500 550.3 493.2 401.2 379.3 0 54.4 52.8 Jan - Sep 2019 Jan - Sep 2018 Jan - Sep 2019 Jan - Sep 2018 Jan - Sep 2019 Jan - Sep 2018 Pro
Slide 24: January - September: Net sales per geographic area
JANUARY - SEPTEMBER NET SALES PER GEOGRAPHIC AREA SEK million Jan - Sep Share of Jan - Sep Share of Change Change 2019 net sales 2018 net sales SEK million % USA 1 286.4 26% 1 097.7 25% 188.6 17% Sweden 1 105.9 23% 1 021.5 23% 84.4 8% Central Europe 751.2 15% 689.1 16% 62.1 9% Nordic countries excl.
Slide 25: January - September
JANUARY - SEPTEMBER Gross profit margin amounted to 46.3 (46.7) % SEK million Jan – Sep Jan – Sep 2019 2018 External costs and personnel costs amounted to a total of SEK -1,821.2 (-1,710.8) million Net sales 4 879.3 4 347.2 – Higher sales and marketing activities as well as Goods for resale -2 621.8
Slide 26: January - September: EBITDA per operating segment
JANUARY - SEPTEMBER EBITDA PER OPERATING SEGMENT All segments have higher net sales 300,0 Corporate – Higher sales and marketing activities as well as distribution costs 250,0 59.8 – IFRS 16 affected SEK 59.8 million 0.0 200,0 29.1 Sports & Leisure 150,0 – Higher costs for sales, marketing and 0.0 d
Slide 27: January - September: Cash flow
JANUARY - SEPTEMBER CASH FLOW SEK million Jan - Sep Jan – Sep 2019 2018 Cash flow from operating activities before changes in working capital 342.9 245.6 Change in working capital -530.2 -197.4 Cash flow from operating activities -187.3 48.2 Investing activities -106.5 -123.5 Cash flow after investi
Slide 28: Financial key figures
FINANCIAL KEY FIGURES Jan – Sep excl Jan – Sep Jan – Dec Jan – Dec 2019 IFRS 16 2018 2018 2017 Net sales growth, % 12.2 9.6 12.4 6.9 Number of employees 2 592 2 571 2 605 2 495 Gross profit margin, % 46.3 46.7 46.6 46,1 Operating margin before depreciation, % 9.3 7.4 7.6 8.9 9.5 Operating margin, %
Slide 29: CEO comments
CEO COMMENTS ” July - September We now have another strong quarter behind us, with growth of 9 % (5 % in local currencies). Expenses increased during the quarter at a slower pace than previous quarters (excluding IFRS 16). “Net sales reached an all-time January - September high for a third quarter a
Slide 30: CEO comments: The Future
CEO COMMENTS ” The Future We want to continue growing and we will grow even in 2020 – but we are changing the focus somewhat. Our main focus for 2020 is to increase the operating margin and to simultaneously strengthen the balance sheet further by focusing on a good cash flow. “Net sales reached an
Slide 31: 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 32: New Wave Group
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