New Wave Group Ab Class B · OMXSTO:NEWA_B
New Wave Group Ab Class B — FY2004 Earnings Presentation
36 slides from New Wave Group Ab Class B's earnings presentation, 2005
Slide 1: Presentation of New Wave Group
© 2003 New Wave Group AB ENG C-12 Presentation of
Slide 2: 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 3: Strategic distribution – business areas
Strategic distribution – business areas ✔ Corporate Profiling 60–80 %. Retailing 20–40 %. ✔ Risk spread. © 2002 New Wave Group AB ENG 4
Slide 4: Did you know...
Did you know... ...that New Wave Group through its trademarks (2003) sold approximately… ✔ 4.2 million one-coloured T-shirts in Sweden and 5.0 million in the rest of Europe? ✔ 480 thousand piqué shirts in Sweden and 1.7 million in the rest of Europe? ✔ 266 thousand shirts in Sweden and 520 thousand
Slide 5: New Wave – history
✔ 1990 • Sweden and Norway. New Wave – history ✔ 1994 • Finland and Italy. ✔ 1996 • Acquisition of Craft AB. ✔ 1997 • Denmark, Spain and Sales Germany. Result after net financial items ✔ 1998 • Acquisition of Hefa AB. ✔ 1999 • Acquisition in Holland and England. ✔ 2000 • Acquisition of Texet AB, est
Slide 6: 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 Clique Bike – a classic design that’s sold in over 1.2 million pieces. ENG 5
Slide 7: Purchasing – quality control
Purchasing – quality control New Wave Group has purchasing offices (with equipment for extensive quality control) in Sweden, China (Shanghai, Hong Kong, Guangzhou), Turkey, Vietnam and Bangladesh. Producing products with a even, high quality is very important. © 2002 New Wave Group AB ENG 6
Slide 8: 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 9: Countries where New Wave Group is operating
Countries where New Wave Group is operating Turkey Istanbul China sales offices & warehouses Shanghai Guangzhou production facilities HongKong sales offices Bangladesh purchasing offices Dhaka Vietnam Ho Chi Minh City © 2003 New Wave Group AB Some of the brands are also distributed in Iceland (Harve
Slide 10: Factory for production of clothes for the Chinese market
© 2003 New Wave Group AB New Wave has established a factory for production of clothes for the Chinese C-101 ENG market in Shanghai, China.
Slide 11: Interior from New Wave’s factory in Shanghai, China
© 2003 New Wave Group AB Interior from New Wave’s factory in Shanghai, China. C-102 ENG
Slide 12: Embroidery machine in New Wave’s factory in Shanghai
© 2003 New Wave Group AB Embroidery machine in New Wave’s factory in Shanghai, China. The Chinese customers are offered ready-embroidered promowear. A service we now also, C-103 ENG through Dahetra, can offer own customers in the Nordic countries.
Slide 13: 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 GOOD COV
Slide 14: Owned trademarks in Corporate Profiling business area
The following owned trademarks are distributed within the Corporate Profiling business area: © 2002 New Wave Group AB ENG 11
Slide 15: Vision – The Retailing business area
Vision – The Retailing business area ✔ To become the Nordic countries’ main supplier of sports- and leisurewear. ✔ To develop Sagaform into one of Europe’s biggest brands on kitchen, china and gifts. ✔ To develop the owned trademarks Craft and Seger into international trademarks on functional sports
Slide 16: 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 17: 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 2003–2008 ENG 9
Slide 18: Craft strengthens underwear and cycling
Craft has not only streghtened its collection of underwear with the line Pro Cool, but it also invests more in cycling by recruiting Tony Rominger as © 2003 New Wave Group AB Cycling Product Manager (ranked one of the world’s top 10 cyclists ever by Union Cyliste Internationale). C-100 ENG
Slide 19: Q4 July–December 2004
Q4 July–December 2004 ✔ Sales: +22% to SEK 712 (585) m. Profiling: +41% to SEK 511 (363) m. Retailing: –9% to SEK 201 (222) m. ✔ Profit: + SEK 10 to SEK 108 (98) m. Profiling: + SEK 9 to SEK 73 (64) m. Retailing: + SEK 1 to SEK 35,5 (34) m. © 2003 New Wave Group AB C-37 ENG
Slide 20: January–December 2004
January–December 2004 ✔ Sales: +22 % to SEK 2 302 (1 882) m. Profiling: +37 % to SEK 1 581 (1155) m. Retailing: –1 % to SEK 721 (727) m. ✔ Profit: + SEK 33 to SEK 214 (181) m. Profiling: + SEK 27 to SEK 154 (127) m. Retailing: + SEK 6 to SEK 60 (54) m. © 2003 New Wave Group AB C-91 ENG
Slide 21: Sales
Sales SEK Mkr M 600 500 400 300 200 100 © 2002 New Wave Group AB 0 Q1 Q2 Q3 Q4 1997 1998 1999 2000 2001 2002 2003 2004 ENG 32
Slide 22: Profit/loss after net financial items
Profit/loss after net financial items SEK M © 2002 New Wave Group AB ENG 33
Slide 23: Financial Highlights
Financial Highlights JAN - DEC JAN - DEC JAN - DEC JAN - DEC JAN - DEC 2004 2003 2002 2001 2000 Sales growth % 22.3 11.5 32.0 20.2 33.1 Employees 1 269.0 806.0 729.0 422.0 338.0 Gross profit margin % 45.9 44.4 42.0 40.5 38.8 Operating margin % 10.5 10.9 10.6 10.0 10.6 Profit margin % 6.6 7.1 6.2 6.4
Slide 24: Income Statement
Income Statement 3 Months 3 Months 12 Months 12 Months OKT-DEC OKT-DEC JAN-DEC JAN-DEC SEK M, 2004 2003 2004 2003 Net sales 712.3 584.7 2 302.2 1 881.9 Other income 7.2 12.0 20.0 13.5 Goods for resale -374.0 -310.7 -1 246.4 -1 047.2 Gross profit 338.3 274.0 1 055.8 834.7 Gross margin 47.5% 46.9% 45.
Slide 25: Sales per country
Sales per country JAN–DEC JAN–DEC CHANGE COUNTRY 2004 2003 SEK M % Sweden 956 835 121 15 Benelux 293 202 91 45 Germany 181 124 57 46 Norway 180 171 9 5 Finland 180 166 14 8 Italiy 140 117 23 20 Spain 93 77 16 21 Denmark 64 52 12 23 France 62 30 32 107 England 56 54 2 4 Switzerland 48 8 40 500 © 2003
Slide 26: Important events during Q4
Importent events during Q4 ✔ The sale of winter garments was lower than expected. ✔ The establishments in Switzerland, China, Spain, Belgium, as well as the launch of ProJob and the Jobman acquisition, have had a negative impact of approximately SEK 17 m. on the result. ✔ Suspicion about fraud in on
Slide 27: Prognosis 2005
Prognosis 2005 ✔ We are well prepared for the future and have a great optimism! ✔ ProJob will be launched in Finland, Belgium and Denmark. ✔ Jobman will be launched in Norway and Italy. ✔ Craft Suisse SA starts deliver goods in Switzerland. ✔ NW in China continues expanding in purchase, as well as s
Slide 28: Both sales and profit expected to increase for 2005
Both sales and profit expects to increase for 2005 © 2003 New Wave Group AB C-111 ENG
Slide 29: Concept per country
Concept per country ne gn An l esi oa en m nD r/G ve ue ed ha Wa c O inter ove lish n/Q Ow ng il eta DC ew ott /Ji UT ab lso ur Pr e orm ne e/N an y/C ari eR int est Yo st/ eO Ne n Job ma rric x/M po rve zzl gaf r ke sid qu qu be ft ge D rd Top Job Cra Pro Ma Ma Gri DA Hu Ha Cli Cli Sa Se Pa IN Lo T
Slide 30: What says that we are going to succeed?
What says that we are going to succeed? © 2003 New Wave Group AB C-98 ENG
Slide 31: 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 1,687 409 3
Slide 32: 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 33: New Wave’s success factors
New Wave’s success factors ✔ Economies 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 C-34 ENG
Slide 34: Our goals
Our 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 these goals, or just before we reach them,
Slide 35: Our vision
Our vision ✔ Sales: 10 billion SEK ✔ Stock value: 10 billion SEK ✔ Profit/loss before taxes: 1 billion SEK © 2003 New Wave Group AB C-99 ENG
Slide 36: 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