Slide 1: Presentation of
© 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 ✔ 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 ENG 4
Slide 4: Did you know...
Did you know... ...that New Wave Group through its trademarks (2002) 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 • New Wave – history ✔ 1994 • Sweden and Norway Finland and Italy ✔ 1996 • Acquisition of Craft AB Sales ✔ 1997 • Denmark, Spain and Result after net financial items Germany ✔ 1998 • Acquisition of Hefa AB ✔ 1999 • Acquisition in Holland and England ✔ 2000 • Acquisition of Texet AB, establish
Slide 6: This is New Wave
© 2003 New Wave Group AB ENG C-43 This is New Wave
Slide 7: 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 8: 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 ENG 6
Slide 9: 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 10: The Corporate Profiling business area
The Corporate Profiling business area End-customer Subsidiary Retailer ✔ design ✔ purchasing ✔ logistics ✔ service Factory © 2003 New Wave Group AB C-35 ENG
Slide 11: 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 12: Owned trademarks distributed within the Profiling business area
The following owned trademarks are distributed within the Profiling business area: © 2002 New Wave Group AB ENG 11
Slide 13: The Corporate Profiling market
© 2003 New Wave Group AB ENG C-44 The Corporate Profiling market
Slide 14: 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 ENG C-2
Slide 15: 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 16: 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 17: 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 18: 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 19: 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 20: Jan–dec 2003
Jan–dec 2003 ✔ Turnover: +12 % to SEK 1,881.9 (1,687.3) m Profiling: +11 % to SEK 1,154.6 (1,044.8) m Retailing: +13 % to SEK 727.3 (642.5) m ✔ Result: + SEK 36.2 m to SEK 181.3 (145.1) m Profiling: + SEK 24.1 m to SEK 127.5 (103.3) m Retailing: + SEK 12.1 m to SEK 53.8 (41.8) m © 2003 New Wave Grou
Slide 21: Q4 2003
Q4 2003 Turnover: ✔ + 1 % to SEK 584.7 (578.5) m • Profiling SEK 363.2 (357.2) m • Retailing SEK 221.5 (221.3) m Result: ✔ + SEK 12.0 m to SEK 99.0 (86.0) m • Profiling SEK 64.4 (59.5) m • Retailing SEK 33.6 (26.5) m © 2003 New Wave Group AB C-27 ENG
Slide 22: Important events during Q4
Important events during Q4 ✔ Acquisition of Swedish Match’s promo wear distribution. ✔ Establishment in Switzerland continues, sales start during January 2004. ✔ Stock in Sko Team smoke damaged. ✔ Result affected by: Central warehouse Implementation of new business system Investment in Switzerland I
Slide 23: Important events during Q4, p. 2
Important events during Q4, p. 2 ✔ Continued increase of market shares in all markets. ✔ Continued increase of gross margin. ✔ Establishment of ProJob according to plan. ✔ Toppoint launches Inside Out/D&J in Benelux. ✔ Cash flow - SEK 4.0 m after investments, in spite of large investments: Real esta
Slide 24: Sales
© 2002 New Wave Group AB ENG 32 SEK M Sales
Slide 25: Profit/loss after net financial items
Profit/loss after net financial items SEK M © 2002 New Wave Group AB ENG 33
Slide 26: Turnover per country (SEK m.)
Turnover per country (SEK m.) JAN - DEC JAN - DEC CHANGE COUNTRY 2003 2002 SEK M % Denmark 52,3 42,2 10,1 23,9 England 42,4 47,5 -5,1 -10,7 Finland 151,3 145,4 5,9 4,1 France 29,7 23,3 6,4 27,5 Benelux 222,3 132,8 89,5 67,4 Italy 116,7 95,8 20,9 21,8 Norway 170,8 164,4 6,4 3,9 Span 76,9 60,3 16,6 27
Slide 27: Income Statements
Income Statements 3 months 3 months 12 months 12 months OKT-DEC OKT-DEC JAN-DEC JAN-DEC SEK MILLION 2003 2002 2003 2002 Net sales 584.7 578.5 1 881.9 1 687.3 Other income 12.0 0.8 13.5 2.2 Goods for resale -310.7 -311.4 -1047.2 -980.7 Gross profit 286.0 267.9 848.2 708.8 Gross margin 48.9% 46.3% 45.
Slide 28: Financial Highlights
Financial Highlights JAN - DEC JAN - DEC JAN - DEC JAN - DEC JAN - DEC SEK MILLION 2003 2002 2001 2000 1999 Sales growth % 11.5 32.0 20.2 33.1 11.0 Sales per employee 806.0 729.0 422.0 338.0 237.0 Gross profit margin % 45.0 42.0 40.6 38.8 33.6 Operating margin % 10.9 10.6 10.0 10.6 8.3 Profit margin
Slide 29: New Wave during the depression 2000–2003
New Wave during the depression 2000–2003 ✔ Turnover increase: 77% ✔ Result improvement: 93% ...despite large investments! ✔ When the market in the Nordic countries changes for the better, the potential for profit increase is great. ✔ Gross profit established at a higher level. ✔ Persevering goal is
Slide 30: Heavy growth 2004–2005
Heavy growth 2004–2005 ✔ Switzerland: Sales start January 15, 2004 – good start! ✔ Projob: Sales start August 15, 2004. ✔ Warehouse for Harvest/Printer in Spain March 1, 2004. ✔ Warehouse for Harvest/Printer in Switzerland September 1, 2004. ✔ Warehouse for Sagaform Profiling in Benelux September 1,
Slide 31: Heavy growth 2004–2005, continuation
Heavy growth 2004–2005, continuation ✔ Increased international focus from Craft on other countries. ✔ The Czech republic and Poland are prepared for start during next year. ✔ Last year’s establishments in China take shape. ✔ D&J was established in Benelux January 1, 2003. ✔ Risk for a weaker result
Slide 32: Growth
Growth ✔ These establishments will increase the organic growth to 10–15% in approximately 6–12 months. ✔ A change in the Nordic countries will come. The question is when? Great potential! ✔ SMAP in January 1, 2004. We have the capacity to make more acquisitions. This will give a high level of growth
Slide 33: The two human types
The two human types From Wilhelm Moberg’s The Emigrants: Karl-Oskar: ”He, for his part, grow tired of striving if he no longer saw anything to strive for… And surely all people wanted something to strive for, at least as long as they were young… What else should they live for?” Kristina: ”Perhaps it
Slide 34: Continuous growth
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 35: 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 36: ...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 37: 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 C-34 ENG
Slide 38: 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 39: 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 these goals, or just before we reach
Slide 40: 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