New Wave Group Ab Class B · OMXSTO:NEWA_B

New Wave Group Ab Class B — Q4 2006 Earnings Presentation

29 slides from New Wave Group Ab Class B's earnings presentation, 2007

  1. Slide 1: Presentation of New Wave Group

    © 2007 New Wave Group AB ENG 2007–1 1 Presentation of

  2. Slide 2: Business idea

    2 Business idea New Wave Group is a growing company that designs, acquires and de- velops 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 busi

  3. Slide 3: New Wave – history

    3 New Wave – history 3400 Sales, SEK m. Result after financial items, SEK m. 290 ✔ 1990 • Sweden and Norway. 280 3200 ✔ 1994 • Finland and Italy. 270 260 ✔ 1996 • Acquisition of Craft AB. 3000 250 ✔ 1997 • Denmark, Spain and 2800 240 Germany. 230 2600 ✔ 1998 • Acquisition of Hefa AB. 220 210 ✔ 1999 •

  4. Slide 4: Did you know...

    4 Did you know... ...that New Wave Group through its trademarks (2006) sold approximately... ✔ 4.2 million one-coloured T-shirts in Sweden and 6.5 million in the rest of Europe? ✔ 1.4 million piqué shirts in Sweden and 4.2 million in the rest of Europe? ✔ 300 thousand shirts in Sweden and 620 thousa

  5. Slide 5: Vision – The Profiling business area

    5 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. The total market covering the suppliers within the three © 2007 New

  6. Slide 6: Range coverage – The Profiling business area

    6 Range coverage – The Profiling business area 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 © 2007 New Wave Group AB • etc. FULL

  7. Slide 7: Give-aways – The Profiling business area

    7 Give-aways – The Profiling business area © 2007 New Wave Group AB 2007–7 ENG

  8. Slide 8: Workwear – The Profiling business area

    8 Workwear – The Profiling business area © 2007 New Wave Group AB 2007–8 ENG

  9. Slide 9: Promowear – The Profiling business area

    9 Promowear – The Profiling business area © 2007 New Wave Group AB 2007–9 ENG

  10. Slide 10: Vision – The Retailing business area

    10 Vision – The Retailing business area ✔ 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 sportswear. ✔ To develop Orrefors and Kosta Boda into the leading brands in the

  11. Slide 11: Big corporate synergies – small companies flexibility

    11 Big corporate synergies – small companies flexibility Output Profiling HIGH END PRODUCTS Promowear Warehouse Logistics Give-aways Workwear New Wave Retailing Sportswear Textile Gifts Design/product development Purchasing Shoes BASIC Towelling PRODUCTS © 2007 New Wave Group AB 2007–11 ENG

  12. Slide 12: Q4 January–December 2006

    12 Q4 January–December 2006 ✔ Sales: +15% to SEK 3 531 (3 059) m Acquired units contributed with SEK 245 m = organic growth of 7% Profile: +9% to 2 146 (1 976) m Retail +28% to 1385 (1083) m ✔ Profit: SEK +36.2 m to 290.2 (254.0) m Acquired units burdned by SEK 21.3 m Profile: EBITDA SEK 40.8 m to 287.

  13. Slide 13: Q4 October–December 2006

    13 Q4 October–December 2006 ✔ Sales: +5% to 1 079 (1 030) m Profile: SEK +3 % to SEK 662 (641) m Retail: SEK +7 % to SEK 417 (389) m ✔ Profit: SEK +24.5 m to SEK 156.1 (131.6) m Profile: EBITDA SEK +16.1 m to SEK 115.3 (99.2) m Retail: EBITDA SEK +13.9 m to SEK 64.4 (50.5) m © 2007 New Wave Group AB 20

  14. Slide 14: Important events during Q4

    14 Important events during Q4 ✔ Mild autumn/winter affected both profile and retail ✔ Currency exchange rate had a negative impact on sales of SEK29m – Organic growth in local currencies = 8% ✔ A lot of activities around the Orrefors Kosta Boda ✔ SEK appreciation vs USD affected the profitability in O

  15. Slide 15: Sales

    15 Sales 1100 Mkr SEK M 1000 900 800 700 600 500 400 300 200 100 © 2007 New Wave Group AB 0 2007–15 Q1 Q2 Q3 Q4 ENG 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

  16. Slide 16: Profit/loss after net financial items

    16 Profit/loss after net financial items SEK M © 2007 New Wave Group AB 2007–16 ENG

  17. Slide 17: Income Statement, Full Year

    17 Income Statement, Full Year SEK Mkr 2006 2005 2004 2003 2002 Sales 3 530,5 3 059,0 2 302,2 1 881,9 1 687,3 COSG -1 839,6 -1 638,7 -1 246,4 -1 047,2 -980,7 Gross profit 1 690,9 1 420,3 1 055,8 834,7 706,6 Gross margin % 47,9% 46,4% 45,9% 44,4% 41,9% Other income 23,1 25,8 20,0 13,5 2,2 External cos

  18. Slide 18: Quarterly income statement

    18 SEK Mkr 2006 2005 Quarter Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Net Sales 755,3 896,7 799,6 1078,9 516,5 738,6 774,2 1 029,7 Increase in % 46,2% 21,4% 3,3% 4,8% 10,2% 24,0% 47,4% 44,6% Goods for resale -407,7 -468,8 -424,0 -539,1 -288,6 -395,5 -413,6 -541,0 Gross profit 347,6 427,9 375,6 539,8 227,9 343,1 360,6

  19. Slide 19: Financial Highlights

    19 Financial Highlights 2006 2005 2004 2003 Sales Growth % 15,4 32,9 22,3 11,5 Profile’s relation of sales in % 61 65 69 61 No of employees 2 161 2 032 1 269 806 Gross Margin 47,9 46,4 45,9 44,4 Operating margin 9,8 9,7 11,4 10,9 PTP-margin 8,2 8,3 10,2 9,6 Profit margin 6,4 6,8 7,5 7,1 Return on capi

  20. Slide 20: Sales per country

    20 Sales per country Increase SEK Mkr 2006 In % of total 2005 MKR % Sweden 1 388 39% 1 188 200 17 Benelux 369 10% 336 33 10 Norway 296 8% 257 39 15 Germany 246 7% 223 23 10 Italy 210 6% 181 29 16 Finland 207 6% 192 15 8 USA 167 5% 116 51 44 Denmark 133 4% 119 14 12 Switzerland 102 3% 85 17 20 Great

  21. Slide 21: Orrefors Kosta Boda Flagship Stores, Shanghai

    21 Orrefors Kosta Boda Flagship Stores, Shanghai © 2007 New Wave Group AB 2007–21 ENG

  22. Slide 22: Orrefors Kosta Boda

    22 Orrefors Kosta Boda ✔ Production ✔ Stock increase ✔ New outlet, 12 000m2, planned to be ready in July 2007 ✔ New hotel with approx. 100 beds, planned to be ready in summer 2008 ✔ Market hall, planned to be ready in Sept 2008 – Distribution to profile – Local sales – Supply to restaurants ✔ Kosta L

  23. Slide 23: Craft Seger Sagaform

    23 Craft ✔ Strong running collection ✔ Good international development ✔ Underwear 365d/year, for all sports = strong development ✔ Goals 2010 – Sales SEK1billion – Profit margin >15% Seger ✔ Good, profitable development in 2006 ✔ Profitable and flexible production in Sweden. Sagaform ✔ Suffer from focus

  24. Slide 24: PROFILE

    24 PROFILE Work Wear ✔ Stong development in 2006 ✔ Suffer from warm weather in Q4. ✔ Focus to build up an international concept ✔ Focus in international sales in 2007. Promo Wear ✔ Strong development. ✔ Suffer from warm weather in Q4. ✔ Three well running concepts ✔ Focus to increase cost efficiency/

  25. Slide 25: Views of 2007

    25 Views of 2007 ✔ Improve the profitability on new establishment, integrate the acquisitions and concentrate buying. ✔ We are ready for new acquisitions if we find “the right one”. ✔ Tax rate back to historic levels ✔ Our long term goal is the same = 20 – 40 % growth / year. ✔ Increased long term Gro

  26. Slide 26: How to reach 20–40% growth?

    26 How to reach 20–40% growth? ✔ Increase competetiveness – Better buying – Better logistic – Better co-ordination between and within the different concepts – More cost efficiency = synergies ✔ Continues organic growth ✔ Continues establishment of existing brands through existing subsidiaries. ✔ Ente

  27. Slide 27: What we have accomplished so far speaks for itself...

    27 What we have accomplished so far speaks for itself... Year Sales SEKM Increase SEKM 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 721 270 105,4 % 1999 799 78 10,8 % 2000 1 063 264 33,0 % 2001 1 278 215 20,2 % 2002 1 687 409 32

  28. Slide 28: ...especially considering that the profit has increased every year...

    28 ...especially considering the fact that the profit has increased every year... Year Net profit SEKM Increase SEKM 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,

  29. Slide 29: We hope that everybody who buys our products is a content customer

    29 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! © 2007 New Wave Grou

New Wave Group — Q4 2006 Earnings Presentation on 6ix