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New Wave Group AB — Interim / Quarterly Report 2009
Nov 12, 2009
3081_10-q_2009-11-12_ccb6fead-ddae-4e45-af28-e7386c98f57b.pdf
Interim / Quarterly Report
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Interim Report for New Wave Group AB (publ) JANUARY – SEPTEMBER 2009
Sales
200 Result before tax
Clique promowear jacket Babson.
Interim report in brief
The period 1 July – 30 September 2009
- Sales amounted to MSEK 1,002, which was 10 % lower than the previous year (MSEK 1,117).
- The result after tax amounted to MSEK 19.3 (74.7).
- The result per share amounted to SEK 0.29 (1.19).
- The cash flow from operating activities improved by MSEK 246 to MSEK 141 (-105).
- The equity ratio amounted to 36.7 (30.5) %.
- The net debt to equity ratio amounted to 127.0 (169.4) %.
The period 1 January – 30 September 2009
- Sales amounted to MSEK 3,005, which was 11 % lower than the previous year (MSEK 3,378).
- The result after tax amounted to MSEK 26.5 (145.5).
- The result per share amounted to SEK 0.39 (2.19).
- Restructuring costs have affected the result after tax by MSEK 56.4.
- The cash flow from operating activities improved by MSEK 698 to MSEK 376 (-322).
VIEWS ON 2009
Market development has been weaker than expected, primarily in the Promo sales channel. We expect the sales drop during the fourth quarter to be lower than during previous quarters, but we expect a better quarter result than last year.
CEO Comments
Our 3rd quarter offered both good and bad. We had a rather pessimistic view of the market – promo in particular – even before the quarter, and unfortunately, we were right. The promo market is very weak, and unfortunately we believe it will remain the same in Q4.
To some extent, I am disappointed with the sales figures – we believe we have developed better than our competitors in most areas – but that in itself is no consolation. I am also very disappointed with the result – it is mainly due to lower sales – but also lower gross profit. However, I am incredibly satisfied, pleased and proud of what we have achieved in terms of cash flow, inventory reduction and reduction of our debt – and that is after all what we have focused on and accomplished.
Q4
In Q4, we expect a continued weak market, but a lower sales drop than in the previous quarter. However, the quarter result is expected to be better than 2008's. We will continue to focus on cash flow and inventory reduction.
2010
However, it is with pleasure I can say that it can start to be really enjoyable again. We enter 2010 with a stronger balance sheet and we can once again focus on sales – marketing and growth. We are in much better shape than our competitors – thanks to the fact that we took strong action at an early stage. Furthermore, for 2010 we see a considerably more stable market – and in the U.S. we are already seeing a turnaround in orders for Cutter & Buck.
Comments
JULI – SEPTEMBER
Sales
Sales amounted to MSEK 1,002 (1,117), which was 10 % lower than the previous year. Exchange rates had a positive effect on sales by MSEK 61.
Sales decreased by 20 % in the Promo Business Area, while Sports & Leisure and Gifts & Interior show a smaller decrease by 2 and 5 % respectively.
Turnover decreased by 8 % in the Nordic countries, mainly in Sweden and Finland. Sales in Europe decreased by about 11 % and in North America by 16 %. Positive currency effect occurred mainly in Euro countries and the U.S.
The sales drop is mainly due to the general financial situation.
Gross margin
The gross margin amounted to 44.6 (50.8) %. The decrease is mainly related to the weak business cycle in the Promo sales channel, in particular on the American market.
Other income and other costs
Other income decreased by MSEK 21.1 to MSEK 2.1 (23.2). The decrease is attributable to the fact that last year includes capital gain in connection with property sales and an insurance compensation in connection with a fire. Remaining revenues are mainly attributable to the operation's exchange gains and should be set against the result row "Other costs" where primarily the operation's currency exchange losses are reported.
Costs and depreciations
External costs decreased by MSEK 33.4 and amounted to MSEK -226.5 (-259.9). Costs for personnel amounted to MSEK 166.6, which is on the same level as last year (MSEK 167.5). Both cost elements have been affected positively due to savings, but negatively when recalculating foreign subsidiaries to SEK.
Depreciations amounted to MSEK 17.1 (16.5).
The operating margin amounted to 3.8 (12.8) %. The decrease is mainly due to weaker sales and gross margin.
Finance net and taxes
Net financial items amounted to MSEK -11.4 (-39.2). The decrease is due to lowered interest rate levels and lower debt. It is the Group's policy to have a short interest rate guarantee resulting in quick effects on the Group's net interest as the shortterm interest changes.
Tax expenses in absolute numbers amounted to MSEK 7.0 (28.9), and the tax rate to 26.6 (27.9) %.
Result
The result after tax decreased by MSEK 55.4 to MSEK 19.3 (74.7) and the result per share amounted to SEK 0.29 (1.19).
JANUARY - SEPTEMBER
Sales
Sales amounted to MSEK 3,005 (3,378) during the period, which was 11 % lower than last year. Exchange rates had a positive effect on sales by MSEK 277.
The decrease has affected all business areas, Promo by 16 %, Sports & Leisure by 7 %, and Gifts & Home Interior by 6 %.
Turnover decreased by 15 % in the Nordic countries during the period, mainly in Sweden and Finland. Sales in Europe were somewhat better and show a decrease of about 6 %, where mainly Switzerland has a better development and shows growth. Sales in North America decreased by 11 %. Positive currency effect occurred mainly in Euro countries and the U.S.
The decrease in sales is due to the general financial situation as well as last year's sales of sports and promo wear for the European football championship.
Gross margin
The margin amounted to 46.7 (49.4) %. The decrease is related to the weaker business cycle, mainly in the Promo sales channel and in particular on the American market. The gross margin has also been affected by restructuring costs in Orrefors Kosta Boda, which affected the first quarter's earnings by MSEK 25.
Other income and other costs
Other income increased by MSEK 11.2 to MSEK 47.0 (35.8). The increase is attributable to the sales of Orrefors' art glass collections and properties, which generated a capital gain of MSEK 16.4. Remaining revenues are mainly attributable to the operation's exchange gains and should be set against the result row "Other costs" where primarily the operation's currency exchange losses are reported. Other costs increased by MSEK 14.4 to MSEK -25.2 (-10.8). The result of these two items amounts to a net income of MSEK 5.4.
Costs and depreciations
External costs decreased by MSEK 93.6 and amounted to MSEK -714.3 (-807.9). Costs have been affected positively due to savings, but negatively when recalculating foreign subsidiaries to SEK. Restructuring costs of MSEK 7.1 have affected external costs in connection with changes in the Cutter & Buck division for direct sales to end customers.
Personnel costs have increased by MSEK 47.6 to MSEK -580.6 (-533.0). Costs have been affected positively due to savings, but negatively when recalculating foreign subsidiaries to SEK. The effect of the Orrefors Kosta Boda restructure was reported in the first quarter, which resulted in personnel decrease of 154 people. This meant that the company made an appropriation for restructuring in the form of a onetime cost of MSEK 70.1 total in the financial statement for the first quarter 2009. Of these, MSEK 45.1 is declared as personnel costs and MSEK 25.0 as gross profit as they are attributable to a decreased production result.
Depreciations amounted to MSEK 54.6 (45.7).
The operating margin amounted to 2.5 (9.1) %. The decrease is due to the restructuring costs and lower volumes.
Finance net and taxes
Net financial items amounted to MSEK -39.7 (-107.6). The decrease is due to lowered interest rate levels and lower debt. It is the Group's policy to have a short interest rate guarantee resulting in quick effects on the Group's net interest as the short-term interest changes.
The tax rate amounted to 26.6 (27.1) %.
Result
The result after tax decreased by MSEK 119 to MSEK 26.5 (145.5) and the result per share amounted to SEK 0.39 (2.19).
During the first quarter the result has been affected by restructuring costs of MSEK 77.2 before tax. With a tax rate of 26.9 % for concerned companies, the net impact of the restructuring costs is MSEK -56.4.
REPORTING OF BUSINESS AREAS
New Wave Group AB divides its operations into three business areas; Promo, Sports & Leisure, and Gifts & Home Interior. Each brand has been placed into the business area it is considered to belong to (see attachment for breakdown of brands into business areas). The Group observes the areas' and the brands' sales and results (EBITDA). The business segments are based on the Group's operational management.
Promo
During the period July-September, sales decreased by 20 % to MSEK 403 (503) and the result (EBITDA) decreased by MSEK 63.7 to MSEK 13.5 (77.2). The decrease is attributable to the general financial situation and has affected all markets.
During the period January-September, sales decreased by 16 % to MSEK 1,344 (1,603) and the result (EBITDA) decreased by MSEK 125.7 to MSEK 107.6 (233.3). Sales and result were lower in the Nordic countries, mainly in Sweden and Finland. The results for Europe also indicated a decrease, but have been compensated by a positive currency effect. The decrease is due to the general financial situation.
Sports & Leisure
During the period July-September, sales decreased by 2 % to MSEK 449 (456) and the result (EBITDA) decreased by MSEK 37.3 to MSEK 42.1 (79.4). The weak American market has had a negative effect on Cutter & Buck, but the market seems to have recovered somewhat during this quarter. Craft sales are increasing compared to last year, mainly in the retail sales channel. The decline in earnings is related to lower gross profit margins primarily on the U.S. market.
Turnover for the period January-September decreased by 7 % and amounted to MSEK 1,230 (1,319). The result (EBITDA) decreased by MSEK 67.6 to MSEK 90.2 (157.8). Turnover and results for Craft have had a continued positive trend. Cutter & Buck has been negatively affected by the weak U.S. market. Cutter & Buck U.S. has also been affected by restructuring costs of MSEK 7.1 due to changes in the division for direct sales to end customers. The result decrease is mainly related to lower sales this year in comparison to last year's European Football Championship.
An agreement with Coop has been reached which means that the current agreement expires at the end of the year. Negotiations for a change in co-operation from the end of the year are nearing finalisation.
Gifts & Home Interior
During the period July-September, sales decreased by 5 % to MSEK 150 (158) and the result (EBITDA) decreased by MSEK 3.5 to MSEK -0.8 (2.7). The turnover decrease is mainly related to the Orrefors Kosta Boda export market. Sales and results for Sagaform are on the same level as last year. Previous year's result includes a MSEK 5 insurance compensation in connection with a fire.
During the period January-September, sales decreased by 6 % to MSEK 431 (456) and the result (EBITDA) decreased by MSEK 29.2 to MSEK -67.4 (-38.2). The lower sales are related to the Swedish Orrefors Kosta Boda retail market and the weaker result to the company's restructuring costs of MSEK 70.1 which were reported during the first quarter. Sales and results for Sagaform are on the same level as last year. Previous year's result includes a MSEK 5 insurance compensation in connection with a fire.
GEOGRAPHICAL ALLOCATION
A table showing sales in the regions Nordic Countries, Mid Europe, South Europe, North America and Other Regions is displayed on page 15.
Sales decreased by 8 % in the Nordic region during the period July-September, which is attributable to all Nordic countries. Europe has been negatively affected on most markets, except Switzerland which had a positive trend. Sales decreased by 16 % in the U.S., the exchange rate development had a positive effect and sales in local currency in the region dropped by 24 %. Sales on all other markets are in line with previous years' numbers.
Sales decreased by 15 % in the Nordic region during the period January-September, which mainly is attributable to Sweden and Finland. The currency effect had a positive impact in Europe. Europe has been negatively affected on most markets, although Switzerland shows better development than the other countries. Sales decreased by 11 % in the U.S., the exchange rate development had a positive effect and sales in local currency in the region dropped by 28 %. Sales on all other markets are somewhat lower than last year.
CAPITAL TIED UP
Capital tied up in stock amounted to MSEK 1,849 (2.225). The weakened Swedish krona affects the declared value when converting to SEK. This has increased the stock by MSEK 31 during the period. Obsolescence reserve as of 30 September, 2009 amounted to MSEK 80 (83), or about 4 % (about 4 %) of the declared stock value.
The stock turnover rate for the period January-September amounted to 1.1 (1.1).
Accounts receivable decreased by MSEK 110 to MSEK 819 (929).
The steps taken to decrease capital tied up have had the desired effect and is expected to continue in the fourth quarter.
INVESTMENTS, FINANCING AND LIQUIDITY
The Group's cash flow from operations during the period July-September amounted to MSEK 141 (-105) and after investments to MSEK 106 (-127). The Group's casheffecting net investments amounted to MSEK -35 (-22), where the establishing of Kosta Boda Art Hotel is responsible for the major part of the period's investments.
The Group's cash flow from operations during the period January-September amounted to MSEK 376 (-322) and after investments to MSEK 334 (-380). The Group's cash-effecting net investments amounted to MSEK -42 (-59), where the sale of tangible fixed assets included MSEK 19.9.
The net debt decreased by MSEK 180 during July-September and amounted to MSEK 2,172. Corresponding period last year showed an increase of MSEK 79 to 2,740. Net debt in relation to equity decreased and amounted to 127.0 (169.4) %.
The net debt decreased by MSEK 405 during January-September and amounted to
MSEK 2,172. Currency changes have decreased the debt by MSEK 94 since the turn of the year. Corresponding period last year showed an increase by MSEK 383. Net debt relative to equity decreased during the first nine months and amounted to 127.0 % against 140.5 % by 31 December, 2008.
The equity ratio improved and amounted to 36.7 (30.5) %.
The Group had a credit line of MSEK 2,875 as at 30 September, 2009, and the credit agreement runs up until April 2011. The interest is based on each respective currency's prime interest rate and fixed margin. It is the Group's policy to have a short interest rate guarantee resulting in quick effects on the Group's net interest as the short-term interest changes.
New Wave Group's financing agreement includes a commitment (covenant) on the equity ratio and total credit limits of 2,875 as at 30 September to be gradually depreciated down to MSEK 2,475 as at 30 April, 2011.
The company's presentation and valuation of intangible assets is made in accordance with previous year at the turn of the year. Impairment tests for intangible assets will be calculated by the expected future cash flows per segment. The deteriorated market conditions and financial situation make it difficult to forecast the coming period.
PERSONNEL AND ORGANISATION
The number of full time employees as of 30 September, 2009 amounted to 2,241 (2,649) persons, of which 48 % were women and 52 % were men. Out of all the employees, 582 work in production. The production owned by New Wave Group belongs to Orrefors Kosta Boda, Seger, Dahetra, Toppoint and Cutter & Buck (embroidery).
SUBSCRIPTION OPTIONS IN NEW WAVE GROUP AB (PUBL.)
New Wave Group has four outstanding subscription option programs.
A new program for senior executives was introduced during June 2009. The program runs until June 2012 and the exercise price is SEK 26.10. The option subscription premium was SEK 0.21 per option.
Two option programs were launched in July 2008, one for senior executives and one for the Board of Directors. The senior executives program consists of 1,800,000 options and expires in June 2011. The exercise price is SEK 64.05. The option subscription premium was SEK 1.11 per option. The Board of Directors program consists of 200,000 options and expires in June 2013. The exercise price is SEK 85.40. The option subscription premium was SEK 0.88 per option.
The previous program was launched in July 2007 and consists of 1,653,250 options and expires in June 2010. The exercise price is SEK 102.50. The option subscription premium was SEK 7 per option. 2,000,000 options were originally issued, of which 346,750 have later been cancelled.
Acquired premiums for all programs above have been based on market value.
RELATED-PARTY TRANSACTION
There are lease agreement contracts with associated companies. The parent company has purchased consulting services from a Board Member. The CEO has rented a property for private use. All transactions have occurred in accordance with market conditions.
VIEWS ON 2009
Market development has been weaker than expected, primarily in the Promo sales channel. We expect the sales drop during the fourth quarter to be lower than during previous quarters, but we expect a better quarter result than last year.
THE PARENT COMPANY
Sales amounted to MSEK 128 (111). Profit after financial items amounted to MSEK 37.7 (-38.2). Net borrowing amounted to MSEK 2,063 (1,694), of which MSEK 1,682 (213) refer to financing of subsidiaries. Net investments amounted to MSEK 121 (-58). Total assets amount to MSEK 3,573 (2,982) and equity to MSEK 1,086 (759).
RISKS AND RISK CONTROL
Having international operations, New Wave Group is continuously exposed to different kinds of financial risks. These risks are currency, borrowings and interest rate risks, as well as liquidity and credit risks. In order to minimize the affect these risks may have on the result, the group has drawn up a financial policy. For a more detailed description of how the Group handles risks, please refer to the Annual Report 2008; www.nwg.se.
It is the Group's policy to have a short interest rate guarantee resulting in quick effects on the Group's net interest as the short-term interest changes.
The Group's accounted exposures are in all material aspects unchanged. The current market conditions and the financial crisis have however created an uncertainty, which means that the financial risks on the market have increased.
ACCOUNTING PRINCIPLES
This report has been prepared according to IAS 34 Interim Report and the Annual Report Law. Report regarding Total result has been prepared according to IAS 1 (R) and is applied for the first time 30 September, 2009. The interim report for the parent company has been prepared according to Annual Report Law as well as the Swedish Financial Accounting Standards Council's standards RFR 2:2 – Accounting for legal entity. The comparative year has been recalculated. Applied accounting principles are in accordance with the Annual Report for 2008.
CALENDAR
- • 11 February, 2010 (new date, previously 19 February) Year End Report 2009
- • 22 April, 2010 Interim Report for Q1 • 17 May, 2010
- Annual Shareholders Meeting 2010
The Board and the CEO assure that the Interim Report gives a true and fair view of the company and the Group's operations, position and result and describes the material risks and uncertainties that the company and the Group face.
Gothenburg 12th November, 2009
New Wave Group AB (publ)
| Anders Dahlvig | Kinna Bellander | Göran Härstedt |
|---|---|---|
| Chairman of the Board | Member of the Board | Member of the Board |
| Helle Kruse Nielson | Mats Årjes | Torsten Jansson |
| Member of the Board | Member of the Board | CEO |
FOR MORE INFORMATION, PLEASE CONTACT
CEO Torsten Jansson Phone: 031–712 89 01 E-mail: [email protected] CFO Lars Jönsson Phone: 031–712 89 12 E-mail: [email protected]
The information in this report is that which New Wave Group is required to disclose under the Securities Exchange and Clearing Operations Act and/or the Financial Instruments Trading Act. It was released for publication at 7 am (CET) on 12 November, 2009.
New Wave Group AB (publ) (556350 - 0916)
Review Report
Introduction
We have reviewed the interim report for New Wave Group AB (publ) for the period from January 1, 2009 to September 30, 2009. It is the Board of Directors and the Managing Director who are responsible for the presentation of this interim report in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.
The Scope of the Review
We conducted our review in accordance with the Standard on Review Engagements, SÖG 2410, Review of the Interim Financial Information Performed by the Indepen¬dent Auditor of the Entity, issued by the Federation of Authorized Public Accoun¬tants. A review of the interim report consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review substantially smaller less in scope compared to an audit conducted according to Standards on Auditing in Sweden (RS) and other generally accepted auditing practices. The procedures performed in a review do not enable us to obtain a level of assurance that would make us aware of all significant matters that might be identified in an audit. Accordingly, the conclusion expressed based on a review does not constitute the same level of assurance as an conclusion based on an audit.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the interim report, in all material respects, is not prepared for the Group in accordance with IAS 34 and the Swedish Annual Accounts Act and for the parent company in accordance with the Swedish Annual Accounts Act.
Göteborg, November 12, 2009
Ernst & Young AB
Sven-Arne Gårdh Nina Bergman Authorized Public Accountant Authorized Public Accountant
Income Statements – Group
| 3 months | 3 months | 9 months | 9 months | 12 months | 12 months | |
|---|---|---|---|---|---|---|
| Jul–Sep | Jul–Sep | Jan–Sep | Jan–Sep | Jan–Dec | Jan–Dec | |
| MSEK | 2009 | 2008 | 2009 | 2008 | 2008 | 2007 |
| Net sales | 1 002.2 | 1 117.3 | 3 004.6 | 3 377.7 | 4 604.2 | 4 194.0 |
| Goods for resale | -555.5 | -549.8 | -1 602.9 | -1 708.9 | -2 371.8 | -2 196.1 |
| Bruttoresultat | 446.7 | 567.5 | 1 401.7 | 1 668.8 | 2 232.4 | 1 997.9 |
| Other income* | 2.1 | 23.2 | 47.0 | 35.8 | 56.5 | 37.7 |
| External costs | -226.5 | -259.9 | -714.3 | -807.9 | -1 105.6 | -921.3 |
| Personnel costs | -166.6 | -167.5 | -580.6 | -533.0 | -731.0 | -647.2 |
| Depreciation of tangible and | ||||||
| intangible fixed assets | -17.1 | -16.5 | -54.6 | -45.7 | -64.2 | -53.9 |
| Other costs | -1.8 | -4.0 | -25.2 | -10.8 | -20.4 | -7.4 |
| Share of associated companies result | 0.9 | 0.0 | 1.8 | 0.0 | 1.1 | 0.0 |
| Operating profit | 37.7 | 142.8 | 75.8 | 307.2 | 368.8 | 405.8 |
| Interest income | 0.0 | 2.6 | 5.0 | 7.8 | 12.4 | 15.0 |
| Interest expenses | -11.4 | -41.8 | -44.7 | -115.4 | -148.4 | -105.8 |
| Net financial items | -11.4 | -39.2 | -39.7 | -107.6 | -136.0 | -90.8 |
| Profit before tax | 26.3 | 103.6 | 36.1 | 199.6 | 232.8 | 315.0 |
| Tax on profit for the period | -7.0 | -28.9 | -9.6 | -54.1 | -84.9 | -83.7 |
| Profit/loss for the period | 19.3 | 74.7 | 26.5 | 145.5 | 147.9 | 231.3 |
| "Other total result": | ||||||
| Translation difference | -106.1 | 205.4 | -120.3 | 88.2 | 285.9 | -47.6 |
| Cash flow hedges | -17.5 | 8.8 | -19.0 | 4.7 | 14.0 | -1.8 |
| Income tax related to | ||||||
| "Other total result" items | 4.6 | -2.5 | 5.0 | -1.3 | -3.9 | 0.5 |
| "Other total result" net after tax for the period | -119.0 | 211.7 | -134.3 | 91.6 | 296.0 | -48.9 |
| Total result for the period | -99.7 | 286.4 | -107.8 | 237.1 | 443.9 | 182.4 |
| "Total result" related to: | ||||||
| Equity holders of the parent company | -98.1 | 287.5 | -106.1 | 235.8 | 435.8 | 180.8 |
| Minority interest | -1.6 | -1.1 | -1.7 | 1.3 | 8.1 | 1.6 |
| -99.7 | 286.4 | -107.8 | 237.1 | 443.9 | 182.4 | |
| Profit per share | ||||||
| Profit per share before dilution | 0.29 | 1.19 | 0.39 | 2.19 | 2.18 | 3.46 |
| Profit per share after dilution | 0.29 | 1.15 | 0.39 | 2.12 | 2.18 | 3.33 |
| Weighted number of shares before dilution | 66 343 543 | 66 343 543 | 66 343 543 | 66 343 543 | 66 343 543 | 66 343 543 |
| Weighted number of shares after dilution | 66 343 543 | 68 446 793 | 66 343 543 | 68 446 793 | 66 343 543 | 68 843 543 |
* Rate of exchange profit and capital gain
Cash Flow Analysis – Group
| 3 months | 3 months | 9 months | 9 months | 12 months | 12 months | |
|---|---|---|---|---|---|---|
| Jul–Sep | Jul–Sep | Jan–Sep | Jan–Sep | Jan–Dec | Jan–Dec | |
| MSEK | 2009 | 2008 | 2009 | 2008 | 2008 | 2007 |
| Current operation | ||||||
| Profit/loss before financial items | 37.7 | 142.8 | 75.8 | 307.2 | 368.8 | 405.8 |
| Items not included in cash flow | -2.3 | -10.6 | 0.9 | 37.6 | 29.2 | 60.5 |
| Received interest | 0.0 | 2.6 | 5.0 | 7.8 | 12.4 | 15.0 |
| Paid interest | -11.4 | -41.8 | -44.7 | -115.4 | -148.4 | -105.8 |
| Paid income tax | 10.2 | -30.4 | -17.9 | -66.0 | -98.9 | -116.2 |
| Cash flow from current operations | 34.2 | 62.6 | 19.1 | 171.2 | 163.1 | 259.3 |
| before changes in working capital | ||||||
| Cash flow from changes in working capital | ||||||
| Increase/decrease of stock | 147.3 | -162.3 | 281.1 | -363.1 | -194.2 | -119.0 |
| Increase/decrease of current receivables | 12.5 | 26.2 | 67.0 | -33.4 | 153.0 | -26.5 |
| Increase/decrease of short-term liabilities | -52.7 | -31.0 | 8.8 | -96.2 | -389.9 | -30.8 |
| Changes in working capital | 107.1 | -167.1 | 356.9 | -492.7 | -431.1 | -176.3 |
| Cash flow from operations | 141.3 | -104.5 | 376.0 | -321.5 | -268.0 | 83.0 |
| Investing activities | ||||||
| Investments in tangible assets | -37.7 | -24.3 | -60.0 | -46.0 | -61.3 | -64.9 |
| Sales of tangible assets | 0.0 | 8.0 | 19.9 | 9.7 | 8.5 | 8.5 |
| Investments in intangible assets | 3.3 | -5.7 | 0.0 | -5.7 | -0.1 | 0.0 |
| Acquisition of subsidiaries* | 0.0 | -2.4 | 0.0 | -3.1 | -0.6 | -1 087.3 |
| Change in financial assets | -0.9 | 2.2 | -1.8 | -13.7 | -11.7 | -22.0 |
| Cash flow from investing activities | -35.3 | -22.2 | -41.9 | -58.8 | -65.2 | -1 165.7 |
| Cash flow after investing activities | 106.0 | -126.7 | 334.1 | -380.3 | -333.2 | -1 082.7 |
| Financial activities | ||||||
| Amortization of long-term receivables | 1.2 | 0.0 | 2.9 | 0.0 | 0.0 | 0.0 |
| Amortization of loan | -139.2 | 0.0 | -452.4 | 0.0 | 0.0 | 0.0 |
| Loan raised | 0.0 | 214.8 | 0.0 | 476.8 | 441.4 | 1 136.3 |
| Option premium | 0.0 | 0.5 | 0.2 | 2.1 | 2.1 | 11.5 |
| Dividend | 0.0 | 0.0 | -11.9 | -66.3 | -66.3 | -66.3 |
| Cash flow from financial activities | -138.0 | 215.3 | -461.2 | 412.6 | 377.2 | 1 081.5 |
| Cash flow for the period | -32.0 | 88.6 | -127.1 | 32.3 | 44.0 | -1.2 |
| Opening cash balance | 95.2 | 52.3 | 191.2 | 115.5 | 115.5 | 114.2 |
| Currency translation | -11.9 | 14.6 | -12.8 | 7.7 | 31.7 | 2.5 |
| Closing cash balance | 51.3 | 155.5 | 51.3 | 155.5 | 191.2 | 115.5 |
| *The item includes: | ||||||
| Goodwill | - | - | - | -2.4 | 0.1 | -403.2 |
| Trademarks | - | - | - | - | - | -251.0 |
| Customer relations | - | - | - | - | - | -15.0 |
| Working capital | - | -0.7 | - | -0.7 | -0.7 | -223.7 |
| Fixed assets | - | - | - | - | - | -23.1 |
| Transferred loans | - | - | - | - | - | -171.3 |
| Effect on the cash flow | 0.0 | -0.7 | 0.0 | -3.1 | -0.6 | -1 087.3 |
Balance Sheets – Group
| 30 Sep | 30 Sep | 31 Dec | 31 Dec | |
|---|---|---|---|---|
| MSEK | 2009 | 2008 | 2008 | 2007 |
| ASSETS | ||||
| Intangible fixed assets | 406.5 | 410.9 | 444.6 | 387.9 |
| Goodwill | 777.5 | 794.7 | 831.1 | 764.7 |
| Fixed assets | 396.4 | 390.1 | 415.3 | 380.8 |
| Other long-term receivables | 177.1 | 194.2 | 190.6 | 186.7 |
| Total fixed assets | 1 757.5 | 1 789.9 | 1 881.6 | 1 720.1 |
| Stock | 1 848.6 | 2 225.2 | 2 200.3 | 1 862.1 |
| Accounts receivable | 818.7 | 928.8 | 835.8 | 883.0 |
| Other short-term receivables | 187.5 | 200.2 | 261.8 | 229.0 |
| Liquid funds | 51.3 | 155.5 | 191.2 | 115.5 |
| Total current assets | 2 906.1 | 3 509.7 | 3 489.1 | 3 089.6 |
| TOTAL ASSETS | 4 663.6 | 5 299.6 | 5 370.7 | 4 809.7 |
| SHAREHOLDERS' EQUITY AND LIABILITIES | ||||
| Shareholders' equity | 1 709.6 | 1 617.4 | 1 833.8 | 1 438.2 |
| Long-term loans | 2 197.2 | 2 875.3 | 2 716.5 | 2 414.9 |
| Other long-term liabilities | 179.8 | 202.6 | 203.0 | 210.0 |
| Total long-term liabilities | 2 377.0 | 3 077.9 | 2 919.5 | 2 624.9 |
| Short-term loans | 25.6 | 20.1 | 51.0 | 57.6 |
| Other liabilities | 551.4 | 584.2 | 566.4 | 689.0 |
| Total short-term liabilities | 577.0 | 604.3 | 617.4 | 746.6 |
| Total liabilies | 2 954.0 | 3 682.2 | 3 536.9 | 3 371.5 |
| TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES | 4 663.6 | 5 299.6 | 5 370.7 | 4 809.7 |
Changes in Equity – Group
| Retained earnings | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Other capital | Other | incl. profit/loss | Minority | |||||||
| MSEK Opening balance 2008-01-01 |
Share capital | contributed | reserves | the year | Total 1 426.3 |
interest | Total equity | |||
| 199.1 | 217.1 | -86.7 | 1 096.8 | 11.9 | 1 438.2 | |||||
| Profit/loss for the year | 435.8 | 435.8 | 8.1 | 443.9 | ||||||
| Dividend | -66.3 | -66.3 | -66.3 | |||||||
| Option premiums | 2.1 | 2.1 | 2.1 | |||||||
| Equity change in minority | 0.0 | 15.9 | 15.9 | |||||||
| Balance at year end 2008-12-31 | 199.1 | 217.1 | -86.7 | 1 468.4 | 1 797.9 | 35.9 | 1 833.8 |
| Retained earnings | |||||||
|---|---|---|---|---|---|---|---|
| Other capital | Other | incl. profit/loss | Minority | ||||
| MSEK | Share capital | contributed | reserves | the year | Total | interest | Total equity |
| Opening balance 2009-01-01 | 199.1 | 217.1 | -86.7 | 1 468.4 | 1 797.9 | 35.9 | 1 833.8 |
| Profit/loss for the year | -106.1 | -106.1 | -1.7 | -107.8 | |||
| Dividend | -11.9 | -11.9 | -11.9 | ||||
| Option premiums | 0.2 | 0.2 | 0.2 | ||||
| Equity change in minority | 0.0 | -4.7 | -4.7 | ||||
| Balance at end of period 2009-09-30 | 199.1 | 217.1 | -86.7 | 1 350.6 | 1 680.1 | 29.5 | 1 709.6 |
| Translation difference | 9 months 2009 |
9 months 2008 |
Year 2008 |
Year 2007 |
|---|---|---|---|---|
| Balance brought forward | 205.7 | -80.2 | -80.2 | -32.6 |
| Change for the year | -120.3 | 88.2 | 285.9 | -47.6 |
| Balance at end of period | 85.4 | 8.0 | 205.7 | -80.2 |
Financial highlights – Group
| 9 months | 9 months | 12 months | 12 months Jan–Dec |
|
|---|---|---|---|---|
| Jan–Sep | Jan–Sep | Jan–Dec | ||
| 2009 | 2008 | 2008 | 2007 | |
| Sales growth % | -11.0 | 18.0 | 9.8 | 18.8 |
| Number of employees | 2 241 | 2 649 | 2 562 | 2 350 |
| Gross profit margin % | 46.7 | 49.4 | 48.5 | 47.6 |
| Operating margin before depreciation % | 4.3 | 10.4 | 9.4 | 11.0 |
| Operating margin % | 2.5 | 9.1 | 8.0 | 9.7 |
| Profit margin % | 1.2 | 5.9 | 5.1 | 7.5 |
| Net margin % | 0.9 | 4.3 | 3.2 | 5.5 |
| Return on shareholders' equity % | 2.0 | 12.8 | 9.2 | 17.1 |
| Return on capital employed % | 2.5 | 10.0 | 9.0 | 12.8 |
| Equity ratio % | 36.7 | 30.5 | 34.1 | 29.9 |
| Net debt - Equity ratio % | 127.0 | 169.4 | 140.5 | 163.9 |
| Net liabilities MSEK | 2 171.6 | 2 739.9 | 2 576.3 | 2 357.0 |
| Interest cover ratio times | 1.8 | 2.7 | 2.6 | 4.0 |
| Capital turnover times | 0.8 | 0.9 | 0.9 | 1.0 |
| Stock turnover times | 1.1 | 1.1 | 1.2 | 1.3 |
| Cash flow before investments MSEK | 376.0 | -321.5 | -268.0 | 83.0 |
| Net investments MSEK | -41.9 | -58.8 | -65.2 | -1 165.7 |
| Cash flow after investments MSEK | 334.1 | -380.3 | -333.2 | -1 082.7 |
| Shareholders' equity per share SEK | 25.77 | 24.38 | 27.64 | 21.68 |
| Shareh. equity per share after dilution SEK | 25.77 | 23.63 | 27.64 | 20.89 |
| Share 31 december SEK | - | - | 6.25 | 67.50 |
| Dividend/share SEK | - | - | 0.18 | 1.00 |
| P/E-ratio | - | - | 2.87 | 19.36 |
| P/S-ratio | - | - | 0.09 | 1.07 |
| Rate/Shareholders' equity | - | - | 0.23 | 3.11 |
Definitions
Return on shareholders' equity Profit/loss after full tax as a percentage of the average shareholders' equity.
Return on capital employed Profit/loss after net financial items plus financial costs in percent of capital employed in average.
Gross margin
Sales for the period, less product costs, as a percentage of sales.
EBITDA
Operating profit before depreciation.
Rate of capital turnover Sales divided by the average Balance Sheet total.
Net margin Net result as a percentage of sales.
Net debt/equity ratio
Interest-bearing liabilities, less interest bearing assets, as a percentage of shareholders' equity.
Interest cover ratio
Profit after financial items plus interest expenses divided by interest expenses.
Operating margin
Operating profit/loss after depreciation as a percentage of sales.
Equity ratio
Equity including minority in percent of balance sheet total.
Capital employed
Balance Sheet total reduced by interest-free liabilities and interest-free provisions.
Profit margin
Profil/loss after financial items as a percentage of sales.
Income Statements – Parent Company
| 9 months | 9 months | 12 months | 12 months | ||
|---|---|---|---|---|---|
| Jan–Sep | Jan–Sep | Jan–Dec | Jan–Dec | ||
| MSEK | 2009 | 2008 | 2008 | 2007 | |
| Net sales | 111.7 | 103.8 | 133.0 | 87.0 | |
| Other operating income* | 16.6 | 7.5 | 16.8 | 5.0 | |
| Total income | 128.3 | 111.3 | 149.8 | 92.0 | |
| External expenses | -76.4 | -78.4 | -101.2 | -73.1 | |
| Personnel costs | -17.9 | -18.8 | -26.7 | -24.7 | |
| Depreciation of tangible and intangible fixed assets | -3.6 | -2.3 | -2.7 | -3.1 | |
| Other costs | -15.6 | -7.2 | -11.1 | -3.0 | |
| Operating profit/loss | 14.8 | 4.6 | 8.1 | -11.9 | |
| Profit/loss from financial investments | 0.0 | 0.0 | 302.7 | 115.2 | |
| Interest income | 66.7 | 106.2 | 150.5 | 99.3 | |
| Interest expenses | -43.8 | -149.0 | -186.7 | -121.1 | |
| Net financial items | 22.9 | -42.8 | 266.5 | 93.4 | |
| Profit/loss after financial items | 37.7 | -38.2 | 274.6 | 81.5 | |
| Disposals | 0.0 | 0.0 | 24.0 | -5.0 | |
| Tax on net profit/loss for the period | -9.9 | 9.6 | -0.1 | 10.4 | |
| Profit for the period | 27.8 | -28.6 | 298.5 | 86.9 |
* Rate of exchange profit and capital gain
Cash Flow Analysis – Parent Company
| 9 months | 9 months | 12 months | 12 months | |
|---|---|---|---|---|
| Jan–Sep | Jan–Sep | Jan–Dec | Jan–Dec | |
| MSEK | 2009 | 2008 | 2008 | 2007 |
| Current operations | ||||
| Operating profit before financial items | 14.8 | 4.6 | 8.1 | -11.9 |
| Adjustments for non-cash items | 1.8 | 0.4 | 1.3 | 0.4 |
| Received dividends | 0.0 | 0.0 | 266.5 | 115.2 |
| Interest received | 66.7 | 106.2 | 150.5 | 99.3 |
| Interest paid | -43.8 | -149.0 | -186.7 | -121.0 |
| Tax paid | 21.6 | -24.8 | -37.3 | -14.7 |
| Cash flow before change in | ||||
| working capital | 61.1 | -62.6 | 202.4 | 67.3 |
| Cash flow from change in working capital | ||||
| Decrease/increase in short-term receivables | 495.0 | 134.1 | -164.4 | 113.1 |
| Decrease/increase on short-term liabilities | -192.2 | -30.5 | 30.4 | 238.3 |
| Changes in working capital | 302.8 | 103.6 | -134.0 | 351.4 |
| Cash flow from operations | 363.9 | 41.0 | 68.4 | 418.7 |
| Investing activities | ||||
| Shareholders contribution to subsidiaries | -10.4 | -42.3 | -48.6 | -8.8 |
| Intra-group transaction | 60.5 | 0.0 | 725.4 | 7.1 |
| Aquisition of tangible assets | 0.0 | -0.2 | -0.7 | -2.1 |
| Aquisition of intangible assets | 0.0 | 0.0 | 1.7 | -3.9 |
| Aquisition subsidiaries | 0.0 | -3.1 | 0.6 | -1 118.2 |
| Change in other financial assets | 70.9 | -12.3 | -802.8 | 0.0 |
| Cash-flow from investing activities | 121.0 | -57.9 | -124.4 | -1 125.9 |
| Cash-flow after investing activities | 484.9 | -16.9 | -56.0 | -707.2 |
| Financial activities | ||||
| Loan raised | 0.0 | 83.2 | 120.1 | 707.4 |
| Amortization of loan | -473.0 | 0.0 | 0.0 | 0.0 |
| Dividend paid to shareholders of the parent company | -11.9 | -66.3 | -66.3 | -66.3 |
| Received/paid Group contribution | 0.0 | 0.0 | 2.2 | 65.8 |
| Cash-flow from financial activities | -484.9 | 16.9 | 56.0 | 706.9 |
| Cash flow for the period | 0.0 | 0.0 | 0.0 | -0.3 |
| Liquid funds at the beginning of the year | 0.0 | 0.0 | 0.0 | 0.3 |
| Liquid funds at the end of the period | 0.0 | 0.0 | 0.0 | 0.0 |
Balance Sheet – Parent Company
| 30 Sep | 30 Sep | 31 Dec | 31 Dec | |
|---|---|---|---|---|
| MSEK | 2009 | 2008 | 2008 | 2007 |
| ASSETS | ||||
| Fixed assets | ||||
| Intangible fixed assets | 1.1 | 3.9 | 2.4 | 5.6 |
| Tangible fixed assets | 0.9 | 1.4 | 1.3 | 1.8 |
| Financial fixed assets | ||||
| Shares in Group companies | 1 435.1 | 2 159.9 | 1 485.2 | 2 117.0 |
| Shares in associated companies | 51.3 | 53.6 | 51.2 | 37.7 |
| Receivables on Group companies | 1 522.1 | 0.0 | 1 593.7 | 0.0 |
| Other long-term receivables | 0.5 | 0.0 | 0.0 | 0.0 |
| Total financial fixed assets | 3 009.0 | 2 213.5 | 3 130.1 | 2 154.7 |
| Total fixed assets | 3 011.0 | 2 218.8 | 3 133.8 | 2 162.1 |
| Current assets | ||||
| Short-term receivables | ||||
| Accounts receivable | 0.8 | 0.2 | 0.6 | 0.2 |
| Receivables on Group companies | 529.5 | 702.7 | 1 033.5 | 833.5 |
| Tax receivable | 13.0 | 24.3 | 36.0 | 0.0 |
| Other receivables | 12.2 | 28.8 | 3.0 | 27.1 |
| Prepaid expenses and accrued income | 6.2 | 7.2 | 6.0 | 17.9 |
| Total short-term receivables | 561.7 | 763.2 | 1 079.1 | 878.7 |
| Cash and bank | 0.0 | 0.0 | 0.0 | 0.0 |
| Total current assets | 561.7 | 763.2 | 1 079.1 | 878.7 |
| TOTAL ASSETS | 3 572.7 | 2 982.0 | 4 212.9 | 3 040.8 |
| Shareholders' equity Restricted shareholders' equity |
||||
| Share capital | 199.1 | 199.1 | 199.1 | 199.1 |
| Restricted reserves | 249.4 | 249.4 | 249.4 | 249.4 |
| 448.5 | 448.5 | 448.5 | 448.5 | |
| Unrestricted shareholders' equity | ||||
| Retained profits | 537.2 | 249.0 | 250.6 | 228.4 |
| Share premium reserve | 48.0 | 48.0 | 48.0 | 48.0 |
| Profit/loss for the year | 27.8 | -28.6 | 298.5 | 86.9 |
| 613.0 | 268.4 | 597.1 | 363.3 | |
| Total shareholders' equity | 1 061.5 | 716.9 | 1 045.6 | 811.8 |
| Untaxed reserves | 33.4 | 57.3 | 33.4 | 57.3 |
| Long-term liabilities | ||||
| Overdraft facilities | 2 063.0 | 1 694.1 | 2 536.0 | 1 610.9 |
| Total long-term liabilities | 2 063.0 | 1 694.1 | 2 536.0 | 1 610.9 |
| Short-term liabilities | ||||
| Accounts payable | 33.8 | 13.4 | 15.7 | 27.7 |
| Liabilities to Group companies | 368.8 | 489.7 | 573.2 | 520.3 |
| Tax liabilities | 8.5 | 0.0 | 0.0 | 0.6 |
| Other liabilities | 0.0 | 3.3 | 0.0 | 0.7 |
| Accrued expenses and prepaid income | 3.7 | 7.3 | 9.0 | 11.5 |
| Total short-term liabilities | 414.8 | 513.7 | 597.9 | 560.8 |
| TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES | 3 572.7 | 2 982.0 | 4 212.9 | 3 040.8 |
Changes in Equity for the parent company
| Restricted | Share premium | Profit/loss | ||||
|---|---|---|---|---|---|---|
| MSEK | Share capital | reserves | Retained profits | reserve | for the year | Total equity |
| Opening balance 2008-01-01 | 199.1 | 249.4 | 228.4 | 48.0 | 86.9 | 811.8 |
| Transfer according to General meeting | 86.9 | -86.9 | 0.0 | |||
| Group contribution | 1.6 | 1.6 | ||||
| Profit/loss for the year | 298.5 | 298.5 | ||||
| Total change in net assets excluding | 0.0 | 0.0 | 1.6 | 0.0 | 298.5 | 300.1 |
| transactions with shareholders | ||||||
| Dividend | -66.3 | -66.3 | ||||
| Balance at year end 2008-12-31 | 199.1 | 249.4 | 250.6 | 48.0 | 298.5 | 1 045.6 |
Group contribution of MSEK 1.6 concerns received contribution of MSEK 2.2 with a calculated tax effect of MSEK -0.6
| Restricted | Share premium | Profit/loss | ||||
|---|---|---|---|---|---|---|
| MSEK | Share capital | reserves | Retained profits | reserve | for the year | Total equity |
| Opening balance 2009-01-01 | 199.1 | 249.4 | 250.6 | 48.0 | 298.5 | 1 045.6 |
| Transfer according to General meeting | 298.5 | -298.5 | 0.0 | |||
| Group contribution | 0.0 | 0.0 | ||||
| Profit/loss for the period | 27.8 | 27.8 | ||||
| Total change in net assets excluding | 0.0 | 0.0 | 0.0 | 0.0 | 27.8 | 27.8 |
| transactions with shareholders | ||||||
| Dividend | -11.9 | -11.9 | ||||
| Balance at end of period 2009-09-30 | 199.1 | 249.4 | 537.2 | 48.0 | 27.8 | 1 061.5 |
Sales and result per business area
| Business Area Corporate Promo | Jul–Sep 2009 |
Jul–Sep 2008 |
Change MSEK |
Jan–Sep 2009 |
Jan–Sep 2008 |
Change MSEK |
|---|---|---|---|---|---|---|
| Net sales | 402.6 | 502.9 | -100.3 | 1 343.6 | 1 602.7 | -259.1 |
| Result EBITDA | 13.5 | 77.2 | -63.7 | 107.6 | 233.3 | -125.7 |
| Business Area Sports and Leisure | ||||||
| Net sales | 449.3 | 456.4 | -7.1 | 1 229.9 | 1 318.6 | -88.7 |
| Result EBITDA | 42.1 | 79.4 | -37.3 | 90.2 | 157.8 | -67.6 |
| Business Area Gifts and Home furnishing | ||||||
| Net sales | 150.3 | 158.0 | -7.7 | 431.1 | 456.4 | -25.3 |
| Result EBITDA | -0.8 | 2.7 | -3.5 | -67.4 | -38.2 | -29.2 |
| Total net sales | 1 002.2 | 1 117.3 | -115.1 | 3 004.6 | 3 377.7 | -373.1 |
| Total result EBITDA | 54.8 | 159.3 | -104.5 | 130.4 | 352.9 | -222.5 |
Sales per area
| Jul–Sep | Part of | Jul–Sep | Part of | Change | Change | |
|---|---|---|---|---|---|---|
| 2009 | turnover | 2008 | turnover | MSEK | % | |
| Nordic countries | 456 | 46% | 496 | 45% | -40 | -8% |
| Mid-Europe | 180 | 18% | 200 | 18% | -20 | -10% |
| Southern Europe | 102 | 10% | 114 | 10% | -12 | -11% |
| USA | 225 | 22% | 269 | 24% | -44 | -16% |
| Other countries | 39 | 4% | 38 | 3% | 1 | 3% |
| Total | 1 002 | 100% | 1 117 | 100% | -115 | -10% |
| Jan–Sep | Part of | Jan–Sep | Part of | Change | Change | |
|---|---|---|---|---|---|---|
| 2009 | turnover | 2008 | turnover | MSEK | % | |
| Nordic countries | 1 342 | 45% | 1 575 | 47% | -233 | -15% |
| Mid-Europe | 566 | 19% | 599 | 18% | -33 | -6% |
| Southern Europe | 353 | 12% | 378 | 11% | -25 | -7% |
| USA | 638 | 21% | 715 | 21% | -77 | -11% |
| Other countries | 106 | 3% | 110 | 3% | -4 | -4% |
| Total | 3 005 | 100% | 3 377 | 100% | -372 | -11% |
Quarterly Income Statements – Group
| MSEK | 2009 | 2008 | |||||
|---|---|---|---|---|---|---|---|
| Quarter | Q1 | Q2 | Q3 | Q1 | Q2 | Q3 | Q4 |
| Net sales | 979.5 | 1022.9 | 1002.2 | 1 015.0 | 1 245.4 | 1 117.3 | 1 226.5 |
| Goods for resale | -528.1 | -519.3 | -555.5 | -532.3 | -626.8 | -549.8 | -662.9 |
| Gross profit | 451.4 | 503.6 | 446.7 | 482.7 | 618.6 | 567.5 | 563.6 |
| Gross profit % | 46.1 | 49.2 | 44.6 | 47.6 | 49.7 | 50.8 | 46.0 |
| Other income | 22.9 | 22.0 | 2.1 | 6.2 | 6.4 | 23.2 | 20.7 |
| External costs | -267.7 | -220.1 | -226.5 | -277.4 | -270.6 | -259.9 | -297.7 |
| Personnel costs | -231.2 | -182.8 | -166.6 | -178.6 | -186.9 | -167.5 | -198.0 |
| Depreciations | -18.5 | -19.0 | -17.1 | -12.5 | -16.7 | -16.5 | -18.5 |
| Other costs | -14.7 | -8.7 | -1.8 | -4.8 | -2.0 | -4.0 | -9.6 |
| Share of associated companies result | 0.5 | 0.4 | 0.9 | 0.0 | 0.0 | 0.0 | 1.1 |
| Operating profit/loss | -57.3 | 95.4 | 37.7 | 15.6 | 148.8 | 142.8 | 61.6 |
| Interest income | 4.3 | 0.7 | 0.0 | 2.6 | 2.6 | 2.6 | 4.6 |
| Interest expenses | -19.8 | -13.5 | -11.4 | -34.7 | -38.9 | -41.8 | -33.0 |
| Profit before tax | -72.8 | 82.6 | 26.3 | -16.5 | 112.5 | 103.6 | 33.2 |
| Tax | 19.5 | -22.1 | -7.0 | 1.5 | -26.7 | -28.9 | -30.8 |
| Profit/loss for the period | -53.3 | 60.5 | 19.3 | -15.0 | 85.8 | 74.7 | 2.4 |
| "Other total result": | |||||||
| Translation difference | 13.1 | -27.3 | -106.1 | -121.3 | 4.1 | 205.4 | 197.7 |
| Cash flow hedges | 10.2 | -11.7 | -17.5 | -7.5 | 3.5 | 8.8 | 9.3 |
| Income tax related to | |||||||
| "Other total result" items | -2.7 | 3.1 | 4.6 | 2.1 | -1.0 | -2.5 | -2.6 |
| "Other total result" net after tax for the period | 20.6 | -35.9 | -119.0 | -126.7 | 6.6 | 211.7 | 204.4 |
| Total result for the period | -32.7 | 24.6 | -99.7 | -141.7 | 92.4 | 286.4 | 206.8 |
| "Total result" related to: | |||||||
| Equity holders of the parent company | -33.3 | 25.3 | -98.1 | -140.5 | 88.6 | 287.5 | 200.2 |
| Minority interest | 0.6 | -0.7 | -1.6 | -1.2 | 3.8 | -1.1 | 6.6 |
| -32.7 | 24.6 | -99.7 | -141.7 | 92.4 | 286.4 | 206.8 | |
| Profit per share (SEK) | |||||||
| Profit per share before dilution | -0.81 | 0.91 | 0.29 | -0.23 | 1.22 | 1.19 | -0.01 |
| Profit per share after dilution | -0.81 | 0.91 | 0.29 | -0.22 | 1.17 | 1.15 | -0.01 |
| Weighted number of shares before dilution | 66 343 543 | 66 343 543 | 66 343 543 | 66 343 543 | 66 343 543 | 66 343 543 | 66 343 543 |
| Weighted number of shares after dilution | 66 343 543 | 66 343 543 | 66 343 543 | 68 996 793 | 69 496 793 | 68 446 793 | 66 343 543 |
| MSEK | 2007 | 2006 | 2005 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Quarter | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 |
| Net sales | 760.4 | 977.5 | 1124.7 | 1331.4 | 755.3 | 896.7 | 799.6 | 1078.9 | 516.5 | 738.6 | 774.2 | 1 029.7 |
| Goods for resale | -399.5 | -508.3 | -591.8 | -696.5 | -407.7 | -468.8 | -424.0 | -539.1 | -288.6 | -395.5 | -413.6 | -541.0 |
| Gross profit | 360.9 | 469.2 | 532.9 | 634.9 | 347.6 | 427.9 | 375.6 | 539.8 | 227.9 | 343.1 | 360.6 | 488.7 |
| Gross profit % | 47.5 | 48.0 | 47.4 | 47.7 | 46.0 | 47.7 | 47.0 | 50.0 | 44.1 | 46.5 | 46.6 | 47.5 |
| Other income | 2.3 | 18.6 | 6.8 | 10.0 | 1.8 | 5.5 | 5.7 | 10.1 | 2.6 | 1.9 | 9.4 | 11.9 |
| External costs | -189.7 | -204.7 | -252.6 | -274.3 | -199.9 | -184.4 | -186.2 | -222.9 | -122.0 | -145.8 | -172.0 | -214.1 |
| Personnel costs | -134.1 | -150.2 | -163.2 | -199.7 | -129.4 | -132.3 | -116.8 | -143.7 | -99.8 | -110.5 | -115.4 | -135.8 |
| Depreciations | -10.7 | -10.1 | -16.4 | -16.7 | -9.4 | -9.3 | -10.2 | -11.2 | -7.4 | -8.5 | -10.0 | -5.6 |
| Other costs | -2.0 | -2.9 | 0.3 | -2.7 | -0.8 | -3.7 | -5.3 | -3.8 | -1.3 | 1.3 | -2.6 | -0.9 |
| Share of associated companies result | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | -0.1 | 0.2 | 0.0 | 0.0 | 0.0 | -0.1 |
| Operating profit/loss | 26.7 | 119.9 | 107.8 | 151.5 | 9.9 | 103.7 | 62.7 | 168.5 | 0.0 | 81.5 | 70.0 | 144.1 |
| Interest income | 1.4 | 2.0 | 4.1 | 7.5 | 2.0 | 4.2 | 1.7 | 1.5 | 5.2 | 0.9 | 0.3 | 0.5 |
| Interest expenses | -16.3 | -21.4 | -31.3 | -36.9 | -14.8 | -18.8 | -16.5 | -13.9 | -13.7 | -7.9 | -13.9 | -13.0 |
| Profit before tax | 11.8 | 100.5 | 80.6 | 122.1 | -2.9 | 89.1 | 47.9 | 156.1 | -8.5 | 74.5 | 56.4 | 131.6 |
| Tax | -3.1 | -26.5 | -23.2 | -30.9 | 0.8 | -23.4 | -10.7 | -29.8 | 1.3 | -18.1 | -12.0 | -18.5 |
| Profit/loss for the period | 8.7 | 74.0 | 57.4 | 91.2 | -2.1 | 65.7 | 37.2 | 126.3 | -7.2 | 56.4 | 44.4 | 113.1 |
| Profit per share (SEK) | ||||||||||||
| Profit per share before dilution | 0.13 | 1.12 | 0.84 | 1.37 | -0.04 | 1.03 | 0.54 | 1.91 | 0.01 | 0.88 | 0.45 | 1.82 |
| Profit per share after dilution | 0.13 | 1.09 | 0.84 | 1.27 | -0.04 | 1.00 | 0.52 | 1.96 | 0.01 | 0.87 | 0.45 | 1.78 |
| Weighted number of shares before dilution | 66 343 543 | 66 343 543 | 66 343 543 | 66 343 543 | 64 517 776 | 64 517 776 | 66 343 543 | 66 343 543 | 63 665 348 | 63 903 044 | 64 005 499 | 64 517 776 |
| Weighted number of shares after dilution | 67 843 543 | 67 843 543 | 66 448 692 | 68 843 543 | 66 003 728 | 66 040 365 | 67 719 546 | 66 553 928 | 64 102 822 | 64 001 750 | 65 075 196 | 65 843 709 |
Quarterly Cash Flow Analysis – Group
| MSEK | 2009 | 2008 | ||||
|---|---|---|---|---|---|---|
| Quarter | Q1 | Q2 | Q3 | Q1 | Q2 | Q3 |
| Current operation | ||||||
| Profit/loss before financial items | -57.3 | 95.4 | 37.7 | 15.6 | 148.8 | 142.8 |
| Items not included in cash flow | 12.3 | -9.1 | -2.3 | 28.8 | 19.4 | -10.6 |
| Received interest | 4.3 | 0.7 | 0.0 | 2.6 | 2.6 | 2.6 |
| Paid interest | -19.8 | -13.5 | -11.4 | -34.7 | -38.9 | -41.8 |
| Paid income tax | -19.9 | -8.2 | 10.2 | -18.7 | -16.9 | -30.4 |
| Cash flow from current operations | -80.4 | 65.3 | 34.2 | -6.4 | 115.0 | 62.6 |
| before changes in working capital | ||||||
| Cash flow from changes in working capital | ||||||
| Increase of stock | -65.5 | 199.3 | 147.3 | -118.4 | -82.4 | -162.3 |
| Increase/decrease of current receivables | 7.2 | 47.3 | 12.5 | 108.7 | -168.3 | 26.2 |
| Increase/decrease of short-term liabilities | 0.0 | 61.5 | -52.7 | -172.6 | 107.4 | -31.0 |
| Cash flow from operations | -58.3 | 308.1 | 107.1 | -182.3 | -143.3 | -167.1 |
| Changes in working capital | -138.7 | 373.4 | 141.3 | -188.7 | -28.3 | -104.5 |
| Investing activities | ||||||
| Investments in tangible assets | -4.4 | -17.9 | -37.7 | -1.3 | -20.4 | -24.3 |
| Sales of tangible assets | 2.1 | 17.8 | 0.0 | 0.0 | 1.7 | 8.0 |
| Investments in intangible assets | -3.3 | 0.0 | 3.3 | -0.3 | 0.3 | -5.7 |
| Acquisition of subsidiaries* | 0.0 | 0.0 | 0.0 | 0.0 | -0.7 | -2.4 |
| Investments in financial assets | -0.7 | -0.2 | -0.9 | -14.2 | -1.7 | 2.2 |
| Cash flow from investing activities | -6.3 | -0.3 | -35.3 | -15.8 | -20.8 | -22.2 |
| Cash flow after investing activities | -145.0 | 373.1 | 106.0 | -204.5 | -49.1 | -126.7 |
| Financial activities | ||||||
| Amortization of long-term receivables | 0.0 | 1.7 | 1.2 | 0.0 | 0.0 | 0.0 |
| Amortization of loan | 0.0 | -339.4 | -139.2 | 0.0 | 0.0 | 0.0 |
| Loan raised | 26.2 | 0.0 | 0.0 | 137.7 | 125.9 | 214.8 |
| Option premium | 0.0 | 0.2 | 0.0 | 0.0 | 0.0 | 0.5 |
| Dividend | 0.0 | -11.9 | 0.0 | 0.0 | -66.3 | 0.0 |
| Cash flow from financial activities | 26.2 | -349.4 | -138.0 | 137.7 | 59.6 | 215.3 |
| Cash flow for the year | -118.8 | 23.7 | -32.0 | -66.8 | 10.5 | 88.6 |
| Opening cash balance | 191.2 | 77.9 | 95.2 | 115.5 | 41.1 | 52.3 |
| Currency translation | 5.5 | -6.4 | -11.9 | -7.6 | 0.7 | 14.6 |
| Closing cash balance | 77.9 | 95.2 | 51.3 | 41.1 | 52.3 | 155.5 |
| *The item includes: | ||||||
| Goodwill | - | - | - | - | - | - |
| Trademarks | - | - | - | - | - | - |
| Customer relations | - | - | - | - | - | - |
| Working capital | - | - | - | - | -0.7 | -0.7 |
| Fixed assets | - | - | - | - | - | - |
| Transferred loans | - | - | - | - | - | - |
| Effect on the cash flow | 0.0 | 0.0 | 0.0 | 0.0 | -0.7 | -0.7 |
New Wave Groups's share
The share capital in New Wave amounted to SEK 199 030 629 distributed among a total of 66 343 543 shares, each with a quota value of SEK 3.00. The shares carry identical rights to the Company's assets and profits. Each Series A share is entitled to ten votes and each Series B share is entitled to one vote. New Wave's Series B shares have since December 11, 1997, been listed at the Stockholm Stock Exchange and are now listed on the Mid Cap list. A trading lot amounts to 100 shares.
Dividend policy
The Board's aim is that the dividend will account for at least 30 % of the Group's profit after taxes over a trade cycle.
Shareholders
The number of shareholders amounted to 15 030 (12 506) on September 30. Institutional investors accounted for 40 % of the capital and 11 % of the votes. At the same time, the ten largest shareholders held 54 % of the capital and 87 % of the votes. Non-Swedish shareholders accounted for 19 % of the capital and 6 % of the votes.
New Wave Group's ten major shareholders 2009-09-30
| Shareholder | Number of shares | Number of votes | Capital % | Votes % |
|---|---|---|---|---|
| Torsten Jansson through companies | 20 890 680 | 207 259 800 | 31.2% | 81.4% |
| Fjärde AP-Fonden | 3 992 863 | 3 992 863 | 6.0% | 1.6% |
| Home Capital | 3 174 383 | 3 174 383 | 4.8% | 1.2% |
| UBS | 2 316 628 | 2 316 628 | 3.5% | 0.9% |
| Avanza Pension | 1 782 954 | 1 782 954 | 2.7% | 0.7% |
| JP Morgan | 964 005 | 964 005 | 1.5% | 0.4% |
| Nordnet Pensionsförsäkring | 881 888 | 881 888 | 1.3% | 0.3% |
| Andra AP-Fonden | 803 833 | 803 833 | 1.2% | 0.3% |
| Domani AB | 603 960 | 603 960 | 0.9% | 0.2% |
| Länsförsäkringar | 472 088 | 472 088 | 0.7% | 0.2% |
| 35 700 282 | 222 252 402 | 53.8% | 87.3% |
| Shareholder distribution in New Wave Group 2009-09-30 | Number of shares | Number of votes | Capital % | Votes % |
|---|---|---|---|---|
| Sweden | 53 989 202 | 240 358 322 | 81.40% | 94.40% |
| Shareholders outside Sweden, excl. USA | 11 093 141 | 12 893 141 | 16.70% | 5.10% |
| USA | 1 261 200 | 1 261 200 | 1.90% | 0.50% |
| Total | 66 343 543 | 254 512 663 | 100.00% | 100.00% |
| baz | CLIQUE | $\overline{\mathbf{a}}$ . A.D |
d-vice | goal | |
|---|---|---|---|---|---|
| GRIZZLY active profile outfit |
HARVEST | HARVEST $\bullet$ golf $\bullet$ |
U JINGHAM |
$\mathcal{H}% {0}\left( t\right) =\mathcal{H}{0}\left( t\right)$ HURRICANE |
IN 100 |
| JOBMAN WORKWEAR |
New Wave | Lord NELSON |
LORD NELSON CONTRACTORY |
MAC ONE | MACHAIR |
| nightingale | queen | PROJOB SWEDISH WORKWEAR |
TEXAS BULL® |
TOPPOINT | |
| USB-PREMIUMS COM $\mathbf{S}$ |
|||||
| ANNIKA EXCUTTERABUCK |
। क् |
CLIQUE | $\frac{CUTTER}{2}$ & BUCK. |
CRAFT: | EASTON |
| PAX | marie | speedo's | |||
| KOSTA BODA SWEDEN 1742 |
LOSTA 2014 | KOSTA LINNEWÄFVERI | Orrefors | Orrefors JERNVERK |
New Wave Group in brief
New Wave Group is a growth company creating, acquiring, and developing promo, sports, gift and interior design trademarks and products. The group shall achieve synergies by coordinating design, purchasing, marketing, logistics, and distribution of the assortment. The group shall offer its products to the promo market and the retail market in order to achieve good risk diversification.
New Wave Group AB (publ) Org nr 556350-0916 Orrekulla Industrigata 61, SE-425 36 Hisings Kärra Phone +46 (0)31 712 89 00 Fax +46 (0)31 712 89 99 [email protected] www.nwg.se