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New Wave Group AB Interim / Quarterly Report 2011

Aug 12, 2011

3081_ir_2011-08-12_68e3ac44-d919-4ff2-af0b-1259e6e50b78.pdf

Interim / Quarterly Report

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Interim report for New Wave Group AB (publ) JANUARY - JUNE 2011 Images from Kosta Boda Art Hotel, Clique, Craft and Sagaform

THE PERIOD 1 APRIL – 30 JUNE 2011

  • • Sales amounted to SEK 1 021 million, which was 3% higher than previous year in local currencies but 4% lower in SEK (SEK 1 065 million).
  • • The operating profit amounted to SEK 72.7 million (SEK 87.9 million), with SEK 30.5 million in non-recurring items impacting the result negatively.
  • • Profit after tax amounted to SEK 37.3 million (SEK 59.4 million).
  • • Earnings per share amounted to SEK 0.55 (SEK 0.90).
  • • Cash flow from operating activities amounted to SEK 26.2 million (SEK 117.5 million).
  • • Equity ratio amounted to 43.8% (42.4%).
  • • Net debt to equity ratio amounted to 83.3% (86.7%).

THE PERIOD 1 JANUARY – 30 JUNE 2011

  • • Sales amounted to SEK 1 948 million, which was 5% higher than previous year in local currencies but 2% lower in SEK (SEK 1 981 million).
  • • The operating profit amounted to SEK 90.4 million (SEK 104.8 million), with SEK 30.5 million in non-recurring items impacting the result negatively.
  • • Profit after tax amounted to SEK 43.0 million (SEK 67.0 million).
  • • Earnings per share amounted to SEK 0.63 (SEK 1.01).
  • • Cash flow from operating activities amounted to SEK -116.4 million (SEK 182.9 million).

600 900 1200 1500 Sales (SEK million)

0

300

Q1 Q2 Q3 Q4 2006 2007 2008 2009 2010 2011

EVENTS AFTER END QUARTER

On 29 July, New Wave Group acquired substantially all of the assets of the US based headwear company, Ahead, for a sum of USD 17.4m in addition to a net asset value adjustment of approximately USD 5m.

OUTLOOK ON 2011

For 2011 we expect a higher sales turnover and somewhat better result than the 2010 outcome.

CEO Comments

A tough quarter – despite good underlying result

The second quarter gives me mixed feelings. The second quarter was actually a good quarter but unfortunately the result was burdened by somewhat more than SEK 30 million in one-off charges, mainly due to financial irregularities and incorrect accounting of assets and liabilities in one of New Wave Group's German subsidiaries but also one-off charges for Orrefors Kosta Boda.

However, there are also many positive signals; we continue to work on lowering costs, inventory is on a better service level, we have a strong balance sheet and a good gross margin.

Despite what happened in Q2, I believe in a decent year with increased sales compared to last year. On the other hand, I would like to highlight a greater uncertainty. The retail market in general has become weaker, the problems in the US and southern Europe tend to increase, and not to forget, the extraordinary turbulence on worldwide stock markets that is causing anxiety. Together with my colleagues, we will do our very best and in the long-term, I am more optimistic about New Wave than ever.

Torsten Jansson

Comments

SUMMARY OF APRIL-JUNE

Sales, including currency changes, increased by 3%. The Corporate Promo business area remained stable at last year's level, but we see improvements in a number of markets. Sports & Leisure in the U.S. market had a weaker development, but better in the Nordic countries as well as in Mid-Europe. Gifts & Home Furnishing had a lower turnover due to weaker market sentiment, especially in Sweden. Among the group's two sales channels – promo and retail – sales growth for the promo channel showed a better development. The retail sales channel has shown weaker performance, especially in Sweden and the U.S.

Gross profit margin for the quarter was higher than last year. The Group has increased purchasing and has a better inventory level, despite the lack of certain articles in some segments. Also, the mix between customers and markets has been more favorable.

The Group's costs increased during the quarter due to financial irregularities and incorrect accounting of assets and liabilities in one of New Wave Group's German subsidiaries. The internal investigation shows that the irregularities have been ongoing for three years. As a consequence of this, the subsidiary's CEO and CFO have left the company. Investigation into insurance compensation, recoveries and damages is ongoing. Costs have also been taken for the closure of the division for cut crystal in Orrefors Kosta Boda. In total, the operating result has been burden with some SEK 30.5 million in non-recurring items.

Excluding the above mentioned non-recurring items, the operating profit increased by 17% and the operating margin amounted to 10.1 (8.3)%.

Cash flow from operating activities amounted to SEK 26.2 million (SEK 117.5 million). The outflow is seasonal and mainly related to incoming goods for the next quarters. Stock value amounted to SEK 1 778 million as of 30 June, which is an increase by SEK 92 million since the previous quarter. Net debt amounted to SEK 1 591 million (SEK 1 622 million) and the debt-to-equity ratio to 83.3% (86.7%).

APRIL-JUNE

Sales

Sales amounted to SEK 1 021 million (SEK 1 065 million), which is 4% lower than last year. Exchange rates affected sales negatively by SEK 74 million and sales in local currencies increased by 3%.

The Corporate Promo business area remained flat compared to last year but had somewhat better development in Europe than in other regions. Sports & Leisure decreased sales by 9%, mainly affected by negative currency effects. Sales in local currency were in line with last year. However Europe and the Nordic countries are showing growth while the U.S. market is weaker. Gifts & Home Furnishing decreased sales by 5%. The business area decreased sales in the retail sales channel, mainly in the Swedish market.

Sales increased by 3% in Sweden. Sales in the U.S. decreased by 22% and turnover has mainly been negatively impacted by exchange rates. The region reported a 4% decline in local currency. The rest of the Nordic countries decreased sales by 1%, however, the Finnish and Norwegian markets showed growth in local currency. We see improvements in most of the European countries and both regions are showing growth in local currencies, but currency exchange rates have had a negative effect on the sales figures.

Gross Profit

Gross profit margin amounted to 48.8% (47.1%), which is mainly attributable to more balanced inventory levels and a more favorable mix between customers and markets.

Other Operating Income and Other Operating Expenses

Other operating income increased by SEK 3.3 million to SEK 8.4 million (SEK 5.1 million). Other operating income is mainly attributable to operating exchange gains and results should be compared to the line "Other operating expenses" in which, primarily, the company's foreign exchange losses are reported. Other operating expenses increased by SEK 4.0 million to SEK -5.5 million (SEK -1.5 million). The net of above items amounted to SEK 2.9 million (SEK 3.6 million).

Expenses and Depreciation

Total costs has been negatively impacted by SEK 30.5 million in non-recurring items. Exchange rates had a positive effect on costs by SEK 25 million. Excluding these items, external costs are in line with the same period last year.

External costs increased by SEK 11.0 million and amounted to SEK -241.6 million (SEK -230.6 million), which is attributable to financial irregularities and incorrect accounting of assets and liabilities in one of New Wave Group's German subsidiaries, burdening results by SEK 23.5 million.

Personnel costs amounted to SEK -173.2 million, which is SEK 1.5 million higher than last year (SEK -171.7 million), which is attributable to higher costs for the closure of the division for cut crystal in Orrefors Kosta Boda, burdening results by SEK 7.0 million.

Depreciations amounted to SEK -13.2 million (SEK -15.1 million).

Operating profit

The operating profit amounted to SEK 72.7 million (SEK 87.9 million ). Excluding non-recurring items, the operating result amounted to SEK 103.2 million, which was 17% better compared to the same period last year.

The operating margin amounted to 7.1 (8.3)%. Excluding non-recurring items the operating margin amounted to 10.1%.

Net Financial Items and Taxes

Net financial items amounted to SEK -11.2 million (SEK -5.1 million). The increase is due to higher interest rates. It is the Group's policy to have short fixed-interest agreements resulting in quick effects on the Group's net interest as the short-term interest rate changes. Net debt has increased by SEK 63.6 million during the quarter.

Tax expense in absolute numbers amounted to SEK -24.2 million (SEK -2.7 million) and the tax rate amounted to 39.3% (28.3%). The higher tax rate is attributable to the non-recurring item of SEK 23.5 million, which is not included in the taxable result.

Profit for the period

Profit after tax amounted to SEK 37.3 million (SEK 59.4 million) and earnings per share amounted to SEK 0.55 (SEK 0.90). The lower result is related to the non-recurring items, amounting to SEK 28.7 million after taxes.

JANUARY-JUNE

Sales

Sales amounted to SEK 1 948 million (SEK 1 981 million), which is 2% lower than last year. Exchange rates affected sales negatively by SEK 136 million and sales in local currencies increased by 5%.

The Corporate Promo business area increased sales by 1% compared to last year and we see increased activity in a majority of our regions. Sports & Leisure decreased sales by 3%, mainly affected by negative currency effects. Gifts & Home Furnishing decreased sales by 6%. The business area increased sales in the promo segment while the retail segment decreased sales, mainly in the Swedish market.

Compared to last year, sales increased by 3% in Sweden. Sales in the U.S. decreased by 14% and turnover has mainly been negatively impacted by exchange rates. However, the region reported growth in local currency. The rest of the Nordic countries increased sales by 2% in all markets. We see improvements in most of the European countries and both regions are showing growth in local currencies, but currency exchange rates have had a negative effect on the sales figures.

Gross Profit

Gross profit margin amounted to 47.8% (47.4%), which is mainly attributable to more balanced inventory levels and a more favorable mix between customers and markets.

Other Operating Income and Other Operating Expenses

Other operating income increased by SEK 10.8 million to SEK 21.0 million (SEK 10.2 million). Other operating income is mainly attributable to operating exchange gains and results should be compared to the line "Other operating expenses" in which, primarily, the company's foreign exchange losses are reported. Other operating expenses increased by SEK 8.0 million to SEK -13.4 million (SEK -5.4 million). The net of above items amounted to SEK 7.6 million (SEK 4.8 million). The increase is mainly attributable to higher reimbursement related to marketing activities.

Expenses and Depreciation

External costs increased by SEK 12.1 million and amounted to SEK -483.1 million (SEK -471.0 million), which is attributable to financial irregularities and incorrect accounting of assets and liabilities in one of New Wave Group's German subsidiaries, burdening results by SEK 23.5 million. Excluding the non-recurring items, costs in local currency have increased slightly, which is attributable to higher sales costs.

Personnel costs amounted to SEK -341.4 million, which is SEK 2.7 million higher than last year (SEK -338.7 million), which is attributable to higher costs for the closure of the division for cut crystal in Orrefors Kosta Boda, burdening results by SEK 7.0 million.

Depreciations amounted to SEK -24.3 million (SEK -30.0 million).

Operating profit

The operating profit amounted to SEK 90.4 million (SEK 104.8 million). Excluding non-recurring items, the operating result amounted to SEK 120.9 million, which was 15% better compared to the same period last year.

The operating margin decreased to 4.6% (5.3%). Excluding the above mentioned non-recurring items, the operating margin amounted to 6.2%.

Net Financial Items and Taxes

Net financial items amounted to SEK -21.1 million (SEK -11.7 million). The increase is due to higher interest rates. It is the Group's policy to have short fixed-interest agreements resulting in quick effects on the Group's net interest as the short-term interest rate changes. Net debt has increased by SEK 184.5 million during the first six months of 2011.

Tax expense in absolute numbers amounted to SEK -26.3 million (SEK -26.1 million) and the tax rate amounted to 38.0% (28.0%). The higher tax rate is attributable to the non-recurring item of SEK 23.5 million, which is not included in the taxable result.

Profit for the period

Profit after tax amounted to SEK 43.0 million (SEK 67.0 million) and earnings per share amounted to SEK 0.63 (SEK 1.01). The lower result is related to the non-recurring items, amounting to SEK 28.7 million after taxes.

REPORTING OF BUSINESS AREAS

New Wave Group AB divides its operations into three business areas: Corporate Promo, Sports & Leisure and Gifts & Home Furnishing. The Group monitors the business area and brand sales as well as the profit (EBITDA). The business segments are based on the Group's operational management.

Corporate Promo

Sales for the period April-June amounted to SEK 482 million, being in line with the same period a year ago (SEK 483 million). The profit (EBITDA) decreased slightly, to SEK 74.8 million (SEK 77.3 million). Measured in local currency, turnover increased and is attributable to better market sentiment in a majority of our markets. The lower result is related to the previously mentioned non-recurring item regarding Germany, of SEK 23.5 million.

Sales for the period January-June increased by 1%, to SEK 894 million (SEK 881 million) and the profit (EBITDA) improved by SEK 8.4 million, to SEK 99.4 million (SEK 91.0 million). The higher turnover is attributable to better market sentiment in a majority of our markets. The higher result is related to improved sales and cost reductions.

Sports & Leisure

Sales for the period April-June decreased by 9%, to SEK 368 million (SEK 404 million). The profit (EBITDA) decreased by SEK 4.2 million, to SEK 25.9 million (SEK 30.1 million). The lower turnover has mainly been negatively impacted by exchange rates but also by the weak market sentiment in the U.S. The lower result is related to the weaker sales.

Sales for the period January-June decreased by 3%, to SEK 757 million (SEK 784 million) and the profit (EBITDA) decreased by SEK 8.2 million, to SEK 62.3 million (SEK 70.5 million). The lower turnover has mainly been negatively impacted by exchange rates, however, the majority of the markets show growth. The lower result is related to weaker operating gross margin in the retail sales channel and higher costs for sales and marketing.

Gifts & Home Furnishing

Sales for the period April-June decreased by 5%, to SEK 171 million (SEK 179 million). The profit (EBITDA) decreased by SEK 10.4 million, to SEK -14.8 million (SEK -4.4 million). The lower turnover is mainly a consequence of weaker retail sales for Orrefors Kosta Boda. The lower result is related to the weaker sales and charges taken for the closure of the division for cut crystal in Orrefors Kosta Boda, amounting to SEK 7.0 million.

Sales for the period January-June decreased by 6%, to SEK 298 million (SEK 316 million) and the profit (EBITDA) decreased by SEK 20.3 million, to SEK -47.0 million (SEK -26.7 million). The lower turnover is mainly related to weaker retail sales for Orrefors Kosta Boda but also lower margins and the closure of the division for cut crystal in Orrefors Kosta Boda.

GEOGRAFICAL ALLOCATION

Table of turnover in the regions Sweden, the U.S., Other Nordic countries, Mid-Europe, Southern Europe and Other countries can be found on page 15.

During the period April-June sales increased by 3% in Sweden. The increase is attributable to the promo sales channel. In the U.S., sales decreased by 22%, measured in SEK, and by 4% in local currency and the decrease is attributable to both sales channels. The Other Nordic countries have decreased sales due to weaker sales in Norway while Denmark and Finland show growth. Mid-Europe and Southern Europe were negatively affected by exchange rate fluctuation but several countries have increased or are on par with last year.

During the period January-June sales increased by 3% in Sweden. The increase is attributable to the promo sales channel. In the U.S., sales decreased by 14% but report a slight increase, measured in local currency. The Other Nordic countries, excluding Sweden, report growth in all markets. Mid-Europe and Southern Europe were negatively affected by exchange rate fluctuation but several countries have increased or are on par with last year.

CAPITAL TIED UP

Capital tied up in stock has increased by SEK 184 million since the turn of the year and by SEK 200 million since 30 June, 2010. Total stock value amounted to SEK 1 778 million (SEK 1 579 million). The increase is seasonal and mainly consists of delivered goods for the coming quarters. The stock turnover rate amounted to 1.2 (1.3).

2011-06 2010-06
Raw materials 65,1 71,5
Work in progress 25,6 34,5
Goods in transit 117,4 88,6
Merchandise on stock 1 570,3 1 384,1
Total 1 778,4 1 578,7

Obsolescence as of 30 June, 2011 amounted to SEK 61 million (SEK 61 million) and is 3.9% (4.4%) of merchandise on stock.

Accounts receivable decreased by SEK 38 million, to SEK 741 million (SEK 779 million). The decrease is attributable to exchange rate fluctuations and better terms of payment.

The Group continues its efforts and priority to decrease working capital. Our efforts will continue to concentrate on logistics and product line.

INVESTMENTS, FINANCING AND LIQUIDITY

The Group's cash flow from operating activities during the quarter amounted to SEK 26.2 million (SEK 117.5 million). The outflow is mainly affected by the seasonal build-up of stock, lowering cash flow. The Group's cash net investments were SEK -19.6 million (SEK -6.7 million).

Compared to the same period last year, net debt decreased by SEK 31 million and amounted to SEK 1 591 million (SEK 1 622 million).

Net debt increased by SEK 185 million during the period January-June, which is related to increased working capital, mainly inventories. The corresponding six month period last year had a decrease of SEK 119 million. Net debt to equity ratio decreased and amounted to 83.3% (86.7%).

The equity ratio increased by 1.4 percentage points and amounted to 43.8% (42.4%), which is due to improved equity.

The Group's credit agreement has a credit limit of SEK 2 200 million and is valid until 15 September, 2013. The credit agreement means that commitments (covenants) must be fulfilled in order to maintain the credit limit. The interest rate is based on each respective currency's base rate and a fixed margin.

Based on this forecast, it is the management's assessment that the Group will meet these covenants with sufficient margin. It is the Group's policy to have short fixed interest agreements resulting in quick effects on the Group's net interest as the short term interest rate changes.

PERSONNEL AND ORGANISATION

As of 30 June, 2011 the number of employees amounted to 2 162 (2 159) persons, of which 48% were women and 52% were men. Out of the total number of employees, 556 (557) work in production. The production contained within the New Wave Group is attributable to Orrefors Kosta Boda, Seger, Dahetra, Toppoint and Cutter & Buck (embroidery).

SUBSCRIPTION OPTIONS IN NEW WAVE GROUP AB

New Wave Group has two outstanding share option programs.

A program for senior executives was introduced in June 2009. The option program consists of 1 000 000 options, expires in June 2012 and has an exercise price of SEK 26.10. The option subscription premium was SEK 0.21 per option.

One option program was launched in July 2008 for the Board. The Board program consists of 200 000 options, expires in June 2013 and has an exercise price of SEK 85.40. The option subscription premium was SEK 0.88 per option.

Acquired premiums for all the above programs have been based on market value.

RELATED-PARTY TRANSACTIONS

There are lease agreements with related companies. Affiliates of the CEO have bought merchandise. The parent company has purchased consultancy services from a member of the Board. All transactions have occurred in accordance with market conditions.

VIEWS ON 2011

For 2011 we expect a higher sales turnover and somewhat better result than the 2010 outcome.

THE PARENT COMPANY

Total income during the period January-June amounted to SEK 71.7 million (SEK 81.9 million). Profit after financial items amounted to SEK 4.8 million (SEK 50.5 million). Net borrowing amounted to SEK 1 566 million (SEK 1 613 million), of which SEK 1 428 million (SEK 1 369 million) refers to financing of subsidiaries. Net investments amounted to SEK -15.2 million (SEK 65.9 million). The balance sheet total amounted to SEK 3 442 million (SEK 3 439 million) and equity, including 73.7% untaxed reserves, to SEK 1 311 million (SEK 1 251 million).

RISKS AND RISK CONTROL

New Wave Group's international operations mean that it is continuously exposed to different 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 its 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 2010; www.nwg.se

It is the Group's policy to have short fixed-interest agreements resulting in quick effects on the Group's net interest as the short-term interest rate changes.

The Group's accounted exposures are in all material aspects unchanged.

ACCOUNTING PRINCIPLES

This report has been prepared according to IAS 34 Interim Report and the Annual Report Law. Report regarding total comprehensive income has been prepared according to IAS 1 (R). 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 2.3 - Accounting for legal entity. Applied accounting principles are in accordance with the Annual Report for 2010.

EVENTS AFTER END QUARTER

On 29 July, New Wave Group acquired substantially all of the assets of the US based headwear company, Ahead, for a sum of USD 17.4m in addition to a net asset value adjustment of approximately USD 5m. The acquisition will be included in a newly formed subsidiary within New Wave USA Inc. During 2010, Ahead reported sales of close to USD 32m with an operating profit (EBIT) of approximately USD 2.7m.

CALENDAR

  • • 11 November, 2011
  • Interim report for Q3 • 9 February, 2012
  • Year End Report 2011 • 26 April, 2012
  • Interim report for Q1

The Board and 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.

Göteborg 12 August, 2011 New Wave Group AB (publ) Board member signatures

Anders Dahlvig Christina Bellander Göran Härstedt Chairman of the board Board Member Board Member

Helle Kruse Nielsen Mats Årjes Torsten Jansson Board Member Board Member MD and CEO

FOR MORE INFORMATION, PLEASE CONTACT:

CEO Torsten Jansson Phone: +46 (0)31 712 89 01 E-mail: [email protected] dCEO Rolf Karp Phone: +46 (0)31 712 89 05 E-mail: [email protected] CFO Lars Jönsson Phone: +46 (0)31 712 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 Trading Act. It was released for publication at 7 am (CET) on 12 August 2011.

Consolidated income statements

3 months 3 months 6 months 6 months 12 months 12 months
Apr-Jun Apr-Jun Jan-Jun Jan-Jun Jan-Dec Jan-Dec
SEK million 2011 2010 2011 2010 2010 2009
Net sales 1 020.9 1 065.3 1 948.5 1 980.6 4 243.4 4 087.0
Goods for resale -522.7 -563.7 -1 016.6 -1 041.6 -2 243.5 -2 185.3
Gross profit 498.2 501.6 931.9 939.0 1 999.9 1 901.7
Other operating income* 8.4 5.1 21.0 10.2 32.2 68.9
External costs -241.6 -230.6 -483.1 -471.0 -946.2 -949.1
Personnel costs -173.2 -171.7 -341.4 -338.7 -679.2 -751.5
Depreciation of tangible and
intangible fixed assets -13.2 -15.1 -24.3 -30.0 -58.4 -70.6
Other operating costs -5.5 -1.5 -13.4 -5.4 -21.6 -27.6
Share of associated companies result -0.4 0.1 -0.3 0.7 0.9 0.6
Operating profit 72.7 87.9 90.4 104.8 327.6 172.4
Interest income 1.0 1.5 2.6 2.5 5.1 6.2
Interest expenses -12.2 -6.6 -23.7 -14.2 -32.4 -52.4
Net financial items -11.2 -5.1 -21.1 -11.7 -27.3 -46.2
Profit before tax 61.5 82.8 69.3 93.1 300.3 126.2
Tax on profit for the period -24.2 -23.4 -26.3 -26.1 -78.8 -38.4
Profit/loss for the period 37.3 59.4 43.0 67.0 221.5 87.8
Other comprehensive income
Translation difference 54.7 39.0 6.6 10.0 -65.8 -90.0
Cash flow hedge -1.7 3.7 -9.5 5.3 -4.8 -13.6
Income tax related to components of
other comprehensive income 0.4 -1.0 2.5 -1.4 1.3 3.6
Total other comprehensive income net after tax for the period 53.4 41.7 -0.4 13.9 -69.3 -100.0
Total comprehensive income for the period 90.7 101.1 42.6 80.9 152.2 -12.2
Profit/loss attributable to:
Equity holders of the parent company 36.8 59.4 42.0 66.9 219.8 85.8
Non-controlling (minority) interest 0.5
37.3
0.0
59.4
1.0
43.0
0.1
67.0
1.7
221.5
2.0
87.8
Total comprehensive income attributable to:
Equity holders of the parent company 89.5 100.4 41.5 80.6 151.3 -12.6
Non-controlling (minority) interest 1.2
90.7
0.7
101.1
1.1
42.6
0.3
80.9
0.9
152.2
0.4
-12.2
Profit per share
Profit per share before dilution 0.55 0.90 0.63 1.01 3.31 1.29
Profit per share after dilution 0.55 0.88 0.62 0.99 3.26 1.27
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 67 343 543 67 343 543 67 343 543 67 343 543 67 343 543 67 343 543

* Rate of exchange profit and capital gain

Consolidated cash flow statements

3 months 3 months 6 months 6 months 12 months 12 months
Apr - Jun Apr - Jun Jan - Jun Jan - Jun Jan - Dec Jan-Dec
SEK million 2011 2010 2011 2010 2010 2009
Current operation
Profit/loss before financial items 72.8 87.9 90.5 104.8 327.6 172.4
Items not included in cash flow 15.3 10.0 31.6 25.3 77.0 52.3
Received interest 1.0 1.4 2.6 2.4 5.1 6.2
Paid interest -12.2 -6.6 -23.7 -14.2 -32.4 -52.4
Paid income tax -14.9 -10.3 -61.6 -15.8 -45.2 -39.6
Cash flow from current operations 62.0 82.4 39.4 102.5 332.1 138.9
before changes in working capital
Cash flow from changes in working capital
Increase/decrease of stock -77.8 24.6 -202.5 40.3 -36.7 526.1
Increase/decrease of current receivables 45.4 -83.9 96.6 -73.9 -37.0 119.2
Increase/decrease of short-term liabilities -3.4 94.4 -49.9 114.0 85.2 22.1
Changes in working capital -35.8 35.1 -155.8 80.4 11.5 667.4
Cash flow from operations 26.2 117.5 -116.4 182.9 343.6 806.3
Investing activities
Investments in tangible assets -10.1 -10.4 -33.3 -26.4 -61.2 -61.9
Sales of tangible assets 0.3 1.3 0.3 1.3 3.1 40.7
Investments in intangible assets -10.4 0.0 -10.4 0.0 -2.0 0.0
Reayment of purchase amount * 0.0 2.4 0.0 2.4 2.4 0.0
Sales of financial assets 0.0 0.0 0.0 0.0 0.1 0.0
Acquisition of financial assets 0.6 0.0 -3.3 0.0 0.0 -1.8
Cash flow from investing activities -19.6 -6.7 -46.7 -22.7 -57.6 -23.0
Cash flow after investing activities 6.6 110.8 -163.1 160.2 286.0 783.3
Financial activities
Option premium 0.0 0.0 0.0 0.0 0.0 0.2
Loan raised 36.0 0.0 169.5 0.0 53.9 0.0
Raised long-term receivables -0.3 0.0 0.0 0.0 -0.1 0.0
Repayment of long-term receivables 0.0 0.0 3.9 1.2 0.0 2.5
Amortization of loan 0.0 -90.2 0.0 -148.4 -278.4 -875.6
Dividend paid to the parent company's shareholders -66.3 -16.6 -66.3 -16.6 -16.6 -11.9
Cash flow from financial activities -30.6 -106.8 107.1 -163.8 -241.2 -884.8
Cash flow for the period -24.0 4.0 -56.0 -3.6 44.8 -101.5
Opening cash balance 86.1 72.4 121.7 80.4 80.4 191.2
Currency translation 2.1 3.7 -1.5 3.3 -3.5 -9.3
Closing cash balance 64.2 80.1 64.2 80.1 121.7 80.4
Liquid assets
Cash at bank and in hand 64.2 80.1 64.2 80.1 121.7 80.4
*The item includes:
Goodwill - 2.4 - 2.4 2.4 -
Effect on the cash flow 0.0 2.4 0.0 2.4 2.4 0.0

Consolidated balance sheets

30-Jun 30-Jun 31-Dec 31-Dec
SEK million 2011 2010 2010 2009
ASSETS
Intangible fixed assets 1 106.2 1 252.0 1 141.7 1 205.4
Property, plant and equipment 334.7 355.2 333.9 379.6
Shares in associated companies 55.0 51.7 51.7 50.9
Long-term receivables 10.5 13.1 14.4 14.3
Deferred tax assets 93.6 116.5 101.8 109.2
Total fixed assets 1 600.0 1 788.5 1 643.5 1 759.4
Stock 1 778.4 1 578.7 1 594.7 1 624.8
Tax receivables 39.6 27.1 46.6 65.3
Accounts receivables 740.9 778.6 787.9 735.3
Prepaid expenses and accrued income 102.8 81.4 72.3 73.4
Other receivables 28.6 71.9 51.9 63.7
Liquid assets 64.2 80.1 121.7 80.4
Total current assets 2 754.5 2 617.8 2 675.1 2 642.9
TOTAL ASSETS 4 354.5 4 406.3 4 318.6 4 402.3
EQUITY
Share capital 199.1 199.1 199.1 199.1
Other capital contributed 219.4 219.4 219.4 219.4
Reserves 37.1 119.8 37.6 106.1
Retained earnings including profit/loss for the period 1 427.9 1 299.3 1 452.2 1 249.0
Equity attributable to Parent Company shareholders 1 883.5 1 837.6 1 908.3 1 773.6
Non-controlling (minority) interest 25.8 32.7 24.7 33.5
Total equity 1 909.3 1 870.3 1 933.0 1 807.1
LIABILITIES
Long-term interest-bearing liabilities 1 638.2 1 696.8 1 492.4 1 796.2
Pension obligations 9.0 7.9 8.1 8.2
Other provisions 8.2 13.2 16.0 16.8
Deferred tax liabilities 149.6 178.4 148.2 170.6
Total long-term liabilities 1 805.0 1 896.3 1 664.7 1 991.8
Short-term interest-bearing liabilities 17.1 5.2 35.9 25.0
Accounts payable 271.0 325.6 305.6 261.8
Current tax liabilities 46.0 31.3 66.4 35.9
Accrued expenses and prepaid income 226.8 199.6 204.2 196.5
Other liabilities 79.3 78.0 108.8 84.2
Total short-term liabilities 640.2 639.7 720.9 603.4
Total liabilies 2 445.2 2 536.0 2 385.6 2 595.2
TOTAL EQUITY AND LIABILITIES 4 354.5 4 406.3 4 318.6 4 402.3
Memorandum items
Assets pledged 2 784.5 2 780.9 2 714.3 2 256.9
Contingent liabilities 33.2 39.9 39.8 8.3

Consolidated statement of changes in equity

Retained Non
Other earnings controlling
capital incl. profit/loss (minority)
SEK million Share capital contributed Reserves for the year Total interest Total equity
Opening balance 2010-01-01 199.1 219.4 106.1 1 249.0 1 773.6 33.5 1 807.1
Profit for the year 219.8 219.8 1.7 221.5
Other comprehensive income
Translation difference -65.0 -65.0 -0.8 -65.8
Cash flow hedge -4.8 -4.8 -4.8
Income tax related to components of other comprehensive income 1.3 1.3 1.3
Transactions with shareholders
Dividend -16,6 -16,6 -16,6
Change in non-controlling (minority) interest 0,0 0,0 -9,7 -9,7
Balance at year end 2010-12-31 199,1 219,4 37,6 1 452,2 1 908,3 24,7 1 933,0
Retained Non
Other earnings controlling
capital incl. profit/loss (minority) Total equity
SEK million Share capital contributed Reserves for the period Total interest kapital
Opening balance 2011-01-01 199.1 219.4 37.6 1 452.2 1 908.3 24.7 1 933.0
Profit for the period 42.0 42.0 1.0 43.0
Other comprehensive income
Translation difference 6.5 6.5 0.1 6.6
Cash flow hedge -9.5 -9.5 -9.5
Income tax related to components of other comprehensive income 2.5 2.5 2.5
Transactions with shareholders
Dividend -66.3 -66.3 -66.3
Change in non-controlling (minority) interest 0.0 0.0 0.0 0.0
Balance at end of period 2011-06-30 199.1 219.4 37.1 1 427.9 1 883.5 25.8 1 909.3
6 months 6 months Full Year Full Year
Accumulated translation differences in equity 2011 2010 2010 2009
Accumulated translation differences in equity opening balance 49.9 115.7 115.7 205.7
Translation differences in foreign subsidiaries for the period 6.6 10.0 -65.8 -90.0
Accumulated translation differences at end of period 56.5 125.7 49.9 115.7

Financial highlights - Group

6 months 6 months 12 months 12 months
Jan - Jun Jan - Jun Jan - Dec Jan - Dec
2011 2010 2010 2009
Sales growth, % -1.6 -1.1 3.8 -11.2
Number of employees 2 162 2 159 2 196 2 203
Gross profit margin, % 47.8 47.4 47.1 46.5
Operating margin before depreciation, % 5.9 6.8 9.1 5.9
Operating margin, % 4.6 5.3 7.7 4.2
Profit margin, % 3.6 4.7 7.1 3.1
Net margin, % 2.3 3.4 5.3 2.1
Return on shareholders' equity, % 4.8 7.4 12.1 4.9
Return on capital employed, % 5.2 6.0 9.4 4.3
Equity ratio, % 43.8 42.4 44.8 41.0
Net debt - Equity ratio, % 83.3 86.7 72.8 96.3
Net debt, SEK million 1 591.1 1 621.9 1 406.6 1 740.8
Interest cover ratio, times 3.9 7.6 10.4 3.4
Capital turnover, times 0.9 0.9 1.0 0.8
Stock turnover, times 1.2 1.3 1.4 1.1
Cash flow before investments, SEK million -116.4 182.9 343.6 806.3
Net investments, SEK million -46.7 -22.7 -57.6 -23.0
Cash flow after investments, SEK million -163.1 160.2 286.0 783.3
Shareholders' equity per share, SEK 28.78 28.19 29.14 27.24
Shareholders' equity per share after dilution, SEK 28.35 27.77 28.70 26.83
Share price as at December 31, SEK - - 40.40 27.50
Dividend/share, SEK - - 1.00 0.25
P/E-ratio - - 12.03 20.54
P/S-ratio - - 0.63 0.45
Share price/Shareholders' equity - - 1.39 1.01

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

Net sales for the period, less product costs, as a percentage of net sales.

EBITDA

Operating profit before depreciation.

Capital turnover Net sales divided by the average Balance Sheet total.

Net margin Net result as a percentage of net 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 net sales.

Equity ratio

Equity including non-controlling (minority) interest in percent of balance sheet total.

Capital employed

Balance Sheet total reduced by interest-free liabilities and interest-free provisions.

Profit margin

Profit/loss after financial items as a percentage of net sales.

Stock turnover

Cost of sold goods divided by average stock.

Income statements – Parent Company

6 months 6 months 12 months 12 months
Jan - Jun Jan - Jun Jan - Dec Jan - Dec
SEK million 2011 2010 2010 2009
Net sales 61.2 72.5 137.2 139.0
Other operating income* 10.5 9.4 19.2 17.7
Total income 71.7 81.9 156.4 156.7
External expenses -49.8 -51.6 -101.8 -109.0
Personnel costs -11.8 -12.5 -23.7 -25.3
Depreciation of tangible and intangible fixed assets -1.4 -0.5 -0.9 -4.1
Other operating costs** -9.4 -5.5 -16.7 -17.1
Operating profit/loss -0.7 11.8 13.3 1.2
Profit/loss from financial investments 0.0 29.2 230.5 197.7
Write-down of financial assets 0.0 0.0 -122.4 -20.6
Interest income 17.7 16.5 54.6 84.1
Interest expenses -12.2 -7.0 -36.1 -53.4
Net financial items 5.5 38.7 126.6 207.8
Profit/loss after financial items 4.8 50.5 139.9 209.0
Disposals 0.0 0.0 -19.3 -0.2
Tax on net profit/loss for the period -5.6 -13.3 -3.6 -10.3
Profit for the period -0.8 37.2 117.0 198.5

Total comprehensive income for the period correspond with profit for the period

* Rate of exchange profit and capital gain

** Rate of exchange loss

Cash Flow Analysis – Parent Company

6 month 6 month 12 month 12 month
Jan - Jun Jan - Jun Jan - Dec Jan - Dec
SEK million 2011 2010 2010 2009
Current operations
Operating profit before financial items -0.7 11.8 13.3 1.2
Adjustments for non-cash items 1.4 -4.3 -3.9 20.6
Received dividends 0.0 29.2 118.7 194.9
Interest received 34.1 25.9 54.6 84.1
Interest paid -28.6 -16.4 -36.1 -53.4
Tax paid -20.7 26.3 -3.7 9.2
Cash flow before change in
working capital -14.5 72.5 142.9 256.6
Cash flow from change in working capital
Decrease/increase in stock -6.9 0.0 0.0 0.0
Decrease/increase in short-term receivables -101.9 110.5 151.3 330.8
Decrease/increase on short-term liabilities 27.6 -26.4 -33.3 -19.5
Changes in working capital -81.2 84.1 118.0 311.3
Cash flow from operations -95.7 156.6 260.9 567.9
Investing activities
Shareholders contribution to subsidiaries -5.2 -28.9 -28.8 -10.4
Intragroup company aquisition 0.0 -0.1 0.0 -87.0
Intragroup sales of group companies 0.0 3.4 3.4 115.1
Aquisition of tangible assets -3.4 -0.3 -0.2 -0.1
Aquisition of intangible assets -5.6 -0.1 -0.5 0.0
Aquisition shares -1.0 0.0 0.0 -1.1
Repayment of purchase amount 0.0 2.4 2.4 0.0
Loan given to subsidiaries 0.0 -42.3 0.0 0.0
Repayment of loan from subsidiaries 0.0 0.0 0.0 312.6
Cash-flow from investing activities -15.2 -65.9 -23.7 329.1
Cash flow after investing activities -110.9 90.7 237.2 897.0
Financial activities
Loan raised 179.0 0.0 0.0 0.0
Amortization of loan 0.0 -74.1 -220.6 -849.1
Raised long-term receivables -1.8 0.0 0.0 0.0
Dividend paid to shareholders of the parent company -66.3 -16.6 -16.6 -11.9
Received/paid Group contribution 0.0 0.0 0.0 -36.0
Cash-flow from financial activities 110.9 -90.7 -237.2 -897.0
Cash flow for the period 0.0 0.0 0.0 0.0
Liquid funds at the beginning of the year 0.0 0.0 0.0 0.0
Liquid funds at the end of the period 0.0 0.0 0.0 0.0

Balance sheets – Parent Company

30-Jun 30-Jun 31-Dec 31-Dec
SEK million 2011 2010 2010 2009
ASSETS
Fixed assets
Intangible fixed assets 5.5 0.7 0.7 0.6
Tangible fixed assets 3.2 0.6 0.4 0.8
Financial assets
Shares in Group companies 1 405.1 1 477.5 1 400.0 1 449.6
Shares in associated companies 53.2 52.3 52.2 52.3
Receivables on Group companies 554.7 702.3 598.1 659.9
Other long-term receivables 2.3 0.5 0.5 0.5
Total financial assets 2 015.3 2 232.6 2 050.8 2 162.3
Total fixed assets 2 024.0 2 233.9 2 051.9 2 163.7
Current assets
Short-term receivables
Stock 6.9 0.0 0.0 0.0
Accounts receivable 4.3 4.6 4.3 0.4
Receivables on Group companies 1 391.0 1 161.9 1 275.7 1 282.1
Tax receivables 0.4 0.0 14.4 26.1
Other receivables 5.1 27.0 16.0 15.0
Prepaid expenses and accrued income 10.3 11.4 12.8 17.3
Total short-term receivables 1 418.0 1 204.9 1 323.2 1 340.9
Cash and bank 0.0 0.0 0.0 0.0
Total current assets 1 418.0 1 204.9 1 323.2 1 340.9
TOTAL ASSETS 3 442.0 3 438.8 3 375.1 3 504.6
EQUITY AND LIABILITIES
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 776.2 692.6 725.5 510.7
Share premium reserve 48.0 48.0 48.0 48.0
Profit/loss for the period -0.8 37.2 117.0 198.5
823.4 777.8 890.5 757.2
Total shareholders' equity 1 271.9 1 226.3 1 339.0 1 205.7
Untaxed reserves 53.0 33.6 53.0 33.6
Long-term liabilities
Overdraft facilities
Total long-term liabilities
1 565.8
1 565.8
1 612.8
1 612.8
1 430.2
1 430.2
1 686.9
1 686.9
Short-term liabilities
Accounts payable 25.9 52.9 44.9 37.3
Liabilities to Group companies 517.8 495.1 501.2 534.3
Current tax liabilities 0.0 13.5 0.0 0.0
Other liabilities 0.8 0.0 0.7 0.7
Accrued expenses and prepaid income 6.8 4.6 6.1 6.1
Total short-term liabilities 551.3 566.1 552.9 578.4
TOTAL EQUITY AND LIABILITIES 3 442.0 3 438.8 3 375.1 3 504.6
Memorandum items
Assets pledged 1 110.5 1 516.2 1 110.4 1 488.5
Contingent liabilities 401.6 330.5 467.1 299.9

Changes in equity – Parent Company

Restricted Retained Share premium Profit/loss
SEK million Share capital reserves profits reserve for the year
198.5
-198.5
Total equity
Opening balance 2010-01-01 199.1 249.4 510.7 48.0 1 205.7
Transfer according to General meeting 198.5 0.0
Group contribution 32.9 32.9
Profit/loss for the year 117.0 117.0
Total change in net assets excluding
transactions with shareholders
0.0 0.0 32.9 0.0 117.0 149.9
Dividend -16.6 -16.6
Balance at year end 2010-12-31 199.1 249.4 725.5 48.0 117.0 1 339.0

Group contribution of SEK 32.9 million concerns received Group contribution of SEK 44.6 million with a calculated tax effect of SEK -11.7 million attributable to the Group contribution.

SEK million Share capital Restricted
reserves
Retained
profits
Share premium
reserve
Profit/loss
for the period
Total equity
Opening balance 2011-01-01 199.1 249.4 725.5 48.0 117.0 1 339.0
Transfer according to General meeting 117.0 -117.0 0.0
Profit/loss for the period -0.8 -0.8
Total change in net assets excluding
transactions with shareholders
0.0 0.0 0.0 0.0 -0.8 -0.8
Dividend -66.3 -66.3
Balance at end of period 2011-06-30 199.1 249.4 776.2 48.0 -0.8 1 271.9

Sales and result per business area

3 months
Apr - Jun
3 months
Apr - Jun
6 months
Jan - Jun
6 months
Jan - Jun
12 months
Jan–Dec
12 months
Jan–Dec
Business Area Corporate Promo 2011 2010 2011 2010 2010 2009
Net sales 482.4 482.7 893.6 880.7 1 818.6 1 805.1
Result EBITDA 74.8 77.3 99.4 91.0 209.6 171.9
Business Area Sports & Leisure
Net sales 367.8 403.7 756.6 783.8 1 702.8 1 587.1
Result EBITDA 25.9 30.1 62.3 70.5 220.1 124.5
Business Area Gifts & Home furnishing
Net sales 170.7 178.9 298.3 316.1 722.0 694.8
Result EBITDA -14.8 -4.4 -47.0 -26.7 -43.7 -53.4
Total net sales 1 020.9 1 065.3 1 948.5 1 980.6 4 243.4 4 087.0
Total result EBITDA 85.9 103.0 114.7 134.8 386.0 243.0
Total result EBITDA 85.9 103.0 114.7 134.8 386.0 243.0
Depreciation -13.2 -15.1 -24.3 -30.0 -58.4 -70.6
Net financial items -11.2 -5.1 -21.1 -11.7 -27.3 -46.2
Profit before tax 61.5 82.8 69.3 93.1 300.3 126.2

Assets/Liabilities per business area

Total Fixed Deferred Total
SEK million assets assets * tax assets Investments Depreciation Liabilities
June 30 2011
Corporate Promo 2 087.9 544.2 39.5 -34.2 -13.9 1 520.9
Sports & Leisure 1 493.9 690.2 30.3 -5.3 -6.6 472.6
Gifts & Home furnishing 772.7 206.5 23.8 -7.2 -3.8 451.7
Total 4 354.5 1 440.9 93.6 -46.7 -24.3 2 445.2
June 30 2011
Corporate Promo 1 927.2 558.9 63.9 -7.8 -17.1 1 553.4
Sports & Leisure 1 576.6 849.9 34.7 -5.2 -10.1 484.9
Gifts & Home furnishing 902.5 198.4 17.9 -9.7 -2.8 497.7
Total 4 406.3 1 607.2 116.5 -22.7 -30.0 2 536.0
Dec 31 2010
Corporate Promo 1 986.3 561.3 39.0 -38.2 -26.7 1 481.2
Sports & Leisure 1 457.2 749.5 35.7 -9.4 -19.1 457.6
Gifts & Home furnishing 875.1 164.8 27.1 -10.0 -12.6 446.8
Total 4 318.6 1 475.6 101.8 -57.6 -58.4 2 385.6
Sales per area 3 months
3 months
Apr-Jun Part of Apr-Jun Part of Change Change
2011 turnover 2010 turnover SEK million %
Sweden 328 32% 318 30% 10 3%
USA 200 20% 257 24% -57 -22%
Nordic countries excluding Sweden 173 17% 174 16% -1 -1%
Mid-Europe 177 17% 173 16% 4 2%
Southern Europe 113 11% 112 11% 1 1%
Other countries 30 3% 31 3% -1 -3%
Total 1 021 100% 1 065 100% -44 -4%
6 months 6 months
Jan–Jun Part of Jan–Jun Part of Change Change
2011 turnover 2010 turnover SEK million %
Sweden 600 31% 581 29% 19 3%
USA 371 19% 432 22% -61 -14%
Nordic countries excluding Sweden 324 17% 319 16% 5 2%
Mid-Europe 374 19% 374 19% 0 0%
Southern Europe 216 11% 214 11% 2 1%
Other countries 64 3% 61 3% 3 5%
Total 1 949 100% 1 981 100% -32 -2%
12 months 12 months
Jan–Dec Part of Jan–Dec Part of Change Change
2010 turnover 2009 turnover SEK million %
Sweden 1 288 31% 1 215 30% 73 6%
USA 893 21% 789 19% 104 13%
Nordic countries excluding Sweden 651 15% 625 15% 26 4%
Mid-Europe 798 19% 804 20% -6 -1%
Southern Europe 468 11% 502 12% -34 -7%
Other countries 145 3% 152 4% -7 -5%
Total 4 243 100% 4 087 100% 156 4%

Fixed assets and deferred tax assets per area

30 Jun 2011 30 Jun 2010 31 Dec 2010 31 Dec 2009
Fixed Deferred Fixed Deferred Fixed Deferred Fixed Deferred
assets * tax assets assets * tax assets assets * tax assets assets * tax assets
Sweden 504 14 508 15 494 14 506 10
USA 622 39 769 37 673 47 718 31
Nordic countries excl Sweden 27 2 28 2 26 3 28 2
Mid-Europe 191 36 201 37 186 35 225 37
Southern Europe 91 3 95 26 90 3 99 29
Other countries 6 0 6 0 7 0 9 0
Total 1 441 94 1 607 117 1 476 102 1 585 109

Quarterly consolidated income statements

SEK million
Quarter
Q1
Q2
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Net sales
927.6
1 020.9
915.3
1 065.3
1 060.7
1202.1
979.5
1 022.9
1 002.2
1082.4
1 015.0
1 245.4
1 117.3
Goods for resale
-493.9
-522.7
-477.9
-563.7
-581.2
-620.7
-528.1
-519.3
-555.5
-582.4
-532.3
-626.8
-549.8
Q4
1 226.5
-662.9
563.6
46.0
Gross profit
433.7
498.2
437.4
501.6
479.5
581.4
451.4
503.6
446.7
500.0
482.7
618.6
567.5
Gross profit %
46.8
48.8
47.8
47.1
45.2
48.4
46.1
49.2
44.6
46.2
47.6
49.7
50.8
Other operating income
12.6
8.4
5.1
5.1
12.6
9.4
22.9
22.0
2.1
21.9
6.2
6.4
23.2
20.7
External costs
-241.5
-241.6
-240.4
-230.6
-222.3
-252.9
-267.7
-220.1
-226.5
-234.8
-277.4
-270.6
-259.9
-297.7
Personnel costs
-168.2
-173.2
-167.0
-171.7
-161.1
-179.4
-231.2
-182.8
-166.6
-170.9
-178.6
-186.9
-167.5
-198.0
Depreciations
-11.1
-13.2
-14.9
-15.1
-14.2
-14.2
-18.5
-19.0
-17.1
-16.0
-12.5
-16.7
-16.5
-18.5
Other operating costs
-7.9
-5.5
-3.9
-1.5
-10.2
-6.0
-14.7
-8.7
-1.8
-2.4
-4.8
-2.0
-4.0
-9.6
Share of associated companiesresult
0.1
-0.4
0.6
0.1
0.4
-0.2
0.5
0.4
0.9
-1.2
0.0
0.0
0.0
1.1
Operating profit/loss
17.7
72.7
16.9
87.9
84.7
138.1
-57.3
95.4
37.7
96.6
15.6
148.8
142.8
61.6
Interest income
1.6
1.0
1.0
1.5
0.6
2.0
4.3
0.7
0.0
1.2
2.6
2.6
2.6
4.6
Interest expenses
-11.5
-12.2
-7.6
-6.6
-8.3
-9.9
-19.8
-13.5
-11.4
-7.7
-34.7
-38.9
-41.8
-33.0
Profit before tax
7.8
61.5
10.3
82.8
77.0
130.2
-72.8
82.6
26.3
90.1
-16.5
112.5
103.6
33.2
Tax
-2.1
-24.2
-2.7
-23.4
-21.5
-31.2
19.5
-22.1
-7.0
-28.8
1.5
-26.7
-28.9
-30.8
Profit/loss for the period
5.7
37.3
7.6
59.4
55.5
99.0
-53.3
60.5
19.3
61.3
-15.0
85.8
74.7
2.4
Other comprehensive income
Translation difference
-48.1
54.7
-29.0
39.0
-100.8
25.0
13.1
-27.3
-106.1
30.3
-121.3
4.1
205.4
197.7
Cash flow hedge
-7.8
-1.7
1.6
3.7
-16.7
6.6
10.2
-11.7
-17.5
5.4
-7.5
3.5
8.8
9.3
Income tax related to components of
other comprehensive income
2.1
0.4
-0.4
-1.0
4.4
-1.7
-2.7
3.1
4.6
-1.4
2.1
-1.0
-2.5
-2.6
Total other comprehensive income net after
tax for the period
-53.8
53.4
-27.8
41.7
-113.1
29.9
20.6
-35.9
-119.0
34.3
-126.7
6.6
211.7
204.4
Total comprehensive income for the period
-48.1
90.7
-20.2
101.1
-57.6
128.9
-32.7
24.6
-99.7
95.6
-141.7
92.4
286.4
206.8
Profit/loss attributable to:
Equity holders of the parent company
5.2
36.8
7.5
59.4
55.0
97.9
-53.6
60.6
19.2
59.6
-15.1
81.2
78.9
-0.4
Non-controlling (minority) interest
0.5
0.5
0.1
0.0
0.5
1.1
0.3
-0.1
0.1
1.7
0.1
4.6
-4.2
2.8
5.7
37.3
7.6
59.4
55.5
99.0
-53.3
60.5
19.3
61.3
-15.0
85.8
74.7
2.4
Total comprehensive income attributable to:
Equity holders of the parent company
89.5
-48.0
-19.8
100.4
-56.6
127.3
-33.3
25.3
-98.1
93.5
-140.5
88.6
287.5
200.2
Non-controlling (minority) interest
-0.1
1.2
-0.4
0.7
-1.0
1.6
0.6
-0.7
-1.6
2.1
-1.2
3.8
-1.1
6.6
-141.7
-48.1
90.7
-20.2
101.1
-57.6
128.9
-32.7
24.6
-99.7
95.6
92.4
286.4
206.8
Profit per share (SEK)
Profit per share before dilution
0.08
0.55
0.11
0.90
0.83
1.47
-0.81
0.91
0.29
0.90
-0.23
1.22
1.19
-0.01
Profit per share after dilution
0.08
0.55
0.11
0.88
0.82
1.45
-0.81
0.91
0.29
0.89
-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 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
67 343 543
67 343 543
67 343 543
67 343 543 67 343 543 67 343 543
66 343 543 66 343 543 66 343 543
67 343 543 68 996 793
69 496 793 68 446 793 66 343 543
SEK million 2007 2006 2005
Quarter Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Net sales 760.4 977.5 1 124.7 1 331.4 755.3 896.7 799.6 1 078.9 516.5 738.6 774.2 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 operating 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 operating 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 companiesresult 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 consolidated cash flow statements

SEK million
2011
2010 2009 2008
Quarter
Q1
Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Current operation
Profit/loss before financial items
17.7
72.8 16.9 87.9 84.7 138.1 -57.3 95.4 37.7 96.6 15.6 148.8 142.8 61.7
Items not included in cash flow**
16.3
15.3 15.3 10.0 39.6 12.1 12.3 -9.1 -2.3 3.0 28.8 19.4 -10.6 -8.5
Received interest
1.6
1.0 1.0 1.4 0.7 2.0 4.3 0.7 0.0 1.2 2.6 2.6 2.6 4.6
Paid interest
-11.5
-12.2 -7.6 -6.6 -8.3 -9.9 -19.8 -13.5 -11.4 -7.7 -34.7 -38.9 -41.8 -33.0
Paid income tax
-46.7
-14.9 -5.5 -10.3 -1.2 -28.2 -19.9 -8.2 10.2 -21.7 -18.7 -16.9 -30.4 -32.9
Cash flow from current operations
-22.6
62.0 20.1 82.4 115.5 114.1 -80.4 65.3 34.2 71.4 -6.4 115.0 62.6 -8.1
before changes in working capital
Cash flow from changes in working capital
Increase/decrease of stock
-124.7
-77.8 15.7 24.6 -104.5 27.5 -65.5 199.3 147.3 245.0 -118.4 -82.4 -162.3 168.9
Increase/decrease of current receivables**
51.2
45.4 10.0 -83.9 5.3 31.6 7.2 47.3 12.5 100.6 108.7 -168.3 26.2 186.4
Increase/decrease of short-term liabilities
-46.5
-3.4 19.6 94.4 -57.8 29.0 0 61.5 -52.7 13.3 -172.6 107.4 -31.0 -293.7
Changes in working capital
-120.0
-35.8 45.3 35.1 -157.0 88.1 -58.3 308.1 107.1 358.9 -182.3 -143.3 -167.1 61.6
Cash flow from operations
-142.6
26.2 65.4 117.5 -41.5 202.2 -138.7 373.4 141.3 430.3 -188.7 -28.3 -104.5 53.5
Investing activities
Investments in tangible assets
-23.2
-10.1 -16.0 -10.4 -20.8 -14.0 -4.4 -17.9 -37.7 -1.9 -1.3 -20.4 -24.3 -15.3
Sales of tangible assets
0.0
0.3 0.0 1.3 1.8 0.0 2.1 17.8 0.0 20.8 0.0 1.7 8.0 -1.2
Investments in intangible assets
0.0
-10.4 0.0 0.0 0.0 -2.0 -3.3 0.0 3.3 0.0 -0.3 0.3 -5.7 5.6
Acquisition of subsidiaries*
0.0
0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 -0.7 -2.4 2.4
Reayment of purchase amount *
0.0
0.0 0.0 2.4 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Sales of financial assets
0.0
0.0 0.0 0.0 0.0 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Acquisition of financial assets
-3.9
0.6 0.0 0.0 0.0 0.0 -0.7 -0.2 -0.9 0.0 -14.2 -1.7 2.2 2.1
Cash flow from investing activities
-27.1
-19.6 -16.0 -6.7 -19.0 -15.9 -6.3 -0.3 -35.3 18.9 -15.8 -20.8 -22.2 -6.4
Cash flow after investing activities
-169.7
6.6 49.4 110.8 -60.5 186.3 -145.0 373.1 106.0 449.2 -204.5 -49.1 -126.7 47.1
Financial activities
Option premium
0.0
0.0 0.0 0.0 0.0 0.0 0.0 0.2 0.0 0.0 0.0 0.0 2.1 0.0
Loan raised
133.5
36.0 0.0 0.0 53.9 0.0 26.2 0.0 0.0 15.9 137.7 125.9 213.2 -35.8
Raised long-term receivables
0.0
-0.3 -0.3 0.0 -6.8 5.9 -0.5 0.0 -0.6 -0.4 0.0 0.0 0.0 -0.8
Repayment of long-term receivables
4.2
0.0 1.5 0.0 3.8 -4.2 0.5 1.7 1.8 0.0 0.0 0.0 0.0 1.2
Amortization of loan
0.0
0.0 -58.2 -90.2 0.0 -130.0 0.0 -339.4 -139.2 -439.1 0.0 0.0 0.0 0.0
Dividend paid to the parent company's shareholders
0.0
-66.3 0.0 -16.6 0.0 0.0 0.0 -11.9 0.0 0.0 0.0 -66.3 0.0 0.0
Cash flow from financial activities
137.7
-30.6 -57.0 -106.8 50.9 -128.3 26.2 -349.4 -138.0 -423.6 137.7 59.6 215.3 -35.4
Cash flow for the period
-32.0
-24.0 -7.6 4.0 -9.6 58.0 -118.8 23.7 -32.0 25.6 -66.8 10.5 88.6 11.7
Opening cash balance
121.7
86.1 80.4 72.4 80.1 63.2 191.2 77.9 95.2 51.3 115.5 41.1 52.3 155.5
Currency translation
-3.6
2.1 -0.4 3.7 -7.3 0.5 5.5 -6.4 -11.9 3.5 -7.6 0.7 14.6 24.0
Closing cash balance
86.1
64.2 72.4 80.1 63.2 121.7 77.9 95.2 51.3 80.4 41.1 52.3 155.5 191.2
*The item includes:
Goodwill
-
- - 2.4 - - - - - - - - - -
Working capital
-
Effect on the cash flow
0.0
-
0,0
-
0.0
-
2.4
-
0.0
-
0.0
-
0.0
-
0.0
-
0.0
-
0.0
-
0.0
-0.7
-0.7
-2.4
-2.4
2.4
2.4

** The change of current receivables for Q4 2009 have been affected with its share of the annual translation difference

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 nominal 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 are listed at OMX Stockholm Mid Cap.

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 15 609 (15 667) on June 30, 2011. Institutional investors accounted for 44 % of the capital and 11 % of the votes. At the same time the ten largest shareholders held 58 % of the capital and 89 % of the votes. Non-Swedish shareholders accounted for 16 % of the capital and 4 % of the votes.

New Wave Group's ten major shareholders 2011-06-30

Shareholder Number of shares Number of votes Capital % Votes %
Torsten Jansson through companies 21 416 280 207 785 400 32.3% 82.2%
Fjärde AP-Fonden 3 859 355 3 859 355 5.8% 1.5%
Handelsbanken fonder 2 697 893 2 697 893 4.1% 1.1%
Avanza Pension 2 585 848 2 585 848 3.9% 1.0%
Länsförsäkringar Småbolagsfond 1 886 289 1 886 289 2.8% 0.7%
GTM Holding AS 1 606 418 1 606 418 2.4% 0.6%
AMF 1 396 000 1 396 000 2.1% 0.6%
Home Capital 1 256 455 1 256 455 1.9% 0.5%
UBS 952 438 952 438 1.4% 0.4%
Tangent 863 203 863 203 1.3% 0.3%
38 520 179 224 889 299 58.1% 89.0%
Shareholder distribution in New Wave Group 2011-06-30 Number of shares Number of votes Capital % Votes %
Sweden 55 768 562 242 137 682 84.1% 95.8%
Shareholders outside Sweden excl. USA 8 498 458 8 498 458 12.8% 3.4%
USA 2 076 523 2 076 523 3.1% 0.8%
Total 66 343 543 252 712 663 100.0% 100.0%

Brands per business area

Business Area Corporate Promo
Business Area Sports and Leisure
Business Area Gifts and Home furnishing

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