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New Wave Group AB — Interim / Quarterly Report 2013
Nov 13, 2013
3081_10-q_2013-11-13_ff8d5692-444c-4d24-b155-1c3dfec4a911.pdf
Interim / Quarterly Report
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Condensed interim report for New Wave Group AB (publ) JANUARY–september 2013
CEO comments
Sales
The third quarter continued to be a tough market and we see no economic turnaround or increase in demand. Within the operating segment corporate promo, I unfortunately believe that we have also lost market shares in the Nordic countries. In our quest for cash flow, solvency, stock turnover and to reduce our net debt – we have forgotten the most important thing of all – reliable delivery and service are the most important parameters for our corporate promo clients. We have simply not been good enough at this over the last three to four years.
Low inventories, combined with delays of incoming deliveries in 2013 have led to reduced sales and dissatisfied customers. We are now doing all we can and as quickly as possible to raise our inventories so that we can provide a better delivery performance and service in the future.
Initially, this will lead to a poorer cash flow, higher inventories and thus lower key ratios in general. But within 12 to 18 months, I am convinced that it will lead to growth in terms of both sales and earnings. Even within the operating segment Sports & Leisure it has continued to be a tough market, but at least here, sales were approximately as expected.
Finally, in Gifts & Home Furnishings sales were worse than expected, nevertheless I am still positive and believe that sales growth will soon turn, now that the restructuring of Orrefors Kosta Boda is over and we can focus our efforts fully.
Results
Under the circumstances , I am satisfied with the result. At the same time, I feel frustrated because I know we can perform significantly better. I am glad that the results improved in all three segments – but I would have been happier if it had been due to increased revenues rather than savings.
Balance sheet
We have an extremely strong balance sheet for our type of business where current assets such as accounts receivable and inventory comprise the largest part of the balance sheet. Virtually all key figures in the balance sheet are above, on or around historic highs – since we went public 16 years ago – and even compared to the years before that. The equity ratio is at a record high, net gearing record low and net debt does not even represent the inventory value. I'm glad because the market is finally starting to understand this, but the downside is that we would have had more satisfied customers and greater profitability if we had higher inventory and good service.
The future
I believe that the next five quarters may be a bit tough, partly because we do not see any improvement in the economy, but mostly because of the actions and investments we make to gain satisfied customers and delivering growth and increased profitability. Above all, I am at the moment concerned for the next quarter in which we will probably continue to lose sales due to low inventories but also because we can't see any increase in demand. The warm weather so far gives us no help either and we also had very strong fourth quarter last year.
We will therefore increase inventories by a minimum of 300 million, which will increase the level of debt and impair short-term indicators. In addition, we will increase efforts in terms of sales and marketing. This together can obviously be interpreted negatively by the stock market but for those shareholders who have a perspective longer than 12 months then this should be good news. I am confident that New Wave, within 12–18 months, will deliver better results in almost all areas due to these actions and I feel that our brands are constantly strengthened. Craft should be able to continue its rapid growth and still improve profitability, Orrefors and Kosta Boda already feels much more stable. Our brands within corporate promo and work wear are standing strong – if only we can deliver and bring back satisfied customers.
Last but not least, we have a stable, hungry, and competent management in Asia, Europe and the U.S. so I look to the future with confidence and joy, even if some of the next five quarters might be tough, and I am more motivated than ever.
Torsten Jansson CEO
Interim report for New Wave Group AB
Period 1 julY – 30 September 2013
- • Sales amounted to SEK 1,035 Million, which was SEK 19 million lower than last year (SEK 1,054 million).
- • Operating profit amounted to SEK 92.8 (-139.9) million.
- • Profit after tax amounted to SEK 57.8 (-120.0) million. Last year included restructuring costs for SEK 161.5 million.
- • Acquired units contributed by SEK 16.4 million in turnover and SEK 2.5 million in profit after tax.
- • Earnings per share amounted to SEK 0.87 (-1.81).
- • Cash flow from operations amounted to SEK -2.5 (-112.8) million.
Period 1 January – 30 September 2013
- • Sales amounted to SEK 2,908 million, which was SEK 196 million lower than last year (SEK 3,104 million).
- • Operating profit amounted to SEK 179.1 (-78.6) million.
- • Profit after tax amounted to SEK 96.8 (-94.9) million. Last year included restructuring costs for SEK 161.5 million.
- • Acquired units contributed by SEK 16.4 million in turnover and SEK 2.5 million in profit after tax.
- • Earnings per share amounted to SEK 1.47 (-1.43).
- • Cash flow from operations amounted to SEK 145.4 (65.0) million.
- • Equity ratio amounted to 46.4 (40.6) %.
- • Net debt to equity ratio amounted to 73.7 (97.1) %.
Comments
SUMMARY OF THE QUARTER JULY– SEPTEMBER
Market development in the third quarter remained weak. The operating segments Corporate Promo and Sports & Leisure were on par with last year, while Gifts & Home Furnishings decreased by 14%. In total, the group's sales decreased by 2%, of which 1% was related to the change in exchange rates. It is mainly in Sweden and in the sales channel promo that sales have decreased. During the quarter, the distribution of Craft in the North American market was acquired and contributed with SEK 16.4 million in sales. Excluding acquisitions and currency adjustments the USA decreased slightly compared to last year. The decrease is primarily due the fact that last year included sales associated with the Ryder Cup golf competition which did not occur this year. In Europe we have seen stabilising numbers but they are still at a low level compared to previous years. There are also great variations between the different countries' development. Of our sales channels – promo and retail – promo was 3% lower and retail was at the same level as last year.
Gross profit margin increased slightly, mainly due to the measures taken last year in Orrefors Kosta Boda.
The group's costs have decreased compared to last year and relates to cost-cutting measures previously undertaken. We don't see this as a long-term sustainable development and costs in sales and marketing are expected to increase in the coming quarters.
Profit after tax increased by SEK 177.8 million to SEK 57.8 (-120.0) million. Acquired units contributed SEK 2.5 million. Last year includes restructuring costs at Orrefors Kosta Boda for SEK 161.5 million. Excluding these costs, last year's result amounted to SEK 41.5 million. The improvement was primarily due to improved gross profit and cost-cutting measures.
Inventories decreased by SEK 245 million and as of September 30 amounted to SEK 1,579 (1,824) million. The decrease is mainly attributable to lower purchases. The lower purchases are also affecting positively on cash flow from operations which amounted to SEK -2.5 (-112.8) million. Net debt decreased by SEK 326 million and amounted to SEK 1,456 (1,782) million. Net debt-equity ratio has improved by 23.4 percentage points and amounted to 73.7 (97.1) %.
JULY– SEPTEMBER
Sales
Sales amounted to SEK 1,035 million, which was SEK 19 million lower than last year (SEK 1,054 million). The acquired unit contributed by SEK 16 million. Currency exchange had a negative impact of SEK 13 million and sales in local currency decreased by 1%.
The operating segment Corporate Promo was on the same level as the previous year and amounted to SEK 342 (343) million. Even Sports & Leisure was on the same level as last year and amounted to SEK 563 (560) million. Gifts & Home Furnishings sales decreased by 14% to SEK 130 million (150), which is mainly related to the sales channel promo, in the Swedish market as well as export markets.
Sales in Sweden decreased by 8% and occurred in both sales channels. USA decreased by 2%, which is mainly attributable to currency conversion into SEK but also to last year's Ryder Cup golf competition which did not occur this year. Acquisitions contributed 5% to the region's sales. Other Nordic countries increased by 2%, which is related to the Danish market. Sales in the regions of Central and Southern Europe have both increased by 3%. Here we have seen improvements in the Netherlands, UK, Spain and Switzerland.
Gross profit
Gross profit margin was 45.4 (34.6) %. Last year includes restructuring costs and excluding these costs, gross profit was 45.0%. The improvement is mainly related to the actions taken last year at Orrefors Kosta Boda.
Other operating income and other operating expenses
Other operating income increased by SEK 0.3 million to SEK 7.7 (7.4) million. Other operating income is primarily attributable to operating exchange gains but also invoicing for reimbursement of expenses and should be compared to the line "Other operating expenses" in which primarily the foreign exchange losses are reported. Other operating expenses decreased and amounted to SEK -2.9 (-5.9) million. Net of the above items amounted to SEK 4.8 (1.5) million. The increase is related to the billing of costs and profits associated with the sale of fixed assets.
Costs and depreciation
External costs decreased by SEK 40.1 million and amounted to SEK -205.4 (-245.5) million. The decrease is related to the implemented cost-cutting measures, as well as the fact that last year includes restructuring costs of SEK 23 million.
Personnel costs amounted to SEK -162.5 million, which was SEK 45.6 million lower than last year (SEK -208.1 million). The lower costs are due to the implemented cost-cutting measures, as well as the fact that last year includes restructuring costs of SEK 40 million.
Depreciation and write-downs amounted to SEK -13.9 (-53.1) million. Last year includes restructuring costs of SEK 40 million.
Operating margin
The operating margin improved and amounted to 9.0% (previous year 6.8% excluding restructuring costs). The improvement was due to a higher gross profit margin and the implemented cost-cutting measures.
Net financial items and taxes
Net financial items amounted to SEK -13.1 (-13.9) million and the decrease was due to lower net debt.
Tax expenses in absolute terms amounted to SEK -21.9 (33.8) million and the change is due to the improved result.
Profit for the period
Profit after tax increased by SEK 177.8 million and amounted to SEK 57.8 (-120.0) million and earnings per share amounted to SEK 0.87 (-1.81) SEK. The improved performance is related to the improved gross profit margin, implemented costcutting measures as well as last year's restructuring costs which impacted negatively by SEK 161.5 million. Acquired units contributed by SEK 2.5 million.
JANUARY– SEPTEMBER
Sales
Sales amounted to SEK 2,908 million, which was SEK 196 million lower than last year (SEK 3,104 million). Currency exchange rates had a negative impact of SEK 71 million and sales in local currency decreased by 4%. Acquired units contributed SEK 16 million.
The Corporate Promo operating segment decreased by 6% and is mainly due to the negative development in Sweden and Europe. Sports & Leisure sales decreased by 5%, and even here this was mainly related to Sweden and Europe. Gifts & Home Furnishings sales decreased by 14%, which was mainly related to the promo sales channel as well as the export sales.
Sales in Sweden decreased by 11%. The decrease occurs in both sales channels. USA decreased by 3%, which is attributable to a negative currency impact when converted into SEK. Acquisitions contributed 2% to the region's sales. Sales in local currency, excluding acquisitions, are on par with last year. Other Nordic countries decreased by 5%, which is related to the Finnish and Norwegian markets. Sales in Central and Southern Europe have fallen by 5% and 7%, mainly due to deteriorating market conditions.
Gross profit
Gross profit margin amounted to 46.7 (42.0) %. The improvement is mainly related to the steps taken last year at Orrefors Kosta Boda as well as a mix of customers and countries. Last year was negatively impacted by 3.5 percentage points due to restructuring costs.
Other operating income and other operating expenses
Other operating income decreased by SEK 1.4 million and amounted to SEK 24.0 (25.4) million. Other operating income is primarily attributable to operating exchange gains but also invoicing for reimbursement of expenses and should be compared to the line "Other operating expenses" in which primarily the foreign exchange losses are reported. Other operating expenses decreased by SEK 7.0 million and amounted to SEK -8.6 (-15.6) million. The net of the above items amounted to SEK 15.4 (9.8) million. The increase is mainly related to the billing of costs and profits associated with the sale of fixed assets.
Costs and depreciation
External costs decreased by SEK 92.9 million and amounted to SEK -638.1 (-731.0) million. Personnel costs amounted to SEK -515.1 million, which was SEK 68.5 million lower than last year (SEK -583.6 million). Depreciation and write-downs amounted to SEK -40.2 (-78.0) million.
The lower costs mentioned above related to the implementation of cost-cutting measures, as well as the fact that last year include the following non-recurring costs
| External: | SEK 23 million |
|---|---|
| Personnel: | SEK 40 million |
| Write-down: | SEK 40 million |
Operating margin
The operating margin, excluding last year's one-off costs, improved and amounted to 6.2 (4.3) % which is due to a higher gross profit margin as well as implemented cost-cutting measures.
Net financial items and taxes
Net financial items amounted to SEK -43.8 (-40.4) million. The increase was due to higher interest rates.
Tax expenses in absolute terms amounted to SEK -38.5 (24.1) million and the tax rate amounted to -28.5 (20.3) %. Prior year's lower rate is related to that certain costs were not included in the taxable income.
Profit for the period
Profit after tax improved by SEK 191.7 million and amounted to SEK 96.8 (-94.9) million and earnings per share amounted to SEK 1.47 (-1.43) SEK. Last year includes SEK 161.5 million in restructuring costs. In addition, the improved performance is related to the improved gross profit margin as well as implemented cost-cutting measures. Acquired units contributed SEK 2.5 million.
REPORTING OF OPERATING SEGMENTS
New Wave Group AB divides its operations into segments – Corporate Promo, Sports & Leisure, Gifts & Home Furnishings. The Group monitors the segments' and brands' sales and profit (EBITDA). The operating segments are based on the Group's operational management.
Corporate Promo
Sales for the third quarter were on par with the last year and amounted to SEK 342 (343) million. Profit ( EBITDA) amounted to SEK 27.3 (21.3) million. Although total sales are unchanged, we have a deteriorating promo market in Sweden , Norway and Finland, while Asia has improved. The improved performance is related to the implemented cost-cutting measures.
Sales for the period January–September decreased by SEK 65 million and amounted
to SEK 1,109 (1,174) million. Profit ( EBITDA) amounted to SEK 84.9 (91.1) million. The decrease is due to a deteriorating promo market in Sweden, the other Nordic countries and Europe. The implemented cost-cutting measures partly compensate for the lower sales and the profit is SEK 6.2 million lower than last year.
Sports & Leisure
Sales for the period July-September were virtually unchanged from the previous year and amounted to SEK 563 (560) million. Profit ( EBITDA) amounted to SEK 70.6 million, which was SEK 6.4 million better than last year (SEK 64.2 million ) . Acquired units contributed SEK 16 million in sales and SEK 4.0 million in earnings. Excluding acquisitions, sales declined. This is mainly due to a weaker market in Sweden, but also decreased sales in the USA as last year included the golf tournament Ryder Cup, which did not occur this year. Revenue shortfall is offset by savings.
Sales for the period January–September decreased by SEK 69 million and amounted to SEK 1,429 (1,498) million. Profit (EBITDA) amounted to 123.6 (115.9) million. Acquired units contributed SEK 16 million in sales and SEK 4.0 million in earnings. The decrease is due to weaker market conditions, primarily in Sweden, the other Nordic countries and Europe. The USA, excluding acquisitions , is on par with last year. Revenue shortfall is offset by savings.
Gifts & Home Furnishings
Net sales for the quarter decreased 14% and amounted to SEK 130 (150) million. Profit (EBITDA) increased by SEK 181.1 million and amounted to SEK 8.8 (-172.3) million. The decrease in sales was mainly due to the Orrefors Kosta Boda's decreased promo and export sales. Last year's result includes restructuring costs of SEK 172 million. The improvement in earnings, excluding last year's one-time cost, is related to improved gross margins and cost savings.
For the period January–September, sales fell by 14% and amounted to SEK 370 (432) million. Profit (EBITDA) increased by SEK 218.4 million and amounted to SEK 10.8 (-207.6) million. The decrease in turnover was mainly due to Orrefors Kosta Boda's decreased promo and export sales. Last year's result includes restructuring costs of SEK 172 million. Even excluding this one-time cost, earnings improved which is related to improved gross margins and cost savings.
CAPITAL TIED UP
Capital tied up fell by SEK 245 million and amounted to SEK 1,579 (1,824) million. The decrease is primarily due to lower purchasing volumes. Stock turnover was on par with last year and amounted to 1.3 (1.3).
| 2013-09 | 2012-09 | |
|---|---|---|
| Raw materials | 32.6 | 31.7 |
| Work in progress | 7.2 | 15.8 |
| Goods in transit | 108.3 | 71.8 |
| Merchandise on stock | 1,431.1 | 1,705.0 |
| Total | 1,579.2 | 1,824.3 |
As of 30 September 2013, the stock has been written down by SEK 144 (184) million, of which SEK 25 million relates to raw materials. Impairment related to merchandise on stock amounted to 8.3 (9.1) %.
Accounts receivable amounted to SEK 765 (769) million. The decrease is related to lower turnover.
ACQUISITION
Since 1999, the US company Karhu North America LLC ("Karhu") has been the exclusive distributor in the United States and Canada of products under New Wave Group AB's sports brand CRAFT. As of 1 July, New Wave Group has, through its wholly owned subsidiary New Wave USA Inc, acquired that part of Karhu's business relating to distribution of CRAFT products, including inventory, certain intellectual property and contract rights. The transaction is structured as an asset acquisition. The initial purchase price amounts to US\$ 3 million with an additional contingent
price based on the results of the business over the next five years. The total contingent price cannot exceed US\$ 4.75 million.
Because the acquired business has been operated within Karhu's other operations, no separate audited sales and earnings statements are available for the CRAFT distribution business. Based on pro-forma information, the acquired business achieved sales of approximately US\$ 6.9 million during the financial year 2012. New Wave Group anticipates that the transaction will result in the realization of additional annual EBITDA of approximately US\$ 700,000.
The acquired business will be managed by a newly founded US company: Craft Sportswear NA LLC; an indirect wholly owned subsidiary of New Wave USA Inc. The present CEO of Karhu, Huub Valkenburg who was the founder of the CRAFT distribution business in North America, will continue as CEO of the new company, which will still be operated and headquartered in Beverly, Massachusetts. New Wave Group believes that the new acquisition and structure will form a strong basis for a further expansion of the CRAFT-brand in the US and Canada during coming years.
The acquisition analysis is preliminary. A breakdown of net assets acquired, are set out below.
Craft
| USD million | SEK million |
|---|---|
| 5.3 | 34.9 |
| 0.1 | 0.6 |
| 5.4 | 35.5 |
| 34.9 | |
| 0.6 | |
Cash flow impact analysis
| Net cash impact | -3.1 | -20.7 |
|---|---|---|
| Paid acquisition costs | -0.1 | -0.6 |
| Paid purshase amount | -3.0 | -20.1 |
| Acquired assets, | Acquired assets, |
|---|---|
| net | net |
| SEK million | (fair value) |
| Stock | 5.3 |
| Other intangible assets | 29.6 |
| Acquired assets, net | 34.9 |
| Total purshase amount | 34.9 |
| Total | Ec. life | Depr/year | |
|---|---|---|---|
| Other intangible assets | 29.6 | 10 | 2.96 |
INVESTMENTS, FINANCING AND LIQUIDITY
For the period July–September, the Group's cash flow from operations was SEK -2.5 (-112.8) million. The improvement is primarily due to lower purchases of goods. The net cash investments amounted to SEK -21.2 (-17.2) million, an increase attributable to the aforementioned acquisition in the USA.
Net debt decreased by SEK 326 million and amounted to SEK 1,456 (1,782) million, which is mainly due to improved working capital in stock. Net debt to equity ratio and working capital decreased and amounted to 73.7 (97.1) % and 75.0 (85.4) % respectively.
The equity ratio improved by 5.8 percentage points and amounted to 46.4 (40.6) %.
The Group has a credit agreement which is valid until 12 November 2015. The credit agreement has, as of 30 September, a credit framework of SEK 2,333 million, of which the principal agreement amounts to SEK 2,200 million. The credit facility is limited in amount to and dependent on the value of certain underlying assets.
The principal agreement means that business and financial ratios (covenants) must be fulfilled in order to maintain the agreement. Interest is based on each respective currency's base rate and fixed margin.
Based on the present forecast, management estimates that the Group will be able to meet these covenants with sufficient margin.
PERSONNEL AND ORGANIZATION
As of 30th September 2013, the number of employees amounted to 2,134 (2,326), of whom 50% were female and 50% male. Out of the total number of employees, 523 (612) work in production. The production contained within the New Wave Group is attributable to Ahead (embroidery), Cutter & Buck (embroidery), Paris Glove, Orrefors Kosta Boda, Seger, Dahetra and Toppoint.
INTANGIBLE ASSETS AND IMPAIRMENT TESTING
The breakdown of intangible assets between segments are based on the ratio as of acquisition date for each company / brand and assigned to the operating segments as it is considered to belong to. New Wave Group monitors cash generating units on a segment level. Goodwill is based on local currency and in the consolidated financial statements give rise to currency translation effects. The value of goodwill is tested annually to ensure that the value does not deviate negatively from book value, but can be tested more frequently if there are indications that the value has decreased. Write-down of operating segments containing goodwill and brands is based on the calculation of its useful value. This value is based on cash flow projections for the next five years and a terminal period. The segments' cash flows are influenced by commercial factors, including market growth, competitiveness, cost developments, levels of investment and working capital. When discounting, an assessment of financial factors such as interest rates, borrowing costs, market risk, beta values and tax rates will be carried out.
Assumptions made in the test are the Board's best judgment at this stage of the economic conditions expected to prevail over the projection period. Current market conditions and the economic situation make forecasting for future periods difficult to predict. Furthermore, the fourth quarter is historically the most important in terms of earnings for the Group and is an important indicator of how the market develops. The first five years 2014–2018 based upon the Board's established internal forecasts and for the periods thereafter an average growth rate of 3% for the terminal period has been used. Sensitivity analysis have been made of all operating segments.
In calculating the present value of expected future cash flows, a weighted average cost of capital (WACC) of 12% before tax is used. Discounted cash flows are compared with book value per cash generating unit / operating segments. Based on analysis and tests, the current situation does not present any write-down requirement.
RELATED PARTY TRANSACTIONS
There are lease agreements with related companies. A group company has purchased services from affiliates of its CEO. Even affiliates of the Managing Director have purchased merchandise. The Group has purchased consulting services from a member of the board. All transactions are on market terms.
THE PARENT COMPANY
Total income for the period January-September amounted to SEK 79.0 (104.5) million. Profit before appropriations and tax amounted to SEK 3.3 (-35.6) million. The improvement in the result is due to last year including capital contributions to subsidiaries in respect of prior years' losses. Net borrowings amounted to SEK 1,376 (1,755) million, of which SEK 963 (1,418) million relates to financing of subsidiaries. Net investments amounted to SEK -12.9 (-1.4) million, of which 20.7 million relates to capital contributions to subsidiaries in connection with acquisition. The balance sheet total amounted to SEK 2,920 (3,271) million and shareholders' equity, including 78.0 (73.7) % of untaxed reserves, to SEK 953 (995) million.
RISKS AND RISK CONTROL
New Wave Group's international operations mean that it is continuously exposed to various financial risks. The financial risks are currency, borrowings and interest rate risks, as well as liquidity and credit risks. In order to minimise the affect these risks may have on earnings, the Group has established a financial policy. For a more detailed description of the Group's risk management please refer to the Annual Report 2012; www.nwg.se.
The Group's policy is 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 reported risks are deemed to be essentially unchanged.
ACCOUNTING PRINCIPLES
This report is prepared in accordance with IAS 34 Interim Report and the Annual Accounts Act. NWG has as of 30 September 2013 no financial instruments valued at real value and which will be presented in accordance with IFRS 13. NWG applies the exception rule under IFRS 13 and therefore presents no comparison information.
No new or revised IFRS which came into force 2013 has had any significant impact on the Group. Since the turn of the year, New Wave Group has implemented the new format for other comprehensive income in accordance with IAS 1.
The interim report for the parent company has been prepared according to the Annual Accounts Act as well as the Swedish Financial Accounting Standards Council's recommendation RFR2 – Accounting for Legal Entities. Applied accounting policies are in accordance with the Annual Report for 2012.
NOMINATION COMMITTEE
The nomination committee for the board election at the 2014 annual shareholders meeting is:
- • Arne Lööw, representative of Fjärde AP-fonden
- • Torsten Jansson, CEO and representative of Torsten Jansson Förvaltnings AB
- • Johan Ståhl, representative of Lannebo Fonder
For more information about the nomination committee and its work, please see http://www.nwg.se/en/investor-relations.html.
CALENDAR
- • 7 February 2014 Year-end report 2013
- • 24 April 2014 Interim report for the first quarter
- • 6 May 2014 Annual general meeting 2014
- • 21 August 2014 Interim report for the second quarter
- • 12 November 2014 Interim report for the third quarter
The Board and the CEO certify that the financial report gives a true and fair view of the company's and the Group's financial position and results and describes the principal risks and uncertainties that the Company and the companies included in the Group face.
Gothenburg 13 November 2013 New Wave Group AB (publ)
Anders Dahlvig Christina Bellander Göran Härstedt
Chairman of the Board Member of the Board Member of the Board
Helle Kruse Nielsen 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 Market Act and/or the Financial Trading Act. The information was released for publication at 7 am (CET) on 13 November 2013.
Review report
New Wave Group AB (publ) Org. nr, 556350-0916
Introduction
We have reviewed the condensed interim report for New Wave Group AB (publ) as at September 30, 2013 and for the nine months period then ended. The Board of Directors and the Managing Director are responsible for the preparation and 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.
Scope of review
We conducted our review in accordance with the Swedish Standard on Review Engagements, SÖG 2410 Review of Interim Reports Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing, ISA, and other generally accepted auditing standards in Sweden. The procedures performed in a review do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material aspects, in accordance with IAS 34 and the Swedish Annual Accounts Act regarding the Group, and in accordance with the Swedish Annual Accounts Act regarding the Parent Company.
Gothenburg 13 November 2013 Ernst & Young AB
Björn Grundvall Authorized Public Accountant
Consolidated income statements
| 3 months | 3 months | 9 months | 9 months | 12 months | 12 months | |
|---|---|---|---|---|---|---|
| July–Sept | July–Sept | Jan–Sept | Jan–Sept | Jan–Dec | Jan–Dec | |
| SEK million | 2013 | 2012 | 2013 | 2012 | 2012 | 2011 |
| Income | 1 035.0 | 1 053.8 | 2 907.6 | 3 104.1 | 4 280.2 | 4 236.9 |
| Goods for resale | -564.9 | -688.9 | -1 550.8 | -1 800.1 | -2 415.8 | -2 214.1 |
| Gross profit | 470.1 | 364.9 | 1 356.8 | 1 304.0 | 1 864.4 | 2 022.8 |
| Other operating income* | 7.7 | 7.4 | 24.0 | 25.4 | 35.1 | 39.4 |
| External costs | -205.4 | -245.5 | -638.1 | -731.0 | -954.0 | -970.5 |
| Personnel costs | -162.5 | -208.1 | -515.1 | -583.6 | -765.5 | -691.1 |
| Depreciations and write downs of tangible and | ||||||
| intangible fixed assets | -13.9 | -53.1 | -40.2 | -78.0 | -89.9 | -50.6 |
| Other operating costs | -2.9 | -5.9 | -8.6 | -15.6 | -18.7 | -24.8 |
| Share of associated companies result | -0.3 | 0.4 | 0.3 | 0.2 | 1.7 | 1.7 |
| Operating profit | 92.8 | -139.9 | 179.1 | -78.6 | 73.1 | 326.9 |
| Financial income | 1.8 | 2.2 | 5.0 | 4.1 | 5.0 | 6.9 |
| Financial expenses | -14.9 | -16.1 | -48.8 | -44.5 | -63.2 | -57.9 |
| Net financial items | -13.1 | -13.9 | -43.8 | -40.4 | -58.2 | -51.0 |
| Result before tax | 79.7 | -153.8 | 135.3 | -119.0 | 14.9 | 275.9 |
| Tax on profit for the period | -21.9 | 33.8 | -38.5 | 24.1 | -9.1 | -76.8 |
| Result for the period | 57.8 | -120.0 | 96.8 | -94.9 | 5.8 | 199.1 |
| Other comprehensive income | ||||||
| Items that can be reclassified into | ||||||
| profit or loss | ||||||
| Translation differences | -31.5 | -90.6 | -12.6 | -90.7 | -70.5 | 20.0 |
| Cash flow hedge | 0.0 | -6.8 | 0.0 | -9.6 | -7.0 | 9.5 |
| Sum | -31.5 | -97.4 | -12.6 | -100.3 | -77.5 | 29.5 |
| Income tax related to components of | ||||||
| other comprehensive income | 0.0 | 1.8 | 0.0 | 2.5 | 1.5 | -2.5 |
| Total other comprehensive income net after tax for the period | -31.5 | -95.6 | -12.6 | -97.8 | -76.0 | 27.0 |
| Total comprehensive income for the period | 26.3 | -215.6 | 84.2 | -192.7 | -70.2 | 226.1 |
| Result for the period attributable to: | ||||||
| Shareholders of the parent company | 58.0 | -120.0 | 97.7 | -95.0 | 5.4 | 198.3 |
| Non-controlling interests | -0.2 57.8 |
0.0 -120.0 |
-0.9 96.8 |
0.1 -94.9 |
0.4 5.8 |
0.8 199.1 |
| Total comprehensive income attributable to: | ||||||
| Shareholders of the parent company | 26.9 | -214.4 | 85.3 | -191.6 | -69.7 | 226.6 |
| Non-controlling interests | -0.6 26.3 |
-1.2 -215.6 |
-1.1 84.2 |
-1.1 -192.7 |
-0.5 -70.2 |
-0.5 226.1 |
| Profit per share | ||||||
| before dilution (SEK) | 0.87 | -1.81 | 1.47 | -1.43 | 0.08 | 2.99 |
| after dilution (SEK) | 0.87 | -1.81 | 1.47 | -1.43 | 0.08 | 2.94 |
| The average number of outstanding shares before dilution | 66 343 543 | 66 343 543 | 66 343 543 | 66 343 543 | 66 343 543 | 66 343 543 |
| The average number of outstanding shares after dilution | 66 343 543 | 66 343 543 | 66 343 543 | 66 343 543 | 66 343 543 | 67 343 543 |
* Mainly rate of exchange profit and capital gain
Consolidated cash flow statement
| 3 months July–Sept |
3 months July–Sept |
9 months Jan–Sept |
9 months Jan–Sept |
12 months Jan–Dec |
12 months Jan–Dec |
|
|---|---|---|---|---|---|---|
| 2013 | 2012 | 2013 | 2012 | 2012 | 2011 | |
| SEK million Current operation |
||||||
| Operating profit | 92.8 | -139.9 | 179.1 | -78.6 | 73.1 | 326.9 |
| Adjustment for items not included in cash flow | 5.7 | 232.2 | 17.9 | 264.7 | 230.1 | 71.1 |
| Received interest | 1.8 | 2.2 | 5.0 | 4.1 | 5.0 | 6.9 |
| Paid interest | -14.9 | -16.1 | -48.8 | -44.5 | -63.2 | -57.9 |
| Paid income tax | 1.3 | -11.7 | -29.9 | -48.0 | -63.6 | -77.4 |
| Cash flow from current operations | ||||||
| before changes in working capital | 86.7 | 66.7 | 123.3 | 97.7 | 181.4 | 269.6 |
| Changes in working capital | ||||||
| Increase/decrease of stock | -3.1 | -1.6 | 52.9 | -12.2 | 193.6 | -252.4 |
| Increase/decrease of current receivables | -84.8 | -69.9 | 2.3 | 26.8 | 12.7 | 168.6 |
| Increase/decrease of current liabilities | -1.3 | -108.0 | -33.1 | -47.3 | -46.6 | -119.8 |
| Cash flow from changes in working capital | -89.2 | -179.5 | 22.1 | -32.7 | 159.7 | -203.6 |
| Cash flow from operations | -2.5 | -112.8 | 145.4 | 65.0 | 341.1 | 66.0 |
| Investing activities | ||||||
| Investments in tangible fixed assets | -5.3 | -16.0 | -19.1 | -42.5 | -54.2 | -56.8 |
| Sales of tangible fixed assets | 1.1 | -0.1 | 1.7 | 1.5 | 8.6 | 4.8 |
| Investments in intangible fixed assets | -17.0 | -1.2 | -22.4 | -2.1 | -4.8 | -13.2 |
| Acquisition of subsidiaries* | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | -254.5 |
| Acquisition of financial fixed assets | 0.0 | 0.1 | 0.0 | 0.0 | 0.0 | -6.8 |
| Cash flow from investing activities | -21.2 | -17.2 | -39.8 | -43.1 | -50.4 | -326.5 |
| Cash flow after investing activities | -23.7 | -130.0 | 105.6 | 21.9 | 290.7 | -260.5 |
| Financial activities | ||||||
| Loan raised | 0.0 | 123.0 | 0.0 | 38.9 | 0.0 | 322.3 |
| Repayment of long-term receivables | 0.0 | 0.0 | 1.0 | 0.0 | 0.0 | 0.0 |
| Amortization of loan | -12.0 | 0.0 | -145.1 | 0.0 | -157.2 | 0.0 |
| Dividend paid to the shareholders of the parent company | 0.0 | 0.0 | -66.3 | -66.3 | -66.3 | -66.3 |
| Cash flow from financial activities | -12.0 | 123.0 | -210.4 | -27.4 | -223.5 | 256.0 |
| Cash flow for the period | -35.7 | -7.0 | -104.8 | -5.5 | 67.2 | -4.5 |
| Liquid assets at the beginning of the period | 163.0 | 119.5 | 229.7 | 117.7 | 117.7 | 121.7 |
| Adjustment liquid assets at the beginning of the period ** | 0.0 | 0.0 | 0.0 | 0.0 | 48.8 | 0.0 |
| Translation differences in liquid assets | -3.6 | -4.9 | -1.2 | -4.6 | -4.0 | 0.5 |
| Liquid assets at period-end | 123.7 | 107.6 | 123.7 | 107.6 | 229.7 | 117.7 |
| Liquid assets | ||||||
| Cash at bank and in hand | 123.7 | 107.6 | 123.7 | 107.6 | 229.7 | 117.7 |
| * The item includes: | ||||||
| Goodwill | - | - | - | - | - | 4.6 |
| Trademark | - | - | - | - | - | -54.2 |
| Working capital | - | - | - | - | - | -223.6 |
| Overtake of loan | - | - | - | - | - | 57.2 |
| Fixed assets | - | - | - | - | - | -49.4 |
| Liquid assets | - | - | - | - | - | 10.9 |
| Effect on the cash flow | - | - | - | - | - | -254.5 |
** As of 2012 gross accounting of cash in bank is applied.
Condensed consolidated balance sheets
| 30 Sept | 30 Sept | 31 Dec | 31 Dec | |
|---|---|---|---|---|
| SEK million | 2013 | 2012 | 2012 | 2011 |
| ASSETS | ||||
| Intangible fixed assets | 1 188.9 | 1 169.8 | 1 173.0 | 1 223.5 |
| Tangible fixed assets | 278.3 | 304.5 | 297.4 | 366.1 |
| Shares in associated companies | 62.3 | 60.5 | 62.0 | 60.2 |
| Long-term receivables | 23.5 | 24.7 | 24.5 | 40.6 |
| Deferred tax assets | 100.5 | 135.0 | 103.9 | 82.9 |
| Total non-current assets | 1 653.5 | 1 694.5 | 1 660.8 | 1 773.3 |
| Stock | 1 579.2 | 1 824.3 | 1 645.4 | 1 973.9 |
| Tax receivables | 43.6 | 27.9 | 33.1 | 17.7 |
| Accounts receivables | 764.8 | 768.8 | 705.0 | 782.3 |
| Prepaid expenses and accrued income | 54.6 | 60.3 | 59.8 | 73.4 |
| Other receivables | 42.2 | 36.0 | 107.4 | 68.1 |
| Liquid assets | 123.7 | 107.6 | 229.7 | 117.7 |
| Total current assets | 2 608.1 | 2 824.9 | 2 780.4 | 3 033.1 |
| TOTAL ASSETS | 4 261.6 | 4 519.4 | 4 441.2 | 4 806.4 |
| EQUITY | ||||
| Share capital | 199.1 | 199.1 | 199.1 | 199.1 |
| Other capital contributions | 219.4 | 219.4 | 219.4 | 219.4 |
| Reserves | -21.6 | -30.8 | -9.2 | 65.9 |
| Retained earnings including result for the period | 1 556.4 | 1 422.9 | 1 525.0 | 1 584.2 |
| Equity attributable to shareholders of the parent company | 1 953.3 | 1 810.6 | 1 934.3 | 2 068.6 |
| Non-controlling interests | 22.6 | 23.2 | 23.7 | 24.2 |
| Total equity | 1 975.9 | 1 833.8 | 1 958.0 | 2 092.8 |
| LIABILITIES | ||||
| Long-term interest-bearing liabilities | 1 518.9 | 1 879.0 | 1 670.3 | 1 873.5 |
| Pension provisions | 10.4 | 9.7 | 10.1 | 9.3 |
| Other provisions | 15.7 | 0.6 | 1.3 | 0.6 |
| Deferred tax liabilities | 137.4 | 154.8 | 138.0 | 163.2 |
| Total non-current liabilities | 1 682.4 | 2 044.1 | 1 819.7 | 2 046.6 |
| Short-term interest-bearing liabilities | 61.3 | 10.2 | 76.1 | 41.5 |
| Accounts payable | 250.5 | 270.0 | 237.8 | 283.5 |
| Current tax liabilities | 47.0 | 26.0 | 31.3 | 32.2 |
| Other liabilities | 70.0 | 243.9 | 118.1 | 83.4 |
| Accrued expenses and prepaid income | 174.5 | 91.4 | 200.2 | 226.4 |
| Total current liabilities | 603.3 | 641.5 | 663.5 | 667.0 |
| Total liabilities | 2 285.7 | 2 685.6 | 2 483.2 | 2 713.6 |
| TOTAL EQUITY AND LIABILITIES | 4 261.6 | 4 519.4 | 4 441.2 | 4 806.4 |
| Memorandum items | ||||
| Pledged assets | 3 618.7 | 3 590.8 | 3 505.1 | 3 211.5 |
| Contingent liabilities | 96.9 | 22.2 | 97.3 | 24.4 |
Consolidated statement of changes in equity
| Other capital |
Retained earnings incl. result |
Non-controlling | |||||
|---|---|---|---|---|---|---|---|
| SEK million | Share capital | contributions | Reserves | for the year | Total | interests | Total equity |
| Opening balance 2012-01-01 | 199.1 | 219.4 | 65.9 | 1 584.2 | 2 068.6 | 24.2 | 2 092.8 |
| Result for the year | 5.4 | 5.4 | 0.4 | 5.8 | |||
| Change in tax rate, untaxed reserves | 1.7 | 1.7 | 1.7 | ||||
| Other comprehensive income | |||||||
| Translation differences | -69.6 | -69.6 | -0.9 | -70.5 | |||
| Cash flow hedge | -7.0 | -7.0 | -7.0 | ||||
| Income tax related to components of | |||||||
| other comprehensive income | 1.5 | 1.5 | 1.5 | ||||
| Transactions with shareholders | |||||||
| Dividends | -66.3 | -66.3 | -66.3 | ||||
| Closing balance 2012-12-31 | 199.1 | 219.4 | -9.2 | 1 525.0 | 1 934.3 | 23.7 | 1 958.0 |
| Other | Retained earnings | ||||||
|---|---|---|---|---|---|---|---|
| capital | incl. result | Non-controlling | |||||
| SEK million | Share capital | contributions | Reserves | for the period | Total | interests | Total equity |
| Opening balance 2013-01-01 | 199.1 | 219.4 | -9.2 | 1 525.0 | 1 934.3 | 23.7 | 1 958.0 |
| Result for the period | 97.7 | 97.7 | -0.9 | 96.8 | |||
| Other comprehensive income | |||||||
| Translation differences | -12.4 | -12.4 | -0.2 | -12.6 | |||
| Cash flow hedge | 0.0 | 0.0 | 0.0 | ||||
| Income tax related to components of | |||||||
| other comprehensive income | 0.0 | 0.0 | 0.0 | ||||
| Transactions with shareholders | |||||||
| Dividends | -66.3 | -66.3 | -66.3 | ||||
| Closing balance 2013-09-30 | 199.1 | 219.4 | -21.6 | 1 556.4 | 1 953.3 | 22.6 | 1 975.9 |
| Accumulated translation differences in equity | 9 months 2013 |
9 months 2012 |
Year 2012 |
Year 2011 |
|---|---|---|---|---|
| Accumulated translation differences at the beginning of the year | -0.6 | 69.9 | 69.9 | 49.9 |
| Translation differences in foreign subsidiaries for the period | -12.6 | -90.7 | -70.5 | 20.0 |
| Accumulated translation differences at end of period | -13.2 | -20.8 | -0.6 | 69.9 |
Financial highlights – group
| 9 months | 9 months | 12 months | 12 months | |
|---|---|---|---|---|
| Jan–Sept | Jan–Sept | Jan–Dec | Jan–Dec | |
| 2013 | 2012 | 2012 | 2011 | |
| Sales growth, % | -6.3 | 1.8 | 1.0 | -0.2 |
| Number of employees | 2 134 | 2 326 | 2 258 | 2 470 |
| Gross profit margin, % | 46.7 | 42.0 | 43.6 | 47.7 |
| Operating margin before depreciation, % | 7.5 | 0.0 | 3.8 | 8.9 |
| Operating margin, % | 6.2 | -2.5 | 1.7 | 7.7 |
| Profit margin, % | 4.7 | -3.8 | 0.3 | 6.5 |
| Net margin, % | 3.3 | -3.0 | 0.2 | 4.6 |
| Return on shareholders' equity, % | 6.6 | -6.4 | 0.4 | 9.9 |
| Return on capital employed, % | 6.8 | -2.5 | 2.0 | 8.9 |
| Equity ratio, % | 46.4 | 40.6 | 44.1 | 43.5 |
| Net debt – Equity ratio, % | 73.7 | 97.1 | 77.5 | 85.9 |
| Net debt in relation to working capital | 75.0 | 85.4 | 77.3 | 78.6 |
| Net debt, SEK million | 1 456.5 | 1 781.6 | 1 516.7 | 1 797.3 |
| Interest cover ratio, times | 3.8 | -1.7 | 1.2 | 5.8 |
| Capital turnover, times | 0.9 | 0.9 | 0.9 | 0.9 |
| Stock turnover, times | 1.3 | 1.3 | 1.3 | 1.2 |
| Cash flow before investments, SEK million | 145.4 | 65.0 | 341.1 | 66.0 |
| Net investments, SEK million | -39.8 | -43.1 | -50.4 | -326.5 |
| Cash flow after investments, SEK million | 105.6 | 21.9 | 290.7 | -260.5 |
| Shareholders' equity per share, SEK | 29.78 | 27.64 | 29.51 | 31.54 |
| Shareholders' equity per share after dilution, SEK | 29.78 | 27.64 | 29.51 | 31.08 |
| Share price as at December 31, SEK | - | - | 25.00 | 23.00 |
| Dividend/share, SEK | - | - | 1.00 | 1.00 |
| P/E-ratio | - | - | 229.36 | 7.76 |
| P/S-ratio | - | - | 0.39 | 0.36 |
| Share price/Shareholders' equity | - | - | 0.85 | 0.73 |
Definitions
Return on equity Result for the period according to income statement in percent of average adjusted equity.
Return on capital employed
Result before tax items plus financial costs in percent of average capital employed.
Gross margin
Income with deductions for goods for resale in percent of income.
EBITDA
Operating profit before depreciation.
Capital turnover Income divided by the average balance sheet total.
Net margin Result for the period as a percentage of the period´s income.
Net debt/equity ratio Interest bearing liabilities less interest bearing assets as a percentage of equity.
Interest coverage ratio
Result before tax plus financial costs divided by financial costs.
Operating margin
Operating profit as a percentage of the period´s income.
Working capital
Total current assets less liquid assets less short-term non-interest bearing liabilities.
Equity/assets ratio
Equity including non-controlling interests as a percentage of balance sheet total.
Capital employed
Balance sheet total less non-interest bearing liabilities and non-interest bearing provisions.
Stock turnover
Cost of sold goods divided by average stock.
Profit margin
Result before tax as a percentage of the period´s income.
Profit per share
Result for the period in relation to a weighted average of the outstanding number of shares.
Income statements – parent company
| 9 months | 9 months | 12 months | 12 months | |
|---|---|---|---|---|
| Jan–Sept | Jan–Sept | Jan–Dec | Jan–Dec | |
| SEK million | 2013 | 2012 | 2012 | 2011 |
| Income | 71.1 | 90.4 | 109.6 | 120.6 |
| Other operating income* | 7.9 | 14.1 | 17.6 | 19.6 |
| Total income | 79.0 | 104.5 | 127.2 | 140.2 |
| Operating costs | ||||
| External costs | -50.4 | -71.5 | -90.4 | -90.9 |
| Personnel costs | -16.4 | -18.3 | -24.2 | -24.2 |
| Depreciation of tangible and intangible fixed assets | -1.9 | -2.3 | -3.1 | -3.0 |
| Other operating costs** | -6.5 | -12.4 | -15.3 | -18.9 |
| Operating profit/loss | 3.8 | 0.0 | -5.8 | 3.2 |
| Net income from shares in Group companies | 16.8 | 38.7 | 239.8 | 188.6 |
| Write-downs of financial fixed assets | -8.1 | -82.0 | -203.6 | -345.0 |
| Financial income | 43.2 | 58.6 | 77.1 | 77.3 |
| Financial expenses | -52.4 | -50.9 | -131.2 | -127.2 |
| Net financial items | -0.5 | -35.6 | -17.9 | -206.3 |
| Result before appropriations and tax | 3.3 | -35.6 | -23.7 | -203.1 |
| Appropriations | 0.0 | 0.0 | 15.8 | 3.7 |
| Tax on result for the period | 1.5 | -2.0 | 0.0 | -10.4 |
| Net result for the period | 4.8 | -37.6 | -7.9 | -209.8 |
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 statement – parent company
| 9 months | 9 months | 12 months | 12 months | |
|---|---|---|---|---|
| SEK million | Jan–Sept 2013 |
Jan–Sept 2012 |
Jan–Dec 2012 |
Jan–Dec 2011 |
| Current operations | ||||
| Operating profit/loss | 3.8 | 0.0 | -5.8 | 3.2 |
| Adjustment for items not included in cash flow | 1.9 | 2.3 | 3.2 | 3.4 |
| Received dividends | 16.8 | 11.5 | 13.6 | 0.0 |
| Received interest | 43.2 | 58.6 | 77.1 | 77.3 |
| Paid interest | -52.4 | -50.9 | -72.3 | -64.0 |
| Paid income tax | 4.9 | -7.0 | -7.1 | 5.5 |
| Cash flow from current operations | ||||
| before changes in working capital | 18.2 | 14.5 | 8.7 | 25.4 |
| Changes in working capital | ||||
| Decrease/increase in stock | 0.0 | -0.3 | 0.0 | 0.0 |
| Decrease/increase in current receivables | 125.3 | 28.3 | 311.2 | -28.1 |
| Decrease/increase on current liabilities | 79.6 | -9.8 | -122.6 | -33.6 |
| Cash flow from changes in working capital | 204.9 | 18.2 | 188.6 | -61.7 |
| Cash flow from operations | 223.1 | 32.7 | 197.3 | -36.3 |
| Investing activities | ||||
| Shareholders contribution to subsidiaries | -20.7 | 0.0 | 0.0 | 0.0 |
| Intragroup sales of group companies | 0.1 | 0.0 | 10.1 | 0.0 |
| Investments in tangible fixed assets | 0.0 | -1.4 | -1.4 | -3.5 |
| Investments in intangible fixed assets | -2.9 | -0.1 | -0.2 | -5.8 |
| Sales of intangible fixed assets | 0.0 | 0.1 | 0.1 | 0.0 |
| Acquisition of shares | 0.0 | 0.0 | 0.0 | -24.5 |
| Loan given to subsidiaries | 0.0 | 0.0 | 0.0 | -171.1 |
| Repayment of loan from subsidiaries | 10.6 | 0.0 | 0.0 | 0.0 |
| Cash flow from investing activities | -12.9 | -1.4 | 8.6 | -204.9 |
| Cash-flow after investing activities | 210.2 | 31.3 | 205.9 | -241.2 |
| Financial activities | ||||
| Loan raised | 0.0 | 35.0 | 0.0 | 309.0 |
| Amortization of loan | -161.7 | 0.0 | -141.9 | 0.0 |
| Raised long-term receivables | 0.0 | 0.0 | 0.0 | -1.5 |
| Dividend paid to shareholders of the parent company | -66.3 | -66.3 | -66.3 | -66.3 |
| Cash flow from financial activities | -228.0 | -31.3 | -208.2 | 241.2 |
| Cash flow for the period | -17.8 | 0.0 | -2.3 | 0.0 |
| Liquid assets at the beginning of the year | 18.9 | 0.0 | 0.0 | 0.0 |
| Adjustment liquid assets at the beginning of the year * | 0.0 | 0.0 | 21.2 | 0.0 |
| Liquid assets at period-end | 1.1 | 0.0 | 18.9 | 0.0 |
* As of 2012 gross accounting of cash in bank is applied.
Balance sheets – parent company
| 30 Sept | 30 Sept | 31 Dec | 31 Dec | |
|---|---|---|---|---|
| SEK million | 2013 | 2012 | 2012 | 2011 |
| ASSETS | ||||
| Non-current assets Intangible fixed assets |
5.4 | 4.1 | 3.8 | 5.0 |
| Tangible fixed assets | 1.5 | 2.5 | 2.1 | 2.4 |
| Financial assets | ||||
| Shares in Group companies | 1 367.6 | 1 305.2 | 1 324.8 | 1 382.1 |
| Shares in associated companies | 58.9 | 58.9 | 58.9 | 58.9 |
| Receivables on Group companies | 705.4 | 749.6 | 747.6 | 793.4 |
| Other long-term receivables | 2.0 | 2.0 | 2.0 | 2.0 |
| Total financial assets | 2 133.9 | 2 115.7 | 2 133.3 | 2 236.4 |
| Total non-current assets | 2 140.8 | 2 122.3 | 2 139.2 | 2 243.8 |
| Current assets | ||||
| Current receivables | ||||
| Stock | 0.0 | 0.3 | 0.0 | 0.0 |
| Accounts receivable | 0.1 | 0.7 | 0.2 | 2.8 |
| Receivables on Group companies | 753.4 | 1 125.9 | 819.6 | 1 098.9 |
| Tax receivables | 2.2 | 3.5 | 5.6 | 2.3 |
| Other receivables | 15.5 | 9.6 | 76.3 | 40.6 |
| Prepaid expenses and accrued income | 7.3 | 8.8 | 13.7 | 10.2 |
| Total current receivables | 778.5 | 1 148.8 | 915.4 | 1 154.8 |
| Cash at bank and in hand | 1.1 | 0.0 | 18.9 | 0.0 |
| Total current assets | 779.6 | 1 148.8 | 934.3 | 1 154.8 |
| TOTAL ASSETS | 2 920.4 | 3 271.1 | 3 073.5 | 3 398.6 |
| EQUITY AND LIABILITIES | ||||
| Equity | ||||
| Restricted 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 equity | ||||
| Retained profits | 425.9 | 500.1 | 500.1 | 776.2 |
| Share premium reserve | 48.0 | 48.0 | 48.0 | 48.0 |
| Result for the period | 4.8 478.7 |
-37.6 510.5 |
-7.9 540.2 |
-209.8 614.4 |
| Total equity | 927.2 | 959.0 | 988.7 | 1 062.9 |
| Untaxed reserves | 33.4 | 49.3 | 33.4 | 49.3 |
| Non-current liabilities | ||||
| Overdraft facilities | 963.4 | 1 754.7 | 1 097.0 | 1 763.5 |
| Bankloan | 412.5 | 0.0 | 450.0 | 0.0 |
| Total non-current liabilities | 1 375.9 | 1 754.7 | 1 547.0 | 1 763.5 |
| Current liabilities | ||||
| Short-term interest-bearing liabilities | 50.0 | 0.0 | 50.0 | 0.0 |
| Accounts payable | 32.9 | 40.9 | 24.3 | 32.8 |
| Liabilities to Group companies | 495.8 | 457.1 | 408.7 | 478.0 |
| Current tax liability | 0.0 | 0.0 | 0.0 | 3.8 |
| Other liabilities | 0.8 | 2.6 | 5.9 | 0.8 |
| Accrued expenses and prepaid income | 4.4 | 7.5 | 15.5 | 7.5 |
| Total current liabilities | 583.9 | 508.1 | 504.4 | 522.9 |
| TOTAL EQUITY AND LIABILITIES | 2 920.4 | 3 271.1 | 3 073.5 | 3 398.6 |
| Pledged assets and contingent liabilities for the parent company Pledged assets |
1 103.0 | 1 092.8 | 1 082.3 | 1 136.7 |
| Contingent liabilities | 235.7 | 215.2 | 230.2 | 302.1 |
Changes in equity – parent company
| Restricted | Retained | Share premium | Net loss for | |||
|---|---|---|---|---|---|---|
| SEK million | Share capital | reserves | profits | reserve | the year | Total equity |
| Opening balance 2012-01-01 | 199.1 | 249.4 | 776.2 | 48.0 | -209.8 | 1 062.9 |
| Transfer according to Annual General meeting | -209.8 | 209.8 | 0.0 | |||
| Result for the year | -7.9 | -7.9 | ||||
| Total change in net assets excluding | 0.0 | 0.0 | 0.0 | 0.0 | -7.9 | -7.9 |
| transactions with shareholders | ||||||
| Dividends | -66.3 | -66.3 | ||||
| Closing balance 2012-12-31 | 199.1 | 249.4 | 500.1 | 48.0 | -7.9 | 988.7 |
| Restricted | Retained | Share premium | Profit for | |||
|---|---|---|---|---|---|---|
| SEK million | Share capital | reserves | profits | reserve | the period | Total equity |
| Opening balance 2013-01-01 | 199.1 | 249.4 | 500.1 | 48.0 | -7.9 | 988.7 |
| Transfer according to Annual General meeting | -7.9 | 7.9 | 0.0 | |||
| Result for the period | 4.8 | 4.8 | ||||
| Total change in net assets excluding | 0.0 | 0.0 | 0.0 | 0.0 | 4.8 | 4.8 |
| transactions with shareholders | ||||||
| Dividends | -66.3 | -66.3 | ||||
| Closing balance 2013-09-30 | 199.1 | 249.4 | 425.9 | 48.0 | 4.8 | 927.2 |
Sales and result per operating segment
| SEK million | 3 months July–Sept |
3 months July–Sept |
9 months Jan–Sept |
9 months Jan–Sept |
12 months Jan–Dec |
12 months Jan–Dec |
|---|---|---|---|---|---|---|
| Corporate Promo | 2013 | 2012 | 2013 | 2012 | 2012 | 2011 |
| Income | 342.4 | 343.4 | 1 108.6 | 1 174.4 | 1 674.9 | 1 834.9 |
| Result EBITDA | 27.3 | 21.3 | 84.9 | 91.1 | 159.0 | 251.7 |
| Sports & Leisure | ||||||
| Income | 562.8 | 560.0 | 1 429.3 | 1 498.0 | 1 982.6 | 1 724.0 |
| Result EBITDA | 70.6 | 64.2 | 123.6 | 115.9 | 161.8 | 177.3 |
| Gifts & Home furnishings | ||||||
| Income | 129.8 | 150.4 | 369.7 | 431.7 | 622.7 | 678.0 |
| Result EBITDA | 8.8 | -172.3 | 10.8 | -207.6 | -157.8 | -51.5 |
| Total income | 1 035.0 | 1 053.8 | 2 907.6 | 3 104.1 | 4 280.2 | 4 236.9 |
| Total result EBITD A |
106.7 | -86.8 | 219.3 | -0.6 | 163.0 | 377.5 |
| Total result EBITDA | 106.7 | -86.8 | 219.3 | -0.6 | 163.0 | 377.5 |
| Depreciations and write downs | -13.9 | -53.1 | -40.2 | -78.0 | -89.9 | -50.6 |
| Net financial items | -13.1 | -13.9 | -43.8 | -40.4 | -58.2 | -51.0 |
| Profit before tax | 79.7 | -153.8 | 135.3 | -119.0 | 14.9 | 275.9 |
Assets/Liabilities per operating segment
| SEK million | Total assets |
Fixed assets * |
Deferred tax assets |
Investments | Depreciation and write downs |
Total liabilities |
|---|---|---|---|---|---|---|
| 30 Sept 2013 | ||||||
| Corporate Promo | 2 064.2 | 554.9 | 29.4 | -14.1 | -16.3 | 1 448.7 |
| Sports & Leisure | 1 731.6 | 770.7 | 23.5 | -38.0 | -20.1 | 566.9 |
| Gifts & Home Furnishings | 465.8 | 141.6 | 47.6 | -2.0 | -3.8 | 270.1 |
| Total | 4 261.6 | 1 467.2 | 100.5 | -54.1 | -40.2 | 2 285.7 |
| 30 Sept 2012 Corporate Promo |
2 089.0 | 564.1 | 32.6 | -30.7 | -18.7 | 1 672.5 |
| Sports & Leisure | 1 939.7 | 764.6 | 28.0 | -9.7 | -13.0 | 617.2 |
| Gifts & Home Furnishings | 490.7 | 145.6 | 74.4 | -2.7 | -46.3 | 395.9 |
| Total | 4 519.4 | 1 474.3 | 135.0 | -43.1 | -78.0 | 2 685.6 |
| 31 Dec 2012 | ||||||
| Corporate Promo | 2 167.6 | 562.6 | 29.5 | -35.9 | -25.1 | 1 644.5 |
| Sports & Leisure | 1 767.4 | 762.3 | 26.3 | -11.8 | -17.3 | 495.4 |
| Gifts & Home Furnishings | 506.2 | 145.5 | 48.1 | -2.7 | -47.5 | 343.3 |
| Total | 4 441.2 | 1 470.4 | 103.9 | -50.4 | -89.9 | 2 483.2 |
* Fixed assets classified as financial assets are not included
Sales per area
| 3 months | 3 months | |||||
|---|---|---|---|---|---|---|
| SEK million | July–Sept | Part of | July–Sept | Part of | Change | Change |
| 2013 | income | 2012 | income | SEK million | % | |
| Sweden | 242 | 23% | 262 | 25% | -20 | -8% |
| USA | 306 | 30% | 312 | 30% | -6 | -2% |
| Nordic countries excluding Sweden | 154 | 15% | 151 | 14% | 3 | 2% |
| Central Europe | 178 | 17% | 173 | 16% | 5 | 3% |
| Southern Europe | 77 | 7% | 75 | 7% | 2 | 3% |
| Other countries | 78 | 8% | 81 | 8% | -3 | -4% |
| Total | 1 035 | 100% | 1 054 | 100% | -19 | -2% |
| 9 months | 9 months | |||||
| SEK million | Jan–Sept | Part of | Jan–Sept | Part of | Change | Change |
| 2013 | income | 2012 | income | SEK million | % | |
| Sweden | 728 | 25% | 820 | 27% | -92 | -11% |
| USA | 807 | 28% | 835 | 27% | -28 | -3% |
| Nordic countries excluding Sweden | 449 | 15% | 474 | 15% | -25 | -5% |
| Central Europe | 512 | 18% | 538 | 17% | -26 | -5% |
| Southern Europe | 235 | 8% | 254 | 8% | -19 | -7% |
| Other countries | 177 | 6% | 183 | 6% | -6 | -3% |
| Total | 2 908 | 100% | 3 104 | 100% | -196 | -6% |
| 12 months | 12 months | |||||
| SEK million | Jan–Dec | Part of | Jan–Dec | Part of | Change | Change |
| 2012 | income | 2011 | income | SEK million | % | |
| Sweden | 1 158 | 27% | 1 285 | 30% | -127 | -10% |
| USA | 1 112 | 26% | 894 | 21% | 218 | 24% |
| Nordic countries excluding Sweden | 628 | 15% | 661 | 16% | -33 | -5% |
| Central Europe | 743 | 17% | 781 | 18% | -38 | -5% |
| Southern Europe | 356 | 8% | 443 | 11% | -87 | -20% |
| Other countries | 283 | 7% | 173 | 4% | 110 | 64% |
| Total | 4 280 | 100% | 4 237 | 100% | 43 | 1% |
Fixed assets and deferred tax assets per area
| 30 Sept 2013 | 30 Sept 2012 | 31 Dec 2012 | |||||
|---|---|---|---|---|---|---|---|
| Fixed | Deferred | Fixed | Deferred | Fixed | Deferred | ||
| SEK million | assets* | tax assets | assets* | tax assets | assets* | tax assets | |
| Sweden | 426 | 35 | 455 | 66 | 447 | 37 | |
| USA | 702 | 36 | 684 | 35 | 681 | 36 | |
| Nordic countries excluding Sweden | 23 | 6 | 24 | 7 | 24 | 7 | |
| Central Europe | 168 | 12 | 168 | 22 | 174 | 13 | |
| Southern Europe | 137 | 2 | 138 | 5 | 139 | 3 | |
| Other countries | 11 | 9 | 5 | 0 | 5 | 8 | |
| Total | 1 467 | 100 | 1 474 | 135 | 1 470 | 104 |
* Fixed assets classified as financial assets are not included
Quarterly consolidated income statements
| SEK million | 2013 | 2012 | 2011 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Quarter | Q1 | Q2 | Q3 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | |
| Income | 877.3 | 995.3 | 1 035.0 | 975.4 | 1 074.9 | 1 053.8 | 1 176.1 | 927.6 | 1 020.9 | 1 100.9 | 1 187.5 | |
| Goods for resale | -456.8 | -529.1 | -564.9 | -531.2 | -580.0 | -688.9 | -615.7 | -493.9 | -522.7 | -590.2 | -607.3 | |
| Gross profit | 420.5 | 466.2 | 470.1 | 444.2 | 494.9 | 364.9 | 560.4 | 433.7 | 498.2 | 510.7 | 580.2 | |
| Gross profit % | 47.9 | 46.8 | 45.4 | 45.5 | 46.0 | 34.6 | 47.6 | 46.8 | 48.8 | 46.4 | 48.9 | |
| Other operating income | 8.6 | 7.7 | 7.7 | 8.5 | 9.5 | 7.4 | 9.7 | 12.6 | 8.4 | 11.5 | 6.9 | |
| External costs | -222.9 | -209.7 | -205.4 | -247.2 | -238.3 | -245.5 | -223.0 | -241.5 | -241.6 | -231.4 | -256.0 | |
| Personnel costs | -174.7 | -177.9 | -162.5 | -186.3 | -189.2 | -208.1 | -181.9 | -168.2 | -173.2 | -165.2 | -184.5 | |
| Depreciations and write downs | -11.8 | -14.6 | -13.9 | -11.9 | -13.0 | -53.1 | -11.9 | -11.1 | -13.2 | -12.7 | -13.6 | |
| Other operating costs | -3.8 | -1.9 | -2.9 | -3.8 | -5.9 | -5.9 | -3.1 | -7.9 | -5.5 | -6.7 | -4.7 | |
| Share of associated companies result | 0.2 | 0.4 | -0.3 | -0.9 | 0.7 | 0.4 | 1.5 | 0.1 | -0.4 | 0.0 | 2.0 | |
| Operating profit/loss | 16.1 | 70.2 | 92.8 | 2.6 | 58.7 | -139.9 | 151.7 | 17.7 | 72.7 | 106.2 | 130.3 | |
| Financial income | 1.8 | 1.4 | 1.8 | 1.4 | 0.5 | 2.2 | 0.9 | 1.6 | 1.0 | 1.1 | 3.2 | |
| Financial expenses | -17.8 | -16.1 | -14.9 | -15.4 | -13.0 | -16.1 | -18.7 | -11.5 | -12.2 | -14.9 | -19.3 | |
| Result before tax | 0.1 | 55.5 | 79.7 | -11.4 | 46.2 | -153.8 | 133.9 | 7.8 | 61.5 | 92.4 | 114.2 | |
| Tax | 0.0 | -16.6 | -21.9 | 3.2 | -12.9 | 33.8 | -33.2 | -2.1 | -24.2 | -19.0 | -31.5 | |
| Result for the period | 0.1 | 38.9 | 57.8 | -8.2 | 33.3 | -120.0 | 100.7 | 5.7 | 37.3 | 73.4 | 82.7 | |
| Other comprehensive income | ||||||||||||
| Items that can be reclassified | ||||||||||||
| into profit or loss | ||||||||||||
| Translation differences | -38.9 | 57.8 | -31.5 | -20.0 | 19.9 | -90.6 | 20.2 | -48.1 | 54.7 | 29.9 | -16.5 | |
| Cash flow hedge | 0.0 | 0.0 | 0.0 | -5.5 | 2.7 | -6.8 | 2.6 | -7.8 | -1.7 | 18.2 | 0.8 | |
| Sum | -38.9 | 57.8 | -31.5 | -25.5 | 22.6 | -97.4 | 22.8 | -55.9 | 53.0 | 48.1 | -15.7 | |
| Income tax related to components of | ||||||||||||
| other comprehensive income | 0.0 | 0.0 | 0.0 | 1.4 | -0.7 | 1.8 | -1.0 | 2.1 | 0.4 | -4.8 | -0.2 | |
| Total other comprehensive income net after tax for the period | -38.9 | 57.8 | -31.5 | -24.1 | 21.9 | -95.6 | 21.8 | -53.8 | 53.4 | 43.3 | -15.9 | |
| Total comprehensive income for the period | -38.8 | 96.7 | 26.3 | -32.3 | 55.2 | -215.6 | 122.5 | -48.1 | 90.7 | 116.7 | 66.8 | |
| Result attributable to: | ||||||||||||
| Shareholders of the parent company | 0.3 | 39.4 | 58.0 | -8.4 | 33.4 | -120.0 | 100.4 | 5.2 | 36.8 | 73.1 | 83.2 | |
| Non-controlling interests | -0.2 | -0.5 | -0.2 | 0.2 | -0.1 | 0.0 | 0.3 | 0.5 | 0.5 | 0.3 | -0.5 | |
| 0.1 | 38.9 | 57.8 | -8.2 | 33.3 | -120.0 | 100.7 | 5.7 | 37.3 | 73.4 | 82.7 | ||
| Total comprehensive income attributable to: | ||||||||||||
| Shareholders of the parent company | -39.6 | 98.0 | 26.9 | -32.3 | 55.1 | -214.4 | 121.9 | -48.0 | 89.5 | 116.0 | 69.1 | |
| Non-controlling interests | 0.8 | -1.3 | -0.6 | 0.0 | 0.1 | -1.2 | 0.6 | -0.1 | 1.2 | 0.7 | -2.3 | |
| -38.8 | 96.7 | 26.3 | -32.3 | 55.2 | -215.6 | 122.5 | -48.1 | 90.7 | 116.7 | 66.8 | ||
| Profit per share | ||||||||||||
| before dilution (SEK) | 0.00 | 0.60 | 0.87 | -0.13 | 0.50 | -1.81 | 1.51 | 0.08 | 0.55 | 1.10 | 1.25 | |
| after dilution (SEK) | 0.00 | 0.60 | 0.87 | -0.12 | 0.50 | -1.81 | 1.51 | 0.08 | 0.55 | 1.09 | 1.22 | |
| The average number of outstanding 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 | |
| The average number of outstanding shares after dilution | 66 343 543 | 66 343 543 | 66 343 543 | 67 343 543 | 66 343 543 | 66 343 543 | 66 343 543 | 67 343 543 | 67 343 543 | 67 343 543 | 67 343 543 | |
| MSE K |
2010 | 2009 | 2008 | |||||||||
| Quarter | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 Q3 |
Q4 | Q1 | Q2 | Q3 | Q4 | |
| Income | 915.3 | 1 065.3 | 1 060.7 | 1 202.1 | 979.5 | 1 022.9 | 1 002.2 | 1 082.4 | 1 015.0 | 1 245.4 | 1 117.3 | 1 226.5 |
| Goods for resale | -477.9 | -563.7 | -581.2 | -620.7 | -528.1 | -519.3 | -555.5 | -582.4 | -532.3 | -626.8 | -549.8 | -662.9 |
| Gross profit | 437.4 | 501.6 | 479.5 | 581.4 | 451.4 | 503.6 | 446.7 | 500.0 | 482.7 | 618.6 | 567.5 | 563.6 |
| Gross profit % | 47.8 | 47.1 | 45.2 | 48.4 | 46.1 | 49.2 | 44.6 | 46.2 | 47.6 | 49.7 | 50.8 | 46.0 |
| Other operating income | 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 | -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 | -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 and write downs | -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 | -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 companies result | 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 | 16.9 | 87.9 | 84.7 | 138.1 | -57.3 | 95.4 | 37.7 | 96.6 | 15.6 | 148.8 | 142.8 | 61.6 |
| Financial income | 1.0 | 1.5 | 0.6 | 2.0 | 4.3 | 0.7 0.0 |
1.2 | 2.6 | 2.6 | 2.6 | 4.6 | |
| Financial expenses | -7.6 | -6.6 | -8.3 | -9.9 | -19.8 | -13.5 | -11.4 | -7.7 | -34.7 | -38.9 | -41.8 | -33.0 |
| Result before tax | 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 | -2.7 | -23.4 | -21.5 | -31.2 | 19.5 | -22.1 | -7.0 | -28.8 | 1.5 | -26.7 | -28.9 | -30.8 |
| Result for the period | 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 other comprehensive income net | ||||||||||||
| after tax for the period | -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 | -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 per share | ||||||||||||
| before dilution (SEK) | 0.11 | 0.90 | 0.83 | 1.47 | -0.81 | 0.91 | 0.29 | 0.90 | -0.23 | 1.22 | 1.19 | -0.01 |
| after dilution (SEK) | 0.11 | 0.88 | 0.82 | 1.45 | -0.81 | 0.91 | 0.29 | 0.89 | -0.22 | 1.17 | 1.15 | -0.01 |
| The average number of outstanding 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 |
| The average number of outstanding shares after dilution | 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 |
Quarterly consolidated cash flow statements
| SEK million | 2013 | 2012 | 2011 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Quarter | Q1 | Q2 | Q3 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 |
| Cash flow from current operations | |||||||||||
| before changes in working capital | -18.7 | 55.3 | 86.7 | -12.8 | 43.8 | 66.7 | 83.7 | -22.6 | 62.0 | 112.6 | 117.6 |
| Increase/decrease of stock | 27.8 | 28.2 | -3.1 | -44.9 | 34.3 | -1.6 | 205.8 | -124.7 | -77.8 | -155.1 | 105.2 |
| Increase/decrease of current receivables | 131.1 | -44.0 | -84.8 | 77.1 | 19.6 | -69.9 | -14.1 | 51.2 | 45.4 | -86.5 | 158.5 |
| Increase/decrease of current liabilities | -34.1 | 2.3 | -1.3 | 25.6 | 35.1 | -108.0 | 0.7 | -46.5 | -3.4 | 33.1 | -103.0 |
| Changes in working capital | 124.8 | -13.5 | -89.2 | 57.8 | 89.0 | -179.5 | 192.4 | -120.0 | -35.8 | -208.5 | 160.7 |
| Cash flow from operations | 106.1 | 41.8 | -2.5 | 45.0 | 132.8 | -112.8 | 276.1 | -142.6 | 26.2 | -95.9 | 278.3 |
| Investing activities | -9.7 | -8.9 | -21.2 | -10.8 | -15.1 | -17.2 | -7.3 | -27.1 | -19.6 | -165.4 | -114.4 |
| Cash flow after investing activities | 96.4 | 32.9 | -23.7 | 34.2 | 117.7 | -130.0 | 268.8 | -169.7 | 6.6 | -261.3 | 163.9 |
| Option premium | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Loan raised | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 123.0 | 0.0 | 133.5 | 36.0 | 339.1 | -186.3 |
| Raised long-term receivables | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | -0.3 | 0.0 | 0.3 |
| Repayment of long-term receivables | 0.9 | 0.1 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 4.2 | 0.0 | 0.7 | -4.9 |
| Amortization of loan | -157.3 | 24.2 | -12.0 | -79.0 | -5.1 | 0.0 | -196.1 | 0.0 | 0.0 | 0.0 | 0.0 |
| Dividend paid to the shareholders of the parent company | 0.0 | -66.3 | 0.0 | 0.0 | -66.3 | 0.0 | 0.0 | 0.0 | -66.3 | 0.0 | 0.0 |
| Financial activities | -156.4 | -42.0 | -12.0 | -79.0 | -71.4 | 123.0 | -196.1 | 137.7 | -30.6 | 339.8 | -190.9 |
| Cash flow for the period | -60.0 | -9.1 | -35.7 | -44.8 | 46.3 | -7.0 | 72.7 | -32.0 | -24.0 | 78.5 | -27.0 |
| Liquid assets at the beginning of the period | 229.7 | 168.0 | 163.0 | 117.7 | 70.4 | 119.5 | 107.6 | 121.7 | 86.1 | 64.2 | 146.0 |
| Adjustment liquid assets at the beginning of the period | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 48.8 | 0.0 | 0.0 | 0.0 | 0.0 |
| Translation differences in liquid assets | -1.7 | 4.1 | -3.6 | -2.5 | 2.8 | -4.9 | 0.6 | -3.6 | 2.1 | 3.3 | -1.3 |
| Liquid assets at period-end | 168.0 | 163.0 | 123.7 | 70.4 | 119.5 | 107.6 | 229.7 | 86.1 | 64.2 | 146.0 | 117.7 |
| SEK million | 2010 | 2009 | 2008 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Quarter | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 |
| Cash flow from current operations | ||||||||||||
| before changes in working capital | 20.1 | 82.4 | 115.5 | 114.1 | -80.4 | 65.3 | 34.2 | 71.4 | -6.4 | 115.0 | 62.6 | -8.1 |
| Increase/decrease of stock | 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 | 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 current liabilities | 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 | 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 | 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 | -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 | 49.4 | 110.8 | -60.5 | 186.3 | -145.0 | 373.1 | 106.0 | 449.2 | -204.5 | -49.1 | -126.7 | 47.1 |
| Option premium | 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 | 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 | -0.3 | 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 | 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 | -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 shareholders of the parent company | 0.0 | -16.6 | 0.0 | 0.0 | 0.0 | -11.9 | 0.0 | 0.0 | 0.0 | -66.3 | 0.0 | 0.0 |
| Financial activities | -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 | -7.6 | 4.0 | -9.6 | 58.0 | -118.8 | 23.7 | -32.0 | 25.6 | -66.8 | 10.5 | 88.6 | 11.7 |
| Liquid assets at the beginning of the period | 80.4 | 72.4 | 80.1 | 63.2 | 191.2 | 77.9 | 95.2 | 51.3 | 115.5 | 41.1 | 52.3 | 155.5 |
| Adjustment liquid assets at the beginning of the period | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Translation differences in liquid assets | -0.4 | 3.7 | -7.3 | 0.5 | 5.5 | -6.4 | -11.9 | 3.5 | -7.6 | 0.7 | 14.6 | 24.0 |
| Liquid assets at period-end | 72.4 | 80.1 | 63.2 | 121.7 | 77.9 | 95.2 | 51.3 | 80.4 | 41.1 | 52.3 | 155.5 | 191.2 |
New Wave Group's share
The share capital in New Wave Group 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 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 40 % of the Group's profit after taxes over a business cycle.
Shareholders
The number of shareholders amount to 12 598 (14 510) on September 30, 2013. Institutional investors accounted for 49% of the capital and 13% of the votes. At the same time the ten largest shareholders held 64 % of the capital and 90 % of the votes. Non-Swedish shareholders accounted for 13% of the capital and 3% of the votes.
NEW WAVE GROUP'S TEN MAJOR SHAREHOLDERS 2013-09-30
| Shar eholder |
Number of shares | Number of votes | Capital % | Votes % |
|---|---|---|---|---|
| Torsten Jansson through companies | 20 972 697 | 198 341 817 | 31.6% | 81.4% |
| Lannebo Microcap | 4 114 986 | 4 114 986 | 6.2% | 1.7% |
| Avanza Pension | 3 878 348 | 3 878 348 | 5.8% | 1.6% |
| Fjärde AP-Fonden | 3 330 000 | 3 330 000 | 5.0% | 1.4% |
| Handelsbanken fonder | 2 017 577 | 2 017 577 | 3.0% | 0.8% |
| Andra AP-Fonden | 1 993 785 | 1 993 785 | 3.0% | 0.8% |
| Home Capital | 1 987 313 | 1 987 313 | 3.0% | 0.8% |
| Länsförsäkringar Småbolagsfond | 1 645 308 | 1 645 308 | 2.5% | 0.7% |
| Nordea fonder | 1 277 321 | 1 277 321 | 1.9% | 0.5% |
| Svolder AB | 1 243 596 | 1 243 596 | 1.9% | 0.5% |
| 42 460 931 | 219 830 051 | 64.0% | 90.2% |
| SHAREHOLDE R DIST RIBUTION IN NEW WAVE GROUP 2013-09-30 |
Number of shares | Number of votes | Capital % | Votes % |
|---|---|---|---|---|
| Sweden | 57 789 438 | 235 158 558 | 87.1% | 96.5% |
| Shareholders outside Sweden, excl. USA | 5 964 522 | 5 964 522 | 9.0% | 2.4% |
| USA | 2 589 583 | 2 589 583 | 3.9% | 1.1% |
| Total | 66 343 543 | 243 712 663 | 100.0% | 100.0% |
Brands per business area
Cover image by Clique New Wave.
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