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New Wave Group AB Interim / Quarterly Report 2015

Nov 12, 2015

3081_10-q_2015-11-12_be556c91-336d-4d33-bb9a-07fbb3372a04.pdf

Interim / Quarterly Report

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INTERIM REPORT JANUARY – SEPTEMBER

Wast landscape and high level performance from Craft.

INTERIM REPORT NEW WAVE GROUP AB

PERIOD 1 JULY – 30 SEPTEMBER

  • Sales amounted to SEK 1,272 million, which was 13% higher than last year (SEK 1,122 million).
  • Operating profit amounted to SEK 96.3 (95.7) million.
  • Result for the period amounted to SEK 65.1 (66.9) million.
  • Earnings per share amounted to SEK 0.98 (1.01).
  • Cash flow from operating activities amounted to SEK -161.2 (-290.7) million.

PERIOD 1 JANUARY – 30 SEPTEMBER

  • Sales amounted to SEK 3,559 million, which was 18% higher than last year (SEK 3,014 million).
  • Operating profit amounted to SEK 146.8 (137.8) million.
  • Result for the period amounted to SEK 82.0 (85.0) million.
  • Earnings per share amounted to SEK 1.22 (1.28).
  • Cash flow from operating activities amounted to SEK -246.0 (-229.6) million.
  • Equity ratio amounted to 42.8 (45.9)%.
  • Net debt amounted to 92.1 (76.0)%.

TURNOVER RESULT BEFORE TAX

CEO COMMENTS

JULY - SEPTEMBER

I'm quite satisfied even with our third quarter. Sales increased by 13% (of which 8% currency) but we should bear in mind that our growth began to take off in the corresponding quarter last year - when we had a growth rate of 8% (of which 4% currency). Sales of SEK 1,272 million is the highest ever for us during a third quarter. Most pleasing is the promo sales channel with a growth of 19%. It is also extra pleasing to see growth in this sales channel in Sweden, which amounted to 14%. Operating profit of SEK 96.3 million is fully approved as we still find ourselves in an investment phase.

JANUARY - SEPTEMBER

I can only say that our actions and investments have given the desired result on sales. A growth of 18% for the first nine months feels incredibly strong. Operating income is almost SEK 10 million better – in spite of major investments in sales, marketing and inventory.

THE FUTURE

We are in a very strong position in every way and I look forward to the next few years. The only thing that worries me for the fourth quarter is the weather – the incredibly warm October has not really given us the sales start I wished for. At the time of writing, and when I look at the long-term forecast for Gothenburg, it shows 10-12 degrees above zero for quite some time to come. However, as CEO it is still nice to feel secure with everything else – and no other concern than the weather. We are strongly equipped for the next quarter and year, and even if any individual quarter happens to be worse than your and my own expectations, I feel great confidence going forward!

Torsten Jansson, CEO

COMMENTS

SUMMARY OF THE QUARTER JULY-SEPTEMBER

The Group increased its sales by 13% (5% excluding currency fluctuations) compared with last year. The operating segment Corporate Promo had a growth of 17%, which is related to the promo sales channel as well as the regions Europe, Sweden and the USA. Sports & Leisure increased by 11% which is primarily related to positive currency changes. Gifts & Home Furnishings increased their sales by 15% and here the increase is in both sales channels. The promo sales channel increased by 19% as a result of increased marketing activities and product launches, as well as an improved security of supply. The retail sales channel increased by 9%.

The gross profit margin was slightly higher than last year.

Our planned investments in sales and marketing continued during the quarter and costs have therefore increased compared with last year. We intend to continue marketing our product launches as well as the expansion of our sales force. Costs will therefore be higher even in the coming quarters.

Operating profit was slightly higher than last year. The improvement is mainly attributable to the higher turnover but our increased investments in sales and marketing have reduced the effectiveness of sales growth. Increased interest expense due to higher net debt had a negative impact on financial costs and profit for the period was slightly lower than last year.

Cash flow from operating activities amounted to SEK -161.2 (-290.7) million, whereby the improvement is related to lower commodity purchases as we now have a good inventory and service level. Inventories, however, increased by SEK 674 million compared to 30 September 2014 and amounted to SEK 2,648 (1,974) million. Exchange rate fluctuations have increased inventory by SEK 101 million. Net debt increased by SEK 600 million and amounted to SEK 2,290 (1,690) million, of which SEK 128 million related to changes in exchange rates. The net debt to equity ratio increased and amounted to 92.1 (76.0)%, which is related to the above mentioned stock building.

JULY-SEPTEMBER

TURNOVER

Turnover amounted to SEK 1,272 million, which was 13% higher than last year (SEK 1,122 million). Exchange rates affected turnover positively by SEK 89 million (8%).

The operating segment Corporate Promo increased by 17%, Sports & Leisure increased by 11% and Gifts & Home Furnishings by 15%. Of the Group's sales channels, promo increased by 19% while retail sales increased 9%.

Turnover in Sweden increased by 8% and it is the promo sales channel that accounts for the bulk of the increase. The USA increased by 17%, which is attributable to positive currency changes. Net sales in local currency decreased by 4%, which is related to a major order last year which was not repeated this quarter. The order affected the region by 10%. Other Nordic countries decreased by 1%, which is related to Finland. Sales in Central and Southern Europe have increased by 20% and 22% respectively, which is related to the promo sales channel.

GROSS PROFIT

The gross profit margin increased slightly compared to last year and amounted to 45.1 (44.6)%.

OTHER OPERATING INCOME AND OTHER OPERATING EXPENSES

Other operating income increased by SEK 17.0 million to SEK 22.1 (5.1) million. Other operating income is mainly attributable to operating currency gains but also invoiced expenses as well as capital gains. These should be compared to the result row "Other operating expenses" where mainly operating currency and capital losses are reported. Other operating expenses increased by SEK 5.2 million and amounted to SEK -9.3 (-4.1) million. The net total of the above items amounted to SEK 12.8 (1.0) million. The improvement is mainly due to a one-time revenue in connection with a minor acquisition.

COSTS AND DEPRECIATION

External costs increased by SEK 56.4 million and amounted to SEK -273.0 (-216.6) million. The increase is primarily related to increased investments in sales and marketing.

Personnel costs amounted to SEK -202.8 million which is SEK 28.0 million higher than last year (SEK -174.8 million). The increase is related to an increased number of employees, mainly within sales and customer service.

Currency exchange rates had a negative impact on costs by SEK 42 million.

Depreciation decreased slightly compared to last year and amounted to SEK -13.7 (-14.4) million.

OPERATING MARGIN

Our increased investments in sales and marketing have given a lower operating margin. The operating margin for the period amounted to 7.6 (8.5)%.

NET FINANCIAL ITEMS AND TAXES

Net financial items amounted to SEK -17.6 (-11.0) million. This deterioration is related to a worse net interest due to higher net debt.

Tax on profit for the period amounted to SEK -13.6 (-17.8) million. The slightly lower percentage rate is related to a one-off effect due to a non-taxable other income.

RESULT FOR THE PERIOD

Result for the period amounted to SEK 65.1 (66.9) million and earnings per share amounted to SEK 0.98 (1.01).

JANUARY-SEPTEMBER

TURNOVER

Turnover amounted to SEK 3,559 million, which was 18% higher than last year (SEK 3,014 million). Exchange rates affected turnover positively by SEK 305 million (10%).

The operating segment Corporate Promo increased by 21%, Sports & Leisure increased by 19% and Gifts & Home Furnishings by 5%. Of the Group's sales channels, promo increased by 24% while retail sales increased 12%.

Turnover in Sweden increased by 7%, which is related to the promo sales channel. Retail is at the same level as last year. The USA increased by 26% which is primarily attributable to the positive currency change. Net sales in local currency increased slightly and was mainly in the promo sales channel. Other Nordic countries increased by 10%, this increase is took place in all countries and mainly within the promo sales channel. Sales in Central and Southern Europe have increased by 18% and 30% respectively, and even here it is mainly related to the promo sales channel.

GROSS PROFIT

The gross profit margin amounted to 45.1 (45.2)%. The slightly lower margin is due to the mix of products, customers and countries.

OTHER OPERATING INCOME AND OTHER OPERATING EXPENSES

Other operating income increased by SEK 21.6 million to SEK 39.2 (17.6) million. Other operating income is mainly attributable to operating currency gains but also invoiced expenses as well as capital gains and should be compared to the result row "Other operating expenses" where mainly operating currency and capital losses are reported. Other operating expenses increased by SEK 25.4 million and amounted to SEK -34.5 (-9.1) million. The net total of the above items amounted to SEK 4.7 (8.5) million, where the deterioration in earnings is primarily attributable to foreign exchange losses associated with the Swiss Franc as it abandoned its EURO cap.

COSTS AND DEPRECIATION

External costs increased by SEK 139.0 million and amounted to SEK -802.0 (-663.0) million. The increase is related to increased investment in sales and marketing.

Personnel costs amounted to SEK -620.1 million which is SEK 89.1 million higher than last year (SEK -531.0 million). The increase is related to an increased number of employees, mainly within sales and customer service.

Currency exchange rates had a negative impact on costs by SEK 129 million.

Depreciation increased slightly compared to last year and amounted to SEK -42.9 (-40.0) million. The increase is mainly related to currency movements.

OPERATING MARGIN

Sales growth resulted in an improved operating profit, while the operating margin was slightly lower compared with last year and amounted to 4.1 (4.6)%. The margin was negatively affected by our increased marketing activities.

NET FINANCIAL ITEMS AND TAXES

Net financial items amounted to SEK -46.4 (-28.7) million. This deterioration is related to a worse net interest due to higher net debt.

Tax on profit for the period amounted to SEK -18.4 (-24.1) million.

RESULT FOR THE PERIOD

Result for the period amounted to SEK 82.0 (85.0) million and earnings per share amounted to SEK 1.22 (1.28).

REPORT OF OPERATING SEGMENTS

New Wave Group AB divides its operations into segments - Corporate Promo, Sports & Leisure, and 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

Turnover increased by 17% and amounted to SEK 457 (392) million. The result (EBITDA) amounted to SEK 26.6 (40.4) million. It is the promo sales channel which has increased and growth occurs in Sweden, Europe and the USA. Sales growth is due to increased sales and marketing activities, as well as improved inventory structure and level of service. The deterioration in earnings is primarily related to increased investment and costs for sales and marketing as well as a slightly lower gross profit margin (mix of products).

During the period January-September turnover increased by 21% and amounted to SEK 1,464 (1,208) million. The result (EBITDA) amounted to SEK 88.1 (96.5) million. Sales growth occurred in all regions and is due to increased sales and marketing activities, as well as an improved inventory structure and level of service. The lower profit is related to the projected cost increases in sales and marketing as well as a slightly lower gross profit margin (mix of products).

SPORTS & LEISURE

Turnover amounted to SEK 674 (608) million, which is 11% higher than last year. The result (EBITDA) amounted to SEK 77.8 (75.8) million. The segment has a significant portion of its sales in the American market and the exchange rates have affected turnover positively. Sales grew in promo sales channel and reduced at retail. This quarter last year included a major order which was not repeated in this quarter, which has had an impact on the segment's net sales negatively by 6%. The improvement in earnings is attributable to higher turnover but even here the result has been negatively affected by increased sales and marketing costs.

During the period January-September turnover increased by SEK 1,720 (1,450) millions, which is 19% higher than last year. The segment has a significant portion of its sales in the American market and the exchange rates have affected turnover positively. Sales increased mainly in the promo sales channel and in the regions of USA and Europe. The result (EBITDA) amounted to SEK 113.3 (102.6) million. The improved result is related to the increased turnover but has also been negatively affected by increased costs for sales and marketing.

GIFTS & HOME FURNISHINGS

Turnover increased by 15% and amounted to SEK 140 (123) million. The result (EBITDA) amounted to SEK 5.6 million which was a marked improvement on last year's SEK -6.1 million. Sales growth is taking place in both sales channels. The improvement in earnings is attributable to the higher turnover but also a slightly improved gross profit margin.

During the period from January to September, turnover amounted to SEK 375 (357) million. The result (EBITDA) improved and amounted to SEK -11.7 million against last year's SEK -21.3 million. The improved result is related to the higher turnover and a slightly improved gross profit margin.

CAPITAL TIED UP

Capital tied up in stock amounted to SEK 2,648 (1,974) million and increased by SEK 674 million compared to the same period last year. Changes in exchange rates for conversion to SEK have affected the stock value by SEK 101 million. The increase is a planned increase and is mainly related to the promo sales channel and its supplemental purchases within its basic range of goods as well as its new base collections. The turnover rate in stock is lower than last year because of our stock build-up and amounted to 1.1 (1.3). The inventory value is expected to be on a higher level than before even in the coming quarters, mainly because of our extended Corporate Promo range as well as new and upcoming base collections.

SEK million 2015-09 2014-09
Raw materials 25.3 21.8
Work in progress 3.2 1.8
Goods in transit 119.8 181.2
Merchandise on stock 2,499.9 1,769.7
Total 2,648.2 1,974.5

Stock was written down by SEK 118 (101) million, of which SEK 11 (13) million pertains to raw materials. Write-down related to merchandise on stock amounted to 4.1 (4.7)%.

Accounts receivable amounted to SEK 921 (819) million, where growth is primarily turnover related. However, even currency fluctuations when converted into SEK increased this amount.

INVESTMENTS, FINANCING AND LIQUIDITY

Consolidated cash flow from operations during the quarter was negative and amounted to SEK -161.2 (-290.7) million. This is due to the seasonal build-up of inventories for the coming quarter. In addition to this normal build-up there is also an increase due to new products in our basic range of goods. The cash net investments amounted to SEK -15.1 (-12.2) million. The increase is related to tangible fixed assets.

During the period January-September, the Group's cash flow from operations amounted to SEK -246.0 (-229.6) million, where the increase is related to higher operating receivables. The cash net investments amounted to SEK -81.0 (-44.7) million. The increase is related to tangible fixed assets.

Net debt increased by SEK 600 million to SEK 2,290 (1,690) million, which is primarily related to our planned build-up of stock. Exchange rates have increased the debt by SEK 128 million. The increase in stock means that our net debt in relation to shareholders' equity and working capital has increased to 92.1 (76.0)% and 76.0 (72.6)% respectively.

As a result of our stock build-up, our equity ratio decreased by 3.1 percentage points and amounted to 42.8 (45.9)% as of 30 September.

The Group has a funding agreement which extends up to 12 November 2016. Total credit facility at the end of the quarter amounted to SEK 2,812 million, of which the principal agreement amounts to SEK 2,562 million. The credit facility amount is limited to and dependent on the value of some underlying assets. The principal agreement means that 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. Work on a new funding agreement has begun.

Based on the present forecast, management estimates that the Group will be able to meet these covenants.

PERSONNEL AND ORGANISATION

The number of annual employees as of 30 September 2015 was 2,361 (2,186) of whom 50% were woman 50% were men. Of the total number of employees 589 (513) work in production. The production contained within New Wave group is attributable to Ahead (embroidery), Cutter & Buck (embroidery), Paris Glove, Orrefors Kosta Boda, Seger, Dahetra, Termo and Toppoint.

CERTIFIERADE PROFILKLÄDER

CERES-0201

VÄLJ ATT SYNAS OCH GÖRA SKILLNAD

Våra kläder är effektiva budbärare och säger något om vilka vi är. Därför ska du välja profilkläder med omsorg. Det du väljer att ha närmast kroppen har en avgörande betydelse för miljön och din hälsa, men också för människors arbetsvillkor.

Ditt budskap blir ännu tydligare när du väljer att ta ansvar. Välj CottoVer för en god sak. Tillsammans gör vi skillnad!

www.cottover.se

GIFTCARD SAVE THE CHILDREN

A very contemporary giftcard, where SEK 50 is dedicated to the Save the Children Catastrophy Fund, was presented in the Fall of 2015. Yet another way to make an active choice in times of great need to act and take a stand.

COTTOVER PUTS CSR ON THE AGENDA

Through this year's forceful advertising we do not only create sales, we also create public debate and discussion on the origin of products and the personal choice.

ETT GÅVOKORT FRÅN NEW WAVE GROUP* I SAMARBETE MED RÄDDA BARNEN * GÅVKORTET DISTRIBUERAS VIA ÅTERFÖRSÄLJARE

Foto: Ahmad Baroudi/Save the Children

INTANGIBLE ASSETS AND IMPAIRMENT TESTING

The breakdown of intangible assets between segments are based on the ratio as of the 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 reviewed 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 value in use. 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 estimate at this stage of the economic conditions expected to prevail over the forecast period. Current market conditions and the economic situation make forecasting for future periods difficult to predict. Furthermore, it is the fourth quarter that 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 2016-2020 are based upon the Board's established internal forecasts and for the subsequent periods an average growth rate of 3 (3)% for the terminal period has been used. Sensitivity analyses 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 11.2 (11.2)% before taxes is used. Discounted cash flows are compared with book value per cash generating unit / operating segments. Based on the tests and analyses carried out, there is, in the current situation, no write-down requirement.

RELATED PARTY TRANSACTIONS

There are lease agreements with affiliates. Affiliates of the CEO have bought merchandise and received payments for consulting services performed. All transactions are on market terms.

THE PARENT COMPANY

Total income amounted to SEK 96.5 (72.1) million. Result before appropriations and tax amounted to SEK -2.7 (-33.8) million, which includes dividends paid by subsidiaries of SEK 77.3 million. Income was negatively impacted by SEK 64.6 million and relates to the write-down of tangible assets. This is attributable to a capital injection into a subsidiary to cover losses. This capital injection is not considered to add any further value to the subsidiary and thus burdened the result. Net borrowing amounted to SEK 2,136 (1,532) million, of which SEK 1,947 (1,184) million relates to the financing of subsidiaries. Net investments amounted to SEK -20.9 (-20.1) million. The balance sheet total amounted to SEK 3,852 (3,083) million and shareholders' equity, including 78% of untaxed reserves, to SEK 1,253 (1,071) 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 minimize 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 2014; 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.

No new or revised IFRS which came into force 2015 has had any significant impact on the Group.

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 2014.

NOMINATION COMMITTEE

The nomination committee for the board election at the 2016 annual general meeting is:

  • Johan Ståhl, representative of Lannebo Fonder and Chairman of the Nomination Committee
  • Torsten Jansson, CEO and representative of Torsten Jansson Förvaltnings AB
  • Arne Lööw, representative of Fjärde AP-fonden

For more information about the nomination committee and its work, please see www.nwg.se/en/investor-relations.html.

CALENDAR

  • 11 February 2016: Year-end report 2015
  • 21 April 2016: Interim report for the first quarter
  • 11 May 2016: Annual general meeting 2016
  • 18 August 2016: Interim report for the second quarter
  • 10 November 2016: Interim report for the third quarter

CERTIFICATION

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 12 NOVEMBER 2015 NEW WAVE GROUP AB (PUBL)

ANDERS DAHLVIG Chairman of the Board

M JOHAN WIDERBERG Member of the Board

MATS ÅRJES

Member of the Board

CHRISTINA BELLANDER Member of the Board

HELLE KRUSE NIELSEN Member of the Board

TORSTEN JANSSON

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 12 November 2015.

REVIEW REPORT

New Wave Group AB (publ), corporation identity number 556350-0916

INTRODUCTION

We have reviewed the condensed interim report for New Wave Group AB (publ) as at September 30, 2015 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 International Standard on Review Engagements, ISRE 2410 Review of Interim Financial Statements 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 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 respects, 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.

Göteborg, November 12, 2015

Ernst & Young AB Stefan Kylebäck Authorized Public Accountant

PROJOB DRESSES VOLVO CONSTRUCTION EQUIPMENT

Through Volvo Merchandise, buyers of VCE machinery and vehicles are offered high class workwear from Projob in catalogues and showrooms.

CUTTER & BUCK WIDENS THE EUROPAN RANGE

Cutter & Buck is a brand that has its firm base in golf and from there stretches out to fashion and trend. This Fall we se a number of jackets with a high level of fashion and a city-oriented appearance.

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 2015 2014 2015 2014 2014 2013
Income 1 272.0 1 122.3 3 559.4 3 014.1 4 273.6 4 047.4
Goods for resale -697.8 -621.9 -1 952.6 -1 651.4 -2 321.0 -2 177.0
Gross profit 574.2 500.4 1 606.8 1 362.7 1 952.6 1 870.4
Other operating income* 22.1 5.1 39.2 17.6 27.7 33.3
External costs -273.0 -216.6 -802.0 -663.0 -923.5 -853.3
Personnel costs -202.8 -174.8 -620.1 -531.0 -735.7 -697.8
Depreciation and write downs of tangible and
intangible fixed assets -13.7 -14.4 -42.9 -40.0 -54.2 -52.1
Other operating costs -9.3 -4.1 -34.5 -9.1 -16.5 -10.9
Share of associated companies' result -1.2 0.1 0.3 0.6 -0.4 1.1
Operating profit 96.3 95.7 146.8 137.8 250.0 290.7
Financial income 1.4 1.1 6.5 3.7 4.9 6.8
Financial expenses -19.0 -12.1 -52.9 -32.4 -46.9 -63.0
Net financial items -17.6 -11.0 -46.4 -28.7 -42.0 -56.2
Result before tax 78.7 84.7 100.4 109.1 208.0 234.5
Tax on result for the period -13.6 -17.8 -18.4 -24.1 -31.1 -47.4
Result for the period 65.1 66.9 82.0 85.0 176.9 187.1
Other comprehensive income
Items that can be reclassified into
profit or loss
Translation differences
6.0 53.1 64.6 108.0 198.2 23.9
Cash flow hedge 1.4 0.0 0.4 0.0 1.3 0.1
Sum 7.4 53.1 65.0 108.0 199.5 24.0
Income tax related to components of
other comprehensive income
-0.3 0.0 -0.1 0.0 -0.3 0.0
Total other comprehensive income net after tax for the 7.1 53.1 64.9 108.0 199.2 24.0
Total comprehensive income for the period 72.2 120.0 146.9 193.0 376.1 211.1
Result attributable to:
Shareholders of the parent company 65.2 67.1 81.2 84.7 176.2 187.2
Non-controlling (minority) interest -0.1 -0.2 0.8 0.3 0.7 -0.1
65.1 66.9 82.0 85.0 176.9 187.1
Total comprehensive income attributable to:
Shareholders of the parent company 72.3 120.1 145.6 191.9 373.9 210.9
Non-controlling (minority) interest -0.1 -0.1 1.3 1.1 2.2 0.2
72.2 120.0 146.9 193.0 376.1 211.1
Profit per share 0.98 1.01 1.22 1.28 2.66 2.82
The average number of outstanding shares 66 343 543 66 343 543 66 343 543 66 343 543 66 343 543 66 343 543

* Mainly rate of exchange profit and capital gain

CONSOLIDATED CASH FLOW STATEMENTS

3 months
July - Sept
3 months
July- Sept
9 months
Jan - Sept
9 months
Jan - Sept
12 months
Jan - Dec
12 months
Jan - Dec
SEK million 2015 2014 2015 2014 2014 2013
Current operation
Operating profit
96.3 95.7 146.8 137.8 250.0 290.7
Adjustment for items not included in cash flow 8.4 16.2 49.4 43.4 71.8 32.2
Received interest 1.4 1.1 4.6 3.7 4.9 6.8
Paid interest
Paid income tax
-18.9
-13.4
-12.1
-7.8
-50.1
-31.5
-32.4
-27.7
-46.9
-25.9
-63.0
-40.1
Cash flow from current operations
before changes in working capital 73.8 93.1 119.2 124.8 253.9 226.6
Changes in working capital
Increase/decrease of stock -132.1 -309.6 -421.2 -447.0 -573.1 198.2
Increase/decrease of current receivables -117.2 -124.2 -10.7 20.1 -20.6 -30.4
Increase/decrease of current liabilities
Cash flow from changes in working capital
14.3
-235.0
50.0
-383.8
66.7
-365.2
72.5
-354.4
55.6
-538.1
-35.9
131.9
Cash flow from operations -161.2 -290.7 -246.0 -229.6 -284.2 358.5
Investing activities
Investments in tangible fixed assets -21.9 -11.4 -85.1 -32.5 -48.4 -26.8
Sales of tangible fixed assets 0.8 0.1 1.8 2.1 2.3 4.1
Investments in intangible fixed assets -0.6 -0.9 -3.6 -12.9 -21.4 -24.1
Acquisition of subsidiaries* 0.0 0.0 -1.7 0.0 -5.4 0.0
Repayment of purchase amount * 0.0 0.0 0.0 0.1 0.1 0.0
Sales of subsidiaries * 6.6 0.0 7.6 0.0 0.0 0.0
Acquisition of financial fixed assets 0.0 0.0 0.0 -1.5 -1.5 0.0
Cash flow from investing activities -15.1 -12.2 -81.0 -44.7 -74.3 -46.8
Cash flow after investing activities -176.3 -302.9 -327.0 -274.3 -358.5 311.7
Financial activities
Loan raised 173.9 289.8 339.1 309.6 430.9 0.0
Raised long-term receivables 0.1 0.0 -1.4 0.0 0.0 0.0
Repayment of long-term receivables 0.0 -0.2 0.0 3.5 3.7 0.8
Amortization of loan 0.0 0.0 0.0 0.0 0.0 -291.8
Dividend paid to non-controlling interest
Dividend paid to the shareholders of the parent company
-1.0
0.0
0.0
0.0
-1.0
-66.3
0.0
-66.3
0.0
-66.3
0.0
-66.3
Cash flow from financial activities 173.0 289.6 270.4 246.8 368.3 -357.3
Cash flow for the period -3.3 -13.3 -56.6 -27.5 9.8 -45.6
Liquid assets at the beginning of the period 169.5 176.0 216.0 185.1 185.1 229.7
Translation differences in liquid assets 1.5 6.9 8.3 12.0 21.1 1.0
Liquid assets at period-end 167.7 169.6 167.7 169.6 216.0 185.1
Liquid assets
Cash at bank and in hand 167.7 169.6 167.7 169.6 216.0 185.1
* The item includes:
Goodwill 10.5 - 10.5 0.1 -0.3 -
Working capital -15.2 - -22.2 - - -
Overtake of loan 11.4 - 12.7 - 2.5 -
Fixed assets -0.1 - 5.8 - - -
Reclassification share in associated companies - - -0.9 - - -
Change in non-controlling interest - - - - -7.5 -
Effect on the cash flow 6.6 - 5.9 0.1 -5.3 -

CONDENSED CONSOLIDATED BALANCE SHEETS

30 Sept 30 Sept 31 Dec 31 Dec
SEK million 2015 2014 2014 2013
ASSETS
Intangible fixed assets 1 398.8 1 275.1 1 342.9 1 196.9
Tangible fixed assets 359.5 297.4 307.5 287.5
Shares in associated companies 59.8 65.2 64.2 63.1
Long-term receivables 17.1 20.6 20.7 23.9
Deferred tax assets 110.2 94.1 102.5 81.3
Total non-current assets 1 945.4 1 752.4 1 837.8 1 652.7
Stock 2 648.2 1 974.5 2 162.1 1 449.1
Accounts receivables 920.6 818.5 804.2 734.2
Tax receivables 19.6 19.5 22.9 30.2
Prepaid expenses and accrued income 68.1 72.0 67.1 59.5
Other receivables 38.0 38.9 126.5 110.7
Liquid assets 167.7 169.6 216.0 185.1
Total current assets 3 862.2 3 093.0 3 398.8 2 568.8
TOTAL ASSETS 5 807.6 4 845.4 5 236.6 4 221.5
EQUITY
Share capital 199.1 199.1 199.1 199.1
Other capital contributions 219.4 219.4 219.4 219.4
Reserves 280.7 127.1 217.6 20.0
Retained earnings including result for the period 1 766.6 1 658.9 1 750.4 1 640.4
Equity attributable to shareholders of the parent company 2 465.8 2 204.5 2 386.5 2 078.9
Non-controlling interest 21.4 17.5 18.6 23.9
Total equity 2 487.2 2 222.0 2 405.1 2 102.8
LIABILITIES
Long-term interest-bearing liabilities 2 391.7 1 792.6 1 961.1 1 375.4
Pension provisions 13.5 12.3 12.9 11.0
Other provisions 12.0 18.3 13.1 15.9
Deferred tax liabilities 154.6 137.8 148.9 129.1
Total non-current liabilities 2 571.8 1 961.0 2 136.0 1 531.4
Short-term interest-bearing liabilities 66.3 66.7 83.7 73.7
Accounts payable 380.4 324.1 323.9 229.0
Current tax liabilities 9.6 14.9 26.9 21.6
Other liabilities 98.9 75.4 81.0 92.0
Accrued expenses and prepaid income 193.4 181.3 180.0 171.0
Total current liabilities 748.6 662.4 695.5 587.3
Total liabilities 3 320.4 2 623.4 2 831.5 2 118.7
TOTAL EQUITY AND LIABILITIES 5 807.6 4 845.4 5 236.6 4 221.5
Memorandum items
Pledged assets 3 430.9 3 987.5 3 220.5 3 043.4
Contingent liabilities 22.5 23.7 24.8 24.3

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Other Retained earnings
capital incl. result Non-controlling
SEK million Share capital contributions Reserves for the year Total interest Total equity
Opening balance 2014-01-01 199.1 219.4 20.0 1 640.4 2 078.9 23.9 2 102.8
Result for the year 176.2 176.2 0.7 176.9
Other comprehensive income
Translation difference 196.7 196.7 1.5 198.2
Cash flow hedge 1.2 0.1 1.3 1.3
Income tax related to components of other comprehensive income -0.3 0.0 -0.3 -0.3
Transactions with shareholders
Dividends to shareholder of the parent company -66.3 -66.3 -66.3
Change in non-controlling interest 0.0 0.0 -7.5 -7.5
Closing balance 2014-12-31 199.1 219.4 217.6 1 750.4 2 386.5 18.6 2 405.1
Other Retained earnings
capital incl. result Non-controlling
SEK million Share capital contributions Reserves for the period Total interest Total equity
Opening balance 2015-01-01 199.1 219.4 217.6 1 750.4 2 386.5 18.6 2 405.1
Result for the period 81.2 81.2 0.8 82.0
Other comprehensive income
Translation difference 64.1 64.1 0.5 64.6
Cash flow hedge -0.9 1.3 0.4 0.4
Income tax related to components of other comprehensive income -0.1 -0.1 -0.1
Transactions with shareholders
Dividends to shareholder of the parent company -66.3 -66.3 -66.3
Dividends to non-controlling interest -1.0 -1.0
Change in non-controlling interest 0.0 0.0 2.5 2.5
Closing balance 2015-06-30 199.1 219.4 280.7 1 766.6 2 465.8 21.4 2 487.2
9 months 9 months Year Year
Accumulated translation differences in equity 2015 2014 2014 2013
Accumulated translation differences at the beginning of the period 221.5 23.3 23.3 -0.6
Translation difference in foreign subsidiaries for the period 64.6 108.0 198.2 23.9
Accumulated translation differences at end of period 286.1 131.3 221.5 23.3
FINANCIAL INSTRUMENTS
SEK million 30 Sept 30 Sept 31 Dec 31 Dec
2015 2014 2014 2013
Assets at fair value * 0.8 0.0 2.3 0.1
Assets at amortised cost 1 125.4 1 027.0 1 151.0 1 034.8
Total financial assets 1 126.2 1 027.0 1 153.3 1 034.9
Liabilities at fair value * 0.0 0.0 0.0 1.6
Liabilities at amortised cost 3 130.4 2 370.1 2 628.8 1 940.8
Total financial liabilites 3 130.4 2 370.1 2 628.8 1 942.4

Financial instruments are measured at fair value or amortised cost according to classification in the balance sheet.

Financial instruments include in addition to financial net debt, also accounts receivable and accounts payble.

Financial instruments at fair value in the balance sheet belongs to level 2 in IFRS 13 hierarcy.

* Refer to derivatives

FINANCIAL HIGHLIGHTS – GROUP

9 months 9 months 12 months 12 months
Jan- Sept Jan- Sept Jan-Dec Jan-Dec
2015 2014 2014 2013
Sales growth, % 18.1 3.7 5.6 -5.4
Number of employees 2 361 2 186 2 212 2 123
Gross profit margin, % 45.1 45.2 45.7 46.2
Operating margin before depreciation, % 5.3 5.9 7.1 8.5
Operating margin, % 4.1 4.6 5.9 7.2
Profit margin, % 2.8 3.6 4.9 5.8
Net margin, % 2.3 2.8 4.1 4.6
Return on shareholders' equity, % 4.5 5.3 7.9 9.3
Return on capital employed, % 4.4 4.9 6.4 8.2
Equity ratio, % 42.8 45.9 45.9 49.8
Net debt - Equity ratio, % 92.1 76.0 76.0 60.1
Net debt in relation to working capital, % 76.0 72.6 71.1 67.6
Net debt, SEK million 2 290.3 1 689.8 1 828.7 1 264.0
Interest cover ratio, times 2.9 4.4 5.4 4.7
Capital turnover, times 0.9 0.9 0.9 0.9
Stock turnover, times 1.1 1.3 1.3 1.4
Cash flow before investments, SEK million -246.0 -229.6 -284.2 358.5
Net investments, SEK million -81.0 -44.7 -74.3 -46.8
Cash flow after investments, SEK million -327.0 -274.3 -358.5 311.7
Shareholders' equity per share, SEK 37.49 33.49 36.25 31.69
Share price as at December 31, SEK - - 38.30 32.90
Dividend/share, SEK - - 1.00 1.00
P/E-ratio - - 14.37 11.67
P/S-ratio - - 0.60 0.54
Share price/Shareholders' equity - - 1.06 1.04

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 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 current 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 2015 2014 2014 2013
Income 73.6 63.9 90.0 84.6
Other operating income* 22.9 8.2 14.9 10.4
Total income 96.5 72.1 104.9 95.0
Operating costs
External costs -60.9 -51.1 -64.7 -61.3
Personnel costs -19.2 -18.2 -25.9 -22.6
Depreciation of tangible and intangible fixed assets -4.3 -2.8 -3.9 -2.5
Other operating costs** -21.7 -6.7 -13.0 -8.4
Operating profit/loss -9.6 -6.7 -2.6 0.2
Net income from shares in Group companies 77.3 0.0 276.1 312.3
Write-down of financial fixed assets -64.6 -24.6 -21.8 -22.8
Financial income 40.4 31.2 41.8 55.8
Financial expenses -46.2 -33.7 -77.3 -131.1
Net financial items 6.9 -27.1 218.8 214.2
Result before appropriations and tax -2.7 -33.8 216.2 214.4
Appropriations 0.0 0.0 -1.6 26.1
Tax on result for the period 3.4 2.0 0.0 0.4
Result for the period 0.7 -31.8 214.6 240.9

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 STATEMENTS – PARENT COMPANY

9 months 9 months 12 months 12 months
Jan-Sep Jan-Sep Jan-Dec Jan-Dec
SEK million 2015 2014 2014 2013
Current operations
Operating profit/loss -9.5 -6.7 -2.6 0.2
Adjustment for items not included in cash flow 4.2 2.8 3.9 2.5
Received dividends 0.0 0.0 2.8 16.8
Received interest 40.4 31.2 41.8 55.8
Paid interest -46.1 -33.7 -46.5 -68.8
Paid income tax -0.3 0.6 0.9 4.9
Cash flow from current operations
before changes in working capital -11.3 -5.8 0.3 11.4
Changes in working capital
Decrease/increase in stock -0.2 0.0 -0.6 0.0
Decrease/increase in current receivables -407.9 -120.3 -274.3 450.7
Decrease/increase in current liabilities 174.3 77.8 94.4 -121.9
Cash flow from changes in working capital -233.8 -42.5 -180.5 328.8
Cash flow from operations -245.1 -48.3 -180.2 340.2
Investing activities
Shareholders contribution to subsidiaries -9.6 0.0 -9.5 -20.7
Shareholders contribution to associated company 0.0 -1.5 -1.5 0.0
Intragroup sales of group companies 0.0 0.0 0.0 0.1
Investments in tangible fixed assets -0.6 0.0 -0.1 0.0
Investments in intangible fixed assets -1.5 -10.8 -16.9 -3.9
Acquisition of shares -9.2 -7.9 -5.4 0.0
Repayment of purchase amount 0.0 0.1 0.1 0.0
Repayment of loan from subsidiaries 0.0 0.0 0.0 10.6
Cash flow from investing activities -20.9 -20.1 -33.3 -13.9
Cash flow after investing activities -266.0 -68.4 -213.5 326.3
Financial activities
Loan raised 319.7 140.0 292.2 0.0
Amortization of loan 0.0 0.0 0.0 -278.5
Dividend paid to shareholders of the parent company -66.3 -66.3 -66.3 -66.3
Cash flow from financial activities 253.4 73.7 225.9 -344.8
Cash flow for the period -12.6 5.3 12.4 -18.5
Liquid assets at the beginning of the year 12.8 0.4 0.4 18.9
Liquid assets at period-end 0.2 5.7 12.8 0.4

BALANCE SHEETS – PARENT COMPANY

SEK million 30 Sept 30 Sept 31 Dec 31 Dec
ASSETS 2015 2014 2014 2013
Fixed assets
Intangible fixed assets 17.0 14.2 19.4 5.8
Tangible fixed assets 1.1 1.0 0.9 1.4
Financial assets
Shares in Group companies 1 455.4 1 391.5 1 413.6 1 383.7
Shares in associated companies 54.7 60.4 60.4 58.9
Receivables on Group companies 920.3 794.1 857.0 714.0
Other long-term receivables 2.0 2.0 2.0 2.0
Total financial assets 2 432.4 2 248.0 2 333.0 2 158.6
Total fixed assets 2 450.5 2 263.2 2 353.3 2 165.8
Current assets
Current receivables
Stock 0.8 0.0 0.6 0.0
Accounts receivable 0.4 0.5 0.3 0.2
Receivables on Group companies 1 383.7 794.5 896.7 619.2
Tax receivables 3.9 2.5 0.2 1.1
Other receivables 7.0 8.1 90.6 87.1
Prepaid expenses and accrued income 5.1 8.3 5.4 9.2
Total current receivables 1 400.9 813.9 993.8 716.8
Cash at bank and in hand 0.2 5.7 12.8 0.4
Total current assets 1 401.1 819.6 1 006.6 717.2
TOTAL ASSETS 3 851.6 3 082.8 3 359.9 2 883.0
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 748.8 600.5 600.5 425.9
Share premium reserve 48.0 48.0 48.0 48.0
Result for the period 0.7 -31.8 214.6 240.9
797.5 616.7 863.1 714.8
Total equity 1 246.0 1 065.2 1 311.6 1 163.3
Untaxed reserves 8.9 7.3 8.9 7.3
Non-current liabilities
Overdraft facilities 1 774.9 1 137.8 1 377.9 867.7
Bankloan 311.0 350.0 325.0 400.0
Total non-current liabilities 2 085.9 1 487.8 1 702.9 1 267.7
Current liabilities
Short-term interest-bearing liabilities 50.0 50.0 50.0 50.0
Accounts payable 98.8 63.2 39.7 25.9
Liabilities to Group companies 356.7 404.2 240.6 361.5
Other liabilities 0.8 1.2 1.0 2.3
Accrued expenses and prepaid income 4.5 3.9 5.2 5.0
Total current liabilities 510.8 522.5 336.5 444.7
TOTAL EQUITY AND LIABILITIES 3 851.6 3 082.8 3 359.9 2 883.0
Pledged assets and contingent liabilities for the parent company
Pledged assets 1 165.8 1 116.1 1 141.4 1 116.1
Contingent liabilities 354.8 492.3 436.5 208.6

CHANGES IN EQUITY – PARENT COMPANY

SEK million Share capital Restricted
reserves
profits Retained Share premium
reserve
Result for
the year
Total equity
Opening balance 2014-01-01 199.1 249.4 425.9 48.0 240.9 1 163.3
Transfer according to Annual General meeting 240.9 -240.9 0.0
Result for the year 214.6 214.6
Total change in net assets excluding 0.0 0.0 0.0 0.0 214.6 214.6
transactions with shareholders
Dividends -66.3 -66.3
Closing balance 2014-12-31 199.1 249.4 600.5 48.0 214.6 1 311.6
Share capital Restricted Retained Share premium Result for Total equity
SEK million reserves profits reserve the period
Opening balance 2015-01-01 199.1 249.4 600.5 48.0 214.6 1 311.6
Transfer according to Annual General meeting 214.6 -214.6 0.0
Result for the period 0.7 0.7
Total change in net assets excluding 0.0 0.0 0.0 0.0 0.7 0.7
transactions with shareholders
Dividends -66.3 -66.3
Closing balance 2015-09-30 199.1 249.4 748.8 48.0 0.7 1 246.0

SALES AND RESULT PER OPERATING SEGMENT

SEK million 3 months 3 months 9 months 9 months 12 months 12 months
July - Sept July - Sept Jan-Sept Jan-Sept Jan-Dec Jan-Dec
Corporate Promo 2015 2014 2015 2014 2014 2013
Income 457.4 392.2 1 464.4 1 207.8 1 788.2 1 587.3
Result EBITDA 26.6 40.4 88.1 96.5 173.8 143.5
Sports & Leisure
Income 674.1 607.6 1 719.8 1 449.7 1 952.5 1 929.3
Result EBITDA 77.8 75.8 113.3 102.6 135.3 154.8
Gifts & Home furnishings
Income 140.5 122.5 375.2 356.6 532.9 530.8
Result EBITDA 5.6 -6.1 -11.7 -21.3 -4.9 44.5
Total income 1 272.0 1 122.3 3 559.4 3 014.1 4 273.6 4 047.4
Total result EBITDA 110.0 110.1 189.7 177.8 304.2 342.8
Total result EBITDA 110.0 110.1 189.7 177.8 304.2 342.8
Depreciation and write downs -13.7 -14.4 -42.9 -40.0 -54.2 -52.1
Net financial items -17.6 -11.0 -46.4 -28.7 -42.0 -56.2
Profit before tax 78.7 84.7 100.4 109.1 208.0 234.5

ASSETS/LIABILITIES PER OPERATING SEGMENT

SEK million Total Fixed Deferred Depreciation Total
assets assets * tax assets Investments and write-downs liabilities
30 Sept 2015
Corporate Promo 3 039.2 632.8 28.0 -34.7 -19.3 2 261.3
Sports & Leisure 2 295.9 959.0 46.9 -30.8 -18.7 768.3
Gifts & Home Furnishings 472.5 166.5 35.3 -17.0 -4.9 290.8
Total 5 807.6 1 758.3 110.2 -82.5 -42.9 3 320.4
30 Sept 2014
Corporate Promo 2 413.7 585.0 24.6 -28.2 -20.0 1 736.0
Sports & Leisure 2 011.7 841.5 34.7 -10.5 -17.2 693.6
Gifts & Home Furnishings 420.0 146.0 34.8 -6.0 -2.8 193.8
Total 4 845.4 1 572.5 94.1 -44.7 -40.0 2 623.4
31 Dec 2014
Corporate Promo 2 746.6 602.9 26.6 -50.8 -27.2 2 014.5
Sports & Leisure 2 060.6 901.8 42.7 -18.2 -23.2 629.0
Gifts & Home Furnishings 429.4 145.7 33.2 -7.8 -3.8 188.0
Total 5 236.6 1 650.4 102.5 -76.8 -54.2 2 831.5

SALES PER AREA

3 months 3 months
SEK million July - Sept Part of July - Sept Part of Change Change
2015 income 2014 income SEK million %
Sweden 271.1 21% 251.5 23% 19.6 8%
USA 403.4 32% 344.5 31% 58.9 17%
Nordic countries excluding Sweden 168.3 13% 169.3 15% -1.0 -1%
Central Europe 220.0 17% 183.3 16% 36.7 20%
Southern Europe 101.3 8% 83.1 7% 18.2 22%
Other countries 107.9 9% 90.6 8% 17.3 19%
Total 1 272.0 100% 1 122.3 100% 149.7 13%
9 months 9 months Change Change
SEK million Jan - Sept Part of Jan - Sept Part of
2015 income 2014 income SEK million %
Sweden 776.1 22% 722.9 24% 53.2 7%
USA 1 044.9 29% 826.2 28% 218.7 26%
Nordic countries excluding Sweden 501.5 14% 456.3 15% 45.2 10%
Central Europe 636.2 18% 541.1 18% 95.1 18%
Southern Europe 319.2 9% 245.0 8% 74.2 30%
Other countries 281.5 8% 222.6 7% 58.9 26%
Total 3 559.4 100% 3 014.1 100% 545.3 18%
12 months 12 months
SEK million Jan - Dec Part of Jan - Dec Part of Change Change
2014 income 2013 income SEK million %
Sweden 1 063.8 25% 1 035.7 26% 28.1 3%
USA 1 124.2 26% 1 094.9 27% 29.3 3%
Nordic countries excluding Sweden 605.6 14% 589.2 15% 16.4 3%
Central Europe 766.4 18% 710.1 17% 56.3 8%
Southern Europe 364.8 9% 335.1 8% 29.7 9%
Other countries 348.8 8% 282.4 7% 66.4 24%
Total 4 273.6 100% 4 047.4 100% 226.2 6%

FIXED ASSETS AND DEFERRED TAX ASSETS PER AREA

30 Sept 30 Sept 31 Dec
2015 2014 2014
SEK million Fixed Deferred Fixed Deferred Fixed Deferred
assets* tax assets assets* tax assets assets* tax assets
Sweden 453.3 20.1 428.6 21.1 433.5 19.7
USA 907.6 62.1 784.8 48.1 838.7 56.9
Nordic countries excluding Sweden 29.1 10.5 22.6 6.6 22.1 10.2
Central Europe 198.1 11.4 184.9 9.7 193.4 10.5
Southern Europe 161.6 3.1 141.0 2.0 144.4 2.4
Other countries 8.6 3.0 10.6 6.6 18.3 2.8
Total 1 758.3 110.2 1 572.5 94.1 1 650.4 102.5

* Fixed assets classified as financial assets are not included

QUARTERLY CONSOLIDATED INCOME STATEMENTS

SEK million 2015 2014 2013
Quarter Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Income 1 096.1 1 191.3 1 272.0 908.5 983.3 1 122.3 1 259.5 877.3 995.3 1 035.0 1 139.8
Goods for resale -595.7 -659.1 -697.8 -497.7 -531.8 -621.9 -669.6 -456.8 -529.1 -564.9 -626.2
Gross profit 500.4 532.2 574.2 410.8 451.5 500.4 589.9 420.5 466.2 470.1 513.6
Gross profit % 45.7 44.7 45.1 45.2 45.9 44.6 46.8 47.9 46.8 45.4 45.1
Other operating income 9.3 7.8 22.1 7.1 5.4 5.1 10.1 8.6 7.7 7.7 9.3
External costs -270.1 -258.9 -273.0 -229.5 -216.9 -216.6 -260.5 -222.9 -209.7 -205.4 -215.2
Personnel costs -205.3 -212.0 -202.8 -179.5 -176.7 -174.8 -204.7 -174.7 -177.9 -162.5 -182.7
Depreciations and write-downs -14.9 -14.3 -13.7 -12.4 -13.2 -14.4 -14.2 -11.8 -14.6 -13.9 -11.9
Other operating costs -18.5 -6.7 -9.3 -2.4 -2.6 -4.1 -7.4 -3.8 -1.9 -2.9 -2.3
Share of associated companies' result 0.9 0.6 -1.2 0.0 0.5 0.1 -1.0 0.2 0.4 -0.3 0.8
Operating profit/loss 1.8 48.7 96.3 -5.9 48.0 95.7 112.2 16.1 70.2 92.8 111.6
Financial income 1.9 3.2 1.4 1.4 1.2 1.1 1.2 1.8 1.4 1.8 1.8
Financial expenses -17.0 -16.9 -19.0 -9.7 -10.6 -12.1 -14.5 -17.8 -16.1 -14.9 -14.2
Result before tax -13.3 35.0 78.7 -14.2 38.6 84.7 98.9 0.1 55.5 79.7 99.2
Tax 2.4 -7.2 -13.6 2.9 -9.2 -17.8 -7.0 0.0 -16.6 -21.9 -8.9
Result for the period -10.9 27.8 65.1 -11.3 29.4 66.9 91.9 0.1 38.9 57.8 90.3
Total other comprehensive income
net after tax for the period 101.7 -43.9 7.1 1.4 53.5 53.1 91.2 -38.9 57.8 -31.5 36.6
Total comprehensive income for the period 90.8 -16.1 72.2 -9.9 82.9 120.0 183.1 -38.8 96.7 26.3 126.9
Profit per share
before dilution (SEK) -0.17 0.41 0.98 -0.17 0.44 1.01 1.38 0.00 0.60 0.87 1.35
after dilution (SEK) -0.17 0.41 0.98 -0.17 0.44 1.01 1.38 0.00 0.60 0.87 1.35
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 66 343 543 66 343 543 66 343 543 66 343 543 66 343 543 66 343 543 66 343 543 66 343 543
SEK million 2012 2011 2010
Quarter Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Income 975.4 1 074.9 1 053.8 1 176.1 927.6 1 020.9 1 100.9 1 187.5 915.3 1 065.3 1 060.7 1 202.1
Goods for resale -531.2 -580.0 -688.9 -615.7 -493.9 -522.7 -590.2 -607.3 -477.9 -563.7 -581.2 -620.7
Gross profit 444.2 494.9 364.9 560.4 433.7 498.2 510.7 580.2 437.4 501.6 479.5 581.4
Gross profit % 45.5 46.0 34.6 47.6 46.8 48.8 46.4 48.9 47.8 47.1 45.2 48.4
Other operating income 8.5 9.5 7.4 9.7 12.6 8.4 11.5 6.9 5.1 5.1 12.6 9.4
External costs -247.2 -238.3 -245.5 -223.0 -241.5 -241.6 -231.4 -256.0 -240.4 -230.6 -222.3 -252.9
Personnel costs -186.3 -189.2 -208.1 -181.9 -168.2 -173.2 -165.2 -184.5 -167.0 -171.7 -161.1 -179.4
Depreciations and write-downs -11.9 -13.0 -53.1 -11.9 -11.1 -13.2 -12.7 -13.6 -14.9 -15.1 -14.2 -14.2
Other operating costs -3.8 -5.9 -5.9 -3.1 -7.9 -5.5 -6.7 -4.7 -3.9 -1.5 -10.2 -6.0
Share of associated companies' result -0.9 0.7 0.4 1.5 0.1 -0.4 0.0 2.0 0.6 0.1 0.4 -0.2
Operating profit/loss 2.6 58.7 -139.9 151.7 17.7 72.7 106.2 130.3 16.9 87.9 84.7 138.1
Financial income 1.4 0.5 2.2 0.9 1.6 1.0 1.1 3.2 1.0 1.5 0.6 2.0
Financial expenses -15.4 -13.0 -16.1 -18.7 -11.5 -12.2 -14.9 -19.3 -7.6 -6.6 -8.3 -9.9
Result before tax -11.4 46.2 -153.8 133.9 7.8 61.5 92.4 114.2 10.3 82.8 77.0 130.2
Tax 3.2 -12.9 33.8 -33.2 -2.1 -24.2 -19.0 -31.5 -2.7 -23.4 -21.5 -31.2
Result for the period -8.2 33.3 -120.0 100.7 5.7 37.3 73.4 82.7 7.6 59.4 55.5 99.0
Total other comprehensive income
net after tax for the period -24.1 21.9 -95.6 21.8 -53.8 53.4 43.3 -15.9 -27.8 41.7 -113.1 29.9
Total comprehensive income for the period -32.3 55.2 -215.6 122.5 -48.1 90.7 116.7 66.8 -20.2 101.1 -57.6 128.9
Profit per share
before dilution (SEK) -0.13 0.50 -1.81 1.51 0.08 0.55 1.10 1.25 0.11 0.90 0.83 1.47
after dilution (SEK) -0.12 0.50 -1.81 1.51 0.08 0.55 1.09 1.22 0.11 0.88 0.82 1.45
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 66 343 543 66 343 543 66 343 543 67 343 543 67 343 543 67 343 543 67 343 543 67 343 543 67 343 543 67 343 543 67 343 543

QUARTERLY CONSOLIDATED CASH FLOW STATEMENTS

SEK million
Quarter
2015
Q1
Q2 Q3 2014
Q1
Q2 Q3 Q4 2013
Q1
Q2 Q3 Q4
Cash flow from current operations
before changes in working capital -9.2 54.6 73.8 -7.1 38.8 93.1 129.1 -18.7 55.3 86.7 103.3
Increase/decrease of stock -200.6 -88.5 -132.1 -50.6 -86.8 -309.6 -126.1 27.8 28.2 -3.1 145.3
Increase/decrease of current receivables 129.5 -23.0 -117.2 172.3 -28.0 -124.2 -40.7 131.1 -44.0 -84.8 -32.7
Increase/decrease of current liabilities 51.4 1.0 14.3 -25.8 48.3 50.0 -16.9 -34.1 2.3 -1.3 -2.8
Changes in working capital -19.7 -110.5 -235.0 95.9 -66.5 -383.8 -183.7 124.8 -13.5 -89.2 109.8
Cash flow from operations -28.9 -55.9 -161.2 88.8 -27.7 -290.7 -54.6 106.1 41.8 -2.5 213.1
Investing activities -26.3 -39.6 -15.1 -15.0 -17.5 -12.2 -29.6 -9.7 -8.9 -21.2 -7.0
Cash flow after investing activities -55.2 -95.5 -176.3 73.8 -45.2 -302.9 -84.2 96.4 32.9 -23.7 206.1
Loan raised 0.0 179.1 173.9 0.0 129.6 289.8 121.3 0.0 24.2 0.0 0.0
Raised long-term receivables -0.4 -1.1 0.1 0.0 0.0 -0.2 0.0 0.0 0.0 0.0 -0.2
Repayment of long-term receivables 0.0 0.0 0.0 3.7 0.0 0.0 0.2 0.9 0.1 0.0 0.0
Amortization of loan -13.9 0.0 0.0 -109.8 0.0 0.0 0.0 -157.3 0.0 -12.0 -146.7
Dividend paid to non-controlling interest 0.0 0.0 -1.0 0.0 0.0 0.0 0.0 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 -14.3 111.7 173.0 -106.1 63.3 289.6 121.5 -156.4 -42.0 -12.0 -146.9
Cash flow for the period -69.5 16.2 -3.3 -32.3 18.1 -13.3 37.3 -60.0 -9.1 -35.7 59.2
Liquid assets at the beginning of the period 216.0 159.0 169.5 185.1 153.1 176.0 169.6 229.7 168.0 163.0 123.7
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
Translation differences in liquid assets 12.5 -5.7 1.5 0.3 4.8 6.9 9.1 -1.7 4.1 -3.6 2.2
Liquid assets at period-end 159.0 169.5 167.7 153.1 176.0 169.6 216.0 168.0 163.0 123.7 185.1
SEK million 2012 2011 2010
Quarter Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Cash flow from current operations
before changes in working capital -12.8 43.8 66.7 83.7 -22.6 62.0 112.6 117.6 20.1 82.4 115.5 114.1
Increase/decrease of stock -44.9 34.3 -1.6 205.8 -124.7 -77.8 -155.1 105.2 15.7 24.6 -104.5 27.5
Increase/decrease of current receivables 77.1 19.6 -69.9 -14.1 51.2 45.4 -86.5 158.5 10.0 -83.9 5.3 31.6
Increase/decrease of current liabilities 25.6 35.1 -108.0 0.7 -46.5 -3.4 33.1 -103.0 19.6 94.4 -57.8 29.0
Changes in working capital 57.8 89.0 -179.5 192.4 -120.0 -35.8 -208.5 160.7 45.3 35.1 -157.0 88.1
Cash flow from operations 45.0 132.8 -112.8 276.1 -142.6 26.2 -95.9 278.3 65.4 117.5 -41.5 202.2
Investing activities -10.8 -15.1 -17.2 -7.3 -27.1 -19.6 -165.4 -114.4 -16.0 -6.7 -19.0 -15.9
Cash flow after investing activities 34.2 117.7 -130.0 268.8 -169.7 6.6 -261.3 163.9 49.4 110.8 -60.5 186.3
Loan raised 0.0 0.0 123.0 0.0 133.5 36.0 339.1 -186.3 0.0 0.0 53.9 0.0
Raised long-term receivables 0.0 0.0 0.0 0.0 0.0 -0.3 0.0 0.3 -0.3 0.0 -6.8 5.9
Repayment of long-term receivables 0.0 0.0 0.0 0.0 4.2 0.0 0.7 -4.9 1.5 0.0 3.8 -4.2
Amortization of loan -79.0 -5.1 0.0 -196.1 0.0 0.0 0.0 0.0 -58.2 -90.2 0.0 -130.0
Dividend paid to non-controlling interest 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 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 0.0 -66.3 0.0 0.0 0.0 -16.6 0.0 0.0
Financial activities -79.0 -71.4 123.0 -196.1 137.7 -30.6 339.8 -190.9 -57.0 -106.8 50.9 -128.3
Cash flow for the period -44.8 46.3 -7.0 72.7 -32.0 -24.0 78.5 -27.0 -7.6 4.0 -9.6 58.0
Liquid assets at the beginning of the period 117.7 70.4 119.5 107.6 121.7 86.1 64.2 146.0 80.4 72.4 80.1 63.2
Adjustment liquid assets at the beginning of the period
Translation differences in liquid assets
0.0
-2.5
0.0
2.8
0.0
-4.9
48.8
0.6
0.0
-3.6
0.0
2.1
0.0
3.3
0.0
-1.3
0.0
-0.4
0.0
3.7
0.0
-7.3
0.0
0.5

* As of 2012 gross accounting of cash in bank is applied.

N E W WAV E G R O U P ' 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 40% of the Group's profit after taxes over a business cycle.

SHAREHOLDERS

The number of shareholders amount to 10 817 (10 773) on September 30, 2015. Institutional investors accounted for 48% of the capital and 13% of the votes. At the same time the ten largest shareholders held 69% of the capital and 92% of the votes. Non-Swedish shareholders accounted for 8% of the capital and 2% of the votes.

NEW WAVE GROUP'S TEN MAJOR SHAREHOLDERS 2015-09-30

SHAREHOLDER Number of shares Number of votes Capital % Votes %
Torsten Jansson through companies 20 944 377 198 316 817 31.6% 81.4%
Lannebo Microcap 7 098 969 7 098 969 10.7% 2.9%
Avanza Pension 4 490 879 4 490 879 6.8% 1.8%
Fjärde AP-Fonden 4 079 737 4 079 737 6.1% 1.7%
Andra AP-Fonden 2 469 054 2 469 054 3.7% 1.0%
Svolder AB 1 818 668 1 818 668 2.7% 0.7%
Handelsbanken fonder 1 727 638 1 727 638 2.6% 0.7%
Spiltan 1 196 523 1 196 523 1.8% 0.5%
SEB fonder 1 006 391 1 006 391 1.5% 0.4%
Nordea fonder 977 620 977 620 1.5% 0.4%
45 809 856 223 182 296 69.0% 91.6%

SHAREHOLDER DISTRIBUTION IN NEW WAVE GROUP 2015-09-30

Number of shares Number of votes Capital % Votes %
Sweden 60 872 739 238 241 859 91.8% 97.8%
Shareholders outside Sweden, excl. USA 4 122 582 4 122 582 6.2% 1.7%
USA 1 348 222 1 348 222 2.0% 0.5%
Total 66 343 543 243 712 663 100.00% 100.0%

NEW WAVE GROUP'S TRADEMARKS

C O R P O R AT E P R O M O

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) Company Number 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