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New Wave Group AB Interim / Quarterly Report 2015

Aug 20, 2015

3081_ir_2015-08-20_17c81213-1b97-42b3-91f2-c4a431f701e5.pdf

Interim / Quarterly Report

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INTERIM REPORT JANUARY–JUNE

INTERIM REPORT NEW WAVE GROUP AB

  • Sales amounted to SEK 1,191 million, which was 21% higher than last year (SEK 983 million).
  • Operating profit amounted to SEK 48.7 (48.0) million.
  • The periods result amounted to SEK 27.8 (29.4) million.
  • Earnings per share amounted to SEK 0.41 (0.44).
  • Cash flow from operating activities amounted to SEK -55.9 (-27.7) million.

PERIOD 1 APRIL – 30 JUNE 2015 PERIOD 1 JANUARY – 30 JUNE 2015

  • Sales amounted to SEK 2,287 million, which was 21% higher than last year (SEK 1,892 million).
  • Operating profit amounted to SEK 50.5 (42.1) million.
  • The periods result amounted to SEK 16.9 (18.1) million.
  • Earnings per share amounted to SEK 0.24 (0.27).
  • Cash flow from operating activities amounted to SEK -84.8 (61.1) million.

TURNOVER RESULT BEFORE TAX

CEO COMMENTS

APRIL - JUNE

I'm quite satisfied with the second-quarter. We are, by and large, following our plan and are at double digit growth even with currency effects excluded. Growth including currency effects at 21% feels strong, not the least because part of what we do requires some time before it gives results. And there is still virtually no sales of Cottover in the figures, as the launch was delayed a month and occurred only at the end of June. Operating profit of SEK 48.7 million is slightly more than last year and acceptable considering all the investments we are making in growth, but I believed in a higher result. The difference being gross profit, which I had hoped for a better outcome. But as I said, I'm quite satisfied with the outcome of the quarter.

JANUARY - JUNE

I feel confident and secure with our first six months. Even for the half year, we have double digit growth with currency effects excluded and a whole 21% including currency effects. Operating income is just over SEK 8 million better than last year but it is lower than my expectations. A somewhat lower gross profit in the second quarter and just under SEK 10 million in currency losses, mainly in Switzerland, in the first quarter make up the difference and with that knowledge, I think it is fully approved.

THE FUTURE

As I wrote after the first quarter, I have not looked so bright on the future since 1997. We will continue to grow and the investments we have made will produce results! We should also remember (see prior interim report) that we are in an investment phase and cannot always count on results within a few quarters – it will take a little time.

A shining example of this is Cottover which we launched at the end of the second quarter and actually started to sell in June. Cottover is the Group's most important launch ever and will really leave many competitors far behind us. But if we look critically at the first and second quarters, the result could have been millions better and the balance sheet smaller without the investment, but I am totally convinced that this is the way to go even though in a snapshot, it affects negatively. I look forward to the coming quarters and years with great confidence!

COMMENTS

SUMMARY OF THE QUARTER APRIL-JUNE

Our investment in better delivery reliability and new products continues to produce results. The Group increased its sales by 21% (10% excluding currency fluctuations) compared with last year. Out of our operating segments, Sport & Leisure increased the most with 29% of which the USA market accounts for the largest increase. Sales increased in both sales channels. Exchange rates have affected sales positively. The operating segment Corporate Promo increased by 19%, which is related to the regions Sweden, Other Nordic countries and Europe, as well as the promo sales channel. Gifts & Home Furnishings increased its sales by 2%. Product launches as well as the improved supply has mainly taken place in the promo sales channel and it is also here we see the largest increase, namely 24%. The retail sales channel increased by 17%.

The gross profit margin was slightly lower than last year and is due to our mix of products, customers and countries.

The Group's costs have increased compared with last year, which is related to the planned investment in sales and marketing as previously announced. Both external costs and personnel costs will increase in the coming quarters as we continue to market our product launches and expand our sales force.

Operating profit was slightly higher compared to last year. The improvement is mainly attributable to increased sales but our increased investments in sales and marketing have reduced the effectiveness of sales growth. Higher interest expense due to higher net debt had a negative impact on financial costs and profit after tax was on par with last year.

Cash flow from operating activities amounted to SEK -55.9 (-27.7) million, in which the deterioration is related to our purchase of goods and payment of these. Stock increased by SEK 866 million and amounted to SEK 2,486 (1,620) million, of which SEK 143 million is related to changes in exchange rates. Net debt increased by SEK 760 million and amounted to SEK 2,087 (1,327) million, of which SEK 169 million is related to changes in exchange rates. Net debt/equity ratio increased, amounting to 86.5 (62.9)%, which is related to the above mentioned stock building.

APRIL – JUNE

TURNOVER

Turnover amounted to SEK 1,191 million, which was 21% higher than last year (SEK 983 million). Exchange rates affected turnover positively by SEK 109 million (11%).

The operating segment Corporate Promo increased by 19%, Sports & Leisure increased by 29% and Gifts & Home Furnishings by 2%. Of the Group's sales channels, promo increased by 24% while retail sales increased 17%.

Turnover in Sweden increased by 7%. USA increased by 36% which is primarily attributable to the positive currency change. Turnover in local currency increased by 8%. Other Nordic countries increased by 18% and all countries in the region are increasing. Sales in Central and Southern Europe have increased by 15% and 34% respectively. The improvement in all regions is mainly due to the promo sales channel.

GROSS PROFIT

The gross profit amounted to 44.7 (45.9)%. The decrease is due to the mix of products, customers and countries.

OTHER OPERATING INCOME AND OTHER OPERATING EXPENSES

Other operating income increased by SEK 2.4 million to SEK 7.8 (5.4) million. Other operating income is mainly attributable to operating currency gains but also invoiced expenses and should be compared to the result row "Other operating expenses" where mainly foreign exchange losses are reported. Other operating expenses increased by SEK 4.1 million and amounted to SEK -6.7 (-2.6) million. The net total of the above items amounted to SEK 1.1 (2.8) million.

COSTS AND DEPRECIATION

External costs increased by SEK 42.0 million and amounted to SEK -258.9 (-216.9) million. The increase is related to increased investment in sales and marketing.

Personnel costs amounted to SEK -212.0 million which is SEK 35.3 million higher than last year (SEK -176.7 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 increased slightly compared to last year and amounted to SEK -14.3 (-13.2) million. The increase is mainly related to currency movements.

OPERATING MARGIN

Our increased investments in sales and marketing have given a lower operating margin. The operating margin for the period was 4.1 (4.9)%.

NET FINANCIAL ITEMS AND TAXES

Net financial items amounted to SEK -13.7 (-9.4) million. This deterioration is related to a worse net interest due to higher net debt.

Tax on result for the period amounted to SEK -7.2 (-9.2) million.

RESULT FOR THE PERIOD

Result for the period amounted to SEK 27.8 (29.4) million and earnings per share amounted to SEK 0.41 (0.44).

JANUARY – JUNE

TURNOVER

Turnover amounted to SEK 2,287 million, which was 21% higher than last year (SEK 1,892 million). Exchange rates affected turnover positively by SEK 216 million (11%).

The operating segment Corporate Promo increased by 23%, Sports & Leisure increased by 24% and Gifts & Home Furnishings was on par with last year. Of the Group's sales channels, promo increased by 27% while retail sales increased 15%.

Turnover in Sweden increased by 7% and this is related to the promo sales channel which increased by 11%, while retail was on par with last year. USA increased by 33% which is primarily attributable to the positive currency change. Turnover in local currency increased by 5% and was mainly in the promo sales channel. Other Nordic countries increased by 16%, where the increase was in all countries as well as in both sales channels. Sales in Central and Southern Europe increased by 16% and 35% respectively, which is related to the promo sales channel.

GROSS PROFIT

The gross profit margin was 45.1 (45.6)%. The 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 4.6 million to SEK 17.1 (12.5) million. Other operating income is mainly attributable to operating currency gains but also invoiced expenses and should be compared to the result row "Other operating expenses" where mainly foreign exchange losses are reported. Other operating expenses increased by SEK 20.2 million and amounted to SEK -25.2 (-5.0) million. The net total of the above items amounted to SEK -8.1 (7.5) million, where the deteriorated earnings is primarily attributable to the first quarter's foreign exchange losses associated with the Swiss Franc as it abandoned its EURO cap. Last year also includes a number of allowances and invoiced expenses which have not occurred during the first six months.

COSTS AND DEPRECIATION

External costs increased by SEK 82.6 million and amounted to SEK -529.0 (-446.4) million. The increase is related to increased investment in sales and marketing.

Personnel costs amounted to SEK -417.3 million which is SEK 61.1 million higher than last year (SEK -356.2 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 87 million.

Depreciation increased slightly compared to last year and amounted to SEK -29.2 (-25.6) million. The increase is mainly related to currency movements.

OPERATING MARGIN

Sales growth resulted in an improved operating profit, while the operating margin was unchanged compared with last year and amounted to 2.2 (2.2)%. The margin was negatively affected by our investments in sales.

NET FINANCIAL ITEMS AND TAXES

Net financial items amounted to SEK -28.8 (-17.7) million. This deterioration is related to a worse net interest due to higher net debt.

Tax on result for the period amounted to SEK -4.8 (-6.3) million.

RESULT FOR THE PERIOD

Result for the period amounted to SEK 16.9 (18.1) million and earnings per share amounted to SEK 0.24 (0.27).

REPORTING 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 19% and amounted to SEK 540 (454) million. The result (EBITDA) amounted to SEK 52.4 (54.7) million. The increased turnover is due to increased sales and marketing activities, as well as an improved inventory structure and level of service. The increase occurred in the promo sales channel and in all regions. The deterioration in earnings is primarily related to increased investments and costs for sales and marketing as well as a slightly lower gross profit margin (mix of products).

During the period January-June turnover increased by 23% and amounted to SEK 1,007 (816) million. The result (EBITDA) amounted to SEK 61.5 (56.1) 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 improved result is related to the increased turnover but has also been negatively affected by increased costs for sales and marketing during the first half of the year.

SPORTS & LEISURE

Turnover amounted to SEK 522 (404) million, which is 29% higher than last year. The result (EBITDA) amounted to SEK 10.9 (7.9) million. Sales increased mainly in the promo sales channel and in the regions of USA and Europe. The segment has a significant portion of its sales in the American market and the exchange rates have affected turnover positively. 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-June turnover increased by SEK 1,046 (842) millions, which is 24% 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 35.5 (26.8) million. The improved result is related to the increased turnover but has also been negatively affected by increased costs for sales and marketing during the first half of the year

GIFTS & HOME FURNISHINGS

Turnover increased by 2% and amounted to SEK 129 (126) million. The result (EBITDA) amounted to SEK -0.3 million which is somewhat better than last year (SEK -1.4 million). The increase in turnover is related to the retail sales channel.

lion. The result (EBITDA) is somewhat lower than last year and amounted to SEK -17.3 (-15.2) million. The lower result is related to the planned cost increases in sales and marketing.

CAPITAL TIED UP

Capital tied up in stock amounted to SEK 2,486 (1,620) million and increased by SEK 866 million compared to the same period last year. Changes in exchange rates for conversion to SEK have affected the stock value by SEK 143 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 stock increase raises the level of service and provides supply reliability for our customers. 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 2015-06 2014-06
Raw materials 23.2 23.2
Work in progress 2.6 4.1
Goods in transit 126.8 155.2
Merchandise on stock 2 333.4 1 437.5
Total 2 486.0 1 620.0

Stock was written down by SEK 110 (101) million, of which SEK 11 (13) million pertains to raw materials. Write-down related to merchandise on stock amounted to 4,1 (5,7)%.

Accounts receivable amounted to SEK 784 (657) million, where growth is primarily turnover related. However, even currency fluctuations when converted into SEK increased this amount.

INVESTMENT, FINANCING AND LIQUIDITY

During the period January-June turnover amounted to SEK 235 (234) mil-

Consolidated cash flow from operating activities was negative during the quarter and amounted to SEK -55.9 (-27.7) million. The reason for this is

that payments of our stock purchases have a different payment period compare to last year. The cash net investments amounted to SEK -39.6 (-17.5) million. The increase is related to tangible assets.

Consolidated cash flow from operating activities during the first half year amounted to SEK -84.8 (61.1) million, which relates to increased stock purchases. The cash net investments amounted to SEK -65.9 (-32.5) million. The increase is related to tangible assets.

Net debt increased by SEK 760 million to SEK 2,087 (1,327) million, which is primarily related to our planned build-up of stock. Exchange rates have increased the debt by SEK 169 million. The increase in stock means that our net debt in relation to shareholders' equity and working capital has increased to 86,5 (62,9)% and 75,5 (69,5)% respectively.

As a result of our stock build-up, our equity ratio decreased by 5.4 percentage points and amounted to 43.8 (49.2)% as of 30 June.

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 2,625 million, of which the principal agreement amounts to SEK 2,375 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.

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 June 2015 was 2,308 (2,185) of whom 51% were woman 49% were men. Of the total number of employees 589 (535) 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 and Toppoint.

RELATED PARTY TRANSACTIONS

There are lease agreements with affiliates. Affiliates of the Managing Director have bought merchandise and recieved compensation for consultancy services rendered. All transactions are on market terms.

THE PARENT COMPANY

Total income amounted to SEK 67.4 (44.5) million. Profit before appropriations and tax amounted to SEK 69.8 (-10.4) million, which includes dividends paid by subsidiaries of SEK 77.3 million. Net borrowing amounted to SEK 1,963 (1,316) million, of which SEK 1,785 (969) million relates to the financing of subsidiaries. Net investments amounted to SEK -3.8 (-12.0) million. The balance sheet total amounted to SEK 3,664 (2,818) million and shareholders' equity, including 78% of untaxed reserves, to SEK 1,324 (1,095) 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.

THE NATIONAL ATHLETICS TEAM DRESS UP IN CRAFT!

We are proud and happy to announce that Craft is new official sponsor of the Swedish Athletics' national team through a five year contract that runs from the upcoming World Championships in Beijing and throughout 2019. This is an offensive push completely in line with the Craft Brand and our current extensive marketing actions.

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.

CALENDAR

12 November 2015: Interim report for Q3

  • 11 February 2016: Year-end report 2015
  • 21 April 2016: Interim report for Q1

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.

GÖTEBORG 20 AUGUST 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: 031–7128901 E-mail: [email protected]

CFO Lars Jönsson Phone: 031–7128912 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 20 August 2015.

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

CERTIFIERADE PROFILKLÄDER

Vänd dig till oss när du bestämt dig för att göra skillnad:

making the finer wear work get the full story at jharvestandfrost.com DU HITTAR OSS HOS FÖLJANDE VÄLSORTERADE ÅTERFÖRSÄLJARE:

övriga www.newwaveprofile.com, www.jamesharvest.com, välsorterade herr-/dambutiker. följ oss även på facebook.

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DURABILITY AT WORK SINCE 1975

ALINGSÅS NWP PROFILDESIGN ALINGSÅS ALFTA FRONTA ALFTA ARLÖV ARLÖVS REKLAM BODEN NWP COMPANY LINE BORÅS NWP TOP LINE ESKILSTUNA NWP PROFEEL FALUN NWP TRYCKET I DALARNA GÄVLE ARNE BLOM GÄVLE NWP INDUSTRIPROFIL GÖTEBORG CONERA GÖTEBORG IDÉO PRESENTREKLAM GÖTEBORG NICE FÖRETAGSREKLAM HALLSBERG NWP LPT REKLAM HÄSSLEHOLM / VINSLÖV

NWP MAGNUSSONS JÖNKÖPING NWP ALPIST REKLAM JÖNKÖPING INSLAGET KALMAR KST INFOSERVICE KALMAR NWP NÖJAB KARLSKOGA NWP ARENA REKLAM KARLSTAD NWP MYSHKIN KARLSTAD TAG REKLAM KATRINEHOLM NWP PÅHLSONS REKLAM KIRUNA NWP COMPANY LINE KRISTIANSTAD NWP WAYPOINT KUNGSBACKA NWP BRODERIET KUNGÄLV NWP TRIMDON LIDKÖPING NWP NEW PROMOTION LIMHAMN NWP BRODERIET LINKÖPING TSB I LINKÖPING LJUNGBY NWP RYSSBY REKLAM LULEÅ NWP COMPANY LINE LÖDDEKÖPINGE NWP FELESTAD MALMÖ CONNECT MARKETING MALMÖ NWP FLINK REKLAM & PROMOTION MALMÖ NWP NORDTREND MARIESTAD NWP REKLAMBOLAGET MORA NWP TRYCKET I DALARNA MÖLNDAL NWP FLINK REKLAM & PROMOTION MÖLNDAL HAJON MÖLNDAL NWP NORDTREND MÖLNDAL TEAM PROMOTION NORRKÖPING PROMO FÖRETAGSREKLAM NORRKÖPING NWP TM NORRKÖPING TOOLS NORRKÖPING NYKÖPING NWP PÅHLSONS REKLAM OSKARSHAMN NWP DÖDERHULTS PROFIL PITEÅ MYNTA PROFIL & PRESENT SALA NWP Ö&P YRKESBUTIKEN SKELLEFTEÅ NWP COMPANY LINE SKELLEFTEÅ FRONTA SKELLEFTEÅ SKÖVDE CONTECO SKÖVDE NWP NEW PROMOTION STOCKHOLM NWP företagsPRofi len STOCKHOLM MOLIND STOCKHOLM NWP SCREENBOLAGET STHLM ARLANDA NWP DE FACTO YRKESKLÄDER STHLM BROMMA NWP DAYLIGHT REKLAM STHLM BROMMA TRÖJHUSET NWP GEWE PROMOTION STHLM KISTA SEGMENTA STHLM SKARPNÄCK

FRONTA SKARPNÄCK STHLM TÄBY DHL PRESENTREKLAM SUNDSVALL PAINTEX SUNDSVALL NWP YRKES & PROFIL KLÄDER SUNNE NWP SUN SCREEN TROLLHÄTTAN REMEMBER ME UDDEVALLA NWP OLYMPUS UMEÅ UMEÅ REKLAM UMEÅ NWP YRKES & PROFIL KLÄDER VÄSTERÅS NWP NOBLE ART VÄSTRA FRÖLUNDA

NWP OLYMPUS VÄXJÖ NWP PR ACTIVE ÖREBRO BACK UP ÖREBRO FRONTLINE REKLAM ÖREBRO NWP REKLAMPROFFSEN ÖREBRO TEXT PRINT ÖREBRO TH IDÉ & REKLAM NWP: NEW WAVE PROFILE MEMBERS & PARTNERS Retail återförsäljare STOCKHOLM UNIPEG RIVIERA

KATRINEHOLM Påhlsons Reklam KIRUNA Company Line / IMA KIRUNA Svenska Wip

9

TINGSRYD Ottoson Screen TOMELILLA Sahlins kläder UDDEVALLA Olympus UMEÅ Gärdin & Persson UMEÅ Jobline ULRICEHAMN Mercus Yrkeskläder UPPSALA Arbetsklädshuset UPPSALA Uppsala Maskin & Verktyg VARA Roupéz Profile

MASSIVE MEDIA DISPLAY OF OUR BRANDS AND OF OUR RETAILERS.

During the Spring of 2015, we increased our marketing efforts in Swedish evening press and weekend magazines extensively to create exposure and frequency for our most important brands. In total, we run hundreds of ads, mainly full pages and half pages, where we consequently refer to our retail network. This is our most extensive media campaign so far and it is backed up by marketing on the web and in social media.

CONSOLIDATED INCOME STATEMENTS

3 months 3 months 6 months 6 months 12 months 12 months
Apr- June Apr- June Jan- June Jan- June Jan-Dec Jan-Dec
SEK million 2015 2014 2015 2014 2014 2013
Income 1 191.3 983.3 2 287.4 1 891.8 4 273.6 4 047.4
Goods for resale -659.1 -531.8 -1 254.8 -1 029.5 -2 321.0 -2 177.0
Gross profit 532.2 451.5 1 032.6 862.3 1 952.6 1 870.4
Other operating income* 7.8 5.4 17.1 12.5 27.7 33.3
External costs -258.9 -216.9 -529.0 -446.4 -923.5 -853.3
Personnel costs -212.0 -176.7 -417.3 -356.2 -735.7 -697.8
Depreciation and write downs of tangible and
intangible fixed assets -14.3 -13.2 -29.2 -25.6 -54.2 -52.1
Other operating costs -6.7 -2.6 -25.2 -5.0 -16.5 -10.9
Share of associated companies' result 0.6 0.5 1.5 0.5 -0.4 1.1
Operating profit 48.7 48.0 50.5 42.1 250.0 290.7
Financial income 3.2 1.2 5.1 2.6 4.9 6.8
Financial expenses -16.9 -10.6 -33.9 -20.3 -46.9 -63.0
Net financial items -13.7 -9.4 -28.8 -17.7 -42.0 -56.2
Result before tax 35.0 38.6 21.7 24.4 208.0 234.5
Tax on result for the period -7.2 -9.2 -4.8 -6.3 -31.1 -47.4
Result for the period 27.8 29.4 16.9 18.1 176.9 187.1
Other comprehensive income
Items that can be reclassified into
profit or loss
Translation differences -42.9 53.5 58.6 54.9 198.2 23.9
Cash flow hedge -1.3 0.0 -1.0 0.0 1.3 0.1
Sum -44.2 53.5 57.6 54.9 199.5 24.0
Income tax related to components of
other comprehensive income
0.3 0.0 0.2 0.0 -0.3 0.0
Total other comprehensive income net after tax for the period -43.9 53.5 57.8 54.9 199.2 24.0
Total comprehensive income for the period -16.1 82.9 74.7 73.0 376.1 211.1
Result attributable to:
Shareholders of the parent company
27.4 28.9 16.0 17.6 176.2 187.2
Non-controlling (minority) interest 0.4 0.5 0.9 0.5 0.7 -0.1
27.8 29.4 16.9 18.1 176.9 187.1
Total comprehensive income attributable to:
Shareholders of the parent company -16.3 81.7 73.3 71.8 373.9 210.9
Non-controlling (minority) interest 0.2 1.2 1.4 1.2 2.2 0.2
-16.1 82.9 74.7 73.0 376.1 211.1
Profit per share 0.41 0.44 0.24 0.27 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 3 months 6 months 6 months 12 months 12 months
April - June April - June Jan - June Jan - June Jan - Dec Jan - Dec
SEK million 2015 2014 2015 2014 2014 2013
Current operation
Operating profit 48.7 48.0 50.5 42.1 250.0 290.7
Adjustment for items not included in cash flow 23.0 12.6 41.0 27.2 71.8 32.2
Received interest 1.3 1.2 3.2 2.6 4.9 6.8
Paid interest -17.1 -10.6 -31.2 -20.3 -46.9 -63.0
Paid income tax -1.3 -12.4 -18.1 -19.9 -25.9 -40.1
Cash flow from current operations
before changes in working capital 54.6 38.8 45.4 31.7 253.9 226.6
Changes in working capital
Increase/decrease of stock -88.5 -86.8 -289.1 -137.4 -573.1 198.2
Increase/decrease of current receivables -23.0 -28.0 106.5 144.3 -20.6 -30.4
Increase/decrease of current liabilities 1.0 48.3 52.4 22.5 55.6 -35.9
Cash flow from changes in working capital -110.5 -66.5 -130.2 29.4 -538.1 131.9
Cash flow from operations -55.9 -27.7 -84.8 61.1 -284.2 358.5
Investing activities
Investments in tangible fixed assets -38.6 -9.6 -63.2 -21.1 -48.4 -26.8
Sales of tangible fixed assets 0.0 0.0 1.0 2.0 2.3 4.1
Investments in intangible fixed assets -2.0 -6.4 -3.0 -12.0 -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* 1.0 0.0 1.0 0.0 0.0 0.0
Acquisition of financial fixed assets 0.0 -1.5 0.0 -1.5 -1.5 0.0
Cash flow from investing activities -39.6 -17.5 -65.9 -32.5 -74.3 -46.8
Cash flow after investing activities -95.5 -45.2 -150.7 28.6 -358.5 311.7
Financial activities
Loan raised 179.1 129.6 165.2 19.8 430.9 0.0
Raised long-term receivables -1.1 0.0 -1.5 0.0 0.0 0.0
Repayment of long-term receivables 0.0 0.0 0.0 3.7 3.7 0.8
Amortization of loan 0.0 0.0 0.0 0.0 0.0 -291.8
Dividend paid to the shareholders of the parent company -66.3 -66.3 -66.3 -66.3 -66.3 -66.3
Cash flow from financial activities 111.7 63.3 97.4 -42.8 368.3 -357.3
Cash flow for the period 16.2 18.1 -53.3 -14.2 9.8 -45.6
Liquid assets at the beginning of the period 159.0 153.1 216.0 185.1 185.1 229.7
Translation differences in liquid assets -5.7 4.8 6.8 5.1 21.1 1.0
Liquid assets at period-end 169.5 176.0 169.5 176.0 216.0 185.1
Liquid assets
Cash at bank and in hand 169.5 176.0 169.5 176.0 216.0 185.1
* The item includes:
Goodwill - - - 0.1 -0.3 -
Trademark - - - - - -
Working capital -5.1 - -7.0 - - -
Overtake of loan - - 1.3 - 2.5 -
Fixed assets 6.1 - 5.9 - - -
Liquid assets - - - - - -
Reclassification share in associated companies - - -0.9 - - -
Change in non-controlling (minority) interest - - - - -7.5 -
Effect on the cash flow 1.0 - -0.7 0.1 -5.3 -

CONDENSED CONSOLIDATED BALANCE SHEETS

30-June 30-June 31-Dec 31-Dec
SEK million 2015 2014 2014 2013
ASSETS
Intangible fixed assets 1 385.1 1 228.9 1 342.9 1 196.9
Tangible fixed assets 346.1 293.6 307.5 287.5
Shares in associated companies 60.1 65.1 64.2 63.1
Long-term receivables 17.2 20.3 20.7 23.9
Deferred tax assets 103.8 80.8 102.5 81.3
Total non-current assets 1 912.3 1 688.7 1 837.8 1 652.7
Stock 2 486.0 1 620.0 2 162.1 1 449.1
Tax receivables 27.1 21.3 22.9 30.2
Accounts receivables 783.7 656.6 804.2 734.2
Prepaid expenses and accrued income 74.7 80.0 67.1 59.5
Other receivables 52.8 42.9 126.5 110.7
Liquid assets 169.5 176.0 216.0 185.1
Total current assets 3 593.8 2 596.8 3 398.8 2 568.8
TOTAL ASSETS 5 506.1 4 285.5 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 273.6 74.1 217.6 20.0
Retained earnings including result for the period 1 701.4 1 591.8 1 750.4 1 640.4
Equity attributable to shareholders of the parent company 2 393.5 2 084.4 2 386.5 2 078.9
Non-controlling (minority) interest 20.0 25.1 18.6 23.9
Total equity 2 413.5 2 109.5 2 405.1 2 102.8
LIABILITIES
Long-term interest-bearing liabilities 2 177.3 1 432.6 1 961.1 1 375.4
Pension provisions 13.2 11.9 12.9 11.0
Other provisions 10.0 17.3 13.1 15.9
Deferred tax liabilities 153.3 131.8 148.9 129.1
Total non-current liabilities 2 353.8 1 593.6 2 136.0 1 531.4
Short-term interest-bearing liabilities 79.1 70.3 83.7 73.7
Accounts payable 366.0 297.2 323.9 229.0
Current tax liabilities 10.4 0.0 26.9 21.6
Other liabilities 86.6 43.9 81.0 92.0
Accrued expenses and prepaid income 196.7 171.0 180.0 171.0
Total current liabilities 738.8 582.4 695.5 587.3
Total liabilities 3 092.6 2 176.0 2 831.5 2 118.7
TOTAL EQUITY AND LIABILITIES 5 506.1 4 285.5 5 236.6 4 221.5
Memorandum items
Pledged assets 3 272.2 3 087.7 3 220.5 3 043.4
Contingent liabilities 22.1 25.6 24.8 24.3

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Other Retained earnings Non-controlling
capital incl. result (minority)
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 -66.3 -66.3 -66.3
Change in non-controlling (minority) 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 Non-controlling
capital incl. result (minority)
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 16.0 16.0 0.9 16.9
Other comprehensive income
Translation difference 58.1 58.1 0.5 58.6
Cash flow hedge -2.3 1.3 -1.0 -1.0
Income tax related to components of other comprehensive income 0.2 0.2 0.2
Transactions with shareholders
Dividends -66.3 -66.3 -66.3
Closing balance 2015-06-30 199.1 219.4 273.6 1 701.4 2 393.5 20.0 2 413.5
6 months 6 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 58.6 54.9 198.2 23.9

Accumulated translation differences at end of period 280.1 78.2 221.5 23.3

FINANCIAL INSTRUMENTS
SEK million 30-June 30-June 31-Dec 31-Dec
2015 2014 2014 2013
Assets at fair value * 1.7 5.6 2.3 0.1
Assets at amortised cost 1 005.0 874.8 1 151.0 1 034.8
Total financial assets 1 006.7 880.4 1 153.3 1 034.9
Liabilities at fair value * 1.0 0.0 0.0 1.6
Liabilities at amortised cost 2 905.2 2 014.8 2 628.8 1 940.8
Total financial liabilites 2 906.2 2 014.8 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

6 months 6 months
12 months
12 months
Jan- June Jan- June Jan-Dec Jan-Dec
2015 2014 2014 2013
Sales growth, % 20.9 1.0 5.6 -5.4
Number of employees 2 308 2 185 2 212 2 123
Gross profit margin, % 45.1 45.6 45.7 46.2
Operating margin before depreciation, % 3.5 3.6 7.1 8.5
Operating margin, % 2.2 2.2 5.9 7.2
Profit margin, % 0.9 1.3 4.9 5.8
Net margin, % 0.7 1.0 4.1 4.6
Return on shareholders' equity, % 1.4 1.7 7.9 9.3
Return on capital employed, % 2.4 2.4 6.4 8.2
Equity ratio, % 43.8 49.2 45.9 49.8
Net debt - Equity ratio, % 86.5 62.9 76.0 60.1
Net debt in relation to working capital, % 75.5 69.5 71.1 67.6
Net debt, SEK million 2 086.9 1 327.0 1 828.7 1 264.0
Interest cover ratio, times 1.6 2.2 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 -84.8 61.1 -284.2 358.5
Net investments, SEK million -65.9 -32.5 -74.3 -46.8
Cash flow after investments, SEK million -150.7 28.6 -358.5 311.7
Shareholders' equity per share, SEK 36.38 31.80 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

6 months 6 months 12 months 12 months
Jan - June Jan - June Jan - Dec Jan - Dec
SEK million 2015 2014 2014 2013
Income 51.9 39.8 90.0 84.6
Other operating income* 15.5 4.7 14.9 10.4
Total income 67.4 44.5 104.9 95.0
Operating costs
External costs -40.8 -36.9 -64.7 -61.3
Personnel costs -13.5 -12.4 -25.9 -22.6
Depreciation of tangible and intangible fixed assets -2.8 -1.7 -3.9 -2.5
Other operating costs** -13.7 -3.6 -13.0 -8.4
Operating profit/loss -3.4 -10.1 -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 0.0 0.0 -21.8 -22.8
Financial income 24.7 21.2 41.8 55.8
Financial expenses -28.8 -21.5 -77.3 -131.1
Net financial items 73.2 -0.3 218.8 214.2
Result before appropriations and tax 69.8 -10.4 216.2 214.4
Appropriations 0.0 0.0 -1.6 26.1
Tax on result for the period 1.6 2.3 0.0 0.4
Result for the period 71.4 -8.1 214.6 240.9

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

6 months 6 months 12 months 12 months
Jan-June Jan-June Jan-Dec Jan-Dec
SEK million 2015 2014 2014 2013
Current operations
Operating profit/loss -3.4 -10.1 -2.6 0.2
Adjustment for items not included in cash flow 2.8 1.7 3.9 2.5
Received dividends 0.0 0.0 2.8 16.8
Received interest 24.7 21.2 41.8 55.8
Paid interest -28.8 -21.5 -46.5 -68.8
Paid income tax -0.1 0.7 0.9 4.9
Cash flow from current operations
before changes in working capital -4.8 -8.0 0.3 11.4
Changes in working capital
Decrease/increase in stock -1.1 -1.0 -0.6 0.0
Decrease/increase in current receivables -185.4 102.8 -274.3 450.7
Decrease/increase on current liabilities 88.5 10.9 94.4 -121.9
Cash flow from changes in working capital -98.0 112.7 -180.5 328.8
Cash flow from operations -102.8 104.7 -180.2 340.2
Investing activities
Shareholders contribution to subsidiaries 0.0 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 -10.6 -16.9 -3.9
Acquisition of shares -1.7 0.0 -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 -3.8 -12.0 -33.3 -13.9
Cash flow after investing activities -106.6 92.7 -213.5 326.3
Financial activities
Loan raised 163.1 0.0 292.2 0.0
Amortization of loan 0.0 -26.7 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 96.8 -93.0 225.9 -344.8
Cash flow for the period -9.8 -0.3 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 3.0 0.1 12.8 0.4

BALANCE SHEETS – PARENT COMPANY

SEK million 30 June 30 June 31 Dec 31 Dec
ASSETS 2015 2014 2014 2013
Fixed assets
Intangible fixed assets 18.4 15.0 19.4 5.8
Tangible fixed assets 1.2 1.1 0.9 1.4
Financial assets
Shares in Group companies 1 463.0 1 383.6 1 413.6 1 383.7
Shares in associated companies 54.7 60.4 60.4 58.9
Receivables on Group companies 903.8 739.5 857.0 714.0
Other long-term receivables 2.0 2.0 2.0 2.0
Total financial assets 2 423.5 2 185.5 2 333.0 2 158.6
Total fixed assets 2 443.1 2 201.6 2 353.3 2 165.8
Current assets
Current receivables
Stock 1.7 1.0 0.6 0.0
Accounts receivable 1.2 0.6 0.3 0.2
Receivables on Group companies 1 196.4 588.7 896.7 619.2
Tax receivables 2.0 2.7 0.2 1.1
Other receivables 9.6 16.7 90.6 87.1
Prepaid expenses and accrued income 6.5 6.8 5.4 9.2
Total current receivables 1 217.4 616.5 993.8 716.8
Cash at bank and in hand 3.0 0.1 12.8 0.4
Total current assets 1 220.4 616.6 1 006.6 717.2
TOTAL ASSETS 3 663.5 2 818.2 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 71.4 -8.1 214.6 240.9
868.2 640.4 863.1 714.8
Total equity 1 316.7 1 088.9 1 311.6 1 163.3
Untaxed reserves 8.9 7.3 8.9 7.3
Non-current liabilities
Overdraft facilities 1 571.4 896.5 1 377.9 867.7
Bankloan
Total non-current liabilities
341.5
1 912.9
370.0
1 266.5
325.0
1 702.9
400.0
1 267.7
Current liabilities
Short-term interest-bearing liabilities 50.0 50.0 50.0 50.0
Accounts payable 53.3 41.0 39.7 25.9
Liabilities to Group companies 315.3 359.5 240.6 361.5
Other liabilities 0.8 0.7 1.0 2.3
Accrued expenses and prepaid income 5.6 4.3 5.2 5.0
Total current liabilities 425.0 455.5 336.5 444.7
TOTAL EQUITY AND LIABILITIES 3 663.5 2 818.2 3 359.9 2 883.0
Pledged assets and contingent liabilities for the parent company
Pledged assets 1 183.4 1 116.1 1 141.4 1 116.1
Contingent liabilities 374.2 343.5 436.5 208.6

CHANGES IN EQUITY – PARENT COMPANY

Share capital Restricted Retained Share premium Result for
SEK million reserves profits reserve 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
SEK million reserves profits reserve the period Total equity
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 71.4 71.4
Total change in net assets excluding 0.0 0.0 0.0 0.0 71.4 71.4
transactions with shareholders
Dividends -66.3 -66.3
Closing balance 2015-06-30 199.1 249.4 748.8 48.0 71.4 1 316.7

SALES AND RESULT PER OPERATING SEGMENT

SEK million 3 months 3 months 6 months 6 months 12 months 12 months
Apr-June Apr-June Jan-June Jan-June Jan-Dec Jan-Dec
Corporate Promo 2015 2014 2015 2014 2014 2013
Income 540.0 453.8 1 007.0 815.6 1 788.2 1 587.3
Result EBITDA 52.4 54.7 61.5 56.1 173.8 143.5
Sports & Leisure
Income 522.3 403.5 1 045.7 842.1 1 952.5 1 929.3
Result EBITDA 10.9 7.9 35.5 26.8 135.3 154.8
Gifts & Home furnishings
Income 129.0 126.0 234.7 234.1 532.9 530.8
Result EBITDA -0.3 -1.4 -17.3 -15.2 -4.9 44.5
Total income 1 191.3 983.3 2 287.4 1 891.8 4 273.6 4 047.4
Total result EBITDA 63.0 61.2 79.7 67.7 304.2 342.8
Total result EBITDA 63.0 61.2 79.7 67.7 304.2 342.8
Depreciation and write-downs -14.3 -13.2 -29.2 -25.6 -54.2 -52.1
Net financial items -13.7 -9.4 -28.8 -17.7 -42.0 -56.2
Profit before tax 35.0 38.6 21.7 24.4 208.0 234.5

ASSETS/LIABILITIES PER OPERATING SEGMENT

SEK million Total Fixed Deferred Depreciation Total
assets assets * tax assets Investments and write-downs liabilities
30 June 2015
Corporate Promo 2 887.0 624.9 26.7 -26.8 -14.0 2 199.2
Sports & Leisure 2 140.4 945.7 43.6 -22.7 -13.1 675.7
Gifts & Home Furnishings 478.7 160.6 33.5 -16.4 -2.1 217.7
Total 5 506.1 1 731.2 103.8 -65.9 -29.2 3 092.6
30 June 2014
Corporate Promo 2 183.6 585.9 22.7 -22.8 -11.5 1 505.3
Sports & Leisure 1 695.9 791.5 26.1 -5.4 -12.2 473.3
Gifts & Home Furnishings 406.0 145.1 32.0 -4.3 -1.9 197.4
Total 4 285.5 1 522.5 80.8 -32.5 -25.6 2 176.0
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

SEK million 3 months
Apr-June
Part of 3 months
Apr-June
Part of Change Change
2015 income 2014 income SEK million %
Sweden 269 23% 251 25% 18 7%
USA 354 30% 261 27% 93 36%
Nordic countries excluding Sweden 170 14% 144 15% 26 18%
Central Europe 194 16% 168 17% 26 15%
Southern Europe 115 10% 86 9% 29 34%
Other countries 89 7% 73 7% 16 22%
Total 1 191 100% 983 100% 208 21%
6 months 6 months
SEK million Jan - June Part of Jan - June Part of Change Change
2015 income 2014 income SEK million %
Sweden 505 22% 471 25% 34 7%
USA 641 28% 482 25% 159 33%
Nordic countries excluding Sweden 333 15% 287 15% 46 16%
Central Europe 416 18% 358 19% 58 16%
Southern Europe 218 9% 162 9% 56 35%
Other countries 174 8% 132 7% 42 32%
Total 2 287 100% 1 892 100% 395 21%
12 months 12 months
SEK million Jan - Dec Part of Jan - Dec Part of Change Change
2014 income 2013 income SEK million %
Sweden 1 064 25% 1 036 26% 28 3%
USA 1 124 26% 1 095 27% 29 3%
Nordic countries excluding Sweden 606 14% 589 15% 17 3%
Central Europe 766 18% 710 17% 56 8%
Southern Europe 365 9% 335 8% 30 9%
Other countries 349 8% 282 7% 67 24%
Total 4 274 100% 4 047 100% 227 6%

FIXED ASSETS AND DEFERRED TAX ASSETS PER AREA

30 June 30 June 31 Dec
2015 2014 2014
SEK million Fixed Deferred Fixed Deferred Fixed Deferred
assets* tax assets assets* tax assets assets* tax assets
Sweden 446.5 19.1 432.1 19.5 433.5 19.7
USA 892.9 58.8 730.7 39.2 838.7 56.9
Nordic countries excluding Sweden 28.4 10.1 22.7 5.6 22.1 10.2
Central Europe 189.6 10.6 185.1 9.5 193.4 10.5
Southern Europe 164.8 2.6 141.3 1.5 144.4 2.4
Other countries 9.0 2.6 10.6 5.5 18.3 2.8
Total 1 731.2 103.8 1 522.5 80.8 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 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Income 1 096.1 1 191.3 908.5 983.3 1 122.3 1 259.5 877.3 995.3 1 035.0 1 139.8
Goods for resale -595.7 -659.1 -497.7 -531.8 -621.9 -669.6 -456.8 -529.1 -564.9 -626.2
Gross profit 500.4 532.2 410.8 451.5 500.4 589.9 420.5 466.2 470.1 513.6
Gross profit % 45.7 44.7 45.2 45.9 44.6 46.8 47.9 46.8 45.4 45.1
Other operating income 9.3 7.8 7.1 5.4 5.1 10.1 8.6 7.7 7.7 9.3
External costs -270.1 -258.9 -229.5 -216.9 -216.6 -260.5 -222.9 -209.7 -205.4 -215.2
Personnel costs -205.3 -212.0 -179.5 -176.7 -174.8 -204.7 -174.7 -177.9 -162.5 -182.7
Depreciations and write-downs -14.9 -14.3 -12.4 -13.2 -14.4 -14.2 -11.8 -14.6 -13.9 -11.9
Other operating costs -18.5 -6.7 -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 0.0 0.5 0.1 -1.0 0.2 0.4 -0.3 0.8
Operating profit/loss 1.8 48.7 -5.9 48.0 95.7 112.2 16.1 70.2 92.8 111.6
Financial income 1.9 3.2 1.4 1.2 1.1 1.2 1.8 1.4 1.8 1.8
Financial expenses -17.0 -16.9 -9.7 -10.6 -12.1 -14.5 -17.8 -16.1 -14.9 -14.2
Result before tax -13.3 35.0 -14.2 38.6 84.7 98.9 0.1 55.5 79.7 99.2
Tax 2.4 -7.2 2.9 -9.2 -17.8 -7.0 0.0 -16.6 -21.9 -8.9
Result for the period -10.9 27.8 -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 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 -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 -0.17 0.44 1.01 1.38 0.00 0.60 0.87 1.35
after dilution (SEK) -0.17 0.41 -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
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
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 2015 2014 2013
Quarter Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Cash flow from current operations
before changes in working capital -9.2 54.6 -7.1 38.8 93.1 129.1 -18.7 55.3 86.7 103.3
Increase/decrease of stock -200.6 -88.5 -50.6 -86.8 -309.6 -126.1 27.8 28.2 -3.1 145.3
Increase/decrease of current receivables 129.5 -23.0 172.3 -28.0 -124.2 -40.7 131.1 -44.0 -84.8 -32.7
Increase/decrease of current liabilities 51.4 1.0 -25.8 48.3 50.0 -16.9 -34.1 2.3 -1.3 -2.8
Changes in working capital -19.7 -110.5 95.9 -66.5 -383.8 -183.7 124.8 -13.5 -89.2 109.8
Cash flow from operations -28.9 -55.9 88.8 -27.7 -290.7 -54.6 106.1 41.8 -2.5 213.1
Investing activities -26.3 -39.6 -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 73.8 -45.2 -302.9 -84.2 96.4 32.9 -23.7 206.1
Loan raised 0.0 179.1 0.0 129.6 289.8 121.3 0.0 24.2 0.0 0.0
Raised long-term receivables -0.4 -1.1 0.0 0.0 -0.2 0.0 0.0 0.0 0.0 -0.2
Repayment of long-term receivables 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 -109.8 0.0 0.0 0.0 -157.3 0.0 -12.0 -146.7
Dividend paid to the shareholders of the parent company 0.0 -66.3 0.0 -66.3 0.0 0.0 0.0 -66.3 0.0 0.0
Financial activities -14.3 111.7 -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 -32.3 18.1 -13.3 37.3 -60.0 -9.1 -35.7 59.2
Liquid assets at the beginning of the period 216.0 159.0 185.1 153.1 176.0 169.6 229.7 168.0 163.0 123.7
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
Translation differences in liquid assets 12.5 -5.7 0.3 4.8 6.9 9.1 -1.7 4.1 -3.6 2.2
Liquid assets at period-end 159.0 169.5 153.1 176.0 169.6 216.0 168.0 163.0 123.7 185.1
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 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 at least 40% of the Group's profit after taxes over a business cycle.

SHAREHOLDERS

The number of shareholders amount to 10 973 (11 031) on June 30, 2015. Institutional investors accounted for 49% of the capital and 13% of the votes. At the same time the ten largest shareholders held 70% of the capital and 92% of the votes. Non-Swedish shareholders accounted for 9% of the capital and 2% of the votes.

NEW WAVE GROUP'S TEN MAJOR SHAREHOLDERS 2015-06-30

SHAREHOLDER Number of shares Number of votes Capital % Votes %
Torsten Jansson through companies 20 903 477 198 316 817 31.5% 81.4%
Lannebo Microcap 6 878 877 6 878 877 10.4% 2.8%
Avanza Pension 4 370 077 4 370 077 6.6% 1.8%
Fjärde AP-Fonden 4 079 737 4 079 737 6.1% 1.7%
Andra AP-Fonden 2 642 161 2 642 161 4.0% 1.1%
City Bank New York 1 897 462 1 897 462 2.9% 0.8%
Svolder AB 1 672 500 1 672 500 2.5% 0.7%
Handelsbanken fonder 1 526 298 1 526 298 2.3% 0.6%
Spiltan 1 196 523 1 196 523 1.8% 0.5%
Nordea fonder 933 627 933 627 1.4% 0.4%
46 100 739 223 514 079 69.5% 91.7%

SHAREHOLDER DISTRIBUTION IN NEW WAVE GROUP 2015-06-30

Number of shares Number of votes Capital % Votes %
Sweden 60 673 953 238 043 073 91.5% 97.7%
Shareholders outside Sweden, excl. USA 3 943 911 3 943 911 5.9% 1.6%
USA 1 725 679 1 725 679 2.6% 0.7%
Total 66 343 543 243 712 663 100.0% 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