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New Wave Group AB — Interim / Quarterly Report 2016
Apr 21, 2016
3081_10-q_2016-04-21_7a676065-dd94-40de-a6ee-19a74926df38.pdf
Interim / Quarterly Report
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INTERIM REPORT JANUARY – MARCH
INTERIM REPORT NEW WAVE GROUP AB
PERIOD 1 JANUARY – 31 MARCH 2016
- Sales amounted to SEK 1,131 million, which was 3% higher than last year (SEK 1,096 million).
- Operating profit amounted to SEK 8.1 (1.8) million.
- The periods result amounted to SEK -4.6 (-10.9) million.
- Earnings per share amounted to SEK -0.06 (-0.17).
- Cash flow from operating activities amounted to SEK 63.9 (-28.9) million.
- Equity ratio amounted to 46.2 (45.8)%.
- Net debt to equity ratio amounted to 75.0 (79.1)%.
TURNOVER RESULT BEFORE TAX
CEO COMMENTS
2016 has started more or less as expected. Sales are the highest ever for the first quarter and grew by 3% (4% in local currencies) to SEK 1,131 million. The retail sales channel has had a tough winter with very mild weather which was also reflected by stagnant sales. With a good sellingin for autumn and the fact that Craft in the fourth quarter will launch "Team Wear" for football, floorball and handball, we are confident that we will have decent growth even here in the autumn. The promo sales channel shows tremendous strength with growth of 6%, which is met by a growth of 30% from the previous year. With promo we are strengthening our position in most product categories and markets for every day that passes and the position we have now gained over the last one and a half years, we will be able to harvest long into the future.
Operating profit improved by SEK 6.3 million to SEK 8.1 million which is perfectly okay even though we expected a few million more.
I regard the balance sheet as very strong with an equity ratio of 46.2 % and our net debt is down and next to the lowest levels we've ever had. This provides excellent opportunities for further expansion.
I am very confident for the coming quarters and years. We shall now be able to start delivering increasing results but also have decent growth. My organisation and I are incredibly motivated to deliver!
TORSTEN JANSSON CEO
COMMENTS
SUMMARY OF THE QUARTER JANUARY - MARCH
During the first quarter of the year the Group increased its sales by 3% (4% excluding currency fluctuations) compared with last year. Our investments in higher delivery reliability and new products, primarily in the promo sales channel, have continued and it is here we see an increase in turnover. The Corporate Promo segment increased its sales by 8% and it is the promo sales channel, mainly in the regions of Sweden and Europe that the increase occurs. Sports & Leisure sales were unchanged compared to last year, but we see a positive development in promo while retail development was negative. Even Gifts & Home Furnishings sales are on a par with the last year and that applies to both sales channels. Totally our promo sales channel increased by 6% while retail had the same turnover as last year.
Our gross profit margin was on par with last year and amounted to 45.5 (45.7)%. We have a good level of service and the respective margin for each segment shows a slight improvement in Gifts & Home Furnishings and a slightly lower margin in Corporate Promo (due to changes in the product mix). Sports & Leisure's gross profit margin remains unchanged.
The Group's external costs have increased compared to last year, which is related to the increased investments in sales and marketing as previously announced. The increase in personnel costs is related to more employees, primarily in sales and customer service. These costs will increase even in the coming quarters as we get the full-year effect of 2015 year's employments.
Operating profit increased by SEK 6.3 million compared with last year, reflecting the higher turnover but also as last year include non-recurrent costs in the form of currency losses. Financial expenses have decreased which is due to a minor acquisition last year.
Cash flow from operating activities amounted to SEK 63.9 (-28.9) million. The improved cash flow is attributable to positive changes in working capital. Inventories, however, increased by SEK 68 million and amounted to SEK 2,495 (2,427) million. Exchange rate fluctuations have reduced the value by SEK 67 million. Net debt decreased by SEK 104 million and amounted to SEK 1,870 (1,974) million, of which SEK 73 million is related to changes in
exchange rates. Net debt also decreased and as of 31 March amounted to 75.0 (79.1)%.
JANUARY - MARCH
SALES
Sales amounted to SEK 1,131 million, which was 3% higher than last year (SEK 1,096 million). Currency exchange rates negatively affected sales by SEK 9 million (-1%).
The operating segment Corporate Promo increased by 8%, Sports & Leisure as well as Gifts & Home Furnishings were on par with last year. Of the Group's sales channels, promo increased by 6% while retail sales was unchanged.
Turnover in Sweden was unchanged compared with last year. However, the promo sales channel increased by 7% and retail decreased by 7%. The USA increased slightly which is attributable to the promo sales channel. Other Nordic countries were at the same level as last year but the Danish and Finnish markets grew and even here it was the promo sales channel that increased. The Norwegian market decreased in both sales channels. Sales in Central and Southern Europe have increased by 13% and 10% respectively, which is related to the promo sales channel.
GROSS PROFIT
The gross profit margin was slightly lower than last year and amounted to 45.5 (45.7)%.
OTHER OPERATING INCOME AND OTHER OPERATING EXPENSES
Other operating income increased by SEK 0.1 million to SEK 9.4 (9.3) 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 operating losses are reported. Other operating expenses decreased by SEK 12.9 million and amounted to SEK -5.6 (-18.5) million. The net total of the above items amounted to
SEK 3.8 (-9.2) million, where the improved earnings is primarily attributable to last years foreign exchange losses associated with the Swiss Franc as it abandoned its euro cap.
COSTS AND DEPRECIATION
External costs increased by SEK 9.7 million and amounted to SEK -279.8 (-270.1) million. The increase is related to increased investment in sales and marketing.
Personnel costs amounted to SEK -217.4 million, which is SEK 12.1 million higher than last year (SEK -205.3 million). The increase is related to an increased number of employees, mainly within sales, customer service and marketing.
Depreciation increased slightly compared with last year and amounted to SEK -13.2 (-14.9) million.
OPERATING MARGIN
Operating margin amounted to 0.7 (0.2) % where the improvement is related to the higher turnover and lower other operating expenses.
NET FINANCIAL ITEMS AND TAXES
Net financial items amounted to SEK -13.8 (-15.1) million. The improvement is due to the fact that last year included expenses of SEK 2.9 million in connection with a minor acquisition.
Tax for the period amounted to SEK 1.1 (2.4) million.
RESULT FOR THE PERIOD
Result for the period amounted to SEK -4.6 (-10.9) million and earnings per share amounted to SEK -0.06 (-0.17).
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 SEK 38 million and amounted to SEK 505 (467) million. The result (EBITDA) amounted to SEK 13.5 (9.1) 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 particular in the regions of Sweden, Europe and the USA. The improved result is related to the increased turnover but has also been negatively affected by increased costs for sales and marketing as well as a somewhat lower gross profit margin (product mix).
SPORTS & LEISURE
Turnover for the first quarter amounted to SEK 520 (523) million. The result
(EBITDA) amounted to SEK 22.0 (24.6) million. Sales increased somewhat in regards to promo while retail's sales decreased. Regions in Europe increased while Sweden and other Nordic countries decreased. The slightly lower profit is related to turnover.
GIFTS & HOME FURNISHINGS
Sales in the segment are on par with last year and amounted to SEK 106 (106) million. Sales are at the same level in both sales channels. The result (EBITDA) amounted to SEK -14.2 million which was SEK 2.8 million better than last year (SEK -17.0 million). The improvement in earnings is due to an improved gross profit margin.
CAPITAL TIED UP
Capital tied up in inventories increased by SEK 68 million compared with last year's first quarter. Total inventories amounted to SEK 2,495 (2,427) million, of which changes in exchange rates have decreased stock value by SEK 67 million. The increase is a planned increase and is mainly related to the sales channel promo and its supplementary purchases within its basic range and new basic collections. The turnover rate in inventories is at the same level as last year and amounted to 1.0 (1.0). The inventory value is expected to be at a slightly higher level than in the past, even in the coming quarters, mainly because of our extended Corporate Promo range.
| SEK million | 2016-03 | 2015-03 |
|---|---|---|
| Raw materials | 29.0 | 22.6 |
| Work in progress | 5.0 | 2.9 |
| Goods in transit | 109.9 | 104.4 |
| Merchandise on stock | 2 351.0 | 2 297.0 |
| Total | 2 494.9 | 2 426.9 |
Inventories were written down by SEK 112 (108) million, of which SEK 8 (11) million relates to raw materials. Write-down related to merchandise on stock amounted to 4.2 (4.1) %.
Accounts receivable amounted to SEK 729 (778) million. The decrease is mainly related to a lower exchange rate for the conversion into SEK.
INVESTMENTS, FINANCING AND LIQUIDITY
Consolidated cash flow from operating activities improved by SEK 92.8 million and amounted to SEK 63.9 (-28.9) million. This is due to an improvement of our working capital compared with the corresponding period last year. The cash net investments amounted to SEK -16.5 (-26.3) million.
Net debt decreased by SEK 104 million to SEK 1,870 (1,974) million, which is mainly related to changes in foreign exchange rates. Exchange rates have reduced debt by SEK 73 million. Our net debt in relation to shareholders' equity and working capital has decreased and amounted to 75.0 (79.1)% and 71.1 (72.9)% respectively.
The equity ratio has improved slightly in relation to last year and as of 31 March amounted to 46.2 (45.8)%.
The Group signed a new financial agreement on 10 February. The total credit facility amounts to SEK 2,616 million of which SEK 2,250 million has a term of three years and USD 45 million has a term of eight years. Interests as well as the covenants are unchanged compared to the previous agreement. The credit facility amount is limited to and dependent on the value of some underlying assets. The funding 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 with sufficient margin.
PERSONNEL AND ORGANISATION
The number of employees as of 31 March 2016 amounted to 2,398 (2,264), of whom 51% were female and 49% were men. Of the total number of employees 602 (566) work in production. The production contained within New Wave group is attributable to Ahead (embroidery), Cutter & Buck (embroidery), Dahetra, Orrefors Kosta Boda, Paris Glove, Seger, Termo and Toppoint.
RELATED PARTY TRANSACTIONS
There are lease agreements with related companies. Related companies to the Managing Director have bought merchandise and received payments for consulting services performed. There are transactions with related parties for insignificant amounts. All transactions are on market terms.
THE PARENT COMPANY
Total income for the first quarter of the year amounted to SEK 24.5 (31.5) million. Result before appropriations and tax amounted to SEK 25.3 (-5.3) million. The improvement in earnings is related to repayment of previously written-down shares in Group companies. Net borrowing amounted to SEK 1,753 (1,913) million, of which SEK 1,547 (1,707) million relates to the financing of subsidiaries. Net investments amounted to SEK 30.0 (-1.7) million. The balance sheet total amounted to SEK 3,627 (3,576) million and shareholders' equity, including 78% of untaxed reserves, to SEK 1,241 (1,314) 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 2015; 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 2016 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 2015.
ANNUAL GENERAL MEETING
The Annual General Meeting will be held on 11 May at 13.00 in Kosta. The annual report will be available at the company's headquarters in Göteborg, as well as on its website www.nwg.se
DIVIDEND
The Group's dividend policy is that 40% of the Group's net profit will be distributed over a business cycle. The Board has decided to propose a dividend of 1:00 (1.00) per share, amounting to SEK 66.3 million. This proposal corresponds to 46% of 2015 year's profit.
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/corporate-governance/ nomination-committee.html.
CALENDAR
11 May: Annual General Meeting 2016
18 August: Interim report for Q2
10 November: Interim report for Q3
The Board of Directors and CEO declare that the interim report gives a true and fair overview of the company's and group's operations, financial position and earnings, and describes the significant risks and uncertainty factors that the company and the companies included in the group face.
GÖTEBORG 21 APRIL 2016 NEW WAVE GROUP AB (PUBL)
ANDERS DAHLVIG Chairman of the Board
CHRISTINA BELLANDER Member of the Board
M JOHAN WIDERBERG Member of the Board
HELLE KRUSE NIELSEN Member of the Board
MATS ÅRJES
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 21 April 2016.
A TOUCH OF AMERICANA
CASUAL SWEDISH SHOE FASHION
AUCLAIR
TERMO ORIGINAL
CLIQUE RETAIL
A trademark of Swesco Textile AB
Glumsevägen 7, 511 92 KINNA, Sweden
Tel. +46 (0)320 21 05 50, Fax. +46 (0)320 21 05 59 e-mail: [email protected] www.termooriginal.com
CONSOLIDATED INCOME STATEMENTS
| 3 months | 3 months | 12 months | 12 months | |
|---|---|---|---|---|
| Jan - Mar | Jan - Mar | Jan - Dec | Jan-Dec | |
| SEK million | 2016 | 2015 | 2015 | 2014 |
| Income | 1 130.8 | 1 096.1 | 4 964.7 | 4 273.6 |
| Goods for resale | -616.3 | -595.7 | -2 726.1 | -2 321.0 |
| Gross profit | 514.5 | 500.4 | 2 238.6 | 1 952.6 |
| Other operating income* | 9.4 | 9.3 | 47.2 | 27.7 |
| External costs | -279.8 | -270.1 | -1 086.0 | -923.5 |
| Personnel costs | -217.4 | -205.3 | -851.6 | -735.7 |
| Depreciation and write-downs of tangible and | ||||
| intangible fixed assets | -13.2 | -14.9 | -57.1 | -54.2 |
| Other operating costs | -5.6 | -18.5 | -36.2 | -16.5 |
| Share of associated companies' result | 0.2 | 0.9 | 0.3 | -0.4 |
| Operating profit | 8.1 | 1.8 | 255.2 | 250.0 |
| Financial income | 1.2 | 1.9 | 7.2 | 4.9 |
| Financial expenses | -15.0 | -17.0 | -81.5 | -46.9 |
| Net financial items | -13.8 | -15.1 | -74.3 | -42.0 |
| Result before tax | -5.7 | -13.3 | 180.9 | 208.0 |
| Tax for the period | 1.1 | 2.4 | -35.6 | -31.1 |
| Result for the period | -4.6 | -10.9 | 145.3 | 176.9 |
| Other comprehensive income | ||||
| Items that can be reclassified into | ||||
| profit or loss | ||||
| Translation differences | -13.5 | 101.5 | 28.1 | 198.2 |
| Cash flow hedge | -2.5 | 0.3 | -0.1 | 1.3 |
| Sum | -16.0 | 101.8 | 28.0 | 199.5 |
| Income tax related to components of | ||||
| other comprehensive income | 0.5 | -0.1 | 0.0 | -0.3 |
| Total other comprehensive income net after tax for the period | -15.5 | 101.7 | 28.0 | 199.2 |
| Total comprehensive income for the period | -20.1 | 90.8 | 173.3 | 376.1 |
| Result attributable to: | ||||
| Shareholders of the parent company | -4.1 | -11.4 | 143.6 | 176.2 |
| Non-controlling interest | -0.5 | 0.5 | 1.7 | 0.7 |
| -4.6 | -10.9 | 145.3 | 176.9 | |
| Total comprehensive income attributable to: | ||||
| Shareholders of the parent company | -19.5 | 89.6 | 171.4 | 373.9 |
| Non-controlling interest | -0.6 | 1.2 | 1.9 | 2.2 |
| -20.1 | 90.8 | 173.3 | 376.1 | |
| Profit per share | -0.06 | -0.17 | 2.16 | 2.66 |
| The average number of outstanding shares | 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 | 12 months | 12 months | |
|---|---|---|---|---|
| Jan - Mar | Jan - Mar | Jan - Dec | Jan - Dec | |
| SEK million | 2016 | 2015 | 2015 | 2014 |
| Current operation | ||||
| Operating profit | 8.1 | 1.8 | 255.3 | 250.0 |
| Adjustment for items not included in cash flow | 18.3 | 18.0 | 67.7 | 71.8 |
| Received interest | 1.2 | 1.9 | 5.4 | 4.9 |
| Paid interest | -15.0 | -14.1 | -68.4 | -46.9 |
| Paid income tax | -16.8 | -16.8 | -50.2 | -25.9 |
| Cash flow from current operations | ||||
| before changes in working capital | -4.2 | -9.2 | 209.8 | 253.9 |
| Changes in working capital | ||||
| Increase/decrease of stock | -49.7 | -200.6 | -245.6 | -573.1 |
| Increase/decrease of current receivables | 85.3 | 129.5 | 74.5 | -20.6 |
| Increase/decrease of short-term liabilities | 32.5 | 51.4 | 90.8 | 55.6 |
| Cash flow from changes in working capital | 68.1 | -19.7 | -80.3 | -538.1 |
| Cash flow from operations | 63.9 | -28.9 | 129.5 | -284.2 |
| Investing activities | ||||
| Investments in tangible fixed assets | -16.8 | -24.6 | -108.7 | -48.4 |
| Sales of tangible fixed assets | 0.6 | 1.0 | 1.9 | 2.3 |
| Investments in intangible fixed assets | -0.3 | -1.0 | -4.4 | -21.4 |
| Acquisition of subsidiaries* | 0.0 | -1.7 | -1.7 | -5.4 |
| Repayment of purchase amount * | 0.0 | 0.0 | 0.0 | 0.1 |
| Sales of subsidiaries * | 0.0 | 0.0 | 7.4 | 0.0 |
| Acquisition of financial fixed assets | 0.0 | 0.0 | 0.0 | -1.5 |
| Cash flow from investing activities | -16,5 | -26.3 | -105.5 | -74.3 |
| Cash flow after investing activities | 47.4 | -55.2 | 24.0 | -358.5 |
| Financial activities | ||||
| Loan raised | 0.0 | 0.0 | 0.0 | 430.9 |
| Raised long-term receivables | 0.0 | -0.4 | -1.0 | 0.0 |
| Repayment of long-term receivables | 0.2 | 0.0 | 0.0 | 3.7 |
| Amortization of loan | -74.6 | -13.9 | -10.0 | 0.0 |
| Dividend paid to non-controlling interest | 0.0 | 0.0 | -1.0 | 0.0 |
| Dividend paid to the shareholders of the parent company | 0.0 | 0.0 | -66.3 | -66.3 |
| Cash flow from financial activities | -74.4 | -14.3 | -78.3 | 368.3 |
| Cash flow for the period | -27.0 | -69.5 | -54.3 | 9.8 |
| Liquid assets at the beginning of the period | 165.5 | 216.0 | 216.0 | 185.1 |
| Translation differences in liquid assets | -2.2 | 12.5 | 3.8 | 21.1 |
| Liquid assets at period-end | 136.3 | 159.0 | 165.5 | 216.0 |
| Liquid assets | ||||
| Cash at bank and in hand | 136.3 | 159.0 | 165.5 | 216.0 |
| * The item includes: | ||||
| Goodwill | - | - | 13.6 | -0.3 |
| Trademark | - | - | - | - |
| Working capital | - | -1.9 | -18.8 | - |
| Overtake of loan | - | 1.3 | 12.7 | 2.5 |
| Fixed assets | - | -0.2 | 6.6 | - |
| Reclassification share in associated companies | - | -0.9 | -0.9 | - |
| Consideration | - | - | -7.5 | - |
| Change in non-controlling interest | - | - | - | -7.5 |
| Effect on the cash flow | 0.0 | -1.7 | 5.7 | -5.3 |
CONDENSED CONSOLIDATED BALANCE SHEETS
| 31 Mar | 31 Mar | 31 Dec | 31 Dec | |
|---|---|---|---|---|
| SEK million | 2016 | 2015 | 2015 | 2014 |
| ASSETS | ||||
| Intangible fixed assets | 1 365.2 | 1 426.6 | 1 387.4 | 1 342.9 |
| Tangible fixed assets | 362.1 | 328.9 | 361.9 | 307.5 |
| Shares in associated companies | 52.8 | 59.4 | 52.5 | 64.2 |
| Long-term receivables | 8.7 | 21.2 | 8.8 | 20.7 |
| Deferred tax assets | 112.0 | 106.4 | 112.2 | 102.5 |
| Total non-current assets | 1 900.8 | 1 942.5 | 1 922.8 | 1 837.8 |
| Stock | 2 494.9 | 2 426.9 | 2 447.8 | 2 162.1 |
| Tax receivables | 26.5 | 24.2 | 12.7 | 22.9 |
| Accounts receivables | 729.0 | 778.2 | 821.5 | 804.2 |
| Prepaid expenses and accrued income | 70.3 | 67.5 | 69.3 | 67.1 |
| Other receivables | 41.6 | 49.8 | 39.1 | 126.5 |
| Liquid assets | 136.3 | 159.0 | 165.5 | 216.0 |
| Total current assets | 3 498.6 | 3 505.6 | 3 555.9 | 3 398.8 |
| TOTAL ASSETS | 5 399.4 | 5 448.1 | 5 478.7 | 5 236.6 |
| EQUITY | ||||
| Share capital | 199.1 | 199.1 | 199.1 | 199.1 |
| Other capital contributions | 219.4 | 219.4 | 219.4 | 219.4 |
| Reserves | 228.8 | 317.3 | 244.1 | 217.6 |
| Retained earnings including result for the period | 1 824.8 | 1 740.3 | 1 829.0 | 1 750.4 |
| Equity attributable to shareholders of the parent company | 2 472.1 | 2 476.1 | 2 491.6 | 2 386.5 |
| Non-controlling interest | 21.4 | 19.8 | 22.0 | 18.6 |
| Total equity | 2 493.5 | 2 495.9 | 2 513.6 | 2 405.1 |
| LIABILITIES | ||||
| Long-term interest-bearing liabilities | 1 934.7 | 2 070.3 | 1 805.2 | 1 961.1 |
| Pension provisions | 13.9 | 12.9 | 13.5 | 12.9 |
| Other provisions | 6.6 | 10.0 | 6.4 | 13.1 |
| Deferred tax liabilities | 148.6 | 159.0 | 150.8 | 148.9 |
| Total non-current liabilities | 2 103.8 | 2 252.2 | 1 975.9 | 2 136.0 |
| Short-term interest-bearing liabilities | 71.1 | 62.7 | 289.4 | 83.7 |
| Accounts payable | 420.7 | 360.6 | 368.6 | 323.9 |
| Current tax liabilities | 8.3 | 9.7 | 11.8 | 26.9 |
| Other liabilities | 120.5 | 90.9 | 125.2 | 81.0 |
| Accrued expenses and prepaid income | 181.5 | 176.1 | 194.2 | 180.0 |
| Total current liabilities | 802.1 | 700.0 | 989.2 | 695.5 |
| Total liabilities | 2 905.9 | 2 952.2 | 2 965.1 | 2 831.5 |
| TOTAL EQUITY AND LIABILITIES | 5 399.4 | 5 448.1 | 5 478.7 | 5 236.6 |
| Memorandum items | ||||
| Pledged assets | 3 430.5 | 3 298.3 | 3 460.8 | 3 962.9 |
| Contingent liabilities | 23.9 | 21.3 | 23.8 | 24.8 |
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 2015-01-01 | 199.1 | 219.4 | 217.6 | 1 750.4 | 2 386.5 | 18.6 | 2 405.1 |
| Result for the year | 143.6 | 143.6 | 1.7 | 145.3 | |||
| Other comprehensive income | |||||||
| Translation difference | 27.9 | 27.9 | 0.2 | 28.1 | |||
| Cash flow hedge | -0.1 | -0.1 | -0.1 | ||||
| Reclassification of previous year's cash flow hedge | -1.3 | 1.3 | 0.0 | 0.0 | |||
| Income tax related to components of other comprehensive income | 0.0 | 0.0 | 0.0 | ||||
| Transactions with shareholders | |||||||
| Dividends to shareholders of the parent company | -66.3 | -66.3 | -66.3 | ||||
| Dividends to non-controlling interest | 0.0 | -1.0 | -1.0 | ||||
| Change in non-controlling interest* | 0.0 | 2.5 | 2.5 | ||||
| Closing balance 2015-12-31 | 199.1 | 219.4 | 244.1 | 1 829.0 | 2 491.6 | 22.0 | 2 513.6 |
| *Non-controlling interest in Termo Original Sweden AB which was acquired 2015. | |||||||
| Other | Retained earnings | ||||||
| capital | incl. result | Non-controlling | |||||
| SEK million | Share capital contributions | Reserves | for the period | Total | interest Total equity | ||
| Opening balance 2016-01-01 | 199.1 | 219.4 | 244.1 | 1 829.0 | 2 491.6 | 22.0 | 2 513.6 |
| Result for the period | -4.1 | -4.1 | -0.5 | -4.6 | |||
| Other comprehensive income | |||||||
| Translation difference | -13.4 | -13.4 | -0.1 | -13.5 | |||
| Cash flow hedge | -2.5 | -2.5 | -2.5 | ||||
| Reclassification of previous year's cash flow hedge | 0.1 | -0.1 | 0.0 | 0.0 | |||
| Income tax related to components of other comprehensive income | 0.5 | 0.5 | 0.5 | ||||
| Transactions with shareholders | |||||||
| Dividends | 0.0 | 0.0 | 0.0 | ||||
| Closing balance 2016-03-31 | 199.1 | 219.4 | 228.8 | 1 824.8 | 2 472.1 | 21.4 | 2 493.5 |
| 3 months | 3 months | Year | Year | ||||
| Accumulated translation differences in equity | 2016 | 2015 | 2015 | 2014 | |||
| Accumulated translation differences at the beginning of the period | 249.6 | 221.5 | 221.5 | 23.3 | |||
| Translation difference in foreign subsidiaries for the period | -13.5 | 101.5 | 28.1 | 198.2 | |||
| Accumulated translation differences at end of period | 236.1 | 323.0 | 249.6 | 221.5 | |||
| FINANCIAL INSTRUMENTS | ||||
|---|---|---|---|---|
| SEK million | 31 Mar | 31 Mar | 31 Dec | 31 Dec |
| 2016 | 2015 | 2015 | 2014 | |
| Assets at fair value * | 0,0 | 4,9 | 0,0 | 2,3 |
| Assets at amortised cost | 906,9 | 986,1 | 1 032,3 | 1 151,0 |
| Total financial assets | 906,9 | 991,0 | 1 032,3 | 1 153,3 |
| Liabilities at fair value * | 4,7 | 0,0 | 10,8 | 6,4 |
| Liabilities at amortised cost | 2 721,8 | 2 765,1 | 2 759,5 | 2 622,4 |
| Total financial liabilites | 2 726,5 | 2 765,1 | 2 770,3 | 2 628,8 |
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
| 3 months | 3 months | 12 months | 12 months | |
|---|---|---|---|---|
| Jan-Mar | Jan-Mar | Jan-Dec | Jan-Dec | |
| 2016 | 2015 | 2015 | 2014 | |
| Sales growth, % | 3.2 | 20.6 | 16.2 | 5.6 |
| Number of employees | 2 398 | 2 264 | 2 358 | 2 212 |
| Gross profit margin, % | 45.5 | 45.7 | 45.1 | 45.7 |
| Operating margin before depreciation, % | 1.9 | 1.5 | 6.3 | 7.1 |
| Operating margin, % | 0.7 | 0.2 | 5.1 | 5.9 |
| Profit margin, % | -0.5 | -1.2 | 3.6 | 4.9 |
| Net margin, % | -0.4 | -1.0 | 2.9 | 4.1 |
| Return on shareholders' equity, % | -0.6 | -1.8 | 6.0 | 7.9 |
| Return on capital employed, % | 0.8 | 0.4 | 5.8 | 6.4 |
| Equity ratio, % | 46.2 | 45.8 | 45.9 | 45.9 |
| Net debt - Equity ratio, % | 75.0 | 79.1 | 76.8 | 76.0 |
| Net debt in relation to working capital, % | 71.1 | 72.9 | 71.7 | 71.1 |
| Net debt, SEK million | 1 869.5 | 1 974.0 | 1 929.1 | 1 828.7 |
| Interest cover ratio, times | 0.6 | 0.2 | 3.2 | 5.4 |
| Capital turnover, times | 0.8 | 0.8 | 0.9 | 0.9 |
| Stock turnover, times | 1.0 | 1.0 | 1.2 | 1.3 |
| Cash flow before investments, SEK million | 63.9 | -28.9 | 129.5 | -284.2 |
| Net investments, SEK million | -16.5 | -26.3 | -105.5 | -74.3 |
| Cash flow after investments, SEK million | 47.4 | -55.2 | 24.0 | -358.5 |
| Shareholders' equity per share, SEK | 37.58 | 37.62 | 37.89 | 36.25 |
| Share price as at December 31, SEK | - | - | 34.50 | 38.30 |
| Dividend/share, SEK | - | - | 1.00 | 1.00 |
| P/E-ratio | - | - | 15.75 | 14.37 |
| P/S-ratio | - | - | 0.46 | 0.60 |
| Share price/Shareholders' equity | - | - | 0.91 | 1.06 |
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
| 3 months | 3 months | 12 months | 12 months | |
|---|---|---|---|---|
| Jan - Mar | Jan - Mar | Jan - Dec | Jan - Dec | |
| SEK million | 2016 | 2015 | 2015 | 2014 |
| Income | 20.2 | 21.2 | 94.7 | 90.0 |
| Other operating income* | 4.3 | 10.3 | 27.9 | 14.9 |
| Total income | 24.5 | 31.5 | 122.6 | 104.9 |
| External costs | -18.4 | -18.8 | -79.7 | -64.7 |
| Personnel costs | -5.8 | -6.4 | -26.6 | -25.9 |
| Depreciation of tangible and intangible fixed assets | -1.3 | -1.3 | -5.8 | -3.9 |
| Other operating costs** | -3.8 | -9.1 | -26.1 | -13.0 |
| Operating profit | -4.8 | -4.1 | -15.6 | -2.6 |
| Net income from shares in Group companies | 30.2 | 0.0 | 116.8 | 276.1 |
| Write-down of financial fixed assets | 0.0 | 0.0 | -93.2 | -21.8 |
| Financial income | 15.8 | 11.5 | 57.1 | 41.8 |
| Financial expenses | -15.9 | -12.7 | -104.7 | -77.3 |
| Net financial items | 30.1 | -1.2 | -24.0 | 218.8 |
| Result before appropriations and tax | 25.3 | -5.3 | -39.6 | 216.2 |
| Appropriations | 0.0 | 0.0 | 8.9 | -1.6 |
| Tax for the period | 1.1 | 1.2 | 0.0 | 0.0 |
| Result for the period | 26.4 | -4.1 | -30.7 | 214.6 |
Total comprehensive income for the period correspond with result for the period
* Rate of exchange profit and capital gain
** Rate of exchange loss
CASH FLOW STATEMENTS – PARENT COMPANY
| 3 months | 3 months | 12 months | 12 months | |
|---|---|---|---|---|
| Jan-Mar | Jan-Mar | Jan-Dec | Jan-Dec | |
| SEK million | 2016 | 2015 | 2015 | 2014 |
| Current operations | ||||
| Operating profit/loss | -4.8 | -4.1 | -15.6 | -2.6 |
| Adjustment for items not included in cash flow | 1.3 | 1.3 | 5.8 | 3.9 |
| Received dividends | 0.0 | 0.0 | 0.0 | 2.8 |
| Received interest | 15.8 | 11.5 | 57.1 | 41.8 |
| Paid interest | -15.9 | -12.7 | -64.3 | -46.5 |
| Paid income tax | 0.4 | -0.1 | -0.4 | 0.9 |
| Cash flow from current operations | ||||
| before changes in working capital | -3.2 | -4.1 | -17.4 | 0.3 |
| Changes in working capital | ||||
| Decrease/increase in stock | 0.8 | 0.6 | -0.2 | -0.6 |
| Decrease/increase in current receivables | -2.9 | -134.6 | -199.9 | -274.3 |
| Decrease/increase on current liabilities | 70.7 | 56.3 | 235.5 | 94.4 |
| Cash flow from changes in working capital | 68.6 | -77.7 | 35.4 | -180.5 |
| Cash flow from operations | 65.4 | -81.8 | 18.0 | -180.2 |
| Investing activities | ||||
| Shareholders contribution to subsidiaries | 0.0 | 0.0 | -9.6 | -9.5 |
| Shareholders contribution to associated company | 0.0 | 0.0 | 0.0 | -1.5 |
| Investments in tangible fixed assets | -0.2 | 0.0 | -2.5 | -0.1 |
| Investments in intangible fixed assets | 0.0 | 0.0 | -1.5 | -16.9 |
| Acquisition of shares | 0.0 | -1.7 | -9.2 | -5.4 |
| Reduction share capital | 30.2 | 0.0 | 0.0 | 0.0 |
| Repayment of purchase amount | 0.0 | 0.0 | 0.0 | 0.1 |
| Cash-flow from investing activities | 30.0 | -1.7 | -22.8 | -33.3 |
| Cash-flow after investing activities | 95.4 | -83.5 | -4.8 | -213.5 |
| Financial activities | ||||
| Loan raised | 0.0 | 74.8 | 61.5 | 292.2 |
| Amortization of loan | -98.3 | 0.0 | 0.0 | 0.0 |
| Dividend paid to shareholders of the parent company | 0.0 | 0.0 | -66.3 | -66.3 |
| Cash-flow from financial activities | -98.3 | 74.8 | -4.8 | 225.9 |
| Cash flow for the period | -2.9 | -8.7 | -9.6 | 12.4 |
| Liquid assets at the beginning of the year | 3.2 | 12.8 | 12.8 | 0.4 |
| Liquid assets at period-end | 0.3 | 4.1 | 3.2 | 12.8 |
BALANCE SHEETS – PARENT COMPANY
| SEK million | 31 Mar | 31 Mar | 31 Dec | 31 Dec |
|---|---|---|---|---|
| ASSETS | 2016 | 2015 | 2015 | 2014 |
| Fixed assets | ||||
| Intangible fixed assets | 14.7 | 18.2 | 15.7 | 19.4 |
| Tangible fixed assets | 2.9 | 0.8 | 2.9 | 0.9 |
| Financial assets | ||||
| Shares in Group companies | 1 488.1 | 1 463.0 | 1 488.1 | 1 413.6 |
| Shares in associated companies | 52.2 | 54.7 | 52.2 | 60.4 |
| Receivables on Group companies | 893.8 | 946.0 | 916.3 | 857.0 |
| Other long-term receivables | 2.0 | 2.0 | 2.0 | 2.0 |
| Total financial assets | 2 436.1 | 2 465.7 | 2 458.6 | 2 333.0 |
| Total fixed assets | 2 453.7 | 2 484.7 | 2 477.2 | 2 353.3 |
| Current assets | ||||
| Current receivables | ||||
| Stock | 0.0 | 0.0 | 0.8 | 0.6 |
| Accounts receivable | 0.5 | 0.8 | 0.3 | 0.3 |
| Receivables on Group companies | 1 152.5 | 1 066.1 | 1 156.2 | 896.7 |
| Tax receivables | 1.4 | 1.5 | 0.6 | 0.2 |
| Other receivables | 6.3 | 12.7 | 7.0 | 90.6 |
| Prepaid expenses and accrued income | 12.4 | 6.0 | 5.4 | 5.4 |
| Total current receivables | 1 173.1 | 1 087.1 | 1 170.3 | 993.8 |
| Cash at bank and in hand | 0.3 | 4.1 | 3.2 | 12.8 |
| Total current assets | 1 173.4 | 1 091.2 | 1 173.5 | 1 006.6 |
| TOTAL ASSETS | 3 627.1 | 3 575.9 | 3 650.7 | 3 359.9 |
| 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 | 718.1 | 815.1 | 748.8 | 600.5 |
| Share premium reserve | 48.0 | 48.0 | 48.0 | 48.0 |
| Result for the period | 26.4 | -4.1 | -30.7 | 214.6 |
| 792.5 | 859.0 | 766.1 | 863.1 | |
| Total equity | 1 241.0 | 1 307.5 | 1 214.6 | 1 311.6 |
| Untaxed reserves | 0.0 | 8.9 | 0.0 | 8.9 |
| Non-current liabilities | ||||
| Overdraft facilities | 1 417.3 | 1 529.2 | 1 329.6 | 1 377.9 |
| Bankloan | 285.8 | 337.5 | 294.2 | 325.0 |
| Total non-current liabilities | 1 703.1 | 1 866.7 | 1 623.8 | 1 702.9 |
| Current liabilities | ||||
| Short-term interest-bearing liabilities | 50.0 | 50.0 | 250.0 | 50.0 |
| Accounts payable | 126.1 | 32.0 | 99.4 | 39.7 |
| Liabilities to Group companies | 499.7 | 305.0 | 449.8 | 240.6 |
| Other liabilities | 3.0 | 1.1 | 7.2 | 1.0 |
| Accrued expenses and prepaid income | 4.2 | 4.7 | 5.9 | 5.2 |
| Total current liabilities | 683.0 | 392.8 | 812.3 | 336.5 |
| TOTAL EQUITY AND LIABILITIES | 3 627.1 | 3 575.9 | 3 650.7 | 3 359.9 |
| Pledged assets and contingent liabilities for the parent company | ||||
| Pledged assets | 1 198.8 | 1 183.4 | 1 198.8 | 1 141.4 |
| Contingent liabilities | 372.4 | 376.2 | 334.0 | 436.5 |
CHANGES IN EQUITY – PARENT COMPANY
| SEK million | Share capital | Restricted reserves |
Retained profits |
Share premium reserve |
Result for the year |
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 year | -30.7 | -30.7 | ||||
| Total change in net assets excluding | 0.0 | 0.0 | 0.0 | 0.0 | -30.7 | -30.7 |
| transactions with shareholders | ||||||
| Dividends | -66.3 | -66.3 | ||||
| Closing balance 2015-12-31 | 199.1 | 249.4 | 748.8 | 48.0 | -30.7 | 1 214.6 |
| Share capital | Restricted | Retained | Share premium | Result for | ||
|---|---|---|---|---|---|---|
| SEK million | reserves | profits | reserve | the period | Total equity | |
| Opening balance 2016-01-01 | 199.1 | 249.4 | 748.8 | 48.0 | -30.7 | 1 214.6 |
| Transfer result previous year | -30.7 | 30.7 | 0.0 | |||
| Result for the period | 26.4 | 26.4 | ||||
| Total change in net assets excluding | 0.0 | 0.0 | 0.0 | 0.0 | 26.4 | 26.4 |
| transactions with shareholders | ||||||
| Dividends | 0.0 | 0.0 | ||||
| Closing balance 2016-03-31 | 199.1 | 249.4 | 718.1 | 48.0 | 26.4 | 1 241.0 |
SALES AND RESULT PER OPERATING SEGMENT
| SEK million | 3 months | 3 months | 12 months | 12 months |
|---|---|---|---|---|
| Jan-Mar | Jan-Mar | Jan-Dec | Jan-Dec | |
| Corporate Promo | 2016 | 2015 | 2015 | 2014 |
| Income | 505.1 | 467.0 | 2 152.0 | 1 788.2 |
| Result EBITDA | 13.5 | 9.1 | 166.4 | 173.8 |
| Sports & Leisure | ||||
| Income | 519.9 | 523.4 | 2 258.4 | 1 952.5 |
| Result EBITDA | 22.0 | 24.6 | 143.1 | 135.3 |
| Gifts & Home furnishings | ||||
| Income | 105.8 | 105.7 | 554.3 | 532.9 |
| Result EBITDA | -14.2 | -17.0 | 2.8 | -4.9 |
| Total income | 1 130.8 | 1 096.1 | 4 964.7 | 4 273.6 |
| Total result EBITDA | 21.3 | 16.7 | 312.3 | 304.2 |
| Total result EBITDA | 21.3 | 16.7 | 312.3 | 304.2 |
| Depreciation and write-downs | -13.2 | -14.9 | -57.1 | -54.2 |
| Net financial items | -13.8 | -15.1 | -74.3 | -42.0 |
| Result before tax | -5.7 | -13.3 | 180.9 | 208.0 |
ASSETS/LIABILITIES PER OPERATING SEGMENT
| SEK million | Total | Fixed | Deferred | Depreciation | Total | |
|---|---|---|---|---|---|---|
| assets | assets * | tax assets | Investments | and write-downs | liabilities | |
| 31 Mar 2016 | ||||||
| Corporate Promo | 2 857.6 | 621.0 | 30.3 | -3.5 | -6.8 | 2 006.5 |
| Sports & Leisure | 2 033.4 | 935.1 | 50.7 | -7.6 | -5.5 | 581.3 |
| Gifts & Home Furnishings | 508.4 | 171.2 | 31.0 | -5.4 | -0.9 | 318.1 |
| Total | 5 399.4 | 1 727.3 | 112.0 | -16.5 | -13.2 | 2 905.9 |
| 31 Mar 2015 | ||||||
| Corporate Promo | 2 819.8 | 620.0 | 26.5 | -11.9 | -7.3 | 2 145.4 |
| Sports & Leisure | 2 159.9 | 983.4 | 46.4 | -4.8 | -6.6 | 598.6 |
| Gifts & Home Furnishings | 468.4 | 152.1 | 33.5 | -9.6 | -1.0 | 208.2 |
| Total | 5 448.1 | 1 755.5 | 106.4 | -26.3 | -14.9 | 2 952.2 |
| 31 Dec 2015 | ||||||
| Corporate Promo | 2 925.1 | 624.4 | 29.9 | -46.4 | -27.9 | 2 081.2 |
| Sports & Leisure | 2 069.9 | 955.0 | 50.8 | -39.0 | -25.1 | 601.2 |
| Gifts & Home Furnishings | 483.7 | 169.9 | 31.5 | -21.6 | -4.1 | 282.7 |
| Total | 5 478.7 | 1 749.3 | 112.2 | -107.0 | -57.1 | 2 965.1 |
SALES PER AREA
| 3 months | 3 months | |||||
|---|---|---|---|---|---|---|
| SEK million | Jan-Mar | Part of | Jan-Mar | Part of | Change | Change |
| 2016 | income | 2015 | income | SEK million | % | |
| Sweden | 236.7 | 21% | 235.8 | 22% | 0.9 | 0% |
| USA | 289.4 | 26% | 287.1 | 26% | 2.3 | 1% |
| Nordic countries excluding Sweden | 163.0 | 14% | 163.2 | 15% | -0.2 | 0% |
| Central Europe | 250.2 | 22% | 222.3 | 20% | 27.9 | 13% |
| Southern Europe | 112.8 | 10% | 103.0 | 9% | 9.8 | 10% |
| Other countries | 78.7 | 7% | 84.7 | 8% | -6.0 | -7% |
| Total | 1 130.8 | 100% | 1 096.1 | 100% | 34.7 | 3% |
| 12 months | 12 months | |||||
|---|---|---|---|---|---|---|
| SEK million | Jan - Dec | Part of | Jan - Dec | Part of | Change | Change |
| 2015 | income | 2014 | income | SEK million | % | |
| Sweden | 1 145.6 | 23% | 1 063.8 | 25% | 81.8 | 8% |
| USA | 1 389.1 | 28% | 1 124.2 | 26% | 264.9 | 24% |
| Nordic countries excluding Sweden | 660.2 | 13% | 605.6 | 14% | 54.6 | 9% |
| Central Europe | 927.3 | 19% | 766.4 | 18% | 160.9 | 21% |
| Southern Europe | 471.5 | 10% | 364.8 | 9% | 106.7 | 29% |
| Other countries | 371.0 | 7% | 348.8 | 8% | 22.2 | 6% |
| Total | 4 964.7 | 100% | 4 273.6 | 100% | 691.1 | 16% |
FIXED ASSETS AND DEFERRED TAX ASSETS PER AREA
| 31 Mar 2016 | 31 Mar 2015 | 31 Dec 2015 | ||||
|---|---|---|---|---|---|---|
| SEK million | Fixed | Deferred | Fixed | Deferred | Fixed | Deferred |
| assets* | tax assets | assets* | tax assets | assets* | tax assets | |
| Sweden | 458.3 | 20.6 | 437.9 | 19.2 | 458.0 | 20.5 |
| USA | 882.5 | 62.1 | 932.6 | 60.8 | 902.1 | 63.5 |
| Nordic countries excluding Sweden | 28.9 | 11.3 | 24.8 | 10.3 | 28.4 | 11.0 |
| Central Europe | 195.6 | 11.9 | 189.3 | 10.8 | 195.8 | 11.4 |
| Southern Europe | 154.8 | 3.2 | 165.5 | 2.6 | 157.1 | 3.0 |
| Other countries | 7.2 | 2.9 | 5.4 | 2.7 | 7.9 | 2.8 |
| Total | 1 727.3 | 112.0 | 1 755.5 | 106.4 | 1 749.3 | 112.2 |
* Fixed assets classified as financial assets are not included
QUARTERLY CONSOLIDATED INCOME STATEMENTS
| SEK million | 2016 | 2015 | 2014 | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Quarter | Q1 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 |
| Income | 1 130.8 | 1 096.1 | 1 191.3 | 1 272.0 | 1 405.3 | 908.5 | 983.3 | 1 122.3 | 1 259.5 |
| Goods for resale | -616.3 | -595.7 | -659.1 | -697.8 | -773.5 | -497.7 | -531.8 | -621.9 | -669.6 |
| Gross profit | 514.5 | 500.4 | 532.2 | 574.2 | 631.8 | 410.8 | 451.5 | 500.4 | 589.9 |
| Gross profit % | 45.5 | 45.7 | 44.7 | 45.1 | 45.0 | 45.2 | 45.9 | 44.6 | 46.8 |
| Other operating income | 9.4 | 9.3 | 7.8 | 22.1 | 8.0 | 7.1 | 5.4 | 5.1 | 10.1 |
| External costs | -279.8 | -270.1 | -258.9 | -273.0 | -284.0 | -229.5 | -216.9 | -216.6 | -260.5 |
| Personnel costs | -217.4 | -205.3 | -212.0 | -202.8 | -231.5 | -179.5 | -176.7 | -174.8 | -204.7 |
| Depreciations and write-downs | -13.2 | -14.9 | -14.3 | -13.7 | -14.2 | -12.4 | -13.2 | -14.4 | -14.2 |
| Other operating costs | -5.6 | -18.5 | -6.7 | -9.3 | -1.7 | -2.4 | -2.6 | -4.1 | -7.4 |
| Share of associated companies' result | 0.2 | 0.9 | 0.6 | -1.2 | 0.0 | 0.0 | 0.5 | 0.1 | -1.0 |
| Operating profit/loss | 8.1 | 1.8 | 48.7 | 96.3 | 108.4 | -5.9 | 48.0 | 95.7 | 112.2 |
| Financial income | 1.2 | 1.9 | 3.2 | 1.4 | 0.7 | 1.4 | 1.2 | 1.1 | 1.2 |
| Financial expenses | -15.0 | -17.0 | -16.9 | -19.0 | -28.6 | -9.7 | -10.6 | -12.1 | -14.5 |
| Result before tax | -5.7 | -13.3 | 35.0 | 78.7 | 80.5 | -14.2 | 38.6 | 84.7 | 98.9 |
| Tax | 1.1 | 2.4 | -7.2 | -13.6 | -17.2 | 2.9 | -9.2 | -17.8 | -7.0 |
| Result for the period | -4.6 | -10.9 | 27.8 | 65.1 | 63.3 | -11.3 | 29.4 | 66.9 | 91.9 |
| Total other comprehensive income net after tax for the period | -15.5 | 101.7 | -43.9 | 7.1 | -36.9 | 1.4 | 53.5 | 53.1 | 91.2 |
| Total comprehensive income for the period | -20.1 | 90.8 | -16.1 | 72.2 | 26.4 | -9.9 | 82.9 | 120.0 | 183.1 |
| Profit per share | |||||||||
| before dilution (SEK) | -0.06 | -0.17 | 0.41 | 0.98 | 0.94 | -0.17 | 0.44 | 1.01 | 1.38 |
| after dilution (SEK) | -0.06 | -0.17 | 0.41 | 0.98 | 0.94 | -0.17 | 0.44 | 1.01 | 1.38 |
| 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 | |
| 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 |
| SEK million | 2013 | 2012 | 2011 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Quarter | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 |
| Income | 877.3 | 995.3 | 1 035.0 | 1 139.8 | 975.4 | 1 074.9 | 1 053.8 | 1 176.1 | 927.6 | 1 020.9 | 1 100.9 | 1 187.5 |
| Goods for resale | -456.8 | -529.1 | -564.9 | -626.2 | -531.2 | -580.0 | -688.9 | -615.7 | -493.9 | -522.7 | -590.2 | -607.3 |
| Gross profit | 420.5 | 466.2 | 470.1 | 513.6 | 444.2 | 494.9 | 364.9 | 560.4 | 433.7 | 498.2 | 510.7 | 580.2 |
| Gross profit % | 47.9 | 46.8 | 45.4 | 45.1 | 45.5 | 46.0 | 34.6 | 47.6 | 46.8 | 48.8 | 46.4 | 48.9 |
| Other operating income | 8.6 | 7.7 | 7.7 | 9.3 | 8.5 | 9.5 | 7.4 | 9.7 | 12.6 | 8.4 | 11.5 | 6.9 |
| External costs | -222.9 | -209.7 | -205.4 | -215.2 | -247.2 | -238.3 | -245.5 | -223.0 | -241.5 | -241.6 | -231.4 | -256.0 |
| Personnel costs | -174.7 | -177.9 | -162.5 | -182.7 | -186.3 | -189.2 | -208.1 | -181.9 | -168.2 | -173.2 | -165.2 | -184.5 |
| Depreciations and write-downs | -11.8 | -14.6 | -13.9 | -11.9 | -11.9 | -13.0 | -53.1 | -11.9 | -11.1 | -13.2 | -12.7 | -13.6 |
| Other operating costs | -3.8 | -1.9 | -2.9 | -2.3 | -3.8 | -5.9 | -5.9 | -3.1 | -7.9 | -5.5 | -6.7 | -4.7 |
| Share of associated companies' result | 0.2 | 0.4 | -0.3 | 0.8 | -0.9 | 0.7 | 0.4 | 1.5 | 0.1 | -0.4 | 0.0 | 2.0 |
| Operating profit/loss | 16.1 | 70.2 | 92.8 | 111.6 | 2.6 | 58.7 | -139.9 | 151.7 | 17.7 | 72.7 | 106.2 | 130.3 |
| Financial income | 1.8 | 1.4 | 1.8 | 1.8 | 1.4 | 0.5 | 2.2 | 0.9 | 1.6 | 1.0 | 1.1 | 3.2 |
| Financial expenses | -17.8 | -16.1 | -14.9 | -14.2 | -15.4 | -13.0 | -16.1 | -18.7 | -11.5 | -12.2 | -14.9 | -19.3 |
| Result before tax | 0.1 | 55.5 | 79.7 | 99.2 | -11.4 | 46.2 | -153.8 | 133.9 | 7.8 | 61.5 | 92.4 | 114.2 |
| Tax | 0.0 | -16.6 | -21.9 | -8.9 | 3.2 | -12.9 | 33.8 | -33.2 | -2.1 | -24.2 | -19.0 | -31.5 |
| Result for the period | 0.1 | 38.9 | 57.8 | 90.3 | -8.2 | 33.3 | -120.0 | 100.7 | 5.7 | 37.3 | 73.4 | 82.7 |
| Total other comprehensive income net after tax for the period | -38.9 | 57.8 | -31.5 | 36.6 | -24.1 | 21.9 | -95.6 | 21.8 | -53.8 | 53.4 | 43.3 | -15.9 |
| Total comprehensive income for the period | -38.8 | 96.7 | 26.3 | 126.9 | -32.3 | 55.2 | -215.6 | 122.5 | -48.1 | 90.7 | 116.7 | 66.8 |
| Profit per share | ||||||||||||
| before dilution (SEK) | 0.00 | 0.60 | 0.87 | 1.35 | -0.13 | 0.50 | -1.81 | 1.51 | 0.08 | 0.55 | 1.10 | 1.25 |
| after dilution (SEK) | 0.00 | 0.60 | 0.87 | 1.35 | -0.12 | 0.50 | -1.81 | 1.51 | 0.08 | 0.55 | 1.09 | 1.22 |
| The average number of outstanding shares before dilution | 66 343 543 | 66 343 543 | 66 343 543 | 66 343 543 | 66 343 543 | 66 343 543 | 66 343 543 | 66 343 543 | 66 343 543 | 66 343 543 | 66 343 543 | 66 343 543 |
| The average number of outstanding shares after dilution | 66 343 543 | 66 343 543 | 66 343 543 | 66 343 543 | 67 343 543 | 66 343 543 | 66 343 543 | 66 343 543 | 67 343 543 | 67 343 543 | 67 343 543 | 67 343 543 |
QUARTERLY CONSOLIDATED CASH FLOW STATEMENTS
| SEK million | 2016 | 2015 | 2014 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Quarter | Q1 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | |||
| Cash flow from current operations | ||||||||||||
| before changes in working capital | -4.2 | -9.2 | 54.6 | 73.8 | 90.6 | -7.1 | 38.8 | 93.1 | 129.1 | |||
| Increase/decrease of stock | -49.7 | -200.6 | -88.5 | -132.1 | 175.6 | -50.6 | -86.8 | -309.6 | -126.1 | |||
| Increase/decrease of current receivables | 85.3 | 129.5 | -23.0 | -117.2 | 85.2 | 172.3 | -28.0 | -124.2 | -40.7 | |||
| Increase/decrease of current liabilities | 32.5 | 51.4 | 1.0 | 14.3 | 24.1 | -25.8 | 48.3 | 50.0 | -16.9 | |||
| Changes in working capital | 68.1 | -19.7 | -110.5 | -235.0 | 284.9 | 95.9 | -66.5 | -383.8 | -183.7 | |||
| Cash flow from operations | 63.9 | -28.9 | -55.9 | -161.2 | 375.5 | 88.8 | -27.7 | -290.7 | -54.6 | |||
| Investing activities | -16.5 | -26.3 | -39.6 | -15.1 | -24.5 | -15.0 | -17.5 | -12.2 | -29.6 | |||
| Cash flow after investing activities | 47.4 | -55.2 | -95.5 | -176.3 | 351.0 | 73.8 | -45.2 | -302.9 | -84.2 | |||
| Loan raised | 0.0 | 0.0 | 179.1 | 173.9 | 0.0 | 0.0 | 129.6 | 289.8 | 121.3 | |||
| Raised long-term receivables | 0.0 | -0.4 | -1.1 | 0.1 | 0.4 | 0.0 | 0.0 | -0.2 | 0.0 | |||
| Repayment of long-term receivables | 0.2 | 0.0 | 0.0 | 0.0 | 0.0 | 3.7 | 0.0 | 0.0 | 0.2 | |||
| Amortization of loan | -74.6 | -13.9 | 0.0 | 0.0 | -349.1 | -109.8 | 0.0 | 0.0 | 0.0 | |||
| Dividend paid to non-controlling interest | 0.0 | 0.0 | 0.0 | -1.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |||
| Dividend paid to the shareholders of the parent company | 0.0 | 0.0 | -66.3 | 0.0 | 0.0 | 0.0 | -66.3 | 0.0 | 0.0 | |||
| Cash flow from financial activities | -74.4 | -14.3 | 111.7 | 173.0 | -348.7 | -106.1 | 63.3 | 289.6 | 121.5 | |||
| Cash flow for the period | -27.0 | -69.5 | 16.2 | -3.3 | 2.3 | -32.3 | 18.1 | -13.3 | 37.3 | |||
| Liquid assets at the beginning of the period | 165.5 | 216.0 | 159.0 | 169.5 | 167.7 | 185.1 | 153.1 | 176.0 | 169.6 | |||
| 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 | |||
| Translation differences in liquid assets | -2.2 | 12.5 | -5.7 | 1.5 | -4.5 | 0.3 | 4.8 | 6.9 | 9.1 | |||
| Liquid assets at period-end | 136.3 | 159.0 | 169.5 | 167.7 | 165.5 | 153.1 | 176.0 | 169.6 | 216.0 | |||
| SEK million | 2013 | 2012 | 2011 | |||||||||
| Quarter | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 |
| Cash flow from current operations before changes in working capital |
-18.7 | 55.3 | 86.7 | 103.3 | -12.8 | 43.8 | 66.7 | 83.7 | -22.6 | 62.0 | 112.6 | 117.6 |
| Increase/decrease of stock | 27.8 | 28.2 | -3.1 | 145.3 | -44.9 | 34.3 | -1.6 | 205.8 | -124.7 | -77.8 | -155.1 | 105.2 |
| Increase/decrease of current receivables | 131.1 | -44.0 | -84.8 | -32.7 | 77.1 | 19.6 | -69.9 | -14.1 | 51.2 | 45.4 | -86.5 | 158.5 |
| Increase/decrease of current liabilities | -34.1 | 2.3 | -1.3 | -2.8 | 25.6 | 35.1 | -108.0 | 0.7 | -46.5 | -3.4 | 33.1 | -103.0 |
| Changes in working capital | 124.8 | -13.5 | -89.2 | 109.8 | 57.8 | 89.0 | -179.5 | 192.4 | -120.0 | -35.8 | -208.5 | 160.7 |
| Cash flow from operations | 106.1 | 41.8 | -2.5 | 213.1 | 45.0 | 132.8 | -112.8 | 276.1 | -142.6 | 26.2 | -95.9 | 278.3 |
| Investing activities | -9.7 | -8.9 | -21.2 | -7.0 | -10.8 | -15.1 | -17.2 | -7.3 | -27.1 | -19.6 | -165.4 | -114.4 |
| Cash flow after investing activities | 96.4 | 32.9 | -23.7 | 206.1 | 34.2 | 117.7 | -130.0 | 268.8 | -169.7 | 6.6 | -261.3 | 163.9 |
| Loan raised | 0.0 | 24.2 | 0.0 | 0.0 | 0.0 | 0.0 | 123.0 | 0.0 | 133.5 | 36.0 | 339.1 | 0.0 |
| Raised long-term receivables | 0.0 | 0.0 | 0.0 | -0.2 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | -0.3 | 0.0 | 0.0 |
| Repayment of long-term receivables | 0.9 | 0.1 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 4.2 | 0.0 | 0.7 | -4.6 |
| Amortization of loan | -157.3 | 0.0 | -12.0 | -146.7 | -79.0 | -5.1 | 0.0 | -196.1 | 0.0 | 0.0 | 0.0 | -186.3 |
| 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 | -66.3 | 0.0 | 0.0 |
| Cash flow from financial activities | -156.4 | -42.0 | -12.0 | -146.9 | -79.0 | -71.4 | 123.0 | -196.1 | 137.7 | -30.6 | 339.8 | -190.9 |
| Cash flow for the period | -60.0 | -9.1 | -35.7 | 59.2 | -44.8 | 46.3 | -7.0 | 72.7 | -32.0 | -24.0 | 78.5 | -27.0 |
| Liquid assets at the beginning of the period | 229.7 | 168.0 | 163.0 | 123.7 | 117.7 | 70.4 | 119.5 | 107.6 | 121.7 | 86.1 | 64.2 | 146.0 |
| Adjustment liquid assets at the beginning of the period* Translation differences in liquid assets |
0.0 -1.7 |
0.0 4.1 |
0.0 -3.6 |
0.0 2.2 |
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 |
* 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.
SHAREHOLDERS
The number of shareholders amount to 11 806 (11 144) on March 31, 2016. Institutional investors accounted for 46% of the capital and 12% 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 8% of the capital and 2% of the votes.
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.
NEW WAVE GROUP'S TEN MAJOR SHAREHOLDERS 2016-03-31
| SHAREHOLDER | Number of shares | Number of votes | Capital % | Votes % |
|---|---|---|---|---|
| Torsten Jansson through companies | 21 049 377 | 198 418 497 | 31.7% | 81.4% |
| Lannebo Microcap | 7 671 408 | 7 671 408 | 11.6% | 3.1% |
| Avanza Pension | 5 334 804 | 5 334 804 | 8.0% | 2.2% |
| Fjärde AP-Fonden | 4 279 737 | 4 279 737 | 6.5% | 1.8% |
| Svolder AB | 2 549 246 | 2 549 246 | 3.8% | 1.0% |
| Handelsbanken fonder | 1 816 440 | 1 816 440 | 2.7% | 0.7% |
| Spiltan | 1 248 226 | 1 248 226 | 1.9% | 0.5% |
| SEB fonder | 940 807 | 940 807 | 1.4% | 0.4% |
| Unionen | 754 758 | 754 758 | 1.1% | 0.3% |
| Michael Löfman | 720 000 | 720 000 | 1.1% | 0.3% |
| 46 364 803 | 223 733 923 | 69.9% | 91.8% |
NEW WAVE GROUP'S TEN MAJOR SHAREHOLDERS 2016-03-31
| Number of shares | Number of votes | Capital % | Votes % | |
|---|---|---|---|---|
| Sweden | 60 817 032 | 238 186 152 | 91.7% | 97.7% |
| Shareholders outside Sweden, excl. USA | 4 156 898 | 4 156 898 | 6.3% | 1.7% |
| USA | 1 369 613 | 1 369 613 | 2.0% | 0.6% |
| 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