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New Wave Group AB — Interim / Quarterly Report 2017
Feb 8, 2018
3081_10-k_2018-02-08_c8f0cb03-97f4-4e0f-a693-d343ed3dab33.pdf
Interim / Quarterly Report
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YEAR-END REPORT January – December 2017
TRADEMARKS
CORPORATE PROMO
YEAR-END REPORT NEW WAVE GROUP AB
PERIOD 1 OCTOBER – 31 DECEMBER 2017
- Net sales amounted to SEK 1,630.3 million, which was 5 % higher than last year (SEK 1,548.6 million).
- Operating result amounted to SEK 172.5 (167.0) million.
- Result for the period amounted to SEK 146.8 (127.8) million.
- Earnings per share amounted to SEK 2.20 (1.90).
- Cash flow from operating activities amounted to SEK 134.5 (280.9) million.
The Board of Directors has decided to propose to the Annual General Meeting a dividend of 1.70 (1.35) SEK per share equal to SEK 112.8
PERIOD 1 JANUARY – 31 DECEMBER 2017
- Net sales amounted to SEK 5,597.3 million, which was 7 % higher than last year (SEK 5,237.1 million).
- Operating result amounted to SEK 469.1 (400.2) million.
- Result for the period amounted to SEK 354.0 (276.7) million.
- Earnings per share amounted to SEK 5.34 (4.16).
- Cash flow from operating activities amounted to SEK 207.8 (448.9) million.
- Equity ratio amounted to 50.8 (48.4) %.
- DIVIDEND Net debt to equity ratio amounted to 54.1 (62.1) %.
NET SALES RESULT FOR THE PERIOD
(89.6) million.
CEO COMMENTS
It is with great pleasure and pride that I look back at 2017!
OCTOBER - DECEMBER
The quarter offered continued growth and amounted to 5 % (8 % in local currency), and a further increase in operating result. An all-time high for both sales and operating result for a fourth quarter which is pleasing. It also feels stable and positive that we had growth in all our segments. Both external and personnel costs increased as planned and are mainly due to the increase in sales forces and marketing which are investments for future growth. Among other things, we launched our expanded marketing in the United States in the quarter, and our new warehouse in Toronto became fully operational which has been very well received by customers in Canada.
JANUARY - DECEMBER
2017 was yet another great year! Sales increased by 7 % to 5,597 MSEK which is a new all-time high. Operating result increased by 17 % to 469 MSEK and even this was an all-time high. If you look back, we have now delivered growth in 15 of the 16 most recent quarters and gone from 4,274 MSEK in sales 2014 to 5,597 MSEK in 2017. At the same time, operating result increased in 13 of the past 14 quarters and has gone from 250 to 469 MSEK – a development we should be proud of. During the year we have also strengthened the balance sheet and for the first time we have over 3 billion SEK in shareholders' equity and the equity ratio is the highest ever with 50.8 %. Gratifyingly, all key performance indicators presented in 2017 improved.
THE FUTURE
I look with great confidence and joy into the future. We are very strong in almost all areas and we are well prepared. We have invested, and continue to invest, intensively in our brands and continually take market shares for most brands. While not least the retail sector is going through a painful process and conversion, we continue our growth. We have good growth with those customers who are working with e-commerce, and continued growth in e-commerce will likely benefit us even more as consumers increasingly want strong brands which strengthen the product.
The promo sales channel has developed very well and it is a trend that has continued for several years. We now see the positive effects of past investments in inventories and thus a high level of service, new products and aggressive marketing.
There is a lot happening within the Group and therefore it is hard to choose what to include in the CEO comments. To name but a few of the initiatives that are now underway is of course Craft Teamwear which is incredibly exciting and has received a warm reception in all markets we have launched it in. Craft's running shoes reach consumers this spring. Our warm reception by customers at the warehouse in Toronto enables us to plan for more warehouses in North America and this of course makes our expanding marketing interesting to follow.
With the launch of new product lines in Jobman and ProJob we believe in good growth here.
In conclusion, I am convinced that our growth, both in profit and sales, has only just begun. As I usually write, any single quarter can be worse due to calendar effects, that several major investments coincide in the same quarter, etc.
However, I would like to end the CEO comments in the same way as 2016; Overall, we have never been in such a favourable position compared to our competitors, no matter if we are talking financial strength, brands, products, CSR or something else!
Thank you to our employees, customers, shareholders and the Board of Directors for 2017 and I look forward to 2018 together!
Torsten Jansson, CEO
Marketing at Boston Airport and JFK during spring 2018
COMMENTS
SUMMARY OF THE QUARTER OCTOBER–DECEMBER
The Group increased its sales by 5 % (8 % excluding currency fluctuations) compared with last year. All of our segments have growth. It is, among other things, new product launches, increased marketing activities, as well as security of supply which contributed to the sales increase. Corporate Promo increased by 6 % and the improvement occurred in Sweden, Southern Europe and Asia. Sports & Leisure improved its sales by 5 % and it is mainly in the regions of Sweden and Central Europe that the growth occurs. Sales growth for Gifts & Home Furnishings was 3 % and the improvement is attributable to the Swedish market.
We had growth in both our sales channels, promo increased by 7 % and retail by 5 %.
Gross profit margin was slightly lower than last year and amounted to 45.6 (46.3) %.
The Group's expenses increased compared to last year. The increase is mainly related to increased marketing activities, as well as more employees in sales, warehouses and customer service. We will maintain a high level of activity with regard to marketing during the coming quarter.
Operating result improved by SEK 5.5 million and amounted to SEK 172.5 (167.0) million, which is related to higher net sales.
Cash flow from operating activities amounted to SEK 134.5 (280.9) million. The lower cash flow is related to changes in working capital, primarily due to increased purchases compared to last year's quarter but also turnover related in the form of increased accounts receivable.
OCTOBER–DECEMBER
NET SALES
Net sales amounted to SEK 1,630.3 million, which was 5 % higher than last year (SEK 1,548.6 million). Exchange rates affected sales negatively by SEK 45 million, corresponding to 3 %.
Net sales in Sweden increased by 7 % and both sales channels had good growth. USA decreased by 1 %, mainly attributable to a negative currency exchange. Net sales in local currency is 6 % higher than last year and the increase occurred in both sales channels. The Nordic countries (excl. Sweden) decreased by 1 %. Growth in Central and Southern Europe was 6 % in both regions. Growth in Central Europe occurs in both sales channels, while Southern Europe increased in promo. Other countries increased by 31 %, which is related to Asia and the promo sales channel.
GROSS PROFIT
The gross profit margin decreased slightly and amounted to 45.6 (46.3) %. It is within Gifts & Home Furnishings that we have had a lower margin compared to last year.
OTHER OPERATING INCOME AND OTHER OPERATING EXPENSES
Other operating income increased by SEK 8.0 million to SEK 22.9 (14.9) million. Other operating income is mainly attributable to operating currency gains but also invoiced expense and should be compared to the result row "Other operating expenses" where mainly currency losses are reported. Other operating expenses decreased by SEK 0.1 million and amounted to SEK -6.1 (-6.2) million. The net total of above items amounted to SEK 16.8 (8.7) million. The improvement was mainly related to reimbursement of outlaid costs.
COSTS AND DEPRECIATION
External costs increased by SEK 5.0 million and amounted to SEK -304.9 (-299.9) million. The increase is related to higher sales and marketing costs.
Personnel costs amounted to SEK -262.2 million which is SEK 19.3 million higher than last year (SEK -242.9 million). The increase is due to an increase in the number of employees, mostly in sales, warehouses and customer service.
Exchange rates decreased costs by SEK 16 million.
Depreciation was slightly higher than last year and amounted to SEK -18.2 (-15.2) million.
OPERATING MARGIN
The operating margin was slightly lower than the previous year and amounted to 10.6 (10.8) %. The Group has increased marketing activities and has more employees.
NET FINANCIAL ITEMS AND TAXES
Net financial items improved by SEK 2.8 million and amounted to SEK -13.1 (-15.9) million. The improvement is attributable to lower interest expenses.
Income taxes in absolute terms amounted to SEK -12.6 (-23.2) million and the tax rate amounted to 7.9 (15.4) %. The tax expense for the quarter was positively affected by a change in deferred tax liabilities and tax assets, mainly related to the reduction of corporate income tax in the United States.
RESULT FOR THE PERIOD
Result for the period amounted to SEK 146.8 (127.8) million. Earnings per share amounted to SEK 2.20 (1.90).
6
SUMMARY OF 2017
The Group has continued its high level of marketing activities whereby we have increased the number of employees in sales, continued high activity in advertising and made a number of new product launches. We had growth of 7 % and sales increases in all quarters. Marketing investments are made in all operating segments, but mainly for the promo sales channel.
Operating segment Corporate Promo increased its sales by 11 %. We have growth in all regions and in both sales channels. Sports & Leisure turnover increased by 2 %, which mainly occurs in the regions of Central Europe and Sweden. It is mainly the promo sales channel that increased. Gifts & Home Furnishings increased its turnover by 8%, which is related to the Swedish market. We see an improvement in both sales channels.
Of the Group's sales channels, promo increased by 10 % and retail by 2 %.
The gross profit margin was on par with last year and amounted to 46.1 (46.0) %.
Our external expenses increased during the year as a result of the marketing investments that have been made. Even personnel costs have increased as the number of employees in sales, warehouses and customer service have increased. Total expenses are expected to increase next year as we expand our advertising in North America, hiring more salespeople, as well as the full cost effect occurring on the appointments made during this year.
Result for the period increased by SEK 77.3 million and amounted to SEK 354.0 (276.7) million. The improvement in profit is related to higher net sales.
Cash flow from operating activities decreased and amounted to SEK 207.8 (448.9) million. The lower cash flow is related to increased purchases of goods for product launches of basic collections and a new warehouse in Canada but even increased accounts receivable (turnover related). The Group's inventory as of 31 December 2017 amounted to SEK 2,643.4 (2,496.4) million. The turnover rate has improved slightly and amounted to 1.2 (1.1).
Our equity ratio improved by 2.4 percentage points to 50.8 (48.4) % and our net debt decreased by SEK 111.6 million to SEK 1,637.3 (1,748.9) million. Exchange rate changes have reduced net debt by SEK 88.9 million compared with last year. The net debt to equity ratio decreased and amounted to SEK 54.1 (62.1) %. Even our net debt in relation to working capital decreased and amounted to SEK 57.4 (64.7) %.
JANUARY–DECEMBER
NET SALES
Net sales amounted to SEK 5,597.3 million, which was 7 % higher than last year (SEK 5,237.1 million). Exchange rates have affected positively by SEK 23 million, corresponding to 1 %.
Sales in Sweden increased by 7 % compared with last year and the growth occurred in both sales channels. In the United States, sales increased by 1 %. Nordic countries (excl. Sweden) increased by 3 % of which the increase occurred in all countries, as well as in the promo sales channel. Central and Southern Europe have increased their sales by 7 % and 10 %, respectively. The increase is related to the promo sales channel. Other countries increased by 33 %, which is related to our operations in Asia and the promo sales channel.
GROSS PROFIT
The gross profit margin was at the same level as last year and amounted to 46.1 (46.0) %.
OTHER OPERATING INCOME AND OTHER OPERATING EXPENSES
Other operating income increased by SEK 0.2 million to SEK 51.2 (51.0) 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 currency losses are reported. Other operating expenses decreased by SEK 0.5 million to SEK -25.2 (-25.7) million. The net total of above items amounted to SEK 26.0 (25.3) million.
COSTS AND DEPRECIATION
External costs have increased by SEK 31.1 million and amounted to SEK -1,128.9 (-1,097.8) million. The cost increase is related to more sales orientated activities. Personnel costs increased by SEK 58.7 million and amounted to SEK -940.3 (-881.6) million. The increase is due to an increase in the number of employees, mostly in sales, warehouses and customer service.
Exchange rates have increased costs by SEK 10 million.
Depreciation and write-down losses increased and amounted to SEK -65.3 (-55.9) million. The increase is primarily related to investments in IT systems.
OPERATING MARGIN
The operating margin amounted to 8.4 (7.6) % where improvement was mainly related to the increase in net sales.
NET FINANCIAL ITEMS AND TAXES
Net financial items decreased by SEK 8.0 million and amounted to SEK -51.9 (-59.9) million, which is related to an improved net interest.
Income taxes in absolute terms amounted to SEK -63.2 (-63.6) million and the tax rate amounted to 15.1 (18.7) %. The lower tax rate for the current year is mainly due to a change in deferred tax liabilities, which is related to a lower corporate tax rate in the United States.
RESULT FOR THE PERIOD
Result for the period improved by SEK 77.3 million and amounted to SEK 354.0 (276.7) million. Earnings per share amounted to SEK 5.34 (4.16).
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 EBITDA. The operating segments are based on the Group's operational management.
CORPORATE PROMO
Fourth-quarter turnover increased by SEK 48.9 million and amounted to SEK 828.8 (779.9) million. EBITDA amounted to SEK 110.6 (109.9) million. The increase in turnover is due to increased sales and marketing activities. Segment growth was in most regions as well as in the promo sales channel.
Net sales for the period January–December increased by 11 % to SEK 2,648.7 (2,388.6) million and EBITDA amounted to SEK 289.7 (250.8) million. The higher turnover was mainly due to increased marketing activities but also a good service level. Growth is occurring in all regions. The improved result is related to the increased turnover.
SPORTS & LEISURE
Net sales for the period October–December grew by 5 % and amounted to SEK 596.7 (570.6) million. EBITDA improved by SEK 14.7 million and amounted to SEK 69.7 (55.0) million. Sales growth was mainly in the regions of Sweden and Central Europe. We see growth in both sales channels. The improved result is related to the higher sales and improved gross profit margin.
Net sales January–December amounted to SEK 2,311.5 (2,260.8) million, resulting in a growth of 2 %. EBITDA improved by SEK 35.8 million to SEK 230.3 (194.5) million. Sales increased mainly in Sweden and Central Europe as well as the promo sales channel. The higher result is related to higher turnover but also a better gross profit margin contributed.
GIFTS & HOME FURNISHINGS
The segment increased its net sales for the period October–December by 3 % and amounted to SEK 204.7 (198.1) million. EBITDA decreased to SEK 10.4 million which was SEK 6.9 million lower than last year (SEK 17.3 million). The higher turnover is related to the retail sales channel and the Swedish operations. The lower profit is related to higher costs for marketing activities and a lower gross profit margin.
Turnover for the period January–December amounted to SEK 637.1 million, which was 8 % higher than last year (SEK 587.7 million). EBITDA improved by SEK 3.6 million to SEK 14.4 (10.8) million. Sales grew in the retail sales channel and mainly in the Swedish market. The improvement is mainly turnover related but the segment has also higher costs for sales and marketing investments, as well as a slightly lower gross profit margin.
CAPITAL TIED UP
The Group has during the year increased merchandise on stock in its basic range but also with new basic collections. Inventories are at a good level and we have had a good level of service throughout the year. Capital tied up in goods has increased by SEK 147.0 million and total inventories amounted to SEK 2,643.4 (2,496.4) million. The turnover rate in inventories was slightly higher compared to last year and amounted to 1.2 (1.1). The inventory value is expected to increase in the coming quarters which is primarily related to an extended product range within Craft and a new warehouse in Canada.
| SEK million | 2017-12 | 2016-12 |
|---|---|---|
| Raw materials | 34.9 | 28.9 |
| Work in progress | 8.7 | 9.7 |
| Goods in transit | 144.0 | 126.1 |
| Merchandise on stock | 2 455.8 | 2 331.7 |
| Total | 2 643.4 | 2 496.4 |
Inventories were written down by SEK 106.0 (115.1) million. Write-down related to merchandise on stock amounted to 4.1 (4.4) %.
Accounts receivable amounted to SEK 982.8 (906.2) million. The increase is turnover related.
INTANGIBLE ASSETS AND IMPAIRMENT TESTING
The Group's intangible assets with indefinite useful life consist partly of goodwill and partly of trademarks whose useful lives are assessed to be indefinite because they are well established strategic brands in respective markets which the Group intends to maintain and develop further. The brands with greater value are listed at their acquisition values and are well-known brands such as Orrefors Kosta Boda within Gifts and Home Furnishings as well as mainly Cutter & Buck within Sports & Leisure. The value of the group's goodwill and trademarks, which are based on local currency and can give rise to currency translation effects in the consolidated financial statements, have been allocated between the cash-generating units, they are considered to belong, which is also the Group's segments. The value of these intangible assets is reviewed annually to ensure that the value does not deviate negatively from book value, but can be tested more frequently if there are indications that the value has decreased. In order to assess whether there are indications of write-down requirement, the recoverable amount needs to be determined by a calculation of the respective cash-generating unit's useful value. The useful value is based on established cash flow projections for the next five years, and a long-term growth rate, so-called terminal period. The most important assumptions in determining the useful value include growth, operating margin and discount rate (WACC). When discounting, an assessment of financial factors such as interest rates, borrowing costs, market risk, beta values and tax rates will be carried out. As the cash generating units have different characteristics, each unit is assessed after its commercial factors. The estimated cost of capital (WACC) is considered to be representative of all cash generating units.
The cash-flow forecasts which are made in the examination are based on the five year forecast adopted by the Board (2018-2022) and thereafter a terminal growth of 3 (3) %. In calculating the present value of expected future cash flows, a weighted average cost of capital (WACC) of 10.3 (10.3) % before tax is used.
Based on the tests and analyses carried out, there is, in the current situation, no write-down requirement. Nor were there any write-down requirements for the comparison year. Sensitivity analyses have been carried out for all cash-generating units.
INVESTMENTS, FINANCING AND LIQUIDITY
Consolidated cash flow from operating activities for the quarter amounted to SEK 134.5 (280.9) million. The reason for the lower inflow is mainly that we have had higher purchases than for the same period last year as well as increased accounts receivable (turnover related). The net cash investments amounted to SEK -37.7 (-24.5) million. The increase is attributable to intangible assets and IT.
Consolidated cash flow from operating activities for January-December amounted to SEK 207.8 (448.9) million. The lower cash flow is related to higher purchases than last year and increased accounts receivable (turnover related). Hardware purchases related to the new basic collections and new warehouse in Canada. The net cash investments amounted to SEK -110.6 (-89.6) million. During the year, a number of investments were made in tangible fixed assets, among others in new warehouses as well as new facilities in Kosta. We have also made more investments in intangible assets, which are attributable to IT.
Net debt decreased during the year by SEK 111.6 million to 1,637.3 (1,748.9) million. The decrease is primarily related to changes in currency exchange rates, which reduced the debt by SEK 88.9 million. Our net debt to equity ratio and working capital has decreased and amounted to 54.1 (62.1) % and 57.4 (64.7) % respectively.
The equity ratio improved by 2.4 percentage points and amounted to 50.8 (48.4) % as of 31 December.
The Group's total credit facility as of 31 December amounted to SEK 2,539 million of which SEK 2,000 million runs until 10 February 2019, USD 35 million has a term that extends to 10 February 2024 and SEK 250 million has a term of between one and six years. 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 credit facility.
Based on the present forecast, management estimates that the group will be able to meet these ratios with a satisfactory margin.
Work on a new financial agreement is being finalised and is expected to be completed during the first quarter of 2018.
PERSONNEL AND ORGANISATION
The number of employees as of 31 December 2017 amounted to 2,495 (2,396) of whom 52 % were female and 48 % were men. Of the total number of employees 631 (631) work in production. The production contained within New Wave group is attributable to Ahead (embroidery), Cutter & Buck (embroidery), Paris Glove, Orrefors Kosta Boda, Seger, Termo, Dahetra 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. In addition, there are transactions with related parties to immaterial values. All transactions are on market terms.
THE PARENT COMPANY
Total income for the period January–December amounted to SEK 92.2 (123.3) million. Profit before appropriations and taxes amounted to SEK 298.9 (406.2) million. The result was negatively affected by SEK 76.5 million regarding impairment of financial fixed assets. This is attributable to capital injections in subsidiaries. Net borrowing amounted to SEK 1,566.5 (1,726,0) million. The parent company's financing to subsidiaries amounted to SEK 2,040.2 (1,887.0) million.
Net investments for the year amounted to SEK -63.5 (4.0) million. Last year included a repayment of share capital by subsidiaries of SEK 30.2 million and this year includes capital contributions to subsidiaries of SEK 56.4 million. The balance sheet total amounted to SEK 3,813.5 (3,753.1) million. Shareholders' equity, including 78% of untaxed reserves, amounted to SEK 1,863.6 (1,588.7) million.
ANNUAL GENERAL MEETING
The Annual General Meeting will be held on 16 May at 1 pm in Kosta. The annual report is scheduled to be available on 24 April at the company's headquarters in Gothenburg, Sweden.
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 SEK 1.70 (1.35) per share, amounting to SEK 112.8 (89.6) million. This proposal corresponds to 32 (32) % of the year's net result.
NOMINATION COMMITTEE
The nomination committee for the board election at the 2018 Annual General Meeting is:
- Arne Lööw, representative of Fjärde AP-fonden and Chairman of the Nomination Committee
- Torsten Jansson, CEO and representative of Torsten Jansson Förvaltnings AB
- Johan Ståhl, representative of Lannebo Fonder
The Nomination Committee's proposal will be presented at the Annual General Meeting.
For more information about the nomination committee and its work, please see www.nwg.se
CALENDAR
26 APRIL Interim report for the first quarter
16 MAY Annual General Meeting 2018
16 AUGUST Interim report for the second quarter
8 NOVEMBER Interim report for the third quarter
The company's auditors have not conducted any examination of the report for the fourth quarter of 2017.
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.
GOTHENBURG 8 FEBRUARY2018 NEW WAVE GROUP AB (PUBL)
OLOF PERSSON Chairman of the Board
ELISABETH DAHLIN Member of the Board
12
M JOHAN WIDERBERG Member of the Board
MATS ÅRJES
CHRISTINA BELLANDER Member of the Board
Member of the Board
TORSTEN JANSSON CEO
FOR MORE INFORMATION, PLEASE CONTACT:
CEO Torsten Jansson Phone: +4631 712 89 01 E-mail: [email protected]
CFO Lars Jönsson Phone: +4631 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 and Market Act and/or the Financial Trading Act. The information was released for publication at 7 am (CET) on 8 February 2018.
FINANCIAL INFORMATION
CONSOLIDATED INCOME STATEMENTS
| 3 months | 3 months | 12 months | 12 months | |
|---|---|---|---|---|
| Oct – Dec | Oct – Dec | Jan – Dec | Jan – Dec | |
| SEK million | 2017 | 2016 | 2017 | 2016 |
| Net sales | 1 630.3 | 1 548.6 | 5 597.3 | 5 237.1 |
| Goods for resale | -886.8 | -832.3 | -3 018.1 | -2 826.9 |
| Gross profit | 743.5 | 716.3 | 2 579.2 | 2 410.2 |
| Other operating income | 22.9 | 14.9 | 51.2 | 51.0 |
| External costs | -304.9 | -299.9 | -1 128.9 | -1 097.8 |
| Personnel costs | -262.2 | -242.9 | -940.3 | -881.6 |
| Depreciation and write downs of tangible and | ||||
| intangible fixed assets | -18.2 | -15.2 | -65.3 | -55.9 |
| Other operating costs | -6.1 | -6.2 | -25.2 | -25.7 |
| Share of associated companies result | -2.5 | 0.0 | -1.6 | 0.0 |
| Operating result | 172.5 | 167.0 | 469.1 | 400.2 |
| Financial income | 1.3 | 0.0 | 5.1 | 3.1 |
| Financial expenses | -14.3 | -15.9 | -57.0 | -63.0 |
| Net financial items | -13.1 | -15.9 | -51.9 | -59.9 |
| Result before tax | 159.4 | 151.1 | 417.2 | 340.3 |
| Tax on profit for the period | -12.6 | -23.3 | -63.2 | -63.6 |
| Result for the period | 146.8 | 127.8 | 354.0 | 276.7 |
| Result attributable to: | ||||
| Shareholders of the parent company | 145.6 | 126.3 | 354.0 | 276.1 |
| Non-controlling interest | 1.2 | 1.5 | 0.0 | 0.6 |
| 146.8 | 127.8 | 354.0 | 276.7 | |
| Other comprehensive income | ||||
| Items that can be reclassified into profit or loss | ||||
| Translation differences | 43.5 | 33.4 | -54.2 | 88.9 |
| Cash flow hedge | 2.3 | 2.2 | 2.2 | 5.5 |
| Sum | 45.8 | 35.6 | -52.0 | 94.4 |
| Income tax related to components of other comprehensive income | -0.5 | -0.5 | -0.5 | -1.2 |
| Total other comprehensive income net after tax for the period | 45.3 | 35.1 | -52.5 | 93.2 |
| Total comprehensive income for the period | 192.1 | 162.9 | 301.5 | 369.9 |
| Total comprehensive income attributable to: | ||||
| Shareholders of the parent company | 190.5 | 161.1 | 301.9 | 368.6 |
| Non-controlling interest | 1.5 | 1.8 | -0.4 | 1.3 |
| 192.0 | 162.9 | 301.5 | 369.9 | |
| Earnings per share (SEK) | 2.20 | 1.90 | 5.34 | 4.16 |
| The average number of outstanding shares | 66 343 543 | 66 343 543 | 66 343 543 | 66 343 543 |
Earnings per share and the average number of outstanding shares are the same before and after dilution
CONSOLIDATED CASH FLOW STATEMENT
| 3 months Oct–Dec |
3 months Oct–Dec |
12 months Jan–Dec |
12 months Jan–Dec |
|
|---|---|---|---|---|
| SEK million | 2017 | 2016 | 2017 | 2016 |
| Operating activities Operating result |
172.5 | 167.0 | 469.1 | 400.2 |
| Adjustment for items not included in cash flow | 20.2 | 18.7 | 76.4 | 56.2 |
| Received interest | 1.2 | 0.6 | 3.7 | 3.1 |
| Paid interest | -14.2 | -15.9 | -55.5 | -63.0 |
| Paid income tax | -24.8 | -38.4 | -42.7 | -63.1 |
| Cash flow from operating activities before changes in working capital |
154.9 | 132.0 | 451.0 | 333.4 |
| Changes in working capital | ||||
| Increase/decrease of stock | 129.5 | 151.2 | -208.5 | 54.3 |
| Increase/decrease of current receivables | -78.5 | 31.9 | -119.7 | -66.5 |
| Increase/decrease of current liabilities | -71.4 | -34.2 | 85.0 | 127.7 |
| Cash flow from changes in working capital | -20.4 | 148.9 | -243.2 | 115.5 |
| Cash flow from operating activities | 134.5 | 280.9 | 207.8 | 448.9 |
| Investing activities | ||||
| Investments in tangible fixed assets | -16.9 | -25.5 | -86.9 | -77.1 |
| Sales of tangible fixed assets | 3.8 | 0.0 | 5.5 | 0.9 |
| Investments in intangible fixed assets | -25.5 | -1.1 | -29.4 | -9.9 |
| Acquisition of financial assets | 0.0 | 0.4 | 0.0 | -2.4 |
| Raised long-term receivables | 0.0 | 0.0 | 0.0 | -1.1 |
| Repayment of long-term receivables | 0.9 | 1.7 | 0.2 | 0.0 |
| Cash flow from investing activities | -37.7 | -24.5 | -110.6 | -89.6 |
| Cash flow after investing activities | 96.8 | 256.4 | 97.2 | 359.3 |
| Financial activities | ||||
| Amortization of loan | -54.6 | -213.2 | -16.7 | -247.0 |
| Dividend paid to the shareholders of the parent company | 0.0 | 0.0 | -89.6 | -66.3 |
| Cash flow from financial activities | -54.6 | -213.2 | -106.3 | -313.3 |
| Cash flow for the period | 42.2 | 43.2 | -9.1 | 46.0 |
| Liquid assets at the beginning of the period | 155.6 | 172.9 | 218.9 | 165.5 |
| Translation differences in liquid assets | 4.6 | 2.8 | -7.5 | 7.4 |
| Liquid assets at period-end | 202.4 | 218.9 | 202.4 | 218.9 |
| Liquid assets | ||||
| Cash at bank and in hand | 202.4 | 218.9 | 202.4 | 218.9 |
CONSOLIDATED BALANCE SHEETS
| SEK million | 31 Dec 2017 |
31 Dec 2016 |
|---|---|---|
| ASSETS | ||
| Intangible fixed assets | 1 393.9 | 1 469.4 |
| Tangible fixed assets | 415.5 | 399.2 |
| Shares in associated companies | 53.3 | 55.0 |
| Long-term receivables | 10.2 | 10.0 |
| Deferred tax assets | 91.5 | 114.1 |
| Total non-current assets | 1 964.5 | 2 047.7 |
| Stock | 2 643.4 | 2 496.4 |
| Tax receivables | 21.2 | 27.2 |
| Accounts receivables | 982.8 | 906.2 |
| Prepaid expenses and accrued income | 76.5 | 81.1 |
| Other receivables | 74.5 | 46.7 |
| Liquid assets | 202.4 | 218.9 |
| Total current assets | 4 000.8 | 3 776.5 |
| TOTAL ASSETS | 5 965.3 | 5 824.2 |
| EQUITY | ||
| Share capital | 199.1 | 199.1 |
| Other capital contributions | 219.4 | 219.4 |
| Reserves | 279.4 | 337.4 |
| Retained earnings including result for the year | 2 308.7 | 2 038.7 |
| Equity attributable to shareholders of the parent company | 3 006.6 | 2 794.6 |
| Non-controlling interest | 22.6 | 22.6 |
| Total equity | 3 029.2 | 2 817.2 |
| LIABILITIES | ||
| Long-term interest-bearing liabilities | 1 757.5 | 1 864.5 |
| Pension provisions | 16.5 | 15.1 |
| Other provisions | 2.0 | 6.0 |
| Deferred tax liabilities | 129.9 | 164.2 |
| Total non-current liabilities | 1 905.9 | 2 049.8 |
| Short-term interest-bearing liabilities | 82.2 | 103.3 |
| Accounts payable | 536.7 | 492.5 |
| Current tax liabilities | 53.3 | 32.2 |
| Other liabilities | 120.9 | 111.8 |
| Accrued expenses and prepaid income | 237.1 | 217.4 |
| Total current liabilities | 1 030.2 | 957.2 |
| Total liabilities | 2 936.1 | 3 007.0 |
| TOTAL EQUITY AND LIABILITIES | 5 965.3 | 5 824.2 |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
| Other capital |
Retained earnings incl. result |
Non-controlling | |||||
|---|---|---|---|---|---|---|---|
| SEK million | Share capital contributions | Reserves | for the year | 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 year | 276.1 | 276.1 | 0.6 | 276.7 | |||
| Other comprehensive income | |||||||
| Translation difference | 88.9 | 88.9 | 88.9 | ||||
| Cash flow hedge | 5.5 | 5.5 | 5.5 | ||||
| Reclassification of previous years' cash flow hedge | 0.1 | -0.1 | 0.0 | 0.0 | |||
| Income tax related to components of other comprehensive income | -1.2 | -1.2 | -1.2 | ||||
| Transactions with shareholders | |||||||
| Dividends to shareholders of the parent company | -66.3 | -66.3 | -66.3 | ||||
| Closing balance 2016-12-31 | 199.1 | 219.4 | 337.4 | 2 038.7 | 2 794.6 | 22.6 | 2 817.2 |
| MSEK | Share capital contributions | Other capital |
Reserves | Retained earnings incl. result for the year |
Total | Non-controlling interest |
Total equity |
|---|---|---|---|---|---|---|---|
| Opening balance 2017-01-01 | 199.1 | 219.4 | 337.4 | 2 038.7 | 2 794.6 | 22.6 | 2 817.2 |
| Result for the year | 354.0 | 354.0 | 0.0 | 354.0 | |||
| Other comprehensive income | |||||||
| Translation difference | -54.2 | -54.2 | -54.2 | ||||
| Cash flow hedge | 2.2 | 2.2 | 2.2 | ||||
| Reclassification of previous years' cash flow hedge | -5.5 | 5.5 | 0.0 | 0.0 | |||
| Income tax related to components of other comprehensive income | -0.5 | -0.5 | -0.5 | ||||
| Transactions with shareholders | |||||||
| Dividends to shareholders of the parent company | -89.6 | -89.6 | -89.6 | ||||
| Closing balance 2017-12-31 | 199.1 | 219.4 | 279.4 | 2 308.7 | 3 006.6 | 22.6 | 3 029.2 |
| Year | Year | |
|---|---|---|
| Accumulated translation differences in equity | 2017 | 2016 |
| Accumulated translation differences at the beginning of the year | 338.5 | 249.6 |
| Translation difference in foreign subsidiaries for the year | -54.2 | 88.9 |
| Accumulated translation differences at end of year | 284.3 | 338.5 |
FINANCIAL HIGHLIGHTS
| 12 months Jan-Dec 2017 |
12 months Jan-Dec 2016 |
|
|---|---|---|
| Sales growth, % | 6.9 | 5.5 |
| Number of employees | 2 495 | 2 396 |
| Gross profit margin, % | 46.1 | 46.0 |
| Operating margin before depreciation, % | 9.5 | 8.7 |
| Operating margin, % | 8.4 | 7.6 |
| Profit margin, % | 7.5 | 6.5 |
| Net margin, % | 6.3 | 5.3 |
| Return on shareholders' equity, % | 12.2 | 10.4 |
| Return on capital employed, % | 9.8 | 8.6 |
| Equity ratio, % | 50.8 | 48.4 |
| Net debt to equity ratio, % | 54.1 | 62.1 |
| Net debt in relation to working capital | 57.4 | 64.7 |
| Net debt, SEK million | 1 637.3 | 1 748.9 |
| Interest cover ratio, times | 8.3 | 6.5 |
| Capital turnover, times | 1.0 | 0.9 |
| Stock turnover, times | 1.2 | 1.1 |
| Cash flow before investments, SEK million | 207.8 | 448.9 |
| Net investments, SEK million | -110.6 | -89.6 |
| Cash flow after investments, SEK million | 97.2 | 359.3 |
| Shareholders' equity per share, before and after dilution, SEK | 45.66 | 42.46 |
| Share price as at December 31, SEK | 54.50 | 55.25 |
| Dividend/share, SEK | 1.35 | 1.00 |
| P/E-ratio | 10.20 | 13.30 |
| P/S-ratio | 0.60 | 0.70 |
| Share price/Shareholders' equity | 1.20 | 1.30 |
For definitions of alternative performance measures. please go to p. 31.
www.cottover.se
INCOME STATEMENT
| 12 months | 12 months | |
|---|---|---|
| Jan - Dec | Jan - Dec | |
| SEK million | 2017 | 2016 |
| Net sales | 69.8 | 101.2 |
| Other operating income | 22.4 | 22.1 |
| Total income | 92.2 | 123.3 |
| Operating costs | ||
| External costs | -65.2 | -91.9 |
| Personnel costs | -29.3 | -23.5 |
| Depreciation of tangible and intangible fixed assets | -5.2 | -5.2 |
| Other operating costs | -19.2 | -19.5 |
| Operating result | -26.7 | -16.8 |
| Net income from shares in Group companies | 387.2 | 420.4 |
| Write-downs of financial fixed assets | -76.5 | -2.4 |
| Financial income | 66.5 | 66.6 |
| Financial expenses | -51.7 | -61.6 |
| Net financial items | 325.6 | 423.0 |
| Result before appropriations and tax | 298.9 | 406.2 |
| Appropriations | 61.0 | 33.9 |
| Tax on result for the year | -9.9 | -5.0 |
| Result for the year | 350.0 | 435.1 |
Total comprehensive income for the year correspond with result for the year
CASH FLOW STATEMENT
| SEK million | 12 months Jan - Dec 2017 |
12 months Jan - Dec 2016 |
|---|---|---|
| Current operations | ||
| Operating result | -26.7 | -16.8 |
| Adjustment for items not included in cash flow | 5.2 | 5.2 |
| Received dividends | 42.7 | 0.0 |
| Received interest | 66.5 | 66.6 |
| Paid interest | -51.7 | -61.6 |
| Paid income tax | -5.8 | -2.8 |
| Cash flow from current operations before changes in working capital | 30.2 | -9.4 |
| Changes in working capital | ||
| Decrease/increase in stock | 0.0 | 0.8 |
| Decrease/increase in current receivables | 298.7 | 458.9 |
| Decrease/increase on short-term liabilities | -116.2 | -147.3 |
| Cash flow from changes in working capital | 182.5 | 312.4 |
| Cash flow from operations | 212.8 | 303.0 |
| Investing activities | ||
| Shareholders contribution to subsidiaries | -56.4 | -19.0 |
| Investments in tangible fixed assets | -0.7 | -2.9 |
| Investments in intangible fixed assets | -6.4 | -0.2 |
| Acquisition of shares | 0.0 | -2.2 |
| Repayment of share capital from subsidiaries | 0.0 | 30.2 |
| Cash-flow from investing activities | -63.5 | 5.9 |
| Cash-flow after investing activities | 149.3 | 308.9 |
| Financial activities | ||
| Amortization of loan | -62.9 | -241.3 |
| Dividend paid to shareholders of the parent company | -89.6 | -66.3 |
| Cash-flow from financial activities | -152.5 | -307.6 |
| Cash flow for the year | -3.2 | 1.3 |
| Liquid assets at the beginning of the year | 4.5 | 3.2 |
| Liquid assets at year-end | 1.3 | 4.5 |
| Liquid assets | ||
| Cash at bank and in hand | 1.3 | 4.5 |
BALANCE SHEETS
| 31 Dec | 31 Dec | |
|---|---|---|
| SEK million | 2017 | 2016 |
| ASSETS | ||
| Fixed assets | ||
| Intangible fixed assets | 14.2 | 11.7 |
| Tangible fixed assets | 4.1 | 4.8 |
| Financial assets | ||
| Shares in Group companies | 1 517.7 | 1 510.2 |
| Shares in associated companies | 54.6 | 54.6 |
| Receivables on Group companies | 903.1 | 998.0 |
| Other long-term receivables | 2.4 | 2.4 |
| Total financial assets | 2 477.8 | 2 565.2 |
| Total fixed assets | 2 496.1 | 2 581.7 |
| Current assets | ||
| Current receivables | ||
| Stock | 0.0 | 0.0 |
| Accounts receivable | 0.0 | 0.6 |
| Receivables on Group companies | 1 283.2 | 1 145.9 |
| Tax receivables | 0.0 | 0.2 |
| Other receivables | 25.2 | 8.4 |
| Prepaid expenses and accrued income | 7.6 | 11.8 |
| Total current receivables | 1 316.0 | 1 166.9 |
| Cash at bank and in hand | 1.3 | 4.5 |
| Total current assets | 1 317.3 | 1 171.4 |
| TOTAL ASSETS | 3 813.5 | 3 753.1 |
| EQUITY AND LIABILITIES | ||
| Equity | ||
| Restricted equity | ||
| Share capital | 199.1 | 199.1 |
| Restricted reserves | 249.4 | 249.4 |
| 448.5 | 448.5 | |
| Unrestricted equity | ||
| Retained earnings | 997.3 | 651.8 |
| Share premium reserve | 48.0 | 48.0 |
| Result for the year | 350.0 | 435.1 |
| 1 395.3 | 1 134.9 | |
| Total equity | 1 843.8 | 1 583.4 |
| Untaxed reserves | 25.4 | 6.8 |
| Non-current liabilities | ||
| Overdraft facilities | 1 308.9 | 1 293.3 |
| Bankloan | 197.6 | 371.0 |
| Total non-current liabilities | 1 506.5 | 1 664.3 |
| Current liabilities | ||
| Short-term interest-bearing liabilities | 61.3 | 66.2 |
| Accounts payable | 217.1 | 163.9 |
| Liabilities to Group companies | 146.1 | 256.9 |
| Current tax liability | 5.7 | 1.8 |
| Other liabilities | 1.1 | 2.4 |
| Accrued expenses and prepaid income | 6.4 | 7.4 |
| Total current liabilities | 437.8 | 498.6 |
| TOTAL EQUITY AND LIABILITIES | 3 813.5 | 3 753.1 |
CHANGES IN EQUITY
| SEK million | Share capital | Restricted reserves |
earnings | Retained Share premium reserve |
Result for the year |
Total equity |
|---|---|---|---|---|---|---|
| Opening balance 2016-01-01 | 199.1 | 249.4 | 748.8 | 48.0 | -30.7 | 1 214.6 |
| Transfer accordning to Annual General Meeting | -30.7 | 30.7 | 0.0 | |||
| Result for the year | 435.1 | 435.1 | ||||
| Total change in net assets excluding transactions with shareholders |
0.0 | 0.0 | 0.0 | 0.0 | 435.1 | 435.1 |
| Dividends | -66.3 | -66.3 | ||||
| Closing balance 2016-12-31 | 199.1 | 249.4 | 651.8 | 48.0 | 435.1 | 1 583.4 |
| SEK million | Share capital | Restricted reserves |
earnings | Retained Share premium reserve |
Result for the year |
Total equity |
|---|---|---|---|---|---|---|
| Opening balance 2017-01-01 | 199.1 | 249.4 | 651.8 | 48.0 | 435.1 | 1 583.4 |
| Transfer accordning to Annual General Meeting | 435.1 | -435.1 | 0.0 | |||
| Result for the year | 350.0 | 350.0 | ||||
| Total change in net assets excluding transactions with shareholders |
0.0 | 0.0 | 0.0 | 0.0 | 350.0 | 350.0 |
| Dividends | -89.6 | -89.6 | ||||
| Closing balance 2017-12-31 | 199.1 | 249.4 | 997.3 | 48.0 | 350.0 | 1 843.8 |
NOTES
ACCOUNTING PRINCIPLES
This report is prepared in accordance with IAS 34 Interim Financial Reporting and the Annual Accounts Act.
The year-end report for the Parent Company has been prepared according the Annual Accounts Act as well as RFR 2 "Reporting for Legal Entities".
Applied accounting principles are in accordance with the Annual Report for 2016.
No new or revised IFRS, which came into force in 2017, had a significant impact on the Group.
NEW ACCOUNTING PRINCIPLES FOR 2018
As from January 1, 2018, IFRS 15 Revenue from contracts with customers and IFRS 9 Financial instruments will become effective.
IFRS 9 "Financial instruments" have a limited impact on the Group and will only impact the calculation of expected losses on accounts receivable. The transition will mean that credit losses are reported earlier, which will have an immaterial negative effect on equity at the time of transition.
IFRS 15 "Revenue from Contracts with Customers" is implemented with the Modified Retrospective Approach, which means that only contracts that have not yet been completed by January 1, 2018 is recalculated at the date of transition to the new standard. The implementation will have a certain impact on revenue recognition for contracts with repurchase agreements, where the revenue recognition will be postponed. However, only few contracts have been identified within the group that are completed after January 1, 2018 which means that the transition effect will be an immaterial negative effect on equity at the time of transition.
NEW ACCOUNTING PRINCIPLES FOR 2019
IFRS 16 "Leases" will replace IAS 17 "Leases" as of January 1, 2019. The management believes that the standard will impact the Group's reported assets and liabilities attributable to, inter alia, the Group's lease agreements, but has not yet quantified the effects thereof. The Group evaluates the full impact of IFRS 16.
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 impact 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 2016, note 17, p.98–103. 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.
NET SALES AND EBITDA PER OPERATING SEGMENT
| SEK million | 3 months Okt–Dec |
3 months Okt–Dec |
12 months Jan–Dec |
12 months Jan–Dec |
|---|---|---|---|---|
| Corporate Promo | 2017 | 2016 | 2017 | 2016 |
| Net sales | 828.8 | 779.9 | 2 648.7 | 2 388.6 |
| EBITDA | 110.6 | 109.9 | 289.7 | 250.8 |
| Sport & Leisure | ||||
| Net sales | 596.8 | 570.6 | 2 311.5 | 2 260.8 |
| EBITDA | 69.7 | 55.0 | 230.3 | 194.5 |
| Gifts & Home Furnishings | ||||
| Net sales | 204.7 | 198.1 | 637.1 | 587.7 |
| EBITDA | 10.4 | 17.3 | 14.4 | 10.8 |
| Total net sales | 1 630.3 | 1 548.6 | 5 597.3 | 5 237.1 |
| Total EBITDA | 190.7 | 182.2 | 534.4 | 456.1 |
| Total EBITDA | 190.7 | 182.2 | 534.4 | 456.1 |
| Depreciation and write down | -18.2 | -15.2 | -65.3 | -55.9 |
| Net financial items | -13.1 | -15.9 | -51.9 | -59.9 |
| Result before tax | 159.4 | 151.1 | 417.2 | 340.3 |
ASSETS AND LIABILITIES PER OPERATING SEGMENTS
| SEK million | Total | Fixed | Deferred | Depreciation | Total | |
|---|---|---|---|---|---|---|
| assets | assets* | tax assets | Investments | and write-downs | liabilities | |
| 31 Dec 2017 | ||||||
| Corporate Promo | 3 074.0 | 585.0 | 35.2 | -43.8 | -32.6 | 1 902.3 |
| Sport & Leisure | 2 272.0 | 1 020.0 | 44.4 | -42.4 | -28.0 | 589.5 |
| Gifts & Home Furnishings | 619.3 | 204.4 | 11.9 | -24.4 | -4.8 | 444.3 |
| Total | 5 965.3 | 1 809.5 | 91.5 | -110.6 | -65.3 | 2 936.1 |
| 31 Dec 2016 | ||||||
| Corporate Promo | 2 988.7 | 629.2 | 36.3 | -16.6 | -28.5 | 2 031.7 |
| Sport & Leisure | 2 261.9 | 1 045.9 | 62.6 | -33.3 | -23.3 | 582.9 |
| Gifts & Home Furnishings | 573.6 | 193.5 | 15.2 | -39.7 | -4.1 | 392.4 |
| Total | 5 824.2 | 1 868.6 | 114.1 | -89.6 | -55.9 | 3 007.0 |
* Fixed assets classified as financial assets are not included
NET SALES PER GEOGRAPHIC AREA
| 3 months | 3 months | |||||
|---|---|---|---|---|---|---|
| SEK million | Oct–Dec 2017 |
Part of net sales |
Oct–Dec 2016 |
Part of net sales |
Change SEK million |
Change % |
| Sweden | 449.3 | 28% | 419.0 | 27% | 30.3 | 7% |
| USA | 370.5 | 23% | 373.1 | 24% | -2.6 | -1% |
| Nordic countries excluding Sweden | 184.4 | 11% | 186.9 | 12% | -2.5 | -1% |
| Central Europe | 323.2 | 20% | 306.3 | 20% | 16.9 | 6% |
| Southern Europe | 177.3 | 11% | 167.3 | 11% | 10.0 | 6% |
| Other countries | 125.6 | 8% | 96.0 | 6% | 29.6 | 31% |
| Total | 1 630.3 | 100% | 1 548.6 | 100% | 81.7 | 5% |
| 12 months | 12 months | |||||
| SEK million | Jan–Dec 2017 |
Part of net sales |
Jan–Dec 2016 |
Part of net sales |
Change SEK million |
Change % |
| Sweden | 1 317.0 | 24% | 1 236.4 | 24% | 80.6 | 7% |
| USA | 1 400.5 | 25% | 1 381.1 | 26% | 19.4 | 1% |
| Nordic countries excluding Sweden | 760.5 | 14% | 739.5 | 14% | 21.0 | 3% |
| Central Europe | 1 062.5 | 19% | 996.8 | 19% | 65.7 | 7% |
| Southern Europe | 577.6 | 10% | 524.4 | 10% | 53.2 | 10% |
| Other countries | 479.1 | 9% | 358.9 | 7% | 120.2 | 33% |
| Total | 5 597.3 | 100% | 5 237.1 | 100% | 360.2 | 7% |
FIXED ASSETS AND DEFERRED TAX ASSETS PER AREA
| SEK million | 31 Dec 2017 Fixed assets* |
Deferred tax assets |
31 Dec 2016 Fixed assets* |
Deferred tax assets |
|---|---|---|---|---|
| Sweden | 496.2 | 14.3 | 477.9 | 15.9 |
| USA | 916.0 | 39.4 | 996.1 | 59.2 |
| Nordic countries excluding Sweden | 34.2 | 4.1 | 27.7 | 8.4 |
| Central Europe | 208.5 | 23.2 | 202.5 | 22.7 |
| Southern Europe | 94.4 | 4.9 | 158.8 | 2.8 |
| Other countries | 60.1 | 5.6 | 5.6 | 5.1 |
| Total | 1 809.4 | 91.5 | 1 868.6 | 114.1 |
26
* Fixed assets classified as financial assets are not included
FINANCIAL INSTRUMENTS
GROUP
| 31 Dec | 31 Dec | |
|---|---|---|
| SEK million | 2017 | 2016 |
| Assets at fair value (derivaties) | 2.5 | 6.4 |
| Assets at amortised cost | 1 268.6 | 1 178.5 |
| Total financial assets | 1 271.1 | 1 184.9 |
| Liabilities at fair value (derivaties) | 1.3 | 5.0 |
| Liabilities at amortised cost | 2 715.1 | 2 780.5 |
| Total financial liabilites | 2 716.4 | 2 785.5 |
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.
PLEDGED ASSETS AND CONTINGENT LIABILITIES
GROUP
| Pledged assets | 31 Dec | 31 Dec |
|---|---|---|
| SEK million | 2017 | 2016 |
| Floating charges | 543.5 | 663.5 |
| Property mortgages | 183.2 | 147.6 |
| Net assets in subsidiaries | 2 152.0 | 2323.0 |
| Stocks and accounts receivable | 465.9 | 368.1 |
| Total | 3 344.7 | 3 502.2 |
| Contingent liabilities | 31 Dec | 31 Dec |
| SEK million | 2017 | 2016 |
| Duty guarantee | 16.3 | 15.6 |
| Rent guarantee | 104.8 | 0.0 |
| PRI | 2.0 | 2.0 |
| Other guarantees | 1.9 | 0.4 |
| Guarantees for associated companies | 6.0 | 6.0 |
| Total | 131.0 | 24.1 |
PARENT COMPANY
| Pledged assets | 31 Dec | 31 Dec |
|---|---|---|
| SEK million | 2017 | 2016 |
| Floating charges | 30.0 | 30.0 |
| Shares in subsidiaries | 1 152.3 | 1183.8 |
| Shares in related companies | 8.3 | 8.3 |
| Total | 1 190.6 | 1 222.1 |
| Contingent liabilities | 31 Dec | 31 Dec |
| SEK million | 2017 | 2016 |
| Guarantees for subsidiaries | 671.5 | 471.2 |
| Total | 671.5 | 471.2 |
QUARTERLY CONSOLIDATED INCOME STATEMENTS
| SEK million | 2017 | 2016 | 2015 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Quarter | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 |
| Net sales | 1 264.2 | 1 371.7 | 1 331.1 | 1 630.3 | 1 130.8 | 1 257.3 | 1 300.4 | 1 548.6 | 1 096.1 | 1 191.3 | 1 272.0 | 1 405.3 |
| Goods for resale | -692.8 | -745.7 | -692.8 | -886.8 | -616.3 | -685.0 | -693.3 | -832.3 | -595.7 | -659.1 | -697.8 | -773.5 |
| Gross profit | 571.4 | 626.0 | 638.2 | 743.5 | 514.5 | 572.3 | 607.1 | 716.3 | 500.4 | 532.2 | 574.2 | 631.8 |
| Gross profit % | 45.2 | 45.6 | 47.9 | 45.6 | 45.5 | 45.5 | 46.7 | 46.3 | 45.7 | 44.7 | 45.1 | 45.0 |
| Other operating income | 10.9 | 7.0 | 10.4 | 22.9 | 9.4 | 12.2 | 14.5 | 14.9 | 9.3 | 7.8 | 22.1 | 8.0 |
| External costs | -288.6 | -270.1 | -265.4 | -304.9 | -279.8 | -249.6 | -268.5 | -300.1 | -270.1 | -258.9 | -273.0 | -284.0 |
| Personnel costs | -228.1 | -233.0 | -217.1 | -262.2 | -217.4 | -213.0 | -208.3 | -242.9 | -205.3 | -212.0 | -202.8 | -231.5 |
| Depreciations and write-downs | -15.0 | -15.7 | -16.4 | -18.2 | -13.2 | -13.4 | -14.1 | -15.2 | -14.9 | -14.3 | -13.7 | -14.2 |
| Other operating costs | -7.8 | -3.9 | -7.4 | -6.1 | -5.6 | -8.1 | -5.8 | -6.2 | -18.5 | -6.7 | -9.3 | -1.7 |
| Share of associated companies' result | 0.4 | 0.2 | 0.6 | -2.5 | 0.2 | -0.2 | 0.0 | 0.2 | 0.9 | 0.6 | -1.2 | 0.0 |
| Operating result | 43.2 | 110.5 | 143.0 | 172.5 | 8.1 | 100.2 | 124.9 | 167.0 | 1.8 | 48.7 | 96.3 | 108.4 |
| Financial income | 1.3 | 1.0 | 1.6 | 1.3 | 1.2 | 0.9 | 1.0 | 0.0 | 1.9 | 3.2 | 1.4 | 0.7 |
| Financial expenses | -13.8 | -14.1 | -14.8 | -14.3 | -15.0 | -15.7 | -16.4 | -15.9 | -17.0 | -16.9 | -19.0 | -28.6 |
| Result before tax | 30.7 | 97.4 | 129.8 | 159.4 | -5.7 | 85.4 | 109.5 | 151.1 | -13.3 | 35.0 | 78.7 | 80.5 |
| Tax | -5.8 | -20.3 | -24.5 | -12.6 | 1.1 | -18.4 | -23.0 | -23.3 | 2.4 | -7.2 | -13.6 | -17.2 |
| Result for the period | 24.9 | 77.0 | 105.3 | 146.8 | -4.6 | 67.0 | 86.5 | 127.8 | -10.9 | 27.8 | 65.1 | 63.3 |
| Total other comprehensive | ||||||||||||
| income net after tax for the period | -12.2 | -42.4 | -43.3 | 45.3 | -15.5 | 47.2 | 26.4 | 35.1 | 101.7 | -43.9 | 7.1 | -36.9 |
| Total comprehensive income for | 12.7 | 34.7 | 62.0 | 192.1 | -20.1 | 114.2 | 112.9 | 162.9 | 90.8 | -16.1 | 72.2 | 26.4 |
| the period | ||||||||||||
| Earnings per share | ||||||||||||
| before dilution (SEK) | 0.38 | 1.16 | 1.60 | 2.20 | -0.06 | 1.01 | 1.31 | 1.90 | -0.17 | 0.41 | 0.98 | 0.94 |
| after dilution (SEK) | 0.38 | 1.16 | 1.60 | 2.20 | -0.06 | 1.01 | 1.31 | 1.90 | -0.17 | 0.41 | 0.98 | 0.94 |
| The average number of | ||||||||||||
| outstanding shares before dilution | 66 343 543 66 343 543 66 343 543 66 343 543 66 343 543 66 343 543 66 343 543 66 343 543 66 343 543 66 343 543 66 343 543 66 343 543 | |||||||||||
| The average number of outstanding shares after dilution |
66 343 543 66 343 543 66 343 543 66 343 543 66 343 543 66 343 543 66 343 543 66 343 543 66 343 543 66 343 543 66 343 543 66 343 543 | |||||||||||
| SEK million | 2014 | 2013 | 2012 | |||||||||
| Quarter | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 |
| Net sales | 908.5 | 983.3 | 1 122.3 | 1 259.5 | 877.3 | 995.3 | 1 035.0 | 1 139.8 | 975.4 | 1 074.9 | 1 053.8 | 1 176.1 |
| Goods for resale | -497.7 | -531.8 | -621.9 | -669.6 | -456.8 | -529.1 | -564.9 | -626.2 | -531.2 | -580.0 | -688.9 | -615.7 |
| Gross profit | 410.8 | 451.5 | 500.4 | 589.9 | 420.5 | 466.2 | 470.1 | 513.6 | 444.2 | 494.9 | 364.9 | 560.4 |
| Gross profit % | 45.2 | 45.9 | 44.6 | 46.8 | 47.9 | 46.8 | 45.4 | 45.1 | 45.5 | 46.0 | 34.6 | 47.6 |
| Other operating income | 7.1 | 5.4 | 5.1 | 10.1 | 8.6 | 7.7 | 7.7 | 9.3 | 8.5 | 9.5 | 7.4 | 9.7 |
| External costs | -229.5 | -216.9 | -216.6 | -260.5 | -222.9 | -209.7 | -205.4 | -215.2 | -247.2 | -238.3 | -245.5 | -223.0 |
| Personnel costs | -179.5 | -176.7 | -174.8 | -204.7 | -174.7 | -177.9 | -162.5 | -182.7 | -186.3 | -189.2 | -208.1 | -181.9 |
| Depreciations and write-downs | -12.4 | -13.2 | -14.4 | -14.2 | -11.8 | -14.6 | -13.9 | -11.9 | -11.9 | -13.0 | -53.1 | -11.9 |
| Other operating costs | -2.4 | -2.6 | -4.1 | -7.4 | -3.8 | -1.9 | -2.9 | -2.3 | -3.8 | -5.9 | -5.9 | -3.1 |
| Share of associated companies' result | 0.0 | 0.5 | 0.1 | -1.0 | 0.2 | 0.4 | -0.3 | 0.8 | -0.9 | 0.7 | 0.4 | 1.5 |
| Operating result | -5.9 | 48.0 | 95.7 | 112.2 | 16.1 | 70.2 | 92.8 | 111.6 | 2.6 | 58.7 | -139.9 | 151.7 |
| Financial income | 1.4 | 1.2 | 1.1 | 1.2 | 1.8 | 1.4 | 1.8 | 1.8 | 1.4 | 0.5 | 2.2 | 0.9 |
| Financial expenses | -9.7 | -10.6 | -12.1 | -14.5 | -17.8 | -16.1 | -14.9 | -14.2 | -15.4 | -13.0 | -16.1 | -18.7 |
| Result before tax | -14.2 | 38.6 | 84.7 | 98.9 | 0.1 | 55.5 | 79.7 | 99.2 | -11.4 | 46.2 | -153.8 | 133.9 |
| Tax | 2.9 | -9.2 | -17.8 | -7.0 | 0.0 | -16.6 | -21.9 | -8.9 | 3.2 | -12.9 | 33.8 | -33.2 |
| Result for the period | -11.3 | 29.4 | 66.9 | 91.9 | 0.1 | 38.9 | 57.8 | 90.3 | -8.2 | 33.3 | -120.0 | 100.7 |
| Total other comprehensive | ||||||||||||
| income net after tax for the period | 1.4 | 53.5 | 53.1 | 91.2 | -38.9 | 57.8 | -31.5 | 36.6 | -24.1 | 21.9 | -95.6 | 21.8 |
| Total comprehensive income for | -9.9 | 82.9 | 120.0 | 183.1 | -38.8 | 96.7 | 26.3 | 126.9 | -32.3 | 55.2 | -215.6 | 122.5 |
| the period | ||||||||||||
| Earnings per share | ||||||||||||
| before dilution (SEK) | 1.01 | 1.38 | 0.00 | 0.60 | 0.87 | 1.35 | -0.13 | 0.50 | -1.81 | 1.51 | ||
| after dilution (SEK) | -0.17 | 0.44 | ||||||||||
| -0.17 | 0.44 | 1.01 | 1.38 | 0.00 | 0.60 | 0.87 | 1.35 | -0.12 | 0.50 | -1.81 | 1.51 | |
| The average number of | ||||||||||||
| outstanding shares before dilution The average number of outstanding shares after dilution |
66 343 543 66 343 543 66 343 543 66 343 543 66 343 543 66 343 543 66 343 543 66 343 543 66 343 543 66 343 543 66 343 543 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 67 343 543 66 343 543 66 343 543 66 343 543 |
QUARTERLY CONSOLIDATED CASH FLOW STATEMENTS
| SEK million | 2017 | 2016 | 2015 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Quarter | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 |
| Cash flow from operating activities | ||||||||||||
| before changes in working capital | 37.8 | 105.0 | 153.3 | 154.9 | -4.2 | 89.4 | 116.2 | 132.0 | -9.2 | 54.6 | 73.8 | 90.6 |
| Increase/decrease of stock | -73.9 | -63.7 -200.4 | 129.5 | -49.7 | 62.4 | -109.6 | 151.2 -200.6 | -88.5 | -132.1 | 175.6 | ||
| Increase/decrease of current receivables | 113.0 | -40.4 | -113.8 | -78.5 | 85.3 | -76.9 -106.8 | 31.9 | 129.5 | -23.0 | -117.2 | 85.2 | |
| Increase/decrease of current liabilities | -43.3 | 49.2 | 150.5 | -71.4 | 32.5 | 13.7 | 115.7 | -34.2 | 51.4 | 1.0 | 14.3 | 24.1 |
| Changes in working capital | -4.2 | -54.9 -163.7 | -20.4 | 68.1 | -0.8 -100.7 | 148.9 | -19.7 -110.5 -235.0 | 284.9 | ||||
| Cash flow from operating activities | 33.6 | 50.1 | -10.4 | 134.5 | 63.9 | 88.6 | 15.5 | 280.9 | -28.9 | -55.9 -161.2 | 375.5 | |
| Investing activities | -19.9 | -16.0 | -36.9 | -37.7 | -16.3 | -21.2 | -25.8 | -26.3 | -26.7 | -40.7 | -15.0 | -24.1 |
| Cash flow after investing activities | 13.7 | 34.1 | -47.3 | 96.8 | 47.6 | 67.4 | -10.3 | 254.6 | -55.6 | -96.6 -176.2 | 351.4 | |
| Loan raised | 0.0 | 47.1 | 30.2 | 0.0 | 0.0 | 16.1 | 22.9 | 0.0 | 0.0 | 179.1 | 173.9 | 0.0 |
| Amortization of loan | -39.4 | 0.0 | 0.0 | -54.6 | -74.6 | 0.0 | 0.0 | -211.4 | -13.9 | 0.0 | 0.0 | -349.1 |
| 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 | -1.0 | 0.0 |
| Dividend paid to the shareholders of | ||||||||||||
| the parent company | 0.0 | -89.6 | 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 | -39.4 | -42.5 | 30.2 | -54.6 | -74.6 | -50.2 | 22.9 -211.4 | -13.9 | 112.8 | 172.9 -349.1 | ||
| Cash flow for the period | -25.7 | -8.4 | -17.1 | 42.2 | -27.0 | 17.2 | 12.6 | 43.2 | -69.5 | 16.2 | -3.3 | 2.3 |
| Liquid assets at the beginning of the period | 218.9 | 191.9 | 178.9 | 155.6 | 165.5 | 136.3 | 157.1 | 172.9 | 216.0 | 159.0 | 169.5 | 167.7 |
| 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 | -1.3 | -4.6 | -6.2 | 4.6 | -2.2 | 3.6 | 3.2 | 2.8 | 12.5 | -5.7 | 1.5 | -4.5 |
| Liquid assets at period-end | 191.9 | 178.9 | 155.6 | 202.4 | 136.3 | 157.1 | 172.9 | 218.9 | 159.0 | 169.5 | 167.7 | 165.5 |
| SEK million | 2014 | 2013 | 2012 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Quarter | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 |
| Cash flow from operating activities | ||||||||||||
| before changes in working capital | -7.1 | 38.8 | 93.1 | 129.1 | -18.7 | 55.3 | 86.7 | 103.3 | -12.8 | 43.8 | 66.7 | 83.7 |
| Increase/decrease of stock | -50.6 | -86.8 -309.6 | -126.1 | 27.8 | 28.2 | -3.1 | 145.3 | -44.9 | 34.3 | -1.6 | 205.8 | |
| Increase/decrease of current receivables | 172.3 | -28.0 | -124.2 | -40.7 | 131.1 | -44.0 | -84.8 | -32.7 | 77.1 | 19.6 | -69.9 | -14.1 |
| Increase/decrease of current liabilities | -25.8 | 48.3 | 50.0 | -16.9 | -34.1 | 2.3 | -1.3 | -2.8 | 25.6 | 35.1 | -108.0 | 0.7 |
| Changes in working capital | 95.9 | -66.5 -383.8 -183.7 | 124.8 | -13.5 | -89.2 | 109.8 | 57.8 | 89.0 -179.5 | 192.4 | |||
| Cash flow from operating activities | 88.8 | -27.7 -290.7 | -54.6 | 106.1 | 41.8 | -2.5 | 213.1 | 45.0 | 132.8 -112.8 | 276.1 | ||
| Investing activities | -11.3 | -17.5 | -12.4 | -29.4 | -8.8 | -8.8 | -21.2 | -7.2 | -10.8 | -15.1 | -17.2 | -7.3 |
| Cash flow after investing activities | 77.5 | -45.2 -303.1 | -84.0 | 97.3 | 33.0 | -23.7 | 205.9 | 34.2 | 117.7 -130.0 | 268.8 | ||
| Loan raised | 0.0 | 129.6 | 289.8 | 121.3 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 123.0 | 0.0 |
| Amortization of loan | -109.8 | 0.0 | 0.0 | 0.0 | -157.3 | 24.2 | -12.0 -146.7 | -79.0 | -5.1 | 0.0 | -196.1 | |
| 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 | -109.8 | 63.3 | 289.8 | 121.3 | -157.3 | -42.1 | -12.0 -146.7 | -79.0 | -71.4 | 123.0 -196.1 | ||
| Cash flow for the period | -32.3 | 18.1 | -13.3 | 37.3 | -60.0 | -9.1 | -35.7 | 59.2 | -44.8 | 46.3 | -7.0 | 72.7 |
| Liquid assets at the beginning of the period | 185.1 | 153.1 | 176.0 | 169.6 | 229.7 | 168.0 | 163.0 | 123.7 | 117.7 | 70.4 | 119.5 | 107.6 |
| 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 | 0.0 | 0.0 | 48.8 |
| Translation differences in liquid assets | 0.3 | 4.8 | 6.9 | 9.1 | -1.7 | 4.1 | -3.6 | 2.2 | -2.5 | 2.8 | -4.9 | 0.6 |
| Liquid assets at period-end | 153.1 | 176.0 | 169.6 | 216.0 | 168.0 | 163.0 | 123.7 | 185.1 | 70.4 | 119.5 | 107.6 | 229.7 |
SHARE NEW WAVE GROUP'S
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 quota value of SEK 3,00. The shares carry identical rights to the Company's assets and profits. Each Series A share is entitled to ten votes and each Series B is entitled to one vote. New Wave's Series B shares are listed at OMX Stockholm Mid Cap.
DIVIDEND POLICY
The Board's aim is that the dividend will account for 40 % of the Group's result after taxes over a business cycle.
SHAREHOLDERS
The number of shareholders amount to 14.509 (11.655) on December 31, 2017. Institutional investors accounted for 47 % of the capital and 13 % of the votes. At the same time the ten largest shareholders held 63 % of the capital and 90 % of the votes. Non-Swedish shareholders accounted for 14 % of the capital and 4 % of the votes.
NEW WAVE GROUP'S TEN MAJOR SHAREHOLDERS 2017-12-31
| Shareholder | Number of shares | Number of votes | Capital % | Votes % |
|---|---|---|---|---|
| Torsten Jansson through companies | 21 653 277 | 199 022 397 | 32.6 | 81.7 |
| Avanza Pension | 4 698 534 | 4 698 534 | 7.1 | 1.9 |
| Fjärde AP-Fonden | 3 842 993 | 3 842 993 | 5.8 | 1.6 |
| Unionen | 2 400 000 | 2 400 000 | 3.6 | 1.0 |
| City Bank New York | 2 087 911 | 2 087 911 | 3.1 | 0.9 |
| Svolder AB | 1 987 997 | 1 987 997 | 3.0 | 0.8 |
| Spiltan Aktiefonder | 1 622 463 | 1 622 463 | 2.4 | 0.7 |
| Hans Diding | 1 356 300 | 1 356 300 | 2.0 | 0.6 |
| State Street Bank | 1 183 866 | 1 183 866 | 1.8 | 0.5 |
| Lannebo fonder | 1 138 540 | 1 138 540 | 1.7 | 0.5 |
| Total | 41 971 881 | 219 341 001 | 63.3 | 90.0 |
SHAREHOLDER DISTRIBUTION IN NEW WAVE GROUP 2017-12-31
| Number of shares | Number of votes | Capital % | Votes % | |
|---|---|---|---|---|
| Sweden | 56 950 511 | 234 319 631 | 85.8 | 96.1 |
| Shareholders outside Sweden, excl.USA | 4 726 935 | 4 726 935 | 7.1 | 1.9 |
| USA | 4 666 097 | 4 666 097 | 7.0 | 1.9 |
| Total | 66 343 543 | 243 712 663 | 100.0 | 100.0 |
DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
Guidelines concerning non-IFRS performance measures for companies with securities listed on a regulated market in the EU have been issued by ESMA (The European Securities and Markets Authority). These guidelines are to be applied to alternative performance measures (APM) applied as of July 3, 2016. The Annual Report refers to a number of non-IFRS performance measures used to assist investors and company management to analyze the company's operations. Because not all companies calculate the financial measures in the same way, these are not always comparable to measures used by other companies. These financial measures should not be seen as a substitute for measures defined under IFRS. A description of the various non-IFRS performance measures used as a complement to the financial information reported according to IFRS and how they are used, is presented below.
| PERFORMANCE MEASURES | DEFINITION/CALCULATION | PURPOSE |
|---|---|---|
| GROSS PROFIT MARGIN | Net sales less goods for resale in percent of net sales. | The measure is used for showing the company's margins before the effect of costs such as selling and administrative costs. |
| OPERATING MARGIN | Operating result as a percentage of the period's net sales. |
The measure is used to estimate operating profability. |
| PROFIT MARGIN | Result before tax as a percentage of the period's net sales. |
The measure enables the profitability to be compared across locations where corporate taxes differ. |
| NET MARGIN | Result after tax as a percentage of the period's net sales. |
The measure is used to show net earnings in relation to income |
| EBITDA | Operating result before depreciation/amortization and impairment of non-current assets. |
The measure is used to show profit (loss) from operating activities, regardless of depreciation/ amortization. |
| NET FINANCIAL ITEMS | The total of interest incomes, interest expenses, exchange differences on borrowings and cash equivalents in foreign currencies, other financial income and other financial expences. |
The measure reflects the company's total costs of the external financing. |
| RETURN MEASURES | DEFINITION/CALCULATION | PURPOSE |
| RETURN ON CAPITAL EMPLOYED |
Operating result plus finacial income as a percentage of average capital employed. The average capital employed is calculated by taking the capital employed per period end and the capital employed by period end of the Comparative period |
The measure is used to analyze profitability by putting result in relation to the capital needed to operate the business. |
| in the previous year divided by two. | ||
| RETURN ON EQUITY | Result for the period according to the income statement as a percentage of average equity. |
The measure is used to analyze profitability over time, given the resources available to the parent company's owners. |
| For the parent company it is calculated as result after tax as a percentage of average adjusted equity. In adjusted equity, 78 % of untaxed reserves are included. |
| CAPITAL MEASURES | DEFINITION/CALCULATION | PURPOSE | |||
|---|---|---|---|---|---|
| EQUITY | The equity reported in the consolidated balance sheet consists of taxed equity increased by the equity portion of the Group's untaxed reserves and noncon trolling interests. Deferred tax liability in untaxed reserves has been calculated at a 22.0 % rate for Swedish companies and at the applicable tax rate for foreign companies in each country outside Sweden. |
The measure is the difference between the Group's assets and liabilities, which corresponds to the Group's equity contributed by owners and the Group's accumulated profits. |
|||
| CAPITAL EMLOYED | Total assets less provisions and non-interest bearing liabilities, which consist of accounts payable, current tax liabilities, other liabilities and accrued expenses and prepaid income. |
The measure indicates how much capital is needed to run the business, regardless of type of financing (borrowed or equity). |
|||
| WORKING CAPITAL | Total current assets, excluding liquid assets, less shortterm non-interest bearing liabilities. |
The measure is used to show how much capital is needed to finance day to day operations. |
|||
| NET DEBT | Interest-bearing debt (current and non-current) less cash and cash equivalents. |
The measure shows financing from borrowings. | |||
| STOCK TURNOVER | Goods for resale in the income statement divided by average stock. |
The measure is used to show the inventory's turnover per year. |
|||
| NET DEBT TO EQUITY RATIO | Net debt as a percentage of equity. | The measure helps show financial risk and is useful for management to monitor the level of the company's indebtedness. |
|||
| NET DEBT IN RELATION TO WORKING CAPITAL |
Net debt divided by working capital. | The measure is used to show how much of the working capital is financed through net debt. |
|||
| INTEREST COVERAGE RATIO | Result before tax plus financial costs divided by financial costs. |
The measure is used to calculate the company's ability to pay interest costs. |
|||
| EQUITY RATIO | Equity as a percentage of total assets. | The measure shows how much of the company's assets are financed by the shareholders through equity. An equity ratio is a measure of financial strenght. |
|||
| DATA PER SHARE | DEFINITION/CALCULATION | PURPOSE | |||
| EQUITY PER SHARE | Equity at the end of the period divided by number of shares at the end of the period. |
Equity per share measures the net asset value backing up each share of the company's equity and determines if a company is increasing shareholder value over time. |
|||
| OTHER MEASURES | DEFINITION/CALCULATION | PURPOSE | |||
| EFFECTIVE TAX RATE | Tax on profit for the period as a percentage of result before tax. |
This measure enables comparison of income tax across locations where corporate taxes differ. |
|||
| CASH FLOW FROM OPERATIONS |
Cash flow from operating activities including changes in working capital and before cash flows from investing and financing activities. |
The measure is used to show the cash flow generated by the company's operations. |
|||
| NET INVESTMENTS | Cash flow from investing activities according to the cash flow analysis which includes investments and divestments of buildings, acquisitions, investments in tangible and intangible assets and raised long-term debt. |
The measure is used to regularly estimate how much cash is used to maintain operations and for expansion. |
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 Kungsportsavenyen 10, SE-411 36 Göteborg Phone +46 (0)31 712 89 00 | [email protected]
www.nwg.se