New Wave Group AB — Interim / Quarterly Report 2023

Nov 7, 2023

January - September

Corporate

$^{\circ}$ CLIQUE	$\blacktriangleright$ J.HARVEST & FROST	HARVEST	Frinter	JOBMAN WORKWEAR	DIPROJOB
TOPPOINT	d-vice PROMOTE	cottover people & planet	GRIZZLY active profile outfit	DERBY YOF SWEDEN	$\mathbf{Z}$ raphi $\times$
No Problem Sportswear	$\overline{\mathbf{a}}\cdot\mathbf{A}\cdot\mathbf{D}$ SPORTSWEAR	hurricane	EXAMPLE 1:1: EXAMPLE 1:1: bagsfirst ®	UCC SLOTHING

Sports & Leisure

$\boldsymbol{\mathcal{K}}$ CUTTER & BUCK	CRAFT:	CLIQUE	ahead △	KateLord COLLECTION	LE GANT
AUCLAIR &	LAURENTIDE utt acress on	SEGER	Termo	MARSTRAND ORIGINAL SAILOR SHOES	sköna rie ®
renson ® EST. 1951

Gifts & Home Furnishings

ORREFORS $\heartsuit$	KostaBoda	KOSTA BODA ART HOTEL SWEDEN	. SERVICE NAME KOSTA LODGE	ှြွှ $\sigma^4$	saga†orm
LORD NELSON MA VICTORY	nightingale	queen	KOSTA LINNEWÄFVERI	Orrefors JERNVERK SWEDEN 1726	BYON
vakinme	VICTORIAN

• Net sales amounted to SEK 2,337.0 million, which was 5% higher than last year (SEK 2,234.4 million). Currency changes affected net sales positively by 4% and acquired business by 7%.

• Operating result amounted to SEK 381.1 (397.8) million.

• Result for the period amounted to SEK 270.9 (304.0) million.

• Earnings per share amounted to SEK 2.04 (2.29).*

• Cash flow from operating activities amounted to SEK 173.3 (-200.4) million.

*Recalculated with regard to the 2:1 share split carried out in June 2023.

PERIOD 1 JULY - 30 SEPTEMBER 2023 PERIOD 1 JANUARY - 30 SEPTEMBER 2023

• Net sales amounted to SEK 6,777.0 million, which was 12% higher than last year (SEK 6,028.5 million). Currency changes affected net sales positively by 5% and acquired business by 8%.

• Operating result amounted to SEK 1,058.4 (957.9) million.

• Result for the period amounted to SEK 752.7 (722.6) million.

• Earnings per share amounted to SEK 5.67 (5.45).*

• Cash flow from operating activities amounted to SEK 210.3 (-127,1) million.

• Equity ratio amounted to 55.8 (54.0)%.

• Net debt to equity ratio amounted to 40.2 (36.1)%.

2019 2020 2021 2022 2023

"New all time high in net sales - a continuing good operating margin."

New all time high in net sales - a continuing good operating margin

Despite a very challenging market with price reductions on a number of basic goods, we increased our net sales to SEK 2,337.0 (2,234.4) million. The operating result decreased slightly to SEK 381.1 (397.8) million but is still at a very good level. The operating margin was 16.3% and is the second highest ever for a third quarter. Considering the challenging market, especially in retail, I am very satisfied, proud and happy with the result and can state that we continue to gain market share. I think the quarter's results show the strength we have even under more challenging conditions, which we have also shown many times before.

9 months - new all time high in both net sales and operating result

During the first 9 months, net sales increased to SEK 6,777.0 (6,028.5) million and operating result increased to SEK 1,058.4 (957.9) million, both of which are new all time highs for the period. The operating margin was 15.6% which is basically in line with the previous year.

Rolling 12 months

On a rolling full-year basis, net sales now amount to SEK 9,592.1 million with an operating result of SEK 1,605.6 million, which means an operating margin of 16.7%. In 2020, net sales were SEK 6,098.8 million, which means that in 2 years and 9 months we had sales growth of SEK 3,493.3 million or 57%. During the same period, the operating result has gone from SEK 545.9 million to SEK 1,605.6 million, an increase of SEK 1,059.7 or 194%.

Cash flow and balance sheet

Cash flow from operating activities amounted to SEK 173.3 (-200.4) million, an improvement of SEK 373.7 million.

We have continued to have a very strong balance sheet with an equity ratio of 55.8%.

The future

We are very well equipped going forward in terms of organization, brands, products, etc. I am firmly convinced that we will continue to gain market share, which will mean good growth again when the market levels off or reverses. Although it would be presumptuous to wish for a downturn in the economy, such an occurrence would provide opportunities for growth through acquisitions. We have now completed two acquisitions and we have both the financial and organizational resources to carry out more, if the right opportunities arise. With a strong economy and balance sheet, we can maintain large stocks and full service on the stock range, which not all competitors likely will not be able to do. This will give us the opportunity to continue to gain market share. Above all, the sports industry has been and continues to be tough. This is due to declining sales, and also to the fact that our customers in sports had large stocks. This is gradually correcting itself, which within 1-2 quarters could benefit us given our ability to deliver from stock. In a very short perspective, it is difficult to assess the market, but we should still be able to take market shares. Not in the least Craft, where we have very large growth opportunities in teamwear throughout Europe. The same applies to Craft's shoes, which should be able to grow for many, many years. I feel that we should be able to do even better going forward than we have performed in the past. If you look ahead for more than one quarter, I feel confident that we will be able to deliver continued good growth.

The journey has only just begun! Thanks everyone!

Torsten Jansson CEO

Q3

Th ^{e p e r i o} d

Comments on the period

Summary of the quarter July - September

The third quarter's net sales increased by 5% (1% excluding currency changes), of which acquired operations contributed 7%. The Corporate and Sports & Leisure segments increased their sales, which was related to acquired units. Excluding the acquisitions, the segments' net sales decreased slightly compared to the previous year. Gifts & Home Furnishings had a net turnover on par with last year. The gross profit margin was slightly lower due to last year's acquired operations. Costs increased, which was mainly a consequence of exchange rate changes and acquired units. Overall, the period's profit decreased and amounted to SEK 270.9 (304.0) million.

The Corporate segment increased 9% with improvements in Central and Southern Europe, while other regions decreased their sales. Sports & Leisure increased by 1%. It was primarily Central and Southern Europe that increased their net sales, but Sweden and Other countries also increased, while the USA and the Nordics (excluding Sweden) decreased. Gifts & Home Furnishings were on par with the previous year in all regions.

The gross profit margin decreased slightly compared to the previous year and amounted to 48.6 (49.4) %. The decrease was related to the Corporate segment and last year's acquired unit (B.T.C. Activewear Ltd). This business has a lower gross profit margin than the group as a whole and excluding the acquisition the margin increased.

In addition to costs being affected by exchange rate changes and acquisitions, the group also had more marketing activities.

Operating result and operating margin decreased compared to the previous year and amounted to SEK 381.1 (397.8) million and 16.3 (17.8)% respectively.

Cash flow from operating activities improved by SEK 373.7 million and amounted to SEK 173.3 (-200.4) million. The improved cash flow is primarily an effect of lower merchandise purchases compared to last year. Inventories increased by SEK 1,001.2 million and amounted to SEK 5,828.6 (4,827.4) million.

July - September

Net sales

Net sales amounted to SEK 2,337.0 million, which was 5% higher than the previous year (SEK 2,234.4 million). The exchange rate effects had a positive impact on turnover with SEK 94.6 million, which corresponds to 4%. Acquired units affected sales by 7% or SEK 147.7 million.

Net sales in the USA were 11% lower than the previous year. The reduction occurred in all segments. Sweden was on par with last year, which is attributable to the acquisition of Tenson in the Sports & Leisure segment. Sales were lower in other segments. In Central Europe, turnover increased by 38%, which is mainly related to last year's acquisitions in the Corporate segment, but Sports & Leisure also increased. The Nordic region excluding Sweden decreased by 5% compared to the previous year, which was mainly related to Sports & Leisure. Southern Europe increased net sales by 13%. The increase was attributable to Corporate and Sports & Leisure. Other countries decreased by 3%, which is attributable to China in the Corporate segment.

Both sales channels increased their net sales, promo by 7% and retail by 1%. The improvement was related to the acquired units and excluding acquisitions, sales in both channels decreased by 2%.

Gross profit

The gross profit margin decreased slightly compared to the previous year and amounted to 48.6 (49.4) %. The reduction is related to the Corporate segment and last year's acquired unit (B.T.C. Activewear Ltd). This business has a lower gross profit margin than the group as a whole. Excluding the acquired unit, the gross profit margin increased slightly.

Other operating income and other operating costs

Other operating income increased by SEK 14.3 million to SEK 50.0 (35.7) million. Other operating income is primarily attributable to the operation's exchange rate gains and must be set against the profit line other operating expenses, where mainly the operation's exchange rate losses are reported. However, the quarter also includes income in the form of government electricity subsidies of SEK 13.0 million and a positive profit effect in connection with the acquisition of Tenson AB of SEK 6.5 million. Other operating expenses decreased by SEK 13.3 million and amounted to SEK -14.6 (-27.9) million. The net of the above-mentioned items amounted to SEK 35.4 (7.8) million. The increase is primarily due to the electricity subsidies and profit effect in connection with the acquisition.

Costs and depreciations

External costs increased by SEK 43.7 million and amounted to SEK -403.0 (-359.3) million. The increase is mainly related to acquired units and exchange rate changes, but also higher marketing costs. Personnel costs increased by SEK 28.7 million and amounted to SEK -320.2 (-291.5) million. The increase is mainly related to exchange rate changes and acquired units.

Exchange rate changes increased these costs by SEK 29.1 million and acquired operations affected by SEK 28.4 million.

Depreciation and write-downs increased compared to the previous year and amounted to SEK -65.6 (-60.6) million. The increase is related to depreciation of right-of-use assets linked to leasing as well as the investments previously made in the group's warehouse operations.

Operating result

Operating result decreased compared to the previous year and amounted to SEK 381.1 (397.8) million. It is primarily a lower gross profit margin but also higher costs in the form of marketing activities that reduce operating result. The operating margin decreased and amounted to 16.3 (17.8)%. Acquired units had an impact of SEK 8.0 million.

Net financial items and tax

The financial net amounted to SEK -36.1 (-13.0) million. The group's net debt has increased in previous quarters due to inventory build-up and company acquisitions, which increased interest costs at the same time as interest levels increased compared to last year.

Tax on the period's result amounted to SEK -74.2 (-80.8) million. The effective tax rate amounted to 21.5 (21.0)%.

Result for the period

The result for the period was SEK 33.1 million lower than last year and amounted to SEK 270.9 (304.0) million. Earnings per share amounted to SEK 2.04 (2.29).

January - September

Net sales

Net sales amounted to SEK 6,777.0 million, which was 12% higher than the previous year (SEK 6,028.5 million). Exchange rate effects had a positive impact on sales by SEK 309.0 million, which corresponds to 5%. Acquired units affected sales by 8% or SEK 479.4 million.

Net sales in the USA increased by 2% and in Sweden sales increased by 1%. Both countries had an increase in Sports & Leisure, while Corporate and Gifts & Home Furnishings decreased. Central Europe increased by 56%, which was mainly related to last year's acquisitions in the Corporate segment. Southern Europe increased by 17%, which was attributable to Corporate and Sports & Leisure. The Nordics excluding Sweden increased by 2%, which was related to Corporate and Sports & Leisure, while Gifts & Home Furnishings decreased. Other countries decreased by 1%.

The promo sales channel increased by 18% which was due to the segments Corporate and Sports & Leisure. Retail sales improved by 4%, which was attributable to Sports & Leisure.

Gross profit

The gross profit margin was higher than the previous year and amounted to 49.6 (49.4) %. Sports & Leisure has improved its margin, while Corporate and Gifts & Home Furnishings are slightly lower than last year.

Other operating income and other operating costs

Other operating income increased by SEK 13.9 million to SEK 101.1 (87.2) million. Other operating income is primarily attributable to the operation's exchange rate gains and must be set against the profit line other operating expenses where the operation's exchange rate losses are reported. Other operating expenses decreased by SEK 16.9 million and amounted to SEK -37.9 (-54.8) million. The net of the abovementioned items amounted to SEK 63.2 (32.3) million. The improvement is mainly related to received electricity subsidies, a positive profit effect in connection with the acquisition of Tenson AB and capital gains from the sale of property.

Costs and depreciations

External costs increased by SEK 157.7 million and amounted to SEK -1,173.6 (-1,015.9) million. In addition to exchange rate changes and acquisitions, costs are also affected by additional marketing activities and volume-related costs. Personnel costs increased by SEK 132.7 million and amounted to SEK -987.7 (-855.0) million. The increase is related to more employees in the areas of order processing and warehouse, but also to acquisitions and exchange rate changes.

Exchange rate changes increased said costs by SEK 102.1 million and acquired operations affected by SEK 80.4 million.

Depreciation and write-downs increased compared to the previous year and amounted to SEK -199.8 (-177.7) million. The increase is primarily related to depreciation of right-of-use assets linked to leasing, which negatively affected depreciation by SEK 13.3 million. Investments mainly in our warehouse units have also increased depreciation.

Operating result

Operating result increased by SEK 100.5 million and amounted to SEK 1,058.4 (957.9) million. The improvement is mainly related to the higher net sales. Acquired businesses contributed SEK 28.9 million. The operating margin decreased slightly and amounted to 15.6 (15.9) %.

Net financial items and tax

The financial net amounted to SEK -99.6 (-33.0) million, which is related to a higher net debt attributable to the group's inventory build-up and company acquisitions. This has increased interest costs at the same time as interest levels have increased compared to last year.

The tax cost for the period amounted to SEK -206.1 (-202.3) million. The effective tax rate amounted to 21.5 (21.9) %.

Result for the period

Result for the period amounted to SEK 752.7 (722.6) million and earnings per share amounted to SEK 5.67 (5.45).

Reporting of operating segments

New Wave Group divides its operations into the segments Corporate, Sports & Leisure and Gifts & Home Furnishings. The Group monitors the segments' and brands' sales as well as operating result. The operating segments are based on the Group's operational management.

Corporate

Net sales for the third quarter increased by 9% and amounted to SEK 1,115.2 (1,022.5) million. Acquired operation had an impact of SEK 113.9 million or 11%. Sales increased in Central and Southern Europe but decreased in other regions. Both sales channels increased their net sales, of which promo was related to last year's acquisition. Operating result decreased slightly and amounted to SEK 182.6 (186.3) million. The lower result was related to a lower gross profit margin and higher costs. Acquired operation contributed SEK 7.3 million.

Net sales for the first nine months of the year amounted to SEK 3,398.8 (2,792.9) million. Acquired operation had an impact of SEK 445.6 million or 16%. Net sales increased in the Nordics (excl. Sweden) and Central and Southern Europe, but decreased in the USA and Sweden. Both sales channels increased their net sales. Operating result improved by SEK 94.6 million and amounted to SEK 611.2 (516.6) million. The higher result is mainly related to the higher net sales. However, the segment has a lower gross profit margin and higher costs. Acquired operation contributed SEK 28.1 million.

Sports & Leisure

Net sales during the period July-September were at the same level as last year and amounted to SEK 1,016.4 (1,007.3) million. Acquired operation had an impact of SEK 33.8 million or 3%. The segment had higher net sales in Sweden (due to the acquisition), Central Europe, Southern Europe and the Other countries region. The net sales of both sales channels were on a par with the previous year. Operating result amounted to SEK 180.3 (199.5) million. The lower result is mainly related to higher costs, including more marketing activities. Acquired operation contributed SEK 0.8 million. In addition, a positive profit effect was reported in connection with the acquisition of Tenson AB with SEK 6.5 million.

Net sales for the period January-September increased by 6% and amounted to SEK 2,803.0 (2,635.5) million. Acquired operation had an impact of SEK 33.8 million or 1%. Sales increased in both sales channels. The segment had higher net sales in all regions. Operating result increased by SEK 19.4 million and amounted to SEK 448.6 (429.2) million. The higher operating result is related to the higher net sales and an improved gross profit margin. However, the segment also had higher costs.

Gifts & Home Furnishings

Net sales for the third quarter were at the level of the previous year and amounted to SEK 205.4 (204.6) million. All regions were at the same level as last year. The promo sales channel decreased while retail sales increased. Operating result increased compared to last year and amounted to SEK 18.2 (12.0) million. During the quarter, the segment received government electricity support of SEK 9.6 million as compensation for previously increased electricity costs.

Net sales for the period January-September decreased by 4% and amounted to SEK 575.2 (600.1) million. Sales decreased in both sales channels and in all regions. Operating result decreased by SEK 13.5 million compared to the previous year and amounted to SEK -1.3 (12.2) million. The lower result is mainly related to lower sales but also higher marketing costs and more employees.

Capital tied up

NWG // 2023

Capital tied up in inventories increased by SEK 1,001.2 million compared to the previous year and amounted to SEK 5,828.6 (4,827.4) million. Exchange rate changes have increased the inventory value by SEK 58.3 million and acquired operations affected by SEK 59.3 million. The inventory's turnover rate is on par with the previous year and amounted to 1.1 (1.1) times.

SEK million	30 Sep 2023	30 Sep 2022
Raw materials	55.3	59.5
Work in progress	1.2	2.6
Goods in transit	290.1	753.5
Finished goods	5,482.0	4,011.8
Total	5,828.6	4,827.4

As of 30 September 2023, total obsolescence deductions (the difference between the lowest of acquisition value and net realizable value) for inventory amounted to SEK 164.7 (182.0) million and obsolescence reserve in relation to finished goods inventory amounted to 2.9 (4.3 )%.

Accounts receivable amounted to SEK 1,590.1 (1,697.0) million, where the decrease is primarily related to a lower net turnover in September.

Investments, financing and liquidity

The quarter's cash flow from operating activities amounted to SEK 173.3 (-200.4) million. The improved cash flow is mainly attributable to lower purchases of goods than last year. Cash flow from investment activities amounted to SEK -72.1 (-433.4) million, where last year includes the acquisition of B.T.C. Activewear Ltd.

For the first nine months of the year, the cash flow from operating activities amounted to SEK 210.3 million, which was an improvement of SEK 337.4 million compared to the previous year (SEK -127.1 million). The improved cash flow is predominately related to lower merchandise purchases. Cash flow from investment activities amounted to SEK -195.6 (-513.9) million. The change is mainly related to last year's acquisition of B.T.C. Activewear Ltd.

Net debt increased by SEK 555.7 million and amounted to SEK 2,567.2 (2,011.5) million. The increase is due to indebtedness with credit institutions and primarily the inventory build-up that took place during the past year. The net debt ratio and net debt through working capital increased slightly and amounted to 40.2 (36.1)% and 44.6 (43.8)% respectively.

The equity ratio increased by 1.8 percentage points compared to the previous year and amounted to 55.8 (54.0)%.

The group's credit line as of September 30 amounted to SEK 2,986.7 million, of which SEK 200.0 million is in effect through December 31, 2023, USD 2.8 million is in effect through January 2024, SEK 2,150.0 million is in effect through December 2025, SEK 175.0 million is in effect through August 2027 and SEK 181.3 million has a term that extends to December 2030. The other SEK 250.0 million has a term of between three months and five years. The credit line is limited in amount to and dependent on the value of certain underlying assets. The financing agreement means that key figures (covenants) must be met in order to maintain the credit line. The group's key figures (covenants) were fulfilled as of September 30, 2023.

Acqusition

On July 1, New Wave Group AB acquired 100% of the shares in the Swedish outdoor company Tenson AB. Tenson, the Swedish outdoor & lifestyle brand with roots on the Swedish west coast (founded in Varberg in 1951), has during the last four years undergone a restructuring & repositioning process that included brand, product, market, sales and channel strategies. New Wave Group, through the acquisition and integration of the company, will give Tenson access to the resources and synergies required to enter the next phase of the above-mentioned process - to scale up operations and profitability. For more information, see note 8.

Personnel and organization

The average number of annual employees as of September 30 was 2,435 (2,232) people, of which 49% were men and 51% were women. Of the number of employees, 499 (485) people work in production.

The production within the New Wave Group is attributable to AHEAD (embroidery), Cutter & Buck (embroidery), Kosta Boda, Orrefors, Seger, Termo and Toppoint.

Intangible assets

The Group's intangible assets with indefinite useful life consist of goodwill and trademarks. The 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, listed at their acquisition values, are well-known brands such as Orrefors and Kosta Boda within Gifts & Home Furnishings as well as predominately 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 for which they belong. These units are 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 an impairment test, the recoverable amount needs to be determined by a calculation of the respective cash-generating unit's value in use. The value in use is based on established cash flow projections for the next five years, and a long-term growth rate, known as terminal growth. The most important assumptions in determining the value in use include growth rate, operating margin and discount rate (WACC). 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.

Based on the tests and analyses that have been carried out during the quarter, there is currently no need for impairment, nor for impairment of the comparison year.

Related party transactions

Lease agreements exist with related companies. Companies related to the CEO have bought merchandise. In addition, there are transactions with related parties at insignificant values. All transactions have taken place on market terms.

The Parent company

Total revenue for the quarter amounted to SEK 39.0 (47.4) million. Result before year-end allocations and tax amounted to SEK 11.7 (47.9) million. The lower result is mainly attributable to the fact that last year includes dividends from foreign subsidiaries. The net debt amounted to SEK 1,963.6 (1,558.5) million. The parent company's net financing to subsidiaries amounted to SEK 2,742.5 (2,141.5) million. The increase in net debt and net financing to subsidiaries is related to the subsidiaries' inventory build-up. The cash flow from investment activities amounted to -0.7 (-408.9) MSEK, where last year includes the acquisition of B.T.C. Activewear Ltd. The balance sheet total amounted to SEK 5,832.8 (5,228.7) million and the equity, including the equity share of untaxed reserves, to SEK 2,699.0 (2,533.1) million.

Total revenue for the period January-September amounted to SEK 115.8 (121.4) million. Result before year-end allocations and tax amounted to SEK 472.7 (259.8) million. The improvement in earnings is mainly attributable to dividends from foreign subsidiaries. The cash flow from investment activities amounted to SEK 46.8 (-408.7) million. This year's cash flow includes an internal company sale while last year's includes the acquisition of B.T.C. Activewear Ltd.

Nomination Committee

The nomination committee for the board election at the 2024 Annual General Meeting is:

• Tomas Risbecker, representative of Svolder and Chairman of the nomination committee

• Torsten Jansson, CEO and representative of Torsten Jansson Holding AB

• Frank Larsson, representative of Svenska Handelsbankens fonder

For more information about the nomination committee and its work, please see www.nwg.se.

Calendar

8 FEB	Year-end report 2023
25 APR	Interim report for the first quarter
16 MAY	Annual General Meeting

2023

Gothenburg, November 7, 2023

New Wave Group AB (publ)

Olof Persson Chairman of the Board

Kinna Bellander Member of the Board

Jonas Eriksson Member of the Board

Ralph Mühlrad Member of the Board

For more information, please contact:

CEO AND GROUP CEO Torsten Jansson Phone: +46 (0) 31–712 89 01 E-mail: torsten.jansson@nwg.se

DEPUTY CEO Göran Härstedt Phone: +46 (0) 70 - 362 56 11 E-mail: goran.harstedt@nwg.se

M. Johan Widerberg Member of the Board

Isabella Jansson Member of the Board

Ingrid Söderlund Member of the Board

Torsten Jansson CEO and Group CEO

CFO Lars Jönsson Phone: +46 (0) 31–712 89 12 E-mail: lars.jonsson@nwg.se

This information is information that New Wave Group AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons detailed above, at 7.00 a.m.CET on November 7, 2023.

Review report

New Wave Group AB, corp. id. nr. 556350-0916

Introduction

We have reviewed the condensed interim report for New Wave Group AB as at September 30, 2023 and for the nine months period then ended. The Board of Directors and the Managing Director are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.

Scope of review

We conducted our review in accordance with the International Standard on Review Engagements, ISRE 2410 Review of Interim Financial Statements Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and other generally accepted auditing standards in Sweden. The procedures performed in a review do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act regarding the Group, and in accordance with the Swedish Annual Accounts Act regarding the Parent Company.

Gothenburg, 7 November 2023

Ernst & Young AB

Jonas Svensson Authorized Public Accountant

Consolidated income statement

	3 months	3 months	9 months	9 months	12 months	12 months
Note SEK million	Jul - Sep 2023	Jul - Sep 2022	Jan - Sep 2023	Jan - Sep 2022	Jan - Dec 2022	Jan - Dec 2021
Net sales 3, 4, 5	2 337.0	2 234.4	6 777.0	6 028.5	8 843.6	6 718.6
Goods for resale	-1 200.5	-1 131.6	-3 418.0	-3 053.0	-4 468.4	-3 489.3
Gross profit	1 136.4	1 102.8	3 359.0	2 975.5	4 375.2	3 229.3
Other operating income	50.0	35.7	101.1	87.2	123.9	111.5
External costs	-403.0	-359.3	-1 173.6	-1 015.9	-1 470.3	-1 067.9
Personnel costs	-320.2	-291.5	-987.7	-855.0	-1 205.3	-1 016.9
Amortizations, depreciations and write-downs of
tangible and intangible fixed assets	-65.6	-60.6	-199.8	-177.7	-249.2	-227.3
Other operating costs	-14.6	-27.9	-37.9	-54.8	-67.4	-21.7
Share of associated companies' result	-2.0	-1.4	-2.6	-1.4	-1.8	-1.1
Operating result	381.1	397.8	1 058.4	957.9	1 505.1	1 005.9
Financial income	3.5	1.1	5.5	3.2	3.7	3.0
Financial expenses	-39.6	-14.1	-105.2	-36.2	-58.7	-46.0
Net financial items	-36.1	-13.0	-99.6	-33.0	-55.0	-43.0
Result before tax	345.0	384.8	958.8	924.9	1 450.1	962.9
Tax expense	-74.2	-80.8	-206.1	-202.3	-281.3	-202.9
Result for the period	270.9	304.0	752.7	722.6	1 168.8	760.0
Other comprehensive income:
Items that can be reclassified into
profit or loss:
Translation differences	-76.6	550.5	171.9	550.5	434.2	230.3
Cash flow hedges	-0.9	8.0	-5.1	16.0	2.4	3.3
Sum	-77.5	558.5	166.8	566.5	436.6	233.6
Income tax related to components of other
comprehensive income	0.1	-1.6	1.0	-3.3	-0.5	-0.7
Total other comprehensive for the period	-77.4	556.9	167.8	563.2	436.1	232.9
Total comprehensive income for the period	193.5	860.9	920.5	1 285.8	1 604.9	992.9
Result for the period attributable to:
Shareholders of the Parent company	270.9	304.1	752.7	722.5	1 168.8	760.3
Non-controlling interest	0.0	0.0	0.0	0.1	0.0	-0.3
	270.9	304.1	752.7	722.6	1 168.8	760.0
Total comprehensive income attributable to:
Shareholders of the Parent company	193.5	860.9	920.5	1 285.5	1604.9	992.8
Non-controlling interest	0.0	0.0	0.0	0.3	0.0	0.1
	193.5	860.9	920.5	1 285.8	1 604.9	992.9
Earnings per share (SEK)*	2.04	2.29	5.67	5.45	8.81	5.73
The average number of outstanding shares**
	132 687 086	132 687 086	132 687 086	132 687 086	132 687 086	132 687 086

*Earnings per share and the average number of outstanding shares are the same before and after dilution.

**Recalculated with regard to the 2:1 share split carried out in June 2023.

Consolidated cash flow statement

	3 months	3 months	9 months	9 months	12 months	12 months
Note	Jul - Sep	Jul - Sep	Jan - Sep	Jan - Sep	Jan - Dec	Jan - Dec
SEK million Operating activities	2023	2022	2023	2022	2022	2021
Operating result	381.1	397.8	1 058.4	957.9	1 505.1	1 005.9
Adjustment for items not included in cash flow	76.6	56.2	177.2	164.8	253.7	194.8
Received interest	0.5	1.0	2.5	1.7	7.6	1.8
Paid interest	-36.6	-14.0	-102.1	-34.7	-62.7	-44.8
Paid income tax	-40.4	-73.8	-197.3	-172.8	-320.6	-164.7
Cash flow from operating activities before changes	381.2	367.3	938.7	916.9	1 383.2	993.0
in working capital
Changes in working capital
Increase/decrease of inventories	-126.6	-870.8	-391.4	-1 458.0	-1 983.1	57.8
Increase/decrease of current receivables	-117.8	-202.3	133.5	-115.7	-186.8	-269.9
Increase/decrease of current liabilities	36.5	505.4	-470.5	529.7	426.7	426.5
Cash flow from changes in working capital	-207.9	-567.7	-728.4	-1 044.0	-1 743.2	214.4
Cash flow from operating activities	173.3	-200.4	210.3	-127.1	-360.0	1 207.4
Investing activities
Investments in tangible fixed assets	-72.4	-31.7	-198.3	-114.6	-123.7	-105.3
Sales of tangible fixed assets	0.9	0.5	10.2	10.3	10.7	9.9
Investments in intangible fixed assets	-3.6	-3.5	-10.5	-10.9	-10.5	-18.8
Acquisition of operations, net cash impact	3.1	-398.7	3.1	-398.7	-398.7	0.0
Cash flow from investing activities 3	-72.1	-433.4	-195.6	-513.9	-522.2	-114.2
Cash flow after investing activities	101.2	-633.8	14.7	-641.0	-882.2	1 093.2
Financial activities
Loans raised	0.0	654.6	278.6	1 011.6	1 465.6	0.0
Amortization of loans	-174.0	-30.6	-96.5	-82.9	-111.3	-706.5
Amortization of lease liabilities	-37.2	-34.3	-115.2	-101.8	-138.2	-126.5
Acquisition of non-controlling interests	0.0	0.0	0.0	0.0	0.0	-12.5
Dividend paid to the shareholders of the Parent company	0.0	0.0	-216.3	-282.0	-282.0	-265.4
Cash flow from financial activities	-211.2	589.6	-149.4	544.9	934.1	-1 110.9
Cash flow for the period	-110.0	-44.2	-134.7	-96.1	51.9	-17.7
Liquid assets at the beginning of the period	416.5	305.5	419.4	327.9	327.9	325.1
Translation differences in liquid assets	-6.9	17.9	14.9	47.4	39.6	20.5
Liquid assets at the end of the period	299.6	279.2	299.6	279.2	419.4	327.9
Liquid assets
Cash at bank and in hand	299.6	279.2	299.6	279.2	419.4	327.9

Consolidated balance sheet

		30 Sep	30 Sep	31 Dec	31 Dec
SEK million	Note	2023	2022	2022	2021
ASSETS
Intangible fixed assets	3	1 843.7	1 837.6	1 768.5	1 474.7
Tangible fixed assets	3	1 445.3	1 307.6	1 319.6	1 258.3
Shares in associated companies		38.3	38.7	38.7	38.7
Other long-term receivables		12.6	12.8	13.9	11.8
Deferred tax assets	3, 5	127.2	112.2	129.2	93.5
Total non-current assets	5	3 467.1	3 308.8	3 269.9	2 877.0
Inventory		5 828.6	4 827.4	5 297.7	2 937.6
Current tax receivables		41.9	22.5	30.2	16.7
Accounts receivable		1 590.1	1 697.0	1 664.1	1 359.6
Other receivables		107.2	120.6	169.6	86.3
Prepaid expenses and accrued income		91.9	70.6	92.7	55.3
Liquid assets		299.6	279.2	419.4	327.9
Total current assets		7 959.3	7 017.4	7 673.7	4 783.6
TOTAL ASSETS	3, 6	11 426.4	10 326.2	10 943.6	7 660.6
EQUITY
Share capital		199.0	199.0	199.0	199.0
Other capital contributions		219.4	219.4	219.4	219.4
Reserves		1 098.1	1 055.0	927.9	489.4
Retained earnings including result for the period		4 862.2	4 096.7	4 543.1	3 658.8
Equity attributable to shareholders of the Parent company		6 378.8	5 570.2	5 889.4	4 566.7
Non-controlling interest		1.1	1.2	1.1	0.9
Total equity		6 379.8	5 571.4	5 890.5	4 567.6
LIABILITIES
Long-term interest-bearing liabilities	7	2 641.6	2 037.9	2 418.4	1 166.8
Pension provisions		25.7	23.0	24.1	19.4
Other provisions		5.4	6.2	7.2	7.1
Deferred tax liabilities		170.3	154.6	159.2	138.4
Total non-current liabilities		2 843.0	2 221.6	2 608.9	1 331.6
Short-term interest-bearing liabilities	7	225.2	252.9	330.6	229.9
Accounts payable		1 054.7	1 561.4	1 404.8	926.1
Current tax liabilities		113.0	158.6	104.4	89.9
Other liabilities		389.2	165.6	174.7	163.6
Accrued expenses and prepaid income		421.5	394.7	429.7	351.9
Total current liabilities		2 203.6	2 533.2	2 444.2	1 761.4
Total liabilities	3, 6	5 046.6	4 754.8	5 053.1	3 093.0
TOTAL EQUITY AND LIABILITIES		11 426.4	10 326.2	10 943.6	7 660.6

Consolidated statement of changes in equity

SEK million	Share capital	Other capital contributions	Reserves	Retained ear nings incl. result for the period	Total	Non controlling interest	Total equity
Opening balance 2022-01-01	199.0	219.4	489.4	3 658.8	4 566.7	0.9	4 567.6
Result for the period				722.5	722.5	0.1	722.6
Other comprehensive income
Translation differences			550.3		550.3	0.2	550.5
Cash flow hedges for the period			16.0		16.0		16.0
Reclassification of previous years' cash flow hedge			2.6	-2.6	0.0		0.0
Income tax related to components of other comprehensive income			-3.3		-3.3		-3.3
Total comprehensive income			565.6	-2.6	563.0	0.2	563.2
Transactions with shareholders
Dividends to shareholders of the Parent company				-282.0	-282.0		-282.0
Closing balance 2022-09-30	199.0	219.4	1 055.0	4 096.7	5 570.2	1.2	5 571.4

SEK million	Share capital	Other capital contributions	Reserves	Retained ear- nings incl. result for the period	Total	Non controlling interest	Total equity
Opening balance 2023-01-01	199.0	219.4	927.9	4 543.1	5 889.4	1.1	5 890.5
Result for the period				752.7	752.7	0.0	752.7
Other comprehensive income Translation differences			171.9		171.9	0.0	171.9
Cash flow hedges for the period			-5.1		-5.1		-5.1
Reclassification of previous years' cash flow hedge			2.4	-2.4	0.0		0.0
Income tax related to components of other comprehensive income			1.0		1.0		1.0
Total comprehensive income			170.2	-2.4	167.8	0.0	167.8
Transactions with shareholders Dividends to shareholders of the Parent company				-431.2	-431.2		-431.2
Closing balance 2023-09-30	199.0	219.4	1 098.1	4 862.2	6 378.8	1.1	6 379.8

Accumulated translation differences in equity	Jan - Sep 2023	Jan - Sep 2022
Accumulated translation differences at the beginning of the period	931,2	497,0
Translation differences in foreign Group companies for the period	171,9	550,5
Accumulated translation differences at the end of period	1103,1	1047,5

Financial key figures

	3 months Jul - Sep 2023	3 months Jul - Sep 2022	9 months Jan - Sep 2023	9 months Jan - Sep 2022	12 months Jan - Dec 2022	12 months Jan - Dec 2021
Net sales growth, %	4.6	34.3	12.4	36.6	31.6	10.2
Organic growth, %	-6.3	21.6	-0.7	28.3	20.8	12.9
Aquired growth, %	6.6	4.0	8.0	1.6	3.7	0.0
Average number of employees	2 435	2 232	2 435	2 232	2 313	2 060
Gross profit margin, %	48.6	49.4	49.6	49.4	49.5	48.1
Operating margin before depreciations, %	19.1	20.5	18.6	18.8	19.8	18.4
Operating margin, %	16.3	17.8	15.6	15.9	17.0	15.0
Profit margin, %	14.8	17.2	14.1	15.3	16.4	14.3
Net margin, %	11.6	13.6	11.1	12.0	13.2	11.3
Return on shareholders' equity, %	20.0	22.0	20.0	22.0	25.0	18.0
Return on capital employed, %	18.0	19.7	18.0	19.7	20.7	16.9
Equity ratio, %	55.8	54.0	55.8	54.0	53.8	59.6
Net debt, SEK million	2 567.2	2 011.5	2 567.2	2 011.5	2 329.6	1 068.8
Net debt to credit institutes, SEK million	1 940.5	1 353.4	1 940.5	1 353.4	1 635.4	375.1
Net debt to equity ratio, %	40.2	36.1	40.2	36.1	39.5	23.4
Net debt in relation to working capital, %	44.6	43.8	44.6	43.8	44.7	35.7
Interest coverage ratio, times	9.7	28.2	10.1	26.5	25.7	21.9
Capital turnover, times	0.9	0.9	0.9	0.9	1.0	0.9
Inventory turnover, times	1.1	1.1	1.1	1.1	1.1	1.2
Cash flow before investments, SEK million	173.3	-200.4	210.3	-127.1	-360.0	1 207.4
Net investments, SEK million	-72.1	-433.4	-195.6	-513.9	-522.2	-114.2
Cash flow after investments, SEK million	101.2	-633.8	14.7	-641.0	-882.2	1 093.2
Shareholders' equity per share, before and after dilution, SEK*	48.07	41.98	48.07	41.98	44.39	34.42
Share price as of the balance sheet date, SEK*	76.16	73.45	76.16	73.45	103.20	83.90
Dividend/share, SEK*	-	-	3.25	2.13	2.13	2.00
P/E-ratio	8.43	9.48	8.43	9.48	11.72	14.64
P/S-ratio	1.05	1.17	1.05	1.17	1.55	1.66
Share price/Shareholders' equity	1.58	1.75	1.58	1.75	2.33	2.44

*Recalculated with regard to the 2:1 share split carried out in June 2023. For definitions of alternative performance measures, see page 34.

Income statement

	3 months	3 months	9 months	9 months	12 months	12 months
	Jul - Sep	Jul - Sep	Jan - Sep	Jan - Sep	Jan - Dec	Jan - Dec
SEK million	2023	2022	2023	2022	2022	2021
Net sales	27.1	24.0	83.0	74.5	100.1	90.4
Other operating income	11.9	23.4	32.8	46.9	61.6	18.0
Total income	39.0	47.4	115.8	121.4	161.7	108.4
External costs	-22.5	-18.3	-67.9	-50.2	-70.4	-62.6
Personnel costs	-11.4	-9.9	-36.2	-33.0	-45.5	-41.5
Amortizations, depreciations and write-downs of
tangible and intangible fixed assets	-0.7	-1.1	-2.2	-3.6	-4.5	-5.4
Other operating costs	-10.5	-20.1	-27.1	-40.5	-52.4	-14.3
Operating result	-6.2	-2.0	-17.5	-6.0	-11.2	-15.4
Result from shares in Group companies	0.0	30.9	425.7	238.6	247.2	470.6
Changes in write-downs of financial assets	0.0	10.8	19.6	10.8	-4.3	7.1
Financial income	65.1	17.2	166.7	36.1	69.7	36.3
Financial expenses	-47.2	-9.0	-121.7	-19.7	-44.5	-23.9
Net financial items	17.9	49.9	490.2	265.8	268.1	490.1
Result before appropriations and tax	11.7	47.9	472.7	259.8	257.0	474.7
Appropriations	0.0	0.0	0.0	0.0	125.3	144.9
Tax expense	-2.4	-1.3	-5.6	-2.2	-24.6	-26.9
Result for the period	9.3	46.6	467.0	257.6	357.6	592.8

Total comprehensive income for the period corresponds with result for the period.

Cash flow statement

Note	3 months Jul - Sep 2023	3 months Jul - Sep 2022	9 months Jan - Sep 2023	9 months Jan - Sep 2022	12 months Jan - Dec 2022	12 months Jan - Dec 2021
SEK million
Operating activities
Operating result	-6.2	-2.1	-17.5	-6.0	-11.2	-15.4
Adjustment for items not included in cash flow Received dividends	8.1 0.0	22.9 31.0	19.4 425.7	44.2 238.6	42.1 247.2	-0.5 470.6
Received interest	65.1	17.1	166.7	36.1	69.7	36.3
Paid interest	-47.2	-9.0	-121.7	-19.7	-44.5	-23.9
Paid income tax	-7.6	-15.6	-21.5	-21.9	-26.3	-13.2
Cash flow from operating activities before	12.2	44.3	451.0	271.3	277.1	453.8
changes in working capital
Changes in working capital
Increase/decrease in current receivables	76.5	-661.2	-102.7	-941.5	-1 333.2	49.7
Increase/decrease in current liabilities	141.5	355.0	-264.6	384.5	459.6	65.1
Cash flow from changes in working capital	218.0	-306.2	-367.3	-557.0	-873.6	114.8
Cash flow from operating activities	230.2	-261.9	83.7	-285.7	-596.5	568.6
Investing activities
Shareholder contributions to Group companies	0.0	0.0	-50.0	0.0	0.0	-20.4
Investments in associated companies	0.0	0.0	0.0	0.0	0.0	0.0
Investments in tangible fixed assets	-1.2	-0.1	-1.3	-0.1	-0.2	0.0
Investments in intangible fixed assets	0.1	0.0	0.0	0.0	-0.5	-6.1
Acquisition of shares	0.0	-409.2	0.0	-409.2	-409.2	-12.5
Intra-Group sales of Group companies	0.0	0.0	95.0	0.0	0.0	0.0
Changes in long-term loans to Group companies	0.5	0.5	3.5	1.0	1.5	324.9
Raised long-term receivables	-0.1	-0.1	-0.4	-0.4	-0.5	-0.1
Cash flow from investing activities	-0.7	-408.9	46.8	-408.7	-408.9	285.8
Cash flow after investing activities	229.5	-670.8	130.5	-694.4	-1 005.4	854.5
Financial activities
Loans raised	0.0	697.3	379.4	1002.8	1 388.4	0.0
Amortization of loans	-229.6	-26.6	-293.7	-26.7	-101.5	-588.8
Dividend paid to shareholders of the Parent company	0.0	0.0	-216.3	-282.0	-282.0	-265.4
Cash flow from financial activities	-229.6	670.7	-130.5	694.1	1 004.9	-854.2
Cash flow for the period	0.0	-0.1	0.0	-0.3	-0.5	0.1
Liquid assets at the beginning of the period	0.0	0.3	0.0	0.5	0.5	0.4
Liquid assets at the end of the period	0.0	0.2	0.0	0.2	0.0	0.5
Liquid assets
Cash at bank and in hand	0.0	0.2	0.0	0.2	0.0	0.5

Balance sheet

		30 Sep	30 Sep	31 Dec	31 Dec
SEK million ASSETS	Note	2023	2022	2022	2021
Intangible fixed assets		4.6	6.0	5.9	8.8
Tangible fixed assets		3.2	2.8	2.7	3.5
Shares in Group companies		2 599.6	2 665.2	2 644.6	2 256.0
Shares in associated companies		37.7	38.1	38.1	38.1
Receivables on Group companies		27.5	31.5	31.0	32.5
Other long-term receivables		6.4	5.8	6.0	5.5
Total non-current assets		2 679.0	2 749.5	2 728.3	2 344.4
Accounts receivable		1.0	0.8	0.8	0.7
Receivables on Group companies		3 119.6	2 445.3	2 988.8	1 481.6
Current tax receivables		5.0	7.3	0.0	0.0
Other receivables		16.8	17.4	25.6	39.4
Prepaid expenses and accrued income
Liquid assets		11.2 0.0	8.3 0.2	11.3 0.0	8.5 0.5
Total current assets		3 153.8	2 479.2	3 026.6	1 530.6
TOTAL ASSETS		5 832.8	5 228.7	5 754.8	3 875.0
EQUITY
Share capital		199.0	199.0	199.0	199.0
Restricted reserves		249.4	249.4	249.4	249.4
Total restricted equity		448.4	448.4	448.4	448.4
Retained earnings		1 626.2	1 699.9	1 699.9	1 389.1
Share premium reserve		48.0	48.0	48.0	48.0
Result for the period		467.0	257.6	357.6	592.8
Total unrestricted equity		2 141.3	2 005.4	2 105.5	2 029.9
Total equity		2 589.7	2 453.8	2 553.9	2 478.3
Untaxed reserves		137.7	99.9	137.7	99.9
LIABILITIES
Long-term interest-bearing liabilities	7	1 864.4	1 452.5	1 733.6	458.0
Total non-current liabilities		1 864.4	1 452.5	1 733.6	458.0
Short-term interest-bearing liabilities	7	99.2	106.3	127.5	94.6
Accounts payable		512.8	770.6	696.8	399.1
Liabilities to Group companies		404.7	335.3	485.9	321.6
Current tax liabilities		0.0	0.0	10.8	12.4
Other liabilities		215.9	1.3	0.8	1.2
Accrued expenses and prepaid income		8.3	9.0	7.8	9.9
Total current liabilities		1 240.9	1 222.5	1 329.6	838.8
Total liabilities		3 105.4	2 675.0	3 063.2	1 296.8
TOTAL EQUITY AND LIABILITIES		5 832.8	5 228.7	5 754.8	3 875.0

Statement of changes in equity

SEK million	Share capital	Restricted reserves	Retained earnings	Share premium reserve	Result for the period	Total equity
Opening balance 2022-01-01	199.0	249.4	1 389.1	48.0	592.8	2 478.3
Transfer according to decision at AGM			592.8		-592.8	0.0
Result for the period					257.6	257.6
Total changes excluding transactions with shareholders	0.0	0.0	0.0	0.0	257.6	257.6
Dividends			-282.0			-282.0
Closing balance 2022-09-30	199.0	249.4	1 699.9	48.0	257.6	2 453.8

SEK million	Share capital	Restricted reserves	Retained earnings	Share premium reserve	Result for the period	Total equity
Opening balance 2023-01-01	199.0	249.4	1 699.9	48.0	357.6	2 553.9
Transfer according to decision at AGM			357.6		-357.6	0.0
Result for the period					467.0	467.0
Total changes excluding transactions with shareholders	0.0	0.0	0.0	0.0	467.0	467.0
Dividends			-431.2			-431.2
Closing balance 2023-09-30	199.0	249.4	1 626.2	48.0	467.0	2 589.7

Note 1 - Accounting policies

This report is prepared in accordance with IAS 34 Interim Financial Reporting and the Annual Accounts Act. The interim report for the Parent Company has been prepared according the Annual Accounts Act as well as RFR 2 Reporting for Legal Entities. Applied accounting policies are otherwise consistent with the 2022 Annual Report.

New accounting policies for 2023

Several amendments to existing standards have been published and will come into effect in 2023 and beyond. One of these is changes in IAS 1 - Disclosure of accounting principles. To support the changes, the IASB has also developed guidance and examples to explain and identify a significant accounting principle. The company's management assesses that this change is expected to affect information about applied accounting principles and work is underway to evaluate these effects in their entirety. Other changes are not considered to have a significant impact on New Wave Group's financial reports.

Note 2 - Risks and risk control

New Wave Group's international operations mean that it is continuously exposed to various financial risks. The financial risks are interest rate risks, currency, liquidity and credit risks. In order to minimize the effect these risks may have on earnings, the Group has a risk policy. For a more detailed description of the Group's risk management please refer to the Annual Report 2022, note 16, p. 98-104. The Annual Report is available at the Group's headquarters in Gothenburg, Sweden, as well as at www.nwg.se.

The Group's policy is to have short fixed-rate interest periods, which means that fluctuating short-term interest rates have a rapid impact on the Group's net interest income.

The conflict between Russia and Ukraine has significantly increased geopolitical tensions, which in turn has a major impact on world trade. In this context, New Wave Group has marginal business with both Ukraine and Russia. Furthermore, the war also means increased uncertainty about economic development.

Group management and each company management closely monitor developments in the conflict between Russia and Ukraine and work closely with suppliers and customers. Strategies and activities are continuously adapted as the situation develops.

Besides the above, the Group's reported risks are deemed to be essentially unchanged.

Besides the above, the Group's reported risks are deemed to be essentially unchanged.

Note 3 - Reporting of operating segments

Net sales and operating result per operating segment

SEK million	3 months	3 months	9 months	9 months	12 months	12 months
Corporate	Jul - Sep 2023	Jul - Sep 2022	Jan - Sep 2023	Jan - Sep 2022	Jan - Dec 2022	Jan - Dec 2021
Net sales	1 115.2	1 022.6	3 398.8	2 793.0	4 152.0	2 971.6
Operating result	182.6	186.3	611.2	516.5	813.1	440.8
Sports & Leisure
Net sales	1 016.4	1 007.3	2 803.0	2 635.5	3 782.3	2 792.5
Operating result	180.3	199.5	448.6	429.2	647.3	466.0
Gifts & Home Furnishings
Net sales	205.4	204.6	575.2	600.1	909.3	954.5
Operating result	18.2	12.0	-1.3	12.2	44.7	99.1
Total net sales	2 337.0	2 234.4	6 777.0	6 028.5	8 843.6	6 718.6
Total operating result	381.1	397.8	1 058.4	957.9	1 505.1	1 005.9
Total operating result	381.1	397.8	1 058.4	957.9	1 505.1	1 005.9
Net financial items	-36.1	-13.0	-99.6	-33.0	-55.0	-43.0
Result before tax	345.0	384.8	958.8	924.9	1 450.1	962.9

Assets and liabilities per operating segment

SEK million	Total assets	Fixed assets*	Deferred tax assets	Net investments	Amortizations, depreciations and write-downs	Total liabilities
30 Sep 2023
Corporate	7 297.9	1 185.3	53.5	-52.3	-127.9	3 124.2
Sports & Leisure	3 578.7	1 775.9	64.8	-127.6	-58.7	1 602.2
Gifts & Home Furnishings	549.7	327.8	8.9	-18.8	-13.2	320.2
Total	11 426.4	3 289.0	127.2	-198.7	-199.8	5 046.6
30 Sep 2022
Corporate	6 174.9	1 231.8	40.8	-29.7	-112.8	3 619.8
Sports & Leisure	3 765.1	1 581.9	55.9	-73.0	-52.9	929.9
Gifts & Home Furnishings	386.0	331.5	15.5	-12.5	-11.9	205.1
Total	10 326.0	3 145.2	112.2	-115.2	-177.6	4 754.8
31 Dec 2022
Corporate	6 745.4	1 207.3	51.6	-450.0	-156.2	3 913.1
Sports & Leisure	3 811.3	1 548.8	60.5	-55.4	-77.0	935.9
Gifts & Home Furnishings	386.8	332.0	17.1	-16.8	-16.0	204.0
Total	10 943.6	3 088.1	129.2	-522.2	-249.2	5 053.1

* Financial fixed assets and Deferred tax assets are not included

Note 4 - Net sales per sales channel and operating segment

SEK million	Corporate		Sports & Leisure		Gifts & Home Furnishings		Total
	3 months Jul - Sep 2023	3 months Jul - Sep 2022	3 months Jul - Sep 2023	3 months Jul - Sep 2022	3 months Jul - Sep 2023	3 months Jul - Sep 2022	3 months Jul - Sep 2023	3 months Jul - Sep 2022
Promo	1 104.6	1 017.3	269.9	263.9	29.8	33.5	1 404.3	1 314.7
Retail	10.6	5.2	746.5	743.4	175.6	171.1	932.7	919.7
Total	1 115.2	1 022.5	1 016.4	1 007.3	205.4	204.6	2 337.0	2 234.4

SEK million	Corporate		Sports & Leisure		Gifts & Home Furnishings		Total
	9 months Jan - Sep 2023	9 months Jan - Sep 2022	9 months Jan - Sep 2023	9 months Jan - Sep 2022	9 months Jan - Sep 2023	9 months Jan - Sep 2022	9 months Jan - Sep 2023	9 months Jan - Sep 2022
Promo	3 378.9	2 780.7	820.2	745.2	103.3	118.3	4 302.4	3 644.2
Retail	19.9	12.2	1 982.8	1 890.3	471.9	481.8	2 474.6	2 384.3
Total	3 398.8	2 792.9	2 803.0	2 635.5	575.2	600.1	6 777.0	6 028.5

SEK million		Corporate	Sports & Leisure		Gifts & Home Furnishings		Total
	12 months Jan - Dec 2022	12 months Jan - Dec 2021	12 months Jan - Dec 2022	12 months Jan - Dec 2021	12 months Jan - Dec 2022	12 months Jan - Dec 2021	12 months Jan - Dec 2022	12 months Jan - Dec 2021
Promo	4 132.4	2 949.9	1 054.9	742.1	229.5	265.3	5 416.8	3 957.3
Retail	19.6	21.7	2 727.4	2 050.4	679.8	689.2	3 426.8	2 761.3
Total	4 152.0	2 971.6	3 782.3	2 792.5	909.3	954.5	8 843.6	6 718.6

Note 5 - Reporting of geographic areas

Net sales per geographic area

SEK million	Corporate Sports & Leisure				Gifts & Home Furnishings		Total		Change %
	3 months Jul - Sep 2023	3 months Jul - Sep 2022	3 months Jul - Sep 2023	3 months Jul - Sep 2022	3 months Jul - Sep 2023	3 months Jul - Sep 2022	3 months Jul - Sep 2023	3 months Jul - Sep 2022
USA	59.3	72.6	433.3	485.8	14.3	13.5	506.9	571.9	-11%
Sweden	103.0	118.3	210.6	192.0	175.2	173.1	488.7	483.4	1%
Central Europe	420.4	288.4	123.2	105.0	5.6	5.9	549.2	399.3	38%
Nordic countries excl. Sweden	116.4	118.8	130.6	140.3	8.0	8.8	255.0	267.9	-5%
Southern Europe	248.0	227.2	41.4	28.8	0.1	0.1	289.5	256.1	13%
Other countries	168.1	197.2	77.3	55.4	2.3	3.2	247.7	255.8	-3%
Total	1 115.2	1 022.5	1 016.4	1 007.3	205.4	204.6	2 337.0	2 234.4	5%

SEK million	Corporate		Sports & Leisure			Gifts & Home Total Furnishings			Change %
	9 months Jan - Sep 2023	9 months Jan - Sep 2022	9 months Jan - Sep 2023	9 months Jan - Sep 2022	9 months Jan - Sep 2023	9 months Jan - Sep 2022	9 months Jan - Sep 2023	9 months Jan - Sep 2022
USA	184.8	204.4	1 317.6	1 268.7	40.6	42.4	1 543.0	1 515.5	2%
Sweden	350.8	373.0	551.7	505.5	482.5	494.6	1 385.0	1 373.1	1%
Central Europe	1 244.6	697.6	309.8	289.5	16.1	18.1	1 570.5	1 005.2	56%
Nordic countries excl. Sweden	371.3	354.3	373.1	369.3	27.8	33.5	772.2	757.1	2%
Southern Europe	821.9	712.5	99.9	76.9	0.3	0.3	922.1	789.7	17%
Other countries	425.4	451.1	150.8	125.6	8.0	11.2	584.2	587.9	-1%
Total	3 398.8	2 792.9	2 803.0	2 635.5	575.2	600.1	6 777.0	6 028.5	12%

SEK million	Corporate		Sports & Leisure		Gifts & Home Furnishings		Total		Change %
	12 months Jan - Dec 2022	12 months Jan - Dec 2021	12 months Jan - Dec 2022	12 months Jan - Dec 2021	12 months Jan - Dec 2022	12 months Jan - Dec 2021	12 months Jan - Dec 2022	12 months Jan - Dec 2021
USA	303.5	203.6	1 769.5	1 145.0	66.0	60.4	2 139.0	1 409.0	52%
Sweden	545.0	476.1	724.3	637.6	740.8	799.4	2 010.1	1 913.1	5%
Central Europe	1 201.0	660.8	413.1	338.9	25.0	26.0	1 639.1	1 025.7	60%
Nordic countries excl. Sweden	494.5	401.3	526.7	411.4	62.4	49.8	1 083.6	862.5	26%
Southern Europe	1 059.6	779.3	119.3	83.2	0.4	0.4	1 179.3	862.9	37%
Other countries	548.4	450.5	229.4	176.4	14.7	18.5	792.5	645.4	23%
Total	4 152.0	2 971.6	3 782.3	2 792.5	909.3	954.5	8 843.6	6 718.6	32%

Fixed assets and deferred tax assets per geographic area

	30 Sep 2023		30 Sep 2022		31 Dec 2022
SEK million	Fixed assets*	Deferred tax assets	Fixed assets*	Deferred tax assets	Fixed assets*	Deferred tax assets
USA	1 458.4	45.0	1 335.3	46.4	1 323.3	51.1
Sweden	806.6	25.1	781.3	24.9	723.7	26.3
Central Europe	484.1	18.3	485.0	9.9	477.2	16.3
Nordic countries excl. Sweden	183.7	6.4	222.4	5.6	206.7	6.5
Southern Europe	231.6	20.0	209.1	17.9	223.9	20.9
Other countries	124.5	12.4	112.1	7.5	133.3	8.1
Total	3 289.0	127.2	3 145.2	112.2	3 088.1	129.2

* Financial fixed assets and Deferred tax assets are not included

Note 6 - Financial instruments

SEK million	30 Sep 2023	30 Sep 2022	31 Dec 2022	31 Dec 2021
Assets at fair value through other comprehensive income	5.2	16.0	2.4	3.3
Assets at amortized cost	1 999.4	2 086.0	2 258.1	1 777.5
Total financial assets	2 004.5	2 102.0	2 260.5	1 780.8
Liabilities at fair value through other comprehensive income	0.0	0.0	0.0	0.0
Liabilities at amortized cost	3 879.2	4 233.7	3 862.9	2 662.4
Total financial liabilites	3 879.2	4 233.7	3 862.9	2 662.4

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

Note 7 - Pledged assets and contingent liabilities

GROUP

Pledged assets	30 Sep	30 Sep	31 Dec	31 Dec
SEK million	2023	2022	2022	2021
Floating charges	535.4	690.5	690.5	690.5
Property mortgages	196.4	201.1	201.5	179.8
Net assets in Group companies	4 625.3	4 214.8	4 286.3	3 337.8
Shares in associated companies	8.3	8.3	8.3	8.3
Stock and accounts receivable	430.3	474.3	560.0	353.5
Total	5 795.7	5 589.0	5 746.6	4 569.9
Contingent liabilities	30 Sep	30 Sep	31 Dec	31 Dec
SEK million	2023	2022	2022	2021
Duty guarantees	13.8	12.0	13.8	12.2
Rent guarantees	120.1	135.1	132.9	141.9
Guarantees for associated companies	6.0	6.0	6.0	6.0
Total	139.9	153.1	152.7	160.1
PARENT COMPANY
Pledged assets
SEK million	30 Sep 2023	30 Sep 2022	31 Dec 2022	31 Dec 2021
Floating charges	30.0	30.0	30.0	30.0
Shares in Group companies	1 694.1	1 739.1	1 739.1	1 737.7
Shares in associated companies	8.3	8.3	8.3	8.3
Total	1 732.4	1 777.4	1 777.4	1 776.0
Contingent liabilities	30 Sep	30 Sep	31 Dec	31 Dec
SEK million	2023	2022	2022	2021
Guarantees for Group companies	433.5	794.8	589.8	633.5
Guarantees for associated companies	6.0	6.0	6.0	6.0
Total	439.5	800.8	595.8	639.5

Note 8 - Acquisition of Tenson AB

On July 1, New Wave Group acquired 100% of the shares in the Swedish outdoor company Tenson AB. The purchase price amounted to SEK 1, which was based on equity at the time of acquisition on July 1, 2023 amounting to at least SEK 6.5 million, where the brand was valued at SEK 30.9 million. This resulted in a positive profit effect of SEK 6.5 million, which was reported under other operating income.

Tenson, the Swedish outdoor & lifestyle brand with roots on the Swedish west coast (founded in Varberg in 1951) has, during the last four years, undergone a restructuring & repositioning process that included the entire spectrum of brand, product, market, sales and channel strategies. New Wave Group, through the acquisition and integration of the company, will give Tenson access to the resources and synergies required to enter the next phase of the above-mentioned process, to scale up operations and profitability.

In 2022, the Tenson group's sales amounted to SEK 129.7 million with a loss after tax of SEK 8.5 million. The acquisition is not expected to have a major effect on earnings in the second half of 2023, but is expected to have a positive effect on New Wave Group's earnings already in 2024.

The acquisition analysis is preliminary and subject to adjustment.

Note 9 - Subsequent events

No significant events have occurred after the balance sheet date.

Condensed quarterly consolidated income statements

SEK million

		2023			2022				2021
Quarter		Q3	Q2	Q1	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q1
Net sales		2 337.0	2 304.5	2 135.5	2 815.1	2 234.4	2 019.2	1 774.9	2 306.7	1 663.5	1 486.8	1 261.6
Goods for resale		-1 200.5	-1 164.8	-1 052.6	-1 415.4	-1 131.6	-989.8	-931.6	-1 203.3	-860.4	-769.2	-656.4
Gross profit		1 136.4	1 139.7	1 082.9	1 399.7	1 102.8	1 029.4	843.3	1 103.4	803.1	717.6	605.2
Gross profit margin %		48.6	49.5	50.7	49.7	49.4	51.0	47.5	47.8	48.3	48.3	48.0
Other operating income		50.0	27.4	23.7	36.7	35.7	28.9	22.6	23.9	11.6	59.4	16.6
External costs		-403.0	-382.3	-388.4	-454.4	-359.3	-345.0	-311.6	-350.9	-258.4	-233.8	-224.8
Personnel costs		-320.2	-338.7	-328.8	-350.3	-291.5	-288.9	-274.6	-301.4	-235.5	-242.8	-237.2
Depreciations and write-downs		-65.6	-68.8	-65.4	-71.5	-60.6	-58.3	-58.8	-61.5	-55.7	-56.0	-54.1
Other operating costs		-14.6	-13.1	-10.2	-12.6	-27.9	-15.1	-11.8	-9.9	-3.7	-2.9	-5.2
Share of associated companies' result		-2.0	-0.3	-0.3	-0.4	-1.4	0.0	0.0	-0.3	-0.3	-0.1	-0.4
Operating result		381.1	363.9	313.5	547.2	397.8	351.0	209.1	403.3	261.1	241.3	100.1
Financial income		3.5	0.9	1.1	0.5	1.1	1.5	0.6	0.7	0.6	0.9	0.8
Financial expenses		-39.6	-36.0	-29.6	-22.5	-14.1	-11.9	-10.2	-10.6	-11.6	-10.3	-13.5
Result before tax		345.0	328.8	285.0	525.2	384.8	340.6	199.5	393.4	250.1	231.9	87.4
Tax expense		-74.2	-69.2	-62.8	-79.0	-80.8	-75.5	-46.0	-84.9	-54.1	-44.3	-19.7
Result for the period		270.9	259.6	222.2	446.2	304.0	265.0	153.5	308.5	196.0	187.7	67.7
Total other comprehensive income
for the period		-77.4	251.3	-6.1	-127.1	556.9	253.3	70.5	87.5	60.5	-57.7	142.5
Total comprehensive income for the period		193.5	510.9	216.1	319.1	860.9	518.4	224.0	396.0	256.5	130.0	210.2
Earnings per share before and after
dilution (SEK)*		2.04	1.96	1.67	3.36	2.29	2.00	1.16	2.31	1.49	1.42	0.52
	2020				2019				2018
Quarter	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q1
Net sales	1 873.2	1 470.1	1 314.5	1 440.9	2 024.1	1 685.5	1 689.0	1 504.9	1 943.4	1 551.2	1 523.2	1 272.8
Goods for resale	-1 007.7	-843.9	-799.7	-810.2	-1 079.2	-923.2	-903.3	-795.3	-1 042.3	-835.3	-804.2	-677.5
Gross profit	865.6	626.2	514.8	630.7	944.9	762.3	785.7	709.6	901.1	715.8	719.0	595.4
Gross profit margin %	46.2	42.6	39.2	43.8	46.7	45.2	46.5	47.1	46.4	46.1	47.2	46.8
Other operating income	29.6	34.7	61.4	20.6	32.3	12.9	15.5	17.2	28.3	19.3	11.3	15.9
External costs	-285.4	-191.6	-187.7	-311.1	-343.8	-300.3	-330.2	-338.4	-390.6	-323.5	-305.1	-317.2
Personnel costs	-259.9	-220.8	-209.1	-292.8	-307.6	-278.7	-290.5	-283.0	-298.0	-257.7	-260.9	-246.4
Depreciations and write-downs	-55.0	-56.6	-57.8	-60.1	-73.6	-55.7	-52.8	-51.0	-21.6	-20.2	-18.5	-17.6
Other operating costs	-11.4	-15.2	-11.4	-10.4	-12.4	-11.3	-7.7	-8.2	-9.8	-15.0	-8.3	-11.8
Share of associated companies' result	0.1	-0.4	-0.1	-0.9	0.6	-0.2	-0.3	-0.2	0.1	-1.3	-0.3	0.4
Operating result	283.6	176.3	110.1	-24.1	240.3	129.1	119.6	46.0	209.4	117.5	137.3	18.6
Financial income	0.1	0.6	2.9	0.5	2.8	2.5	2.2	1.3	1.5	0.7	1.8	1.5
Financial expenses	-14.6	-15.8	-20.2	-18.4	-24.1	-19.5	-18.1	-15.3	-14.2	-12.3	-8.2	-11.7
Result before tax	269.2	161.1	92.8	-42.1	219.1	112.1	103.6	32.0	196.6	105.9	130.9	8.4
Tax expense	-61.0	-42.2	-19.9	5.1	-53.1	-17.6	-19.9	-6.0	-37.7	-17.5	-24.2	-2.4
Result for the period	208.2	118.9	72.9	-36.9	165.9	94.4	83.7	26.0	158.9	88.4	106.8	6.0
Total other comprehensive income
for the period	-213.0	-58.3	-212.4	205.5	-131.5	126.9	16.2	86.3	2.7	-37.8	121.1	71.7
Total comprehensive income for the period	-4.9	60.6	-139.5	168.6	34.4	221.4	99.9	112.3	161.6	50.5	227.9	77.7
Earnings per share before and after dilution (SEK)*	1.56	0.91	0.55	-0.27	1.26	0.72	0.64	0.20	1.21	0.68	0.80	0.05

* The average number of outstanding shares. before and after dilution, has been 123,687,086 in all periods in the table.

*Recalculated with regard to the 2:1 share split carried out in June 2023.

Condensed quarterly consolidated cash flow statements

SEK million		2023			2022				2021
Quarter		Q3	Q2	Q1	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q1
Cash flow from operating activities before
changes in working capital		381,2	259.7	297.8	466.3	367,3	346.0	203.6	404.1	282.8	219.0	87.1
Increase/decrease of inventories Increase/decrease of current receivables		-126,6 -117,8	-5.8 -30.2	-259.0 281.5	-525.1 -71.1	-870,8 -202,3	-360.7 -119.2	-226.5 205.8	59.7 -194.6	-157.7 -174.7	125.2 -156.8	30.6 256.3
Increase/decrease of current liabilities		36,5	6.4	-513.4	-103.0	505,4	202.0	-177.7	144.1	291.4	-2.2	-6.8
Changes in working capital		-207,9	-29.6	-490.9	-699.2	-567,7	-277.9	-198.4	9.2	-41.0	-33.7	280.1
Cash flow from operating activities		173,3	230.1	-193.1	-232.9	-200,4	68.1	5.2	413.3	241.8	185.3	367.2
Investing activities		-72,1	-82.8	-40.7	-8.3	-433,4	-55.2	-25.3	-42.1	-33.0	-24.0	-15.2
Cash flow after investing activities		101,2	147.3	-233.8	-241.2	-633,8	12.9	-20.1	371.2	208.8	161.3	352.0
Increase/decrease of
interest-bearing liabilities		-211,2	88.1	190.0	389.3	589,6	253.6	-16.3	-82.6	-309.0	-95.4	-346.1
Transactions with owners		0,0	-216.3	0.0	0.0	0,0	-282.0	0.0	-277.9	0.0	0.0	0.0
Cash flow from financial activities		-211,2	-128.2	190.0	389.2	589,6	-28.4	-16.3	-360.5	-309.0	-95.4	-346.1
Cash flow for the period		-110,0	19.1	-43.8	148.0	-44,2	-15.5	-36.4	10.7	-100.2	65.9	5.9
Liquid assets at the beginning of the period Translation differences in liquid assets		416,5 -6,9	376.7 20.7	419.4 1.1	279.2 -7.8	305,5 17,9	298.6 22.4	327.9 7.1	311.0 6.2	405.8 5.5	344.8 -4.9	325.1 13.8
Liquid assets at the end of the period		299,6	416.5	376,7	419,4	279,2	305,5	298,6	327,9	311,0	405,8	344,8
	2020				2019				2018
Quarter	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q1
Cash flow from operating activities
before changes in working wcapital	300.0	218.9	176.0	-63.0							128.3
					262.1	149.9	143.8	49.3	184.1	116.1		1.2
Increase/decrease of stock	472.4	86.9	53.9	-117.4	180.9	-256.4	-108.0	-58.3	44.6	-310.4	-110.8	-117.4
Increase/decrease of current receivables	-87.7	-207.6	87.4	313.9	-47.5	-34.3	-95.9	126.2	-3.6	-128.6	-36.2	140.9
Increase/decrease of current liabilities	-127.2	185.0	-65.9	-19.0	-108.8	9.7	69.1	-182.3	-50.7	239.9	143.2	-18.1
Changes in working capital	257.5	64.3	75.5	177.6	24.7	-281.0	-134.8	-114.4	-9.7	-199.1	-3.7	5.4
Cash flow from operating activities	557.5	283.2	251.4	114.6	286.7	-131.1	9.0	-65.1	174.4	-83.0	124.6	6.6
Investing activities	-7.2	-8.6	-11.1	-30.6	-42.2	-32.6	-35.6	-38.3	-39.7	-42.1	-41.6	-39.8
Cash flow after investing activities	550.3	274.6	240.3	84.0	244.6	-163.8	-26.6	-103.4	134.7	-125.1	83.0	-33.2
Increase/decrease of
interest-bearing liabilities	-435.9	-322.9	-201.6	-195.2	-122.6	210.1	75.3	49.2	-15.9	104.9	58.0	5.1
Transactions with owners	0.0	0.0	0.0	0.0	0.0	1.2	-132.7	0.0	0.0	0.0	-112.8	0.0
Cash flow from financial activities	-435.9	-322.9	-201.6	-195.2	-122.6	211.2	-57.4	49.2	-15.9	104.9	-54.8	5.1
Cash flow for the period	114.5	-48.4	38.7	-111.2	121.9	47.4	-84.0	-54.2	118.8	-20.2	28.2	-28.1
Liquid assets at the beginning of the period	226.8	277.8	257.6	351.3	238.4	182.5	265.0	312.2	192.6	215.4	180.5	202.4
Translation differences in liquid assets	-16.2	-2.7	-18.5	17.6	-9.1	8.5	1.5	7.0	0.8	-2.6	6.7	6.2

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 Interim 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. A reconciliation of alternative performance measures is available on www.nwg.se/en/investor-relations/ financial-reports/key-numbers.

PERFORMANCE
MEASURES GROSS PROFIT MARGIN	DEFINITION/CALCULATION Net sales less goods for resale in percent of net sales.	PURPOSE The measure is used for showing the Group'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 show operating profitability and how the Group meets its targets.
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.
NET SALES GROWTH	Sales growth including currency effects.	The measure is used to show growth in the Group and to measure how the Group meets its targets.
ORGANIC GROWTH	Organic growth refers to sales growth from existing operations cleared from currency effects. The currency effect is calculated by recalculating this year's sales in local currencies to last year's rates and compared to previous year's sales.	The measure is used to show growth in existing business since currency effects are beyond the Group's control and to measure how the Group meets its targets.
OPERATING MARGIN BEFORE DEPRECIATIONS	Operating result before depreciation as a percentage of the period's net sales.	The measure is used to show operating profitability and how the Group meets its targets, regardless of depreciation, amortization and write-downs.
NET FINANCIAL ITEMS	The total of interest income, interest expenses, currency differences on borrowings and cash equivalents in foreign currencies, other financial income and other financial expenses.	The measure reflects the Group's total costs of the external financing.
RETURN MEASURES	DEFINITION/CALCULATION	PURPOSE
RETURN ON CAPITAL EMPLOYED	Rolling 12 month's result before tax plus financial expenses 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 at year-end for the previous year divided by two.	The measure is used to analyze profitability by putting result in relation to the capital needed to operate the business.
RETURN ON EQUITY	Rolling 12 month's result for the period according to the income statement as a percentage of average equity. The average equity is calculated by taking the equity per period end and the equity at year-end for the previous year divided by two. For the Parent company it is calculated as result after tax as a percentage of average adjusted equity. In adjusted equity, the equity part of untaxed reserves is included.	The measure is used to analyze profitability over time, given the resources available to the Parent company's owners.

DATA PER SHARE EQUITY PER SHARE	DEFINITION/CALCULATION Equity at the end of the period divided by number of shares at the end of the period.	PURPOSE Equity per share measures the net asset value per share and determines if a company is increasing shareholder value over time.
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 non-controlling interests. Deferred tax liability in untaxed reserves has been calculated at the applica ble tax rates for the companies in each country, as decided and communicated at the balance sheet date.	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 EMPLOYED	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 and current tax receivables, less short-term non-interest bearing liabilities excluding current tax liabilities.	The measure is used to show how much capital is needed to finance operating activities.
NET DEBT	Interest-bearing liabilities (current and non-current) less cash and cash equivalents.	The measure shows financing from borrowings.
NET DEBT TO CREDIT INSTITUTES	Interest-bearing liabilities (current and non-current) less lease liabilities and less cash and cash equivalents.	The measure shows financing from borrowings excluding lease liabilties
CAPITAL TURNOVER	Rolling 12 month's net sales divided by average total assets. The average total assets is calculated by taking the total assets per period end and the total assets at year-end for the previous year divided by two.	The measure shows how efficiently the Group uses its total capital.
INVENTORY TURNOVER	Rolling 12 month's goods for resale in the income statement divided by average inventory. The average inventory is calculated by taking the inventory per period end and the inventory at the same period for the previous year divided by two.	The measure is used to show the inventory's turnover per year, since the stock is central for the Group to keep a good service level, i.e. to be able to deliver goods fast.
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 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 Group's ability to pay interest costs.
EQUITY RATIO	Total equity as a percentage of total assets.	The measure shows how much of the Group's assets are financed by the shareholders through equity. An equity ratio is a measure of financial strength and how the Group meets its targets.

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.
EFFECTIVE INTEREST RATE	Net financial items in relation to average net debt.	The measure enables comparison of cost for the net debt.
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 for investments in operations and for expansion.

New Wave Group is a growth group that designs, acquires and develops brands and products in the corporate, sports, gifts and home furnishings sectors. The Group shall achieve synergies by coordinating design, purchasing, marketing, warehousing 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) Corp. id number 556350-0916 Kungsportsavenyen 10, SE-411 36 Gothenburg Phone +46 (0) 31 712 89 00 | info@nwg.se

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