Interim Report New Wave Group AB (publ) January - June 2002

Interim Report New Wave Group AB (publ) January-June 2002 Strong second quarter · ·During January - June 2002, New Wave increased its sales by 24.0 percent to SEK 738.8 (597.4) million. · The result after net financial items decreased by SEK 2.0 million to SEK 51.8 (53.8) million, of which acquired units (that mainly have earning ability during the fourth quarter) decreased the result by SEK 3.1 million. · The result after net financial items during the second quarter increased by SEK 9.7 million to SEK 54.7 (45.0) million, which makes this the most profitable quarter in New Wave's history. · The Profiling business area increased its sales by 9.0 percent to SEK 469.8 (430.2) million. The result after financial items decreased by SEK 4.3 million and amounted to SEK 44.7 (49.0) million. Acquired units accounted for SEK 2.1 million of the decrease. · The Retailing business area increased its sales by 61.0 percent to SEK 269.0 (167.2) million. The result after net financial items increased by SEK 2.3 million and amounted to SEK 7.1 (4.8) million. Acquired units accounted for SEK 1.0 million of the decrease. · Despite continuous expansion, New Wave shows a positive cash flow for the period, amounting to SEK 15.6 (-89.8) million after made investments and SEK 51.8 (-68.9) million before made investments. · New Wave still judges that the economic situation is unstable, but the prognosis of sales of between SEK 1.6 and 1.8 billion remains. Considering the acquisitions of Lensen Beheer B.V. and X-Tend B.V., sales are expected to land in the upper part of the interval. · On 30 July, New Wave acquired 51.0 percent of the shares in X-Tend B.V. in the Netherlands. X-tend will be consolidated as per 1 August and is not expected to affect the New Wave's result during 2002. · On 2 August 2002, New Wave has acquired 75.0 percent of the shares in Lensen Beheer B.V. The acquisition, which is consolidated as per 1 July 2002, is expected to affect the results of 2002 and 2003 to a very little degree, since several market investments will be made. SALES During January - June 2002, New Wave's sales increased by 24 percent to SEK 738.8 (597.4) million. In the Profiling business area, sales increased by 9.0 percent. In the Retailing business area, sales increased by 61.0 percent. Sales in the Swedish market increased by 27.0 percent and amounted to SEK 443.8 (348.7) million. Sales in the foreign markets increased by 19.0 percent and amounted to SEK 295.0 (248.8) million. RESULT During January - June 2002, the result after financial items decreased by SEK 2.0 million and amounted to SEK 51.8 (53.8) million. However, the result after financial items increased by SEK 9.8 million to SEK 54.8 (45.0) million during the second quarter. The result after financial items has been negatively affected by SEK 3.1 million by acquired units that mainly have their earning ability during the fourth quarter. The gross profit margin increased, compared to the preceding year, and amounted to 42.6 (40.8) percent. This improvement from the preceding year is mainly due to larger gross profit from New Wave in Spain, New Wave in Holland and Sko Team in Sweden, as well as better purchase prices and improved logistics in general. The Group's external costs as a part of sales increased and amounted to 17.0 (16.2) percent of the Group's sales. The personnel costs increased and amounted to 14.3 (11.8) percent of the Group's sales. The increased share of external and personnel costs in relation to sales can, compared to the preceding year, mainly be referred to acquired companies, New Wave's new operations abroad, as well as the economic situation and, due to that, a lower sales growth than expected. Depreciations have increased by SEK 6.5 million to SEK 17.2 million, of which SEK 3.0 million is goodwill depreciations and SEK 3.5 million is other fixed assets; mainly acquired units. THE PROFILING BUSINESS AREA During January - June 2002, the business area's sales increased by 9.0 percent to SEK 469.8 (430.2) million. The profit after financial items decreased by SEK 4.3 million and amounted to SEK 44.7 (49.0) million. The improvement in sales was below New Wave's expectations. Acquired companies reduced the result by SEK 2.1 million. THE RETAILING BUSINESS AREA During January - June 2002, the business area's sales increased by 61.0 percent to SEK 269.0 (167.2) million. The profit after net financial items increased by SEK 2.3 million and amounted to SEK 7.1 (4.8) million. Acquired companies reduced the result by SEK 1.0 million. ESTABLISHMENTS ABROAD Germany The first quarter was weak, but during the second quarter things have taken a positive turn. Denmark Better than the preceding year, but worse than expected. Norway The first half-year was weak and the profit has not reached last year's level. Finland Better profit and sales than the preceding year, but sales during June were low. Italy Good profit development and sales are also expected to improve. Spain After the loss in Spain last year, due to management irregularities among other things, the development of the company is now positive. It showed a positive result for the first half-year 2002 and has a strong growth within promowear. Benelux Sales like the preceding year, which is lower than expected. The Benelux countries will increasingly important during the second half-year, thanks to the acquisitions of X-Tend B.V. and Lensen Beheer B.V. Great Britain The development in Great Britain during 2001 was troublesome. Build-up efforts in the marketing, sellers and stock departments have brought on a high cost level. The first half-year was still below the expected, why New Wave intend to increase its focusing on Great Britain in order to reach the expected result. New Wave expects Great Britain to become one of the Group's largest markets, even though it is developing more slowly than expected. France The growth in sales was good, even though it was below New Wave's expectations. However, New Wave judges that the efforts in France will lead to a positive development. SAGAFORM AB During the second quarter of 2001, New Wave acquired shares corresponding to 50.1 percent of the votes and capital in Sagaform. The largest part of sales and profit in Sagaform can be found in the fourth quarter. The Sagaform Group is expected to have sales of approximately SEK 120.0 million during 2002, with good profitability. Synergies The integration of Sagaform is according to plan and Sagaform's sales to the corporate profiling market is expected to amount to SEK 40.0 million, compared to SEK 5.0 million per year before the acquisition. Since New Wave's other corporate profiling companies are able to offer parts of Sagaform's range to their customers, a large group is reached. SEGERKONCERNEN AB New Wave acquired all shares in Segerkoncernen AB in 2001. The company is consolidated as per 1 September, 2001. Seger has been developing according to plan, when it comes to both sales and result. Segerkoncernen is expected to have sales of approximately SEK 150.0 million during 2002, with good profitability. Synergies: · The sales of products for the corporate profiling market, such as caps, scarves and socks through New Wave's retailers have started. New Wave expects a substantial increase in sales, since these ranges will be launched in the Swedish market at first, but eventually also in other countries where New Wave operates. · Further launching of Seger outside of Sweden will be handled by sellers or distributors representing Craft in countries where Seger lacks distribution today. FRANTEXTIL During 2002, New Wave acquired all shares in Frantextilkoncernen, which is consolidated as per 1 January 2002. The first half-year was weaker than expected, but the larger part of Frantextil's result and sales can be seen in the third and fourth quarter. Frantextilkoncernen consists of two companies: Frantextil AB, which mainly supplies domestic textile products and terry cloth to the retailing market, and Dahlin & Johansson Textil AB, which mainly supplies gifts and terry cloth to the Swedish market, but also to Norway and Finland. Synergies: In Frantextil and D&J, New Wave has got companies that complete the Group with terry cloth, domestic textile, business gifts and other gifts. This means that New Wave is able to offer its clients a more complete range. X-TEND On 30 June 2002, New Wave acquired 51.0 percent of the shares in X-Tend B.V. in the Netherlands. X-Tend has for the last ten years distributed the trademark Craft in the Benelux countries. The price for the shares corresponds to the shares' part of the shareholders' equity. The remaining shares are owned by the company's management. New Wave has made an option to buy the remaining shares within five years, at a purchase price that corresponds to the company's profit during the years 2004-2006. LENSEN-KONCERNEN On 2 August 2002, New Wave acquired Lensen Beheer B.V. with subsidiaries, from the founder Albert Lensen and the company's management. New Wave owns shares corresponding to 75.0 percent of the capital and votes in the company, while the management owns 25.0 percent. New Wave has a right to acquire the remaining shares after the end of 2005, at a purchase price based on the company's profit. Lensen-koncernen's operations are concentrated on sales and production of a wide range of corporate profiling and gift articles with the trademarks Toppoint and M-Pen. Lensen holds a leading position in the Benelux market as well as strong positions in the French, German, British and Irish markets for example. The trading operations are concentrated on gifts and domestic products, imported from the Far East. The Group's sales during 2002, within the areas mentioned above, are estimated to approximately SEK 250.0 million. The Group currently has 170.0 employees, of whom the main part works in the Netherlands. Lensen Beheer B.V. has seven subsidiaries, all of which are active in the corporate profiling market. Lensen Beheer B.V. will be consolidated as per 1 July 2002. The acquisition is estimated to affect the result during 2002 and 2003 to a very little extent, since several market investments will be made. Synergies: New Wave expects large future synergies within sales, marketing and distribution, but it will take market investments during the first year. MINORITY INTERESTS The rest of the outstanding shares in Dressmart AB have been paid after delivered arbitration. BUYING AND LOGISTICS The construction work of the new warehouse for the Profiling business area began during February 2002, and the warehouse will come into use at the end of the year. Initially, the operation of the new warehouse will affect the result negatively by SEK 2-4 million during the third and fourth quarters of 2002. The yearly estimated savings thereafter are estimated to be approximately SEK 5-7 million. CAPITAL BINDING During the period in question, the capital binding of goods and claims has increased by SEK 61.5 million to SEK 875.0 (813.5) million. Acquired companies that were not part of the Group during the first half-year of 2001 (Segerkoncernen and Frantextil), are binding SEK 118.4 million in stocks and claims. Therefore, other companies have decreased the same by SEK 56.9 million. INVESTMENTS, FINANCING AND LIQUIDITY The Group's cash-effecting net investments in fixed assets amounted to SEK -36.2 (-20.9) million during January - June 2002. Cash flow after investments and acquisitions amounted to SEK 15.6 (-89.8) million during January -June 2002. The change is mainly due to the improvement of the working capital excluding acquisitions; SEK 51.8 (-68.9) million. Liquid funds amounted to SEK 22.4 million as at 30 June 2002, compared to SEK 96.2 million as at 30 June 2001. Net borrowings amounted to SEK 606.6 million as at 30 June 2002, compared to SEK 609.0 million as at 30 June 2001, a decrease of SEK 2,4million. The Group has confirmed credit facilities of SEK 1,100 million. PERSONNEL AND ORGANISATION The number of employees as at 30 June 2002 amounted to 528, compared with 384 as at 30 June 2001. The increase is mainly due to the acquisitions of Frantextil and Segerkoncernen. VIEWS ON THE FISCAL YEAR 2002 New Wave expects the Group's result to improve - even though the economic situation is very unstable, something that brings on uneven sales and difficulties in making any prognosis of the development. This was obvious during the autumn the preceding year, when the third quarter was below the expectations and the fourth quarter was very strong. Sales during 2002 are estimated to be approximately SEK 1,600-1,800 million. The profit is estimated to exceed the preceding year. THE PARENT COMPANY Sales once again amounted to SEK 49.4 (49.4) million. The result after financial items amounted to SEK 27.6 (28.2) million. During January - June, net borrowings increased by SEK 4.5 million and net investments amounted to SEK 30.1 (18.1) million. OPTION PROGRAM According to a decision made by the Annual General Meeting, New Wave has made 300,000 option rights at SEK 2.50 per item out to persons in leading positions with the right to acquire shares (1 June and 30 June) in 2005 at the fixed price of SEK 106.40 (after the last split). COMING INFORMATION Report for January - September 2002 will be published on 31 October 2002. Report for January - December 2002 will be published on 18 February 2003. Borås, 20 August 2002 New Wave Group AB (publ) The Board of Directors FOR MORE INFORMATION, PLEASE CONTACT: Vice President Torsten Jansson Telephone: +46 (0) 708 99 80 50, +46 (0) 33 22 58 55 E-mail: torsten.jansson@nwg.se Executive Vice President Göran Härstedt Telephone: +46 (0) 708 99 80 17, +46 (0) 22 58 63 E-mail: goran.harstedt@nwg.se Chief Financial Officer Krister Magnusson Telephone: +46 (0) 708 99 80 21, +46 (0) 33 22 58 54 E-mail: krister.magnusson@nwg.se ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2002/08/20/20020820BIT00960/wkr0001.doc The Full Report http://www.waymaker.net/bitonline/2002/08/20/20020820BIT00960/wkr0002.pdf The Full Report

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New Wave Group is a clothing company concentrating on sportswear and casual clothes.

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