Interim Report for New Wave Group AB (publ) Q1 JANUARY - MARCH 2009

Interim Report for New Wave Group AB (publ) Q1 JANUARY - MARCH 2009

The Period 1 January-31 March 2009

•  Sales amounted to MSEK 979 which was 4 % lower than the previous year (1
015).
•  The result after tax decreased by MSEK 38.3 to MSEK -53.3 (-15.0).
•  The result per share amounted to SEK -0.81 (-0.23).
•  Restructuring costs has affected the result before tax by MSEK 77.2.
•  Equity ratio amounted to 33.4 (27.3) %.
•  Net debt - Equity ratio amounted to 148.9 (196.5) %.

Views on 2009

•  Market conditions are still difficult to predict due to uncertainty in the
economy. New Wave is however for 2009 estimating a profit before tax which is in
line with 2008, but turnover will not be on the same level as the previous year

JANUARY-MARCH
Sales
Turnover for the period was MSEK 979 (1 015), which was 4 % lower than the
previous year. Exchange rates have had a positive effect on sales by MSEK 108. 

The decrease is mainly related to the business areas Promo 7 % together with
Gifts & Home interior 4 %. Sports & Leisure was in line with the previous year.

Sales decreased during the quarter in the Nordic countries, especially Sweden,
and the USA. Sales in Europe were slightly higher than the previous year, with
Germany and Switzerland having increased sales. A positive currency effect has
arisen within the euro countries and the USA. 

The decrease is related to the generally weaker economy. 

Gross margin
Gross margin has been affected by the restructuring costs in Orrefors Kosta Boda
which amounted to MSEK 25. The margin amounted to 48.6 (47.6) % excluding these
restructuring costs. The improved margin is mainly related to price increases
made during 2008 and 2009.

Other income
Other income increased by MSEK 16.7 to 22.9 (6.2). The increase is primarily
related to currency exchange gains and should be viewed together with the row
“Other costs” where the group's currency exchange losses are reported. Other
costs increased by MSEK 9.9 to -14.7 (-4.8). The net result from these two items
is a gain of MSEK 6.8.

Costs and depreciations
External costs decreased by MSEK 9.7 and amounted to -267.7 (-277.4). Costs have
been affected positively by savings but negatively by currency translation of
subsidiaries costs into SEK. Restructuring costs of MSEK 7.1 have been taken in
connection with changes in the Direct to Consumer division at Cutter & Buck USA.

Costs for personnel have increased by MSEK 52.6 to -231.2 (-178.6). Personnel
costs have been affected by restructuring costs in Orrefors Kosta Boda which
amounts to MSEK 45.1 and a negative currency effect when translating foreign
subsidiaries costs into SEK. Excluding these items, the personal costs are
slightly lower than the previous year. During the quarter, the restructuring
that has been announced earlier within Orrefors Kosta Boda has now been
finalized with related unions and the end result is a decrease of 154 persons.
This means that the company has made a provision for restructuring in the form
of a one time cost amounting to MSEK 70.1. Of these, MSEK 45.1 is reported under
the line item personnel costs and MSEK 25.0 under Gross margin as it is related
to a lower production result. The allocation to a particular period for these
items is MSEK 17.5 per quarter.

Depreciation amounted to MSEK 18.5 (12.5). 

The operating margin amounted to -5.9 (1.5) % where the decrease is related to
the restructuring costs. 

Finance net and tax
Net financial items amounted to MSEK -15.5 (-32.1). The decrease is due to lower
interest rates. The group's policy is to have a short duration, which has a
swift effect on the costs when the interest rate changes.

The tax in absolute numbers has affected the group positively by 19.5 (1.5),
which relates to accounted deferred tax assets.

Result
Result after tax decreased by 38.3 to -53.3 (-15.0) and result per share
amounted to SEK -0.81 (-0.23).

The period has reported restructuring costs of MSEK 77.2 before tax. With a tax
rate of 26.9 % for the companies concerned, the net effect of restructuring
costs amounted to MSEK-56.4. Result after tax excluding restructuring costs
therefore amounted to MSEK 3.1 (-15.0). However, the allocation of costs to a
particular period has had a positive affect by approximately MSEK 13.5 after
tax.

REPORT OF THE CORPORATE SEGMENTS / BUSINESS AREA'S
New Wave Group divides its operation into the business areas Promo, Sport &
Leisure, Gifts & Home Interior (see attachment for classification of brands).
The group is following the area and brand sales together with its result
(EBITDA). The business areas are based on how the group is operationally
managed.

THE PROMO BUSINESS AREA
For the period January-March, the sales decreased by 7 % to MSEK 442 (474) and
profit on EBITDA-level decreased by MSEK 5.6 to MSEK 22.8 (28.4). Sales and
result were lower in the Nordic countries, especially Sweden and Finland. Also
Europe was lower but has been compensated by a positive currency effect. The
decrease is related to the generally weaker economy. 

THE SPORT AND LEISURE BUSINESS AREA
For the period January-March, the sales were in line with the previous year MSEK
413 (411) but profit on EBITDA-level decreased by MSEK 12.8 to MSEK 19.4 (32.2).
The turnover and result have continued to be strong for Craft. Cutter & Buck has
been negatively affected by the weak American market. Cutter & Buck USA has also
taken a restructuring cost of MSEK 7.1 for changes in the Direct to consumer
division. The allocation to a particular period for this item has had a positive
affect by MSEK 1 during the period.

THE GIFT AND HOME INTERIOR BUSINESS AREA
For the period January-March, the sales decreased by 4% to MSEK 124 (130) and
profit on EBITDA-level decreased by MSEK 48.5 to MSEK -81.0 (-32.5). The lower
turnover is related to the Swedish retail market for Orrefors Kosta Boda and the
lower profit due to that company's restructuring costs of MSEK 70.1. The
allocation to a particular period for this item has had a positive affect by
MSEK 17.5 during the period.

GEOGRAPHICAL DISTRIBUTION
A table showing the sales per region Nordic, Mid-Europe, Southern Europe, USA
and Other regions is presented on page 15. 

During the period January-March the Nordic region decreased by 12 %, which is
mainly related to Sweden and Finland. Beside a positive currency effect,
Mid-Europe had increases in Germany and Southern Europe had increases in
Switzerland. Sales in the USA decreased by 3 %, but the currency development had
a positive effect while sales in local currency decreased in the region by 35 %.
The increase in other countries is mainly related to China.

CAPITAL TIED UP
Capital tied up in stock increased during the period by MSEK 103 to MSEK 2 303
(2 200). Previous years increase was MSEK 118. The weaker Swedish krona has
affected the stock value when translating into SEK. This has affected the value
by MSEK 38, which means that the increase with unchanged currency rates was MSEK
65. Provision for obsolete goods per 31 March 2009 was MSEK 106 (109) or 5% of
reported stock value.

Stock turnover for the period amounted to 0.9 (1.1).

Accounts receivable decreased by MSEK 2 to MSEK 834 (836).

Activities in order to reduce capital tied up continues and is expected to give
result primarily in second half of 2009.

INVESTMENTS, FINANCING AND LIQUIDITY
The group's cash flow from operations amounted to MSEK -139 (-189) and after
investments MSEK -145 (-205). The groups cash-effecting net investments amounted
to MSEK -6 (-16). 

Net debt increased during January-March by MSEK 108 and amounted to MSEK 2 684
(2 576), whereby the currency has increased the debt by MSEK 50. Net debt in
relation to equity increased and amounted to 149 (141) %, which is partly
related to the fact that the first quarter is normally a weak period and partly
to the restructuring costs taken. Net debt first quarter previous year was 197
%. New Wave Group's credit limits were approximately MSEK 3 357 as of 31 March
2009 and expires April 2011. Interest is based on STIBOR with a fixed margin.
The group's policy is to have a short duration, which has a swift effect on the
costs when the interest rate changes. The financing has several covenants that
must be fulfilled. 

The group's covenants are as from December 2008 fixed for the period 31 december
2008 until 31 december 2009, and are as follows;

- Interest cover during 2008-12-31 to 2009-06-30 shall at each time be above 2.5
and for the time thereafter be above 3.0 calculated on the four latest quarters.

- Net debt in relation to EBITDA, calculated on a rolling 12 months period, at
2008-12-31, 2009-03-31, 2009-06-30, 2009-09-30 and 2009-12-31 shall not be above
6.5 times.

- Stock turnover, calculated on a rolling 12 months period, shall at 2008-12-31
not be below 1.09 times, 2009-03-31 not be below 1.05, 2009-06-30 not below
1.03, 2009-09-30 not be below 1.07 and 2009-12-31 not be below 1.13. 

- Equity ratio shall at 2008-12-31 not be below 25 % and the quarters thereafter
not be below 30 %.

In connection with Orrefors Kosta Boda's provision for restructuring costs
amounting to MSEK 70.1, New Wave Group has agreed with its bank that the above
mentioned cost shall be reversed at the calculation of covenants that New Wave
has agreed to meet according to the above information. The agreement means that
the restructuring costs shall be reversed in total during quarter one and
instead be allocated over the four quarters during 2009 i.e. an amount equal to
MSEK 17.5 for each of the quarters 1-4 during 2009.

With the current forecast for 2009, the group expects to meet the financial
covenants mentioned above.

PERSONNEL AND ORGANIZATION
The number of employees as of 31 March 2009 was 2 417 (2 562), of which 47% were
female and 53% were male. A total of 723 employees were employed within
production units. The production owned by New Wave belongs to Orrefors Kosta
Boda, Seger, Dahetra, Toppoint and Cutter & Buck (embroidery).

SUBSCRIPTION OPTIONS IN NEW WAVE GROUP AB (PUBL)
New Wave has three outstanding programs for subscription options. One was
introduced during July 2007 and consists of 1 653 250 options. It will expire
June 2010 and has an exercise price of SEK 102.50. These options were subscribed
with a premium of SEK 7.00. The original number of options was 2 000 000 of
which 346 750 have been cancelled.

The two other programs were introduced in July 2008 and were issued partly
towards key personnel and partly to the Board of Directors. The option program
towards the key personnel consist of 1 800 000 and will expire June 2011. It has
an exercise price of SEK 64.05. The options were subscribed with a premium of
SEK 1.11 per option. The options towards the board of directors consists of 200
000 options and will expire June 2013. They have an exercise price of SEK 85.40.
These options were subscribed with a premium of SEK 0.88 per option. The price
for the premium was based on market value.

VIEWS ON 2009
Market conditions are still difficult to predict due to the uncertainty within
the economy. New Wave is for 2009 expecting a profit before tax which is in line
with 2008, but that the turnover will not be on the same level as the previous
year. 

THE PARENT COMPANY
Sales amounted to MSEK 57 (35). Profit after financial items amounted to MSEK
12.6 (-16.5). Net borrowings amounted to MSEK 2 558 (2 536), of which MSEK 2 507
(2 528) refer to financing of subsidiaries. Net investments amounted to MSEK
-0.2 (-13.5). The total assets amounts to MSEK 4 094 (4 163) and the equity
amounts to MSEK 1 055 (1 046).

RISK AND RISK CONTROL
New Wave is, with its international operations, continuously exposed to
different financial risks. These financial risks are currency, borrowings and
interest exposure as well as liquidity and credit exposure. The group has a
financial policy in order to deal with the financial risks mentioned. For
further explanations regarding the group's financial exposures, see Annual
Report 2007; www.nwg.se. 

The group's policy is to have a short duration, which has a swift effect on the
costs when the interest rate changes.

The group's credit facility that expires April 2011, demands that certain
covenants are fulfilled (see above section Investments, financing and
liquidity).

The accounted exposures are in all material aspects unchanged. The market
conditions and financial turbulence has however created an uncertainty, which
means that the financial risk in the market as a whole has increased.

ACCOUNTING PRINCIPLES
This report has been prepared according to IAS 34 Interim Report and the Annual
Report Law as well as the Swedish Financial Accounting Standards Council's
standards FRF2:1 regarding the parent company. Applied accounting principles are
in accordance with the Annual Report for 2007. 


ANNUAL SHAREHOLDERS MEETING
The annual shareholders meeting will take place the 19th of May at 10.00 am at
the head office in Gothenburg. The Annual report is expected to be available for
the shareholders 6th of May at the head office.

DIVIDEND
The aim is to distribute 30 % of the group's net profit over a business cycle.
The Board has decided to propose to the Annual Shareholders meeting a dividend
of SEK 0.18 (1.00) per share, which is equal to MSEK 11.9. The proposal
corresponds to 8 % of net profit.

NOMINATION COMMITTEE
The nomination committee for election of the board to the annual shareholders
meeting consists of the following members:
-  Torsten Jansson, chairman and the major shareholder
-  Ander Algotsson, representing AFA Försäkingar
-  Arne Lööw, representing Fjärde AP fonden

The committee has nominated re-election of Torsten Jansson and Mats Årjes as
ordinary members and Göran Härstedt, Kinna Bellander och Helle Kruse Nielsen as
new ordinary members. In addition one new ordinary member, also chairman of the
board, will be presented well in advance of the annual general meeting. No
deputies are nominated. Hans Johansson, Maria Andark and Peter Nilsson have
declined re-election.

CALENDAR
•   19 May, 2009 Annual Shareholders Meeting 2009
•   25 August, 2009 Interim report for Q2
•   12 November, 2009 Interim report for Q3

The board and CEO assure that the interim report gives a true and fair view of
the company and group's operations, position and result and describes the
material risks and uncertainties that the company and group faces.


Torsten Jansson
Chairman of the Board

Hans Johansson

Mats Årjes

Maria Andark

Peter Nilsson

Göran Härstedt
CEO


Gothenburg 24 April, 2009
New Wave Group AB (publ)
Board of Directors and CEO

FOR MORE INFORMATION, PLEASE CONTACT:
CEO, Göran Härstedt
Phone: +46 31 712 89 02
E-mail: goran.harstedt@nwg.se

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

The information in this report is that which New Wave is required to disclose
under the Securities Exchange and clearing Operations Act and/or the Financial
Instruments Trading Act. It was released for publication at 07.00 CET on 24
April, 2009.