Interim Report for New Wave Group AB (publ) Q2 JANUARY - JUNE 2009

Interim Report for New Wave Group AB (publ) Q2 JANUARY - JUNE 2009

The Period 1 April -30 June 2009

• Sales amounted to MSEK 1,023, which was 18 % lower than the previous year
(MSEK 1,245).
• The result after tax amounted to MSEK 60.5 (85.8).
• The result per share amounted to SEK 0.91 (1.22). 
• The cash flow from operating activities increased by MSEK 401 to MSEK 373
(-28). 
• The equity ratio amounted to 35.8 (27.1) %. 
• The net debt to equity ratio decreased considerably to 129.7 (200.1) %. 

The period 1 January - 30 June 2009

• Sales amounted to MSEK 2,002, which was 11 % lower than the previous year
(MSEK 2,260).
• The result after tax amounted to MSEK 7.2 (70.8).
• The result per share amounted to SEK 0.10 (1.07). 
• Restructuring costs have affected the result after tax by MSEK 56.4.
• The cash flow from operating activities increased by MSEK 452 to MSEK 235
(-217).

Views on 2009

• Market development was weaker than expected in the Promo and Sports & Leisure
business areas during the second quarter. New Wave Group's assessment at present
is that sales and result before tax will not amount to the same levels as 2008.
The Group expects the third quarter 	to be weaker than the previous year and the
fourth quarter to be somewhat stronger than theprevious year.


CEO Comments
It is incredibly exciting to be back as CEO of New Wave Group. It is definitely
a challenge considering the global economic situation - but I love challenges! 

Our focus during the second quarter has been, and will continue to be for the
rest of the year, to decrease our stock and build a steady cash flow and
consequently decrease the company's debt. Of course this must also come about
with as good profitability as possible in the meantime. Especially Sports &
Leisure and Promo experienced a weaker development during the quarter than we
had previously expected and the result was therefore poorer - in spite of this,
we present a substantial stock decrease and our strongest cash flow in the
company's history. It is very satisfying that our cash flow during the quarter
was MSEK 373. 
We have also reached a new agreement regarding the terms for our financing. This
gives us confidence for the coming years even if the economy will be weaker,
which I today believe will not happen.

We will continue to focus on decreasing our stock levels and improving our cash
flow during the rest of the year. Considering the quarter's weak market I am not
completely satisfied with our result this quarter and it is our assessment that
we will have a continued weak market for the remainder of 2009. In spite of cost
savings and personnel decreases we are still forced to expect the full-year
result to be weaker than it was the previous year.

Torsten Jansson


Comments

APRIL - JUNE 
Sales
The turnover for the period was MSEK 1,023 (1,245), which was 18 % lower than
the previous year. Exchange rates have had a positive effect on sales by MSEK
108.

Sales decreased in all business areas, but mainly in Promo (20 %) and Sports &
Leisure (18 %). Gifts & Home Interiors show a smaller decrease of 7 %.

Sales decreased by 26 % in the Nordic countries, mainly in Sweden and Finland.
Sales in Europe decreased by 11 % and in North America by 11 %. Positive
exchange rate effects mainly occurred in Euro countries and USA.

The decrease in sales is mainly due to the current global economic situation as
well as last years sales of sports and promo wear for the European Football
Championship.

Gross margin
The gross margin amounted to 49.2 (49.7) %. The decrease is related to the
American promo wear market's weak economic situation. 

Other incomes and other costs
Other incomes increased by MSEK 15.6 to MSEK 22.0 (6.4). The increase is related
to the selling of Orrefors' glass collections and properties which generated a
capital gain of MSEK 16.4. Remaining revenues are mainly related to the
operation's exchange gains and should be set against the result row “Other
costs” where primarily the operation's currency exchange losses are reported. 

Costs and depreciations
External costs decreased by MSEK 50.5 to MSEK -220.1 (-270.6). Costs for
personnel have decreased by MSEK 4.1 to MSEK -182.8 (-186.9). Both cost elements
have been affected positively due to savings, but negatively when recalculating
foreign subsidiaries to SEK. 

Depreciations amounted to MSEK 19.0 (16.7) %.

The operating margin amounted to 9.3 (11.9) %. The decrease is mainly due to
weaker sales. 

Finance net and taxes
Net financial items amounted to MSEK -12.8 (-36.3). The decrease is due to
lowered interest rate levels. It is the Group's policy to have a short interest
rate guarantee resulting in quick effects on the Group's net interest as the
short-term interest changes.

Tax expenses in absolute numbers amounted to MSEK 22.1 (26.7) and the tax rate
to 26.7 (23.8) %.  Last year's lower tax rate was due to accrual of recorded
deferred tax assets. The tax rate for the first six months of the year is at the
same level as the previous year. 

Result
The result after tax amounted to MSEK 60.5 (85.8) and the result per share to
SEK 0.91 (1.22). 

JANUARY - JUNE 
Sales
Turnover for the period was MSEK 2,002 (2,260), which was 11 % lower than the
previous year. Exchange rates have had a positive effect on sales by MSEK 216.

The decrease has occurred in all business areas, Promo 14 %, Sports & Leisure 10
%, and Gifts & Home Interior 6 %. 

During the period, sales decreased by 20 % in the Nordic countries, mainly in
Sweden and Finland. Sales in the rest of Europe were somewhat better with a
decrease of 5 %, where mainly Switzerland had better development. Sales in North
America decreased by 7 %. The positive exchange rate effects mainly occurred in
Euro countries and USA.

The decrease in sales is mainly due to the current global economic situation as
well as last years sales of sports and promo wear for the European Football
Championship.

Gross margin
The margin amounted to 47.7 (48.7) %. The gross margin has been affected by
restructuring costs in Orrefors Kosta Boda, which affected the first quarter's
earnings by MSEK 25. Several markets have increased and this is mainly due to
increases in prices made during 2008 and 2009. However, the weak American
economic situation has affected the margin negatively.

Other income and other costs
Other income increased by MSEK 32.2 to MSEK 44.8 (12.6). The increase is mainly
related to the selling of Orrefors' glass collections and properties which
generated a capital gain of MSEK 16.4 in total. Remaining revenues are mainly
related to the operation's exchange gains and should be set against the result
row “Other costs” where primarily the operation's currency exchange losses are
reported. Other costs increased by MSEK 16.5 to MSEK -23.3 (-6.8). The result of
these two items amounts to a net loss of MSEK 0.7.

Costs and depreciations
External costs decreased by MSEK 60.2 to MSEK -487.8 (-548.0). The costs have
been affected positively due to savings, but negatively when recalculating
foreign subsidiaries to SEK. Restructuring costs of MSEK 7.1 have affected
external costs in connection with changes in Cutter & Buck's division for direct
sales to customer.

Costs for personnel have increased by MSEK 48.5 to MSEK -414.0 (-365.5). The
costs have been affected positively due to savings, but negatively when
recalculating foreign subsidiaries to SEK. The effect of the restructuring of
Orrefors Kosta Boda, which resulted in a personnel decrease of 154 persons, was
reported during the first quarter. This meant that the company made an
appropriation for restructuring in the form of a one-time cost of MSEK 70.1
total in the financial statement for the first quarter 2009. Of these, MSEK 45.1
is declared as personnel costs and MSEK 25.0 as gross profit as they are
attributable to a decreased production result. 

Depreciations amounted to MSEK 37.5 (29.2).

The operating margin amounted to 1.9 (7.3) %. The decrease is due to
restructuring costs and lower volumes.

Finance net and taxes
Net financial items amounted to MSEK -28.3 (-68.4). The decrease is due to
lowered interest rate levels. It is the Group's policy to have a short interest
rate guarantee resulting in quick effects on the Group's net interest as the
short-term interest changes.

The tax rate amounted to 26.5 (26.3) %. 

Result
The result after tax amounted to MSEK 7.2 (70.8) and the result per share to SEK
0.10 (1.07).

The result has during the first quarter been affected by restructuring costs of
MSEK 77.2 total before tax. With a tax rate of 26.9 % for concerned companies,
the net impact of the restructuring costs is MSEK -56.4.

REPORT OF THE CORPORATE SEGMENTS/BUSINESS AREAS
New Wave Group AB divides its operations into three business areas; Promo,
Sports & Leisure, and Gifts & Home Interior. Each brand has been placed into the
business area it is considered to belong to (see attachment to see which brand
belongs to which business area). The Group observes the areas' and the brands'
sales and results (EBITDA). The business segments are based on the Group's
operational management. 

Promo
During the period April-June, sales decreased by 20 % to MSEK 499 (626) and the
result (EBITDA) decreased by MSEK 56.4 to MSEK 71.3 (127.7). Both the turnover
and the result were lower in the Nordic countries, mainly in Sweden and Finland.
The results for Europe also showed a decrease, but have been compensated by a
positive currency effect. The decrease is a result of the global economic
situation.

During the period January-June, sales decreased by 14 % to MSEK 941 (1,100) and
the result (EBITDA) decreased by MSEK 62.0 to MSEK 94.1 (156.1). Both the
turnover and the result were lower in the Nordic countries, mainly in Sweden and
Finland. The results for Europe also showed a decrease, but have been
compensated by a positive currency effect. The decrease is a result of the
global economic situation.

Sports & Leisure
During the period April-June, sales decreased by 18 % to MSEK 368 (451) and the
result (EBITDA) decreased by MSEK 17.5 to MSEK 28.7 (46.2). Craft sales were in
line with the previous year. The continued weak American market has had a
negative effect on sales in Cutter & Buck. Sales have also decreased due to last
year's European Football Championship. The result decrease is mainly related to
lower sales this year in comparison to last year's European Football
Championship.

During the period January-June, sales decreased by 10 % and amounted to MSEK 781
(862). The result (EBITDA) decreased by MSEK 30.3 to MSEK 48.1 (78.4). Craft has
showed continued positive turnover and results. The weak American market has had
a negative effect on Cutter & Buck. Cutter & Buck USA has also been affected by
restructuring costs of MSEK 7.1 due to changes in the division for direct sales
to customer. The result decrease is also related to lower sales this year in
comparison to last year's European Football Championship.

Gifts & Home Interior
During the period April-June, sales decreased by 7 % to MSEK 157 (168), but the
result (EBITDA) increased by MSEK 22.8 MSEK 14.4 (-8.4). The lower sales is
related to the Swedish retail market for Orrefors Kosta Boda. The improved
result is partly related to the selling of Orrefors' glass collection and
properties which generated a gain of MSEK16.4 and partly to the company's cost
savings program taking effect. Sales and results for Sagaform indicate a small
increase.

During the period January-June, sales decreased by 6 % to MSEK 281 (298) and the
result (EBITDA) decreased by MSEK 25.7 to MSEK -66.6 (-40.9). The lower sales is
related to the Swedish retail market for Orrefors Kosta Boda and the decreased
result to the company's restructuring costs of MSEK 70.1 which were declared
during the first quarter. Sales and results for Sagaform are in line with the
previous year.

New Wave Group and Emmaboda municipality have made an agreement regarding a sale
of Kosta Boda's glass collection. The sale is expected to be finalized during
third quarter.

GEOGRAPHICAL DISTRIBUTION
A table showing sales in the regions Nordic Countries, Mid-Europe, Southern
Europe, North America and Other Regions is displayed on page 15.

During the period April-June, sales decreased by 26 % in the Nordic region,
which is mainly related to Sweden and Finland. Europe was affected by a positive
currency effect where local currency sales were somewhat better than in the
Nordic region. Sales in North America decreased by 11 %, the exchange rate
development had a positive effect and sales in local currency in the region
decreased by 32 %. Increased sales in other markets are mainly attributable to
China.

During the period January-June, sales decreased by 20 % in the Nordic region,
which is mainly related to Sweden and Finland. Europe was positively affected by
the currency effect, where Switzerland showed a stronger development than the
other countries. Sales in North America decreased by 7 %, the exchange rate
development had a positive effect and sales in local currency in the region
decreased by 32 %. Increased sales in other markets are mainly attributable to
China.

NEW ESTABLISHMENTS 
Sweden's first glass hotel has opened its doors. The opening ceremony for the
Kosta Boda Art Hotel was held on 27 June in front of 240 guests. The hotel has
102 rooms, a restaurant, a conference centre, and spa & fitness area.

The Kosta Boda artists have each decorated a part of the hotel as well as the
hotel's seven wings. Anna Ehrner, Kjell Engman, Åsa Jungnelius, Ludvig Löfgren,
Ulrica Hydman-Vallien, Bertil Vallien and Göran Wärff have all put their unique
mark on each hotel room. 

CAPITAL TIED UP
Capital tied up in stock amounted to MSEK 2,081 (2,063). The weakened Swedish
krona affects the declared value when converting to SEK. This has affected the
stock during the period by MSEK 163, which means that the decrease with
unchanged exchange rates was MSEK 145. Obsolescence reserve as of 30 June 2009
amounted to MSEK 88 (82) or about 4 % of the declared stock value.

The stock turnover rate for the period January-June amounted to 1.0 (1.2).

Accounts receivable decreased by MSEK 119 to MSEK 789 (908).

Measures to decrease capital tied up have started to take effect, which is
estimated to generate continued results during the second half-year 2009.

INVESTMENTS, FINANCING AND LIQUIDITY
The Group's cash flow from operations during the period April-June amounted to
MSEK 373 (-28) and after investments to MSEK 373 (-49). The Group's
cash-effecting net investments amounted to MSEK 0 (-21), which includes MSEK
17.8 for disposal of tangible assets.

The Group's cash flow from operations during the period January-June amounted to
MSEK 235 (-217) and after investments to MSEK 228 (-254). The Group's
cash-effecting net investments amounted to MSEK -7 (-37), which includes MSEK
19.9 for disposal of tangible assets.

The net debt decreased during April-June by MSEK 309 and amounted to MSEK 2,352.
During the corresponding period last year, the net debt increase by MSEK 110 to
MSEK 2,661. Currency changes have increased the debt by MSEK 139. Net debt in
relation to equity decreased and amounted to 129.7 (200.1) %.

The net debt decreased during January-June by MSEK 224 and amounted to MSEK
2,352. Currency changes have decreased the debt by MSEK 8 since the turn of the
year. The corresponding period last year showed an increase by MSEK 304. Net
debt in relation to equity decreased during the first six months of the year and
amounted to 129.7 % compared to 140.5 % per 31 December 2008.

The Group had a credit line of approximately MSEK 3,425 as at 30 June 2009 and
the credit agreement runs up until April 2011. The interest is based on each
respective currency's prime interest rate and fixed margin. It is the Group's
policy to have a short interest rate guarantee resulting in quick effects on the
Group's net interest as the short-term interest changes. 

New Wave Group has reached a new agreement regarding the terms for financing.
The new agreement involves a covenant regarding equity ratio and the total
credit line being lowered from approximately MSEK 3.425 per 30 June 2009 to MSEK
2.875 per 31 December 2009 and that there is to be a successive instalment down
to MSEK 2.475 per 30 April 2011. The new agreement replaces earlier agreed upon
terms and covenants.
 
PERSONNEL AND ORGANISATION
The number of full time employees as of 30 June 2009 was 2,370 (2,720) people,
of which 48 % were women and 52 % were men. Out of the 2,370 employees, 653
people work in production. The production owned by New Wave Group belongs to
Orrefors Kosta Boda, Seger, Dahetra, Toppoint and Cutter & Buck (embroidery).

SUBSCRIPTION OPTIONS IN NEW WAVE GROUP AB (PUBL)
New Wave Group has four outstanding programs for subscription options. 

A new program for senior executives was introduced during June 2009. The program
consists of 1.000.000 options, expires in June 2012 and has an exercise price of
SEK 26.10. The option subscription premium was SEK 0.21 per option. 

Two option programs were launched in July 2008, one for senior executives and
one for the Board of Directors. The senior executives program consists of
1,800,000 options, expires in June 2011 and has an exercise price of SEK 64.05.
The option subscription premium was SEK 1.11 per option. The Board of Directors
program consists of 200,000 options, expires in June 2013 and has an exercise
price of SEK 85.40. The option subscription premium was SEK 0.88 per option. 

The previous program was launched in July 2007 and consists of 1,653,250
options, expires in June 2010 and has an exercise price of SEK 102.50. The
option subscription premium was SEK 7 per option. 2,000,000 options were
originally issued, of which 346,750 have later been cancelled.

Acquired premiums for all programs above have been based on market value.

VIEWS ON 2009
Since the Promo and Sports & Leisure markets have not developed as we had hoped
during the second quarter, New Wave Group's assessment at present is that sales
and result before tax will not amount to the same levels as 2008.The third
quarter is expected to be weaker and the fourth quarter somewhat better than the
previous year.

THE PARENT COMPANY
Sales amounted to MSEK 88 (70). Profit after financial items amounted to MSEK
23.7 (-27.2). Net borrowing amounted to MSEK 2.286 (1.690), of which MSEK 1.870
(246) refer to financing of subsidiaries. Cash flow from investing activities
amounted to MSEK 156 (-59). Total assets amount to MSEK 3.794 (2.874) and equity
to MSEK 1.076 (757). 

RISKS AND RISK CONTROL
Having international operations, New Wave Group is continuously exposed to
different kinds of financial risks. These financial risks are currency,
borrowings and interest exposure, as well as liquidity and credit exposure. In
order to minimize the affect these risks may have on the result, the Group has
drawn up a financial policy. For a more detailed description of how the Group
handles risks, please refer to the Annual Report 2008; www.nwg.se.

It is the Group's policy to have a short interest rate guarantee resulting in
quick effects on the Group's net interest as the short-term interest changes.

The Group's accounted exposures are in all material aspects unchanged. The
current market conditions and financial turbulence have however created an
uncertainty, which means that the financial risks on the market have 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 FRF 2 regarding the parent company. Applied accounting principles are
in accordance with the Annual Report for 2008.

CALENDAR
• 12 November 2009 Interim Report for Q3
• 19 February 2010 Year End Report 2009
• 23 April 2010 Interim Report for Q1


The Board and the CEO assure that the Interim Report gives a true and fair view
of the company and the Group's operations, position and result and describes the
material risks and uncertainties that the company and the Group face.

Gothenburg 25 August 2009
New Wave Group AB (publ)


Anders Dahlvig
Chairman of the Board

Kinna Bellander
Member of the Board

Göran Härstedt
Member of the Board

Helle Kruse Nielson
Member of the Board

Mats Årjes
Member of the Board

Torsten Jansson
CEO


FOR MORE INFORMATION, PLEASE CONTACT:
CEO Torsten Jansson
Phone: +46 (0)31 712 89 01
E-mail: torsten.jansson@nwg.se
CFO Lars Jönsson
Phone: +46 (0)31 712 89 12
E-mail: lars.jonsson@nwg.se


The information in this report is that which New Wave Group 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 25 August, 2009.