Interim Report New Wave Group AB

Regulatory News:

PERIOD 1 JULY – 30 SEPTEMBER 2016

• Sales amounted to SEK 1.300 million, which was 2 % higher than last year (SEK 1.272 million).
• Operating profit amounted to SEK 124.9 (96.3) million.
• Result for the period amounted to SEK 86.5 (65.1) million.
• Earnings per share amounted to SEK 1.31 (0.98).
• Cash flow from operations amounted to SEK 15.5 (-161.2) million.

PERIOD 1 JANUARY – 30 SEPTEMBER 2016

• Sales amounted to SEK 3.688 million, which was 4 % higher than last year (SEK 3.559 million).
• Operating profit amounted to SEK 233.2 (146.8) million.
• Result for the period amounted to SEK 148.9 (82.0) million.
• Earnings per share amounted to SEK 2.26 (1.22) kr.
• Cash flow from operations amounted to SEK 168.0 (-246.0) million.
• Equity ratio amounted to 45.4 (42.8) %.
• Net debt to equity amounted to 73.5 (92.1) %.

CEO COMMENTS

JULY-SEPTEMBER

Overall, I am pleased with the quarter, on all points except sales. Sales increased by 2 % but I believed in slightly higher sales. Most of all, September was under my expectations. It should be kept in mind that the corresponding period for the third quarter 2014 was 8 % increase, followed by 13 % in 2015 so it was tough to meet these figures - and after all, SEK 1,300 million is an all-time high for a third quarter.

The sales channel promo continues its rapid growth with 9 % and it was retail that pulled down the overall sales with -4 %.

Gross profit margin increased from 45.1 % to 46.7 % and costs are under control, despite continued high market investments. As a result, operating profit increased to SEK 124.9 million for the quarter.

JANUARY - SEPTEMBER

Sales increased by 4 % to SEK 3,688 million and operating profit increased by 59 % to SEK 233.2 (146.8) million. Profit before tax increased by 88 % to SEK 189.2 (100.4) million. We also leave the third quarter behind us with

a strong balance sheet and a lower net debt. So to sum up, pretty much everything is developing in the right direction - even though we have quite a way to go before we achieve our margin objectives.

THE FUTURE

The near future, i.e. the next quarter, is always difficult to predict. Individual quarters can always be a little up or down but my belief is that the results will continue to improve compared with last year.

When looking at the coming years, I am continually optimistic that both sales and profits will continue to increase.

Our products and our selection is better than ever before, our brands are strengthened with each passing year, our organisation and our employees are more motivated and better equipped than in a long time, and last but not least, our customers are today incredibly satisfied with the service that we are now giving them. We have also gained a leading position in CSR, that is constantly increasing in importance.

Expansion will continue and two very exciting things to follow in 2017 and onwards will be the launch of Craft Teamwear which we strongly believe in and the other will be a full-scale investment in Clique and Cutter & Buck in Canada with the establishment of a large warehouse.

My co-workers and I look to the future with confidence.

Torsten Jansson. CEO

The information in this report is that which New Wave Group is required to disclose under the Securities Market Act and/or the Financial Trading Act. The information was released for publication at 7 am (CET) on 10 November 2016.

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