New Wave Group AB Annual report 2017 EN | Page 9

ABOUT NEW WAVE GROUP SALES GROWTH, % BUSINESS CONCEPT New Wave Group is a growth company that designs, acquires and develops brands and products in the corporate promo, sports, gifts and home furnishings sectors. The Group will achieve synergies by coordinating design, purchasing, marketing, warehousing and distribution of its product range. To ensure good risk diversifi- cation, the Group will market its products in the promo market and the retail market. 20 15 10 5 VISION The vision for the Corporate Promo operating segment is to become the leading supplier in Europe and one of the leading suppliers in the USA of promotional products by offering retailers a broad product range, strong brands, advanced expertise and service, and a superior all-inclusive concept. The vision for the Sports & Leisure operating segment involves establishing Craft as a world-leading sportswear brand, and making Cutter & Buck a world-leading golf apparel brand. The brand Auclair should take a leading position on gloves in Europe and we will also use Paris Glove’s strong distri- bution platform to launch the Group’s other brands in Canada. All in all, we want to become one of the leading sports supplier in both Sweden and the other European countries, as well as in the USA. The vision for the Gifts & Home Furnishings operating segment is to make Orrefors and Kosta Boda world-leading glass and crystal suppliers. Furthermore, the vision also involves utilising inno- vative and playful design to make Sagaform a prominent player in Northern Europe in both the promo and retail markets. 0 -5 -10 2013 2014 2015 2016 2017 OPERATING MARGIN, % 10 8 6 4 2 STRATEGY To realise its targets, New Wave Group’s strategy involves acquiring, launching and developing the brands in the corporate promo, sports, gifts and home furnishings sectors, launching the brands and organisations in new geographic markets and spreading the Group’s values to new and acquired companies. GROWTH & PROFITABILITY TARGETS New Wave Group strives for sustainable, profitable sales growth through expansion in its three operating segments, Corporate Promo, Sports & Leisure and Gifts & Home Furnishings. Over a period of one business cycle, the Group’s growth target is between 10 and 20% per year, of which between 5 and 10% is organic growth, and a 15% operating margin. In addition, New Wave Group aims for at least 30% equity ratio over one business cycle. 0 2013 2014 2015 2016 2017 2016 2017 EQUITY RATIO, % 60 50 40 30 20 10 0 2013 2014 2015 NWG 2017 | 9