New Wave Group AB Q1_Apr_24_EN_HQ | Page 7

World champions! Craft collaborates with and develops ski suits for the Swedish cross country skiing team that won gold in Seefeld. Pictured above: Ebba Andersson, Frida Karlsson, Charlotte Kalla and Stina Nilsson. Swedish brand of the year Sweden's leading magazine for the sports industry - Sportfack - has named Craft the 2018 winner of the "Swedish brand of the year" award. The prize was received at the magazine's annual Gear of the Year, where the sports industry's main brands, products and innovations are selected. Pictured right: Fredrik Johansson, Export Sales Manager REPORTING OF OPERATING SEGMENTS SPORTS & LEISURE New Wave Group divides its operations into segments Corporate, Sports & Leisure and Gifts & Home Furnishings. The Group monitors the segments’ and brands’ sales as well as EBITDA. The operating segments are based on the Group's operational management. Net sales for the period January - March increased by 21 % and amounted to SEK 642.8 (530.5) million. Sales increased in both sales channels whereby promo sales increased by 21 % and retail by 21 %. The segment had growth in all regions. EBITDA increased by SEK 23.8 million and amounted to SEK 37.1 (13.3) million. The improved result is related to the increased turnover and an improved gross profit margin, but the segment also has higher costs in the form of increased sales, marketing and distribution centers. IFRS 16 had a positive impact of SEK 9.2 million on EBITDA. CORPORATE Net sales for the first quarter increased by 19 % and amounted to SEK 737.6 (620.5) million. All regions had good growth, but the US and the Nordic region excluding Sweden had slightly higher growth than the segment as a whole. It was mainly the promo sales channel that increased their sales. EBITDA increased by SEK 34.6 million and amounted to SEK 77.4 (42.8) million. The improved result is related to the increased turnover but the segment also had higher costs. The higher overheads were in the form of increased sales and marketing activities and higher costs for distribution centers. The cost increase for the distribution centers was related to larger premises as well as other improvement measures to increase the service level. IFRS 16 had a positive impact of SEK 19.4 million on EBITDA. GIFTS & HOME FURNISHINGS Net sales increased 2 % and amounted to SEK 124.5 (121.8) million. Sales increased somewhat in both sales channels. Growth is primarily occurring in the Nordic region excluding Sweden. EBITDA improved slightly compared with last year and amounted to SEK -17.6 (-19.9) million, which is attributable to improved gross profit margin and that IFRS 16 had a positive impact of SEK 2.0 million on EBITDA. 7