New Wave Group AB Q1_Apr_24_EN_HQ | Page 4

For the quarter to achieve an operating result of SEK 46.0 million and a result for the period of SEK 26.0 million pleases me. CEO COMMENTS It is gratifying that 2019 started just as good as 2018 ended. Sales growth of 18 %, of which 11 % in local currencies, is strong! It was also the 19th consecutive quarter of sales growth showing that we are in a period of strong development! Operating result rose from SEK 18.6 million to SEK 46.0 million and result for the period increased from SEK 6.0 million to SEK 26.0 million. Both results are all-time high for a first quarter. NET SALES All our three segments had growth. Sports & Leisure continued to develop very strongly and showed 21 % growth. Corporate was not far behind with growth of 19 % and Gifts & Home Furnishings managed to cross the zero line, even if growth was a modest 2 %. The Group's net sales passed some milestones as it was the first time we crossed the SEK 1.5 billion for a first quarter – and the first time we crossed the SEK 6.5 billion on a rolling 12 months (SEK 6,523 million). We probably had a somewhat positive effect compared to the previous year as Easter this year is in the second quarter. THE FUTURE I still feel that we stand very strong! Even in the future there can be quarters that are less favorable but I am confident that the invest- ments we have already made will generate growth in both sales and result for many years to come! It is a tremendous benefit for me to lead such a strong and driven organisation which we currently have and skilled staff are essential for success. We also have a number of strong brands, good products, high level of service etc. which makes it even better! RESULT The first quarter is always the weakest but it is still very nice to begin the year well. For the quarter to achieve an operating result of SEK 46.0 million and a result for the period of SEK 26.0 million pleases me. We also pass a milestone in terms of operating result and for the first time we passed SEK 500 million on a rolling 12-month period. Thank you all for the first quarter! BALANCE SHEET IFRS 16, which we report according to for the first time, affects the comparison between the years and the new standard has resulted in an increase in net debt by SEK 633.2 million. In addition, the quarter was affected significantly by changes in exchange rates which increased stock by SEK 103.8 million. But I am satisfied that we have a strong balance sheet with an equity ratio of almost 46 % despite IFRS 16. Torsten Jansson, CEO 4