New Wave Group AB Q2_2018_EN | Page 9

PERSONNEL AND ORGANISATION The number of employees as of 30 June 2018 amounted to 2,558 (2,451) of whom 52 % were female and 48 % male. Of the total number of employees 658 (675) work in the production. The production contained within New Wave Group is attributable to Ahead (embroidery), Cutter & Buck (embroidery), Dahetra, Orrefors Kosta Boda, Paris Glove, Seger, Termo and Toppoint. RELATED PARTY TRANSACTIONS There are lease agreements with related companies. Related companies to the Managing Director have bought merchandise and received payments for consulting services performed. There are transactions with related parties for insignificant amounts. All transactions are on market terms. INVESTMENTS, FINANCING AND LIQUIDITY THE PARENT COMPANY Total income for the period January-June amounted to SEK 63.0 (52.2) million. Profit before appropriations and taxes amounted to SEK 53.9 (241.7 million). The lower profit is related to lower dividends from subsidiaries. Net debt amounted to SEK 1,649.5 (1,681.1) million. The parent company's net financing to subsidiaries amounted to SEK 1,487.1 (1,956.8) million. Cash flow from investment activities amounted to SEK -2.1 (-57.4) million. Last year included capital contri- butions to subsidiaries of SEK 56.4 million. The balance sheet total amounted to SEK 3,876.1 (3,720.2) million and shareholders' equity, including 78 % of untaxed reserves, to SEK 1,804.7 (1,742.0) million. Cash flo w from operations increased compared with last year and amounted to SEK 124.6 (50.1) million. The higher cash flow is partly attributable to improved operating results and partly that the Group has had a higher influx of goods, which resulted in increased credit from suppliers. Cash flow from investment acti- vities amounted to SEK -41.6 (-16,0) million. The increase is primarily related to investments in warehouses as well as IT. Cash flow from operations for the first six months of this year amounted to SEK 131.2 (83.7) million. The improvement is mainly attributable to the fact that the Group has had a higher influx of goods during the period, which resulted in increased credit from suppliers. CALENDAR Net debt increased by SEK 84.6 million and amounted to SEK 1,798.5 (1,713.9) million. However net debt in relation to share- holders' equity and working capital has decreased and amounted to 55.8 (61.7) % and 58.6 (63.7) % respectively. Interim report for the third quarter   8 NOV The equity ratio improved by 1.1 percentage points compared to last year and amounted to 49.7 (48.6) %. The Group signed a new funding agreement as of 11 April. The total credit line of this agreement as of 30 June amounted to SEK 2,790 million, of which SEK 2,000 million runs until March 2022 and USD 32 million has a term extending January 2024. The other SEK 500 million has a term of between three months and six years. The credit facility amount is limited to and dependent on the value of some underlying assets. The funding agreement means that financial ratios (covenants) must be fulfilled in order to maintain the agreement. Based on the present forecast, management estimates that the Group will be able to meet these covenants with sufficient margin. 9   7 FEB Year-end report 2018   25 APR Interim report for the first quarter   17 MAY Annual General Meeting 2019