NWG // FINANCIAL INFORMATION
Capital tied up
Capital assigned to inventories increased slightly and amounted to SEK 2,937.6 ( 2,883.0 ) million . The increase is related to more purchases but goods are not in stock but are on their way . The inventory ' s turnover rate improved slightly compared with the previous year and amounted to 1.2 ( 1.1 ) times .
SEK million 31 Dec 2021 31 Dec 2020
Raw materials |
41.1 |
36.0 |
Work in progress |
1.9 |
7.9 |
Goods in transit 356.8 128.2 Finished goods 2 537.8 2 710.9 Total 2 937.6 2 883.0
As of December 31 , 2021 , total obsolescence deductions ( an expression of the difference between the lower of acquisition value and fair value for inventories ) amounted to SEK 140.5 ( 144.2 ) million and obsolescence reserves in relation to finished goods inventories amounted to 5.2 ( 5.0 )%.
Accounts receivable amounted to SEK 1,359.6 ( 1,059.3 ) million , where the increase is mainly related to the higher net sales .
Investments , financing and liquidity
The year ' s cash flow from operating activities was on a par with last year and amounted to SEK 1,207.4 ( 1,206.6 ) million . The full year has also been positively affected by the improved operating result , but with a higher capital tied up in operating receivables and more purchases of goods .
Net debt decreased by SEK 748.8 million , of which SEK 700.8 million is related to credit institutions and amounted to SEK 1,068.8 ( 1,817.6 ) million . The net debt to equity ratio and net debt through working capital amounted to 23.4 ( 47.1 )% and 35.7 ( 59.5 )%, respectively . The equity ratio improved by 6.2 percentage points compared with the previous year and amounted to 59.6 ( 53.4 )%.
In December , the Group signed a new three-year financing agreement . The new agreement means that the Group ' s total credit facility as of December 31 amounted to SEK 2,766.0 million , of which SEK 2,150.0 million runs through December 2024 , MUSD 12.7 up to and including January 2024 and SEK 251.6 million has maturities that extend up to and including August 2027 . The other SEK 250.0 million has a term of between three months and six years . The credit facility is limited in amount to and dependent on the value of certain underlying assets . The financing agreement means that key figures ( covenants ) must be met in order to maintain the credit line .
Intangible assets
The Group ' s intangible fixed assets consist mainly of goodwill and trademarks . The trademarks with the largest book values are well-known trademarks such as Orrefors and Kosta Boda within Gifts & Home Furnishings as well as mainly Cutter & Buck within Sports & Leisure . The Group ’ s book values are tested annually , or more often if required , to assess whether any need for impairment exists .
The assets ' value in use is determined by discounting cash flow forecasts for the next five years , including a terminal growth period , using a weighted average cost of capital ( WACC ). The most important assumptions in determining the value in use include growth rate , operating margin and WACC .
Based on the tests and analyzes that have been carried out during the year , there is currently no need for impairment . Nor was there any need for impairment for the comparison year . For more information about the Group ' s intangible fixed assets and impairment testing , see note 8 .
Personnel , organization and remuneration
The average number of full-time employees as of December 31 was 2,060 ( 2,064 ), of which 49 % were women and 51 % were men . Of the number of employees , 400 ( 385 ) people work in production . The production available within the New Wave Group is attributable to AHEAD ( embroidery ), Cutter & Buck ( embroidery ), Kosta Boda , Orrefors , Seger , Termo and Toppoint .
The 2021 Annual General Meeting resolved on new guidelines for remuneration to senior executives . These guidelines can be found in full in note 6 .
New Wave Group has no specially appointed remuneration committee . Remuneration issues are instead dealt with by the Board in its entirety , whereby a member who is a member of the company management does not participate in the work . The Board as a whole is thus tasked with monitoring and evaluating the ongoing and completed programs for variable remuneration for company management , as well as following and evaluating the application of the guidelines for remuneration to senior executives that the Annual General Meeting must decide on by law . In addition , the Board shall monitor and evaluate current remuneration structures and remuneration levels in the company .
Guidelines for remuneration to senior executives
Guidelines for senior executives include board members , the CEO and other persons the management of New Wave Group AB (“ the Company ”).
A successful implementation of the Company ' s business strategy and the safeguarding of the Company ' s long-term interests , including its sustainability , presupposes that the Company can recruit and retain qualified employees . This requires that the Company can offer competitive remuneration . The guidelines enable senior executives to be offered a competitive total remuneration .
ANNUAL REPORT // 067