NWG // FINANCIAL INFORMATION
Remuneration of Senior Executives
Guidelines for senior executive remuneration were adopted at the 2025 Annual General Meeting and applied during the year. These guidelines are presented in full in Note 6.
New Wave Group has no separate remuneration committee. Remuneration matters are handled by the Board as a whole, with members of management excluded. The Board is responsible for monitoring and evaluating variable remuneration programs for the Company’ s management, as well as to monitor and evaluate the application of the guidelines for remuneration to senior executives that, by law, must be approved by the Annual General Meeting. The Board shall furthermore monitor and evaluate the prevailing remuneration structures and remuneration levels in the company.
Guidelines for senior executive remuneration These guidelines apply to Board members, the CEO, and other senior executives of New Wave Group AB(“ the Company”).
Successful execution of the Company’ s strategy and safeguarding long-term interests, including sustainability, requires the ability to recruit and retain qualified employees. Competitive remuneration is therefore essential. The guidelines enable competitive total compensation.
Forms of remuneration and related matters Total remuneration may consist of fixed salary, variable pay, pension benefits, and other benefits. During the Annual General Meeting, it may also approve share based remuneration independently of these guidelines. Fixed and variable remuneration must be linked to the executive’ s responsibilities and authority.
Process for determining, reviewing and implementing the guidelines The Board shall prepare proposals for new guidelines at least every four years and present the proposal for resolution at the Annual General Meeting. The guidelines shall apply until new guidelines have been adopted by the General Meeting. The Board shall also monitor and evaluate programs for variable remuneration for the Company’ s management, the application of the guidelines for remuneration to senior executives, as well as the prevailing remuneration structures and remuneration levels in the Company. The members of the Board, except for the CEO and Pernilla Jansson, are independent in relation to the Company and its management. When the Board addresses and decides on remuneration related matters, the CEO and other members of management do not participate to the extent that the matters concern them.
Deviation from guidelines The Board may decide to temporarily deviate from the guidelines, in whole or in part, if there are special reasons for doing so in an individual case and a deviation is necessary to safeguard the Company’ s long‐term interests, including its sustainability, or to ensure the Company’ s financial viability.
No deviations from the guidelines have been made during the financial year.
Related party transactions
The Group has lease agreements with related companies. Companies related to the CEO have purchased goods. Additional related party transactions of insignificant value also occurred. All transactions were conducted on market terms. See Note 17 for more information.
Risks and Risk Control
Purchasing Market
New Wave Group’ s purchasing is conducted primarily in China, Bangladesh, Vietnam, India and Egypt. Political and socioeconomic developments may affect New Wave Group. By maintaining strong contingency plans and sourcing from several different countries in both Europe and Asia,
New Wave Group limits the economic risk that would arise if purchasing were conducted solely from one country.
Fashion trends and economic cycles
New Wave Group invests significant resources in high‐quality design and product development. As rapid changes occur within the fashion industry, the Group cannot entirely rule out temporary declines in sales for certain collections. However, the risk is limited, as the Corporate operating segment and the Profile sales channel have a low degree of fashion sensitivity. The Sports & Leisure segment also focuses on less fashion‐dependent areas, although fashion trends have a somewhat greater influence. New Wave Group’ s objective is that 60 – 80 % of total sales shall be generated through the Profile sales channel.
Environment
The Group’ s operations may give rise to environmental obligations, but the Board of Directors and executive management assess that, to the extent such obligations could affect the Group’ s financial position, they have been taken into account in this financial statement.
Expansion and Growth
The continued expansion planned by New Wave Group places high demands on management and personnel. Incorrect recruitment, organizational challenges, or the departure of key individuals may delay and affect the Group’ s development. It is essential for the pace of expansion that profit development progresses at the same rate. New Wave Group allocates resources to, among other things, mentorship programs and annual management meetings to ensure strong future leadership and to reinforce the Group’ s values.
New international establishments are undertaken only when previous establishments have demonstrated satisfactory results. The Board considers this strategy to represent a sound balance between optimal growth and reduced risk. According to New Wave Group, it is very difficult to accurately assess timelines and budgets for new international
096 // ANNUAL REPORT