NWG // FINANCIAL INFORMATION
establishments, which may entail a risk of initial losses. However, the Board considers the Company to be well prepared for the planned establishments.
Financial
New Wave Group, through its international operations, is continuously exposed to various financial risks. These financial risks consist of currency risk, liquidity and credit risk, as well as interest rate risk. To minimize the impact of these risks on earnings, the Group’ s work in these areas is governed by a risk policy that is adopted annually by the Board of Directors.
A significant share of New Wave Group’ s sales is conducted in foreign currencies( 80 %), while purchases are primarily made in USD. By having both purchases and sales in the same currency, a certain degree of natural hedging arises. In addition, 50 – 75 % of all purchase orders for which customer prices cannot be adjusted( basic orders) are hedged. The Group is exposed to currency fluctuations in future payment flows relating to commercial commitments, as well as loans and bank balances in foreign currencies, known as transaction exposure. To reduce the impact of this exposure, the Group’ s commitments are, as far as possible, centralized in the parent company and hedged using, among other things, currency forward contracts. The Group’ s financial reports are also affected by translation effects arising from the translation of foreign subsidiaries’ results and net assets into SEK, known as translation exposure.
Due to its relatively capital-intensive operations and expansive growth strategy, New Wave Group needs to ensure access to financing both in the short and long term. It is essential for a growth-oriented company like New Wave Group to have sufficient liquidity available to finance future expansion and maintain flexibility when acquisition opportunities arise. It is also important to maintain an appropriate balance between equity and borrowed capital; therefore, New Wave Group’ s objective is to maintain an equity ratio of no less than 40 % over an economic cycle( see also Financial Targets on p. 94).
The Group’ s credit risk from operating activities arises primarily from accounts receivable and financial activities, including deposits with banks and financial institutions, currency forward contracts and other financial instruments. The Group’ s total credit exposure amounted to SEK 2,619 million( 2,296) as of the balance sheet date.
For a more detailed description of the Group’ s risk exposure and risk management, refer to Note 16.
The Parent company
Net sales amounted to SEK 237 million( 180), which primarily relates to intra Group sales. Profits before appropriations and taxes decreased to SEK 254 million( 396), mainly due to impairment of financial assets where capital contributions made to cover losses in subsidiaries were written down.
Total assets amounted to SEK 6,378 million( 5,319), and equity, including the equity portion of untaxed reserves, amounted to SEK 2,470 million( 2,649). Net debt totaled SEK 2,467 million( 1,470). The Parent Company’ s net financing to subsidiaries amounted to SEK 2,230 million( 1,781).
New Wave Group’ s Share
The number of shares in New Wave Group AB amounts to 132,687,086 shares, each with a quotient value of SEK 1.50. All shares carry equal rights to the Company’ s assets and earnings. Each Class A share entitles the holder to ten votes, while each Class B share entitles the holder to one vote. Class A shares are subject to a right-of-first-refusal provision in accordance with Section 14 of the Articles of Association.
As of 31 December 2025, Torsten Jansson, through companies, owned 32.3 %( 33.8) of the capital and 81.6 %( 82.0) of the votes.
The following authorizations have been granted to the Board of Directors until the next Annual General Meeting:
# To resolve on one or several occasions, on a new issue of not more than 8,000,000 Class B shares. The authorization includes the right to resolve deviations from shareholders’ pre emption rights, except in cases where the consideration consists solely of cash. Based on this authorization, the share capital may be increased by not more than SEK 12,000,000. The authorization also includes the right to resolve on issues of shares against payment in kind, by set off, or otherwise with conditions referred to in Chapter 13, Section 5, first paragraph, item 6 of the Swedish Companies Act. The reason for permitting deviation from shareholders’ pre emption rights is that the newly issued shares are intended to be used as consideration for the acquisition of companies, operations, or parts thereof. The basis for the subscription price shall be the share’ s market value.
For a valid resolution under this item, the decision must be supported by shareholders representing at least two thirds of both the votes cast and the shares represented at the General Meeting.
# To resolve on one or several occasions, to raise financing of the type referred to in Chapter 11, Section 11 of the Swedish Companies Act. The terms for such financing shall be market-based. The purpose of the authorization is to enable the Company to obtain financing on terms that are attractive to the Company, were, for example, interest may be linked to the Company’ s results or financial position.
For further information regarding the Company’ s shares, see pages 24 – 27.
ANNUAL REPORT // 097