Q2_EN_aug_19_HQ | Page 9

NWG // 2020 January - June Net sales Net sales amounted to SEK 2,755.4 million, which was 14% lower than last year (SEK 3,193.9 million). Exchange rate effects had a positive impact on sales with SEK 32.7 million, corresponding to 1%. Net sales in the US decreased by 36%, which was related to Sports & Leisure and Corporate. In Sweden, net sales decreased by 18%, with decreases in all segments. Sales in Central Europe decreased by 20%, which was attributable to Corporate and Sports & Leisure. The Nordic countries excluding Sweden had 28% lower net sales than last year, related to Corporate and Sports & Leisure here as well. Southern Europe increased by 34%, attributable to several major trading shipments in the Corporate segment. Other countries increased by 21%, which was related to the trading business in Asia within the Corporate segment. Gross profit The gross profit margin was lower than the previous year and amounted to 41.6 (46.8) %. The lower margin is mainly related to the trading business in the Corporate segment. However, Sports & Leisure and Gifts & Home Furnishings also had lower margins than the previous year. Other operating income and other operating expenses Other operating income increased by SEK 49.3 million to SEK 82.0 (32.7) million. The increase is attributable to government support in connection with COVID-19. In addition to these supports, other operating income include the operating currency gains and must be set against the income statement item other operating expenses, where primarily operating currency losses are reported. Other operating expenses increased by SEK 5.9 million and amounted to SEK -21.8 (-15.9) million. The net of the above mentioned items amounted to SEK 60.2 (16.8) million. Costs and depreciations External expenses decreased by SEK 170.0 million and amounted to SEK -498.7 (-668.7) million. The decrease is related to savings and volume-related costs. Personnel costs decreased by SEK 71.6 million and amounted to SEK -502.0 (-573.6) million, which is attributable to temporary lay-offs and reduced number of staff. Exchange rate effects have increased the above mentioned costs by SEK 15.7 million. Amortizations, depreciations and write-downs were higher compared to last year and amounted to SEK -117.9 (-103.8) million. The increase is mainly related to depreciations on right-of-use asset for leasing, which increased by SEK 12.6 million. Operating result Operating result amounted to SEK 86.0 (165.6) million and the decrease is related to the lower net sales. Net financial items and tax Net financial items amounted to SEK -35.2 (-29.9) million, which is related to higher interest expenses. Tax on result for the period amounted to SEK -14.8 (-25.9) million. Result for the period Result for the period amounted to SEK 35.9 (109.7) million and earnings per share amounted to SEK 0.57 (1.68). 9 // Q2