FINANCIAL INFORMATION
With regard to each financial year, the Board shall evaluate
whether a share or share price-related incentive programme
which covers the year in question shall be proposed to the AGM
or not. The AGM decides on such incentive programmes.
Pension benefits shall correspond to the ITP plan (supple-
mentary pensions for salaried employees) or, in the case of
senior management outside Sweden, pension benefits that are
customary in that country.
A mutual notice period of a maximum of 6 months shall apply
to all senior management and no severance pay will be paid.
The Board may deviate from the proposed guidelines above in
individual cases if there are specific reasons to do so.
RELATED PARTY TRANSACTIONS
There are lease agreements with related companies. Related
companies to the CEO have bought merchandise and received
payments for consulting services performed. In addition, there are
transactions with related parties to immaterial values. All trans-
actions are on market terms. For further description see Note 18.
RISKS AND RISKMANAGEMENT
The Group is exposed to credit risk from its operating activities,
primarily accounts receivables, and from its financing activities
which includes deposits at banks and financial institutions,
currency futures and other financial instruments. The Group’s
total exposure to credit risk amounted, at year-end, to SEK 1 257.3
(1 184.9) million.
For a more extensive description of the Group’s risk exposures and
risk management see Note 17.
ENVIRONMENT
New Wave Group has a responsibility to ensure that our business
operations, and the business operations of our suppliers, respect
the legal provisions of different countries, as well as basic human
rights and working conditions. New Wave Group works systema-
tically with regard to supplier auditing, monitoring, and dialogue
in order to ensure that our business operations are conducted in
the most responsible manner possible with regard to people and
the environment.
New Wave Group understands how our business operations are
so closely related to local and global environmental issues. As the
Group grows in size, and as more customers buy our products, our
environmental impact will increase. For this reason, New Wave
Group is striving to develop environmentally sustainable solutions
with regard to transport, packaging, and manufacturing.
New Wave Group’s international operations mean that it is conti-
nuously exposed to various financial risks. The financial risks are
interest rate risks, currency and liquidity and credit risks. In order
to minimize the affect these risks may have on earnings, the Group
has established a financial policy. New Wave Group aims to be the industry leader in CSR (Corporate
Social Responsibility).
The Group’s policy is to have short fixed-rate interest periods,
which means that fluctuating short-term interest rates have a rapid
impact on the Group’s net interest income. For additional information see our Sustainability report and the
section CSR & Sustainability on page 34.
A significant portion of New Wave Group’s sales are made in
foreign currency (approximately 76 %). The Group is exposed to
changes in exchange rates in the future flows of payments related
to firm commitments and to loans and investments in foreign
currencies, i.e. transaction exposure. The Group’s accounts are
also affected by translating the results and net assets of foreign
subsidiaries into SEK, i.e. translation exposure.
Due to the relatively capital-intensive nature of its activities and its
expansive growth strategy, New Wave Group has a need to
secure its funding. For a growth company like New Wave Group
it is essential to ensure that sufficient liquidity is available to fund
future expansion and that there is a high degree of flexibility when
acquisition opportunities present themselves. It is also important
that a sound balance between equity and financing through debt
is kept, as New Wave Group’s goal is to achieve an equity ratio in
excess of 30 %.
54 | NWG 2017
The Group’s subsidiary Orrefors Kosta Boda AB conducts
licensed operations under the Enviromental code.
THE PARENT COMPANY
Total income amounted to SEK 92.2 (123.3) million. Result
before appropriations and taxes amounted to SEK 298.9 (406.2)
million. The result was negatively affected by SEK 76.5 million
regarding impairment of financial fixed assets. This is attributable
to capital injections in subsidiaries. Net borrowing amounted to
SEK 1,566.5 (1,726,0) million. The parent company's financing to
subsidiaries amounted to SEK 2,040.2 (1,887.0) million.
Net investments for the year amounted to SEK -63.5 (5.9) million.
Last year included a repayment of share capital by subsidiaries
of SEK 30.2 million and this year includes capital contribu-
tions to subsidiaries of SEK 56.4 million. The balance sheet total
amounted to SEK 3,813.5 (3,753.1) million. Shareholders' equity,
including 78% of untaxed reserves, amounted to SEK 1,863.6
(1,588.7) million.