Slide 1: Rapala VMC Corporation Highlights
RAPALA VMC CORPORATION HIGHLIGHTS February 16, 2018
Slide 2: Rapala VMC Corp.
RAPALA VMC CORP. 2
Slide 3: Rapala Pike Lure Launch
RAPALA PIKE LURE LAUNCH • Great success in testing • Re-entry into the big pike category • Launched in January in France at the Clermont-Ferrand Show • Supported by coordinated & targeted digital marketing • First weekend marketing reach totaled over 300 000 people • Full-on approach with three big
Slide 4: Rapala VMC Corporation Full Year 2017
RAPALA VMC CORPORATION FULL YEAR 2017 February 16, 2018
Slide 5: Sales and profitability decreased as a result of turmoil in the retail markets
SALES AND PROFITABILITY DECREASED AS A RESULT OF TURMOIL IN THE RETAIL MARKETS – POSITIVE DEVELOPMENT IN WORKING CAPITAL MANAGEMENT NET SALES COMPARABLE OPERATING PROFIT YEAR-END INVENTORY VALUE (MEUR) (MEUR) (MEUR) -2,8% 278,2 25,3 116,2 -9,8 260,6 253,3 -7,4 102,2 92,5 18,8 11,4 2015 2016 2017 201
Slide 6: Weakened USD pulled North America sales down and big markets in Europe down
WEAKENED USD PULLED NORTH AMERICA SALES DOWN FROM LAST YEAR AND BIG MARKETS IN EUROPE DOWN 2016 55,3 -1,7% 2017 54,3 (-0,9) 2016 91,3 -2,1% 2017 89,4 (-1,9) 2016 81,3 -4,5% 2017 77,6 (-3,7) -6% -6% 2016 32,7 -2,2% +2% 2017 31,9 (-0,7) NORTH AMERICA NORDIC REST OF EUROPE REST OF THE WORLD • FX compar
Slide 7: Retail market turmoil hit sales of group products and third party products
RETAIL MARKET TURMOIL HIT SALES OF GROUP PRODUCTS AND THIRD PARTY PRODUCTS NET SALES • Group fishing products sales down from last year, driven by lure (MEUR) sales in North America as a consequence of retail turmoil -1,9% • Positive development in carp fishing sales followed by the 184,7 increased
Slide 8: Execution of Group Strategy Progressing
EXECUTION OF GROUP STRATEGY PROGRESSING Competitive 1 Brand 2 Own manufacturing 3 Research and 4 Broad own distribution advantages portfolio platform and established development network and strong sourcing channels capabilities local presence Unique competitive advantages form the foundation for Rap
Slide 9: Short-Term Outlook and Guidance
SHORT-TERM OUTLOOK AND GUIDANCE • 2017 was a year of market turmoil and structural changes in retail especially in the US. There is still somewhat lower visibility to the North American market due to the structural changes experienced during 2017. However, the Group sees continued healthy consumer d
Slide 10: Financials
FINANCIALS RAPALA VC CORP.
Slide 11: Comparable and Reported Operating Profit
COMPARABLE AND REPORTED OPERATING PROFIT • Comparable* operating profit was 11.4 MEUR (4.5%) for 2017 • The effect of translation exchange rates was slightly positive • Burdened by lower sales, operational challenges at the factory in Indonesia and write-downs of account receivables in North America
Slide 12: Cash Flow and Working Capital
CASH FLOW AND WORKING CAPITAL • Total working capital decreased to 104.5 MEUR • Several supply chain management initiatives yielded results • Despite lower than anticipated sales, inventories decreased to 92.5 MEUR • Organic decrease 8.0 MEUR (excluding inventory allowance and foreign exchange chang
Slide 13: Financial Position
FINANCIAL POSITION • Liquidity position of the Group was good. Undrawn committed long-term credit facilities amounted to 59.9 MEUR • Following successful issuance of a hybrid bond of 25 MEUR in 2017, gearing and equity ratios improved • Following higher ratio between net interest-bearing debt and re
Slide 14: Appendices
APPENDICES RAPALA VC CORP.
Slide 15: Key Figures
KEY FIGURES MEUR FY/ 2017 FY/ 2016 Net sales 253, 3 260,6 Operat ing prof it 8, 9 7,2 Operat ing prof it , % of net sales 3, 5 % 2,8 % Comparable operat ing prof it 11, 4 18,8 Comparable operat ing prof it , % of net sales 4, 5 % 7,2 % Net prof it f or t he period 2, 3 - 2,0 EPS (basic), EUR 0, 05 -
Slide 16: Geographical Net Sales
GEOGRAPHICAL NET SALES NORTH AMERICA NORDIC (MEUR) (MEUR) 99,2 88,4 91,3 89,4 86,1 60,8 56,2 55,3 54,9 54,3 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 REST OF EUROPE REST OF THE WORLD (MEUR) (MEUR) 103,6 98,7 86,9 81,3 77,6 33,8 33,5 35,9 32,7 31,9 2013 2014 2015 2016 2017 2013 2014 2015 2016
Slide 17: Profit and Loss Statement
PROFIT AND LOSS STATEMENT MEUR FY/ 2017 FY/ 2016 Net sales 253, 3 260,6 Ot her operat ing income 1, 1 1,3 Mat erials and services 117, 0 129,0 Personnel expenses 67, 6 67,6 Ot her cost s and expenses 54, 1 51,1 Share of result s in associat es and joint vent ures 0, 0 - 0,1 EBITDA 15, 7 14,1 Depreci
Slide 18: Balance Sheet
BALANCE SHEET MEUR FY/ 2017 FY/ 2016 ASSETS Non- current assets Int angible asset s 73,3 78,2 Propert y, plant and equipment 32,7 36,2 Non- current asset s Int erest - bearing 0,0 0,0 Non- int erest - bearing 7,1 9,1 113,2 123,5 Current assets Invent ories 92,5 102,2 Current asset s Int erest - bear
Slide 19: Shares and Shareholders
SHARES AND SHAREHOLDERS SHARE PRICE INDEX PERFORMANCE SHARE RELATED DATA (12/ 2017) 130 Market capit alizat ion 127,6 MEUR 120 12- mont h high / low 4,68/ 3,29 EUR 110 All- t ime high / low 8.40/ 2.50 EUR 100 90 MAJOR SHAREHOLDERS (12/ 2017) % OF TOTAL 80 Viellard Migeon & Cie 38,4 % 70 Sof ina S.A.
Slide 20: Financial Trends
FINANCIAL TRENDS SALES AND GEOGRAPHICAL SCOPE PROFITABILITY BALANCE SHEET POSITION # OF % OF GEARING MEUR COUNTRIES MEUR SALES MEUR % 300 50 35 20 150 800 140 750 275 45 18 130 700 30 250 40 16 120 650 225 600 110 35 25 14 550 200 100 500 30 12 90 175 20 450 80 150 25 10 400 70 15 350 125 20 8 60 30