Slide 1: Rapala VMC Corporation Highlights
RAPALA VMC CORPORATION HIGHLIGHTS February 15, 2019
Slide 2: Deploying the strategy to find incremental growth in new categories
Deploying the strategy to find incremental growth in new categories 2
Slide 3: Rapala Pike Lures
Rapala Pike Lures • Launched in January in France at the Clermont-Ferrand Show • Targeted digital marketing reached over 5 million people interested in predator fishing in Europe • Full-on approach with three big pike lures in broad color selections • First year sales target reached on less than 6 m
Slide 4: Rapala Saltwater Lures
Rapala Saltwater Lures • Launched first in March for the APAC region with X-Rap Magnum Explode • Second wave with X-Rap Magnum Xtreme at AFTA Show in Australia in July • Targeted digital marketing reached over 1.5 million people interested in saltwater big game fishing
Slide 5: Rapala VMC Corporation Full Year 2018
RAPALA VMC CORPORATION FULL YEAR 2018 February 15, 2019
Slide 6: Strong Sales and Profitability Growth From Last Year
STRONG SALES AND PROFITABILITY GROWTH FROM LAST YEAR NET SALES COMPARABLE OPERATING PROFIT INVENTORY VALUE (MEUR) (MEUR) (MEUR) +3,6% +6,7 +5,2 260,6 253,3 262,4 18,8 102,2 99,1 16,7 92,5 11,4 2016 FY 2017 FY 2018 FY 2016 FY 2017 FY 2018 FY 2016 FY 2017 FY 2018 FY • FX comparable change: +6,9% (+17,
Slide 7: Sales Growth in All Areas in Local Currencies
SALES GROWTH IN ALL AREAS IN LOCAL CURRENCIES 2017 FY 54,3 +1,3% 2018 FY 55,1 (+0,7) 2017 FY 89,4 +6,6% 2018 FY 95,4 (+5,9) 2017 FY 77,6 +1,0% 2018 FY 78,4 (+0,8) ‐6% ‐6% 2017 FY 31,9 +5,2% +2% 2018 FY 33,6 (+1,6) NORTH AMERICA NORDIC REST OF EUROPE REST OF THE WORLD • FX comparable change: +11,4% (
Slide 8: Both Segments Grew From Last Year
BOTH SEGMENTS GREW FROM LAST YEAR NET SALES •Group Products’ net sales growth mostly driven (MEUR) +3,5% by increased sales in Rapala lures, fishing lines, hooks, ice fishing products and winter sports 172,1 168,8 174,6 +3,8% products. Sales of hunting knives were below last year. 88,5 84,5 87,8 • T
Slide 9: Execution of Group Strategy Progressing
EXECUTION OF GROUP STRATEGY PROGRESSING Own manufacturing Competitive 1 Brand 2 platform and 3 Research and 4 Broad own distribution advantages portfolio established sourcing development network and strong capabilities local presence channels Unique competitive advantages form the foundation for Rap
Slide 10: Short-Term Outlook and Guidance
SHORT-TERM OUTLOOK AND GUIDANCE • Market outlook for North America is positive and the Group has a strong order book for 2019. The Group sees continued healthy consumer demand for its products via old and new channels. Furthermore, the Group’s position with major customers in North America is strong
Slide 11: Financials
FINANCIALS
Slide 12: Comparable and Reported Operating Profit
COMPARABLE AND REPORTED OPERATING PROFIT • Comparable* operating profit was 16.7 MEUR (6.4%) for FY 2018 • The effect of translation exchange rates was slightly negative • Strong sales, especially in North America • Strategic projects are yielding results both in distribution and manufacturing • Ind
Slide 13: Cash Flow and Working Capital
CASH FLOW AND WORKING CAPITAL • Total working capital increased to 113.4 MEUR • Several supply chain management initiatives ongoing • Inventory grew in absolute terms from last year as sales grew and a centralized lure inventory was built up to Estonia at the latter part of the year • Rolling 12 mon
Slide 14: Financial Position
FINANCIAL POSITION • Liquidity position of the Group was good. Undrawn committed long-term credit facilities amounted to 49.9 MEUR. • Following higher profitability, leverage level was below covenant level and the Group is compliant with all financial covenants. GEARING EQUITY RATIO NET INTEREST-BEA
Slide 15: Appendices
APPENDICES
Slide 16: Key Figures
KEY FIGURES MEUR 2018 FY 2017 FY Net sales 262,4 253,3 Operating profit 14,8 8,9 Operating profit, % of net sales 5,6 % 3,5 % Comparable operating profit 16,7 11,4 Comparable operating profit, % of net sales 6,4 % 4,5 % Net profit for the period 6,5 2,3 EPS (basic), EUR 0,13 0,05 Cash flow from oper
Slide 17: Geographical Net Sales
GEOGRAPHICAL NET SALES NORTH AMERICA NORDIC (MEUR) (MEUR) 99,2 95,4 91,3 89,4 86,1 54,9 56,2 55,3 54,3 55,1 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY REST OF EUROPE REST OF THE WORLD (MEUR) (MEUR) 98,7 86,9 81,3 78,4 77,6 33,5 35,9 32,7 33,6 31,9 2014 FY 2015 FY
Slide 18: Profit and Loss Statement
PROFIT AND LOSS STATEMENT MEUR 2018 FY 2017 FY Net sales 262,4 253,3 Other operating income 0,9 1,1 Materials and services 121,7 117,0 Personnel expenses 68,8 67,6 Other costs and expenses 50,4 54,1 Share of results in associates and joint ventures 0,0 0,0 EBITDA 22,4 15,7 Depreciation, amortization
Slide 19: Balance Sheet
BALANCE SHEET MEUR 2018 FY 2017 FY ASSETS Non-current assets Intangible assets 74,5 73,3 Property, plant and equipment 29,5 32,7 Non-current assets Interest-bearing 0,0 0,0 Non-interest-bearing 5,8 7,1 109,8 113,2 Current assets Inventories 99,1 92,5 Current assets Interest-bearing 0,0 0,0 Non-inter
Slide 20: Shares and Shareholders
SHARES AND SHAREHOLDERS SHARE PRICE INDEX PERFORMANCE SHARE RELATED DATA (12/2018) 130 Market capitalization 116,9 MEUR 120 12-month high / low 4.07 / 2.89 EUR 110 All-time high / low 8.40 / 2.50 EUR 100 90 80 MAJOR SHAREHOLDERS (12/2018) % OF TOTAL 70 Viellard Migeon & Cie 38,4 % Sofina S.A. 19,2 %