Slide 1: Rapala VMC Corporation Interim Report Q3 2014
RAPALA VMC CORPORATION INTERIM REPORT Q3 2014 O t b 21, October 21 2014
Slide 2: Summary of Q3 2014
Summary of Q3 2014 • NET SALES 67.8 MEUR (+2%) • With comparable exchange rates sales up 5% • COMPARABLE OPERATING PROFIT 4.7 MEUR (+47%) • Supported by increased sales, stable gross margin and fixed costs, UK joint venture result and recovery of previously underperforming units. • CASH FLOW FROM OP
Slide 3: Net Sales
Net Sales • Q3 NET SALES 67.8 MEUR (+2%) • Changes in FX rates reduced sales by 2.0 MEUR. With comparable FX sales +5%. • Good start of ice fishing pre-sales and recovery of business from second quarter. Positive signs in economy in several regions. • Political unrest in Eastern Europe, unfavorable
Slide 4: Q3 Net Sales – Geographical Areas
Q3 Net Sales – Geographical Areas 0% 12,5 12 5 12,5 ‐6% 24,1 +14% +2% 22,2 25 7 25,7 19,4 +1% -5% 9,1 9,0 • NORTH AMERICA • NORDICS • REST OF EUROPE • REST OF THE WORLD • Comparable net sales +16% • Comparable net sales +1% • Comparable net sales -2% • Comparable net sales +4% • Good start of ice fi
Slide 5: YTD Net Sales – Geographical Areas
YTD Net Sales – Geographical Areas • NORTH AMERICA • REST OF EUROPE • Comparable net sales +1% • Comparable net sales -1% • Extreme winter weather, weather late spring and rainy summer • Political turbulence in Russia and Ukraine affected sales delayed summer season. • Excluding Russia and Ukraine,
Slide 6: Net Sales – Product Segments
Net Sales – Product Segments • GROUP PRODUCTS 41.0 MEUR (+7%), YTD 131.3 MEUR (-3%) • Comparable net sales + 9%, YTD +2% • Q3 improved summer fishing tackle and ice fishing products sales • YTD negative impact of unfavouable weather conditions on sales of summer fishing tackle, particularly the US •
Slide 7: Operating Profit
Operating Profit • COMPARABLE OPERATING PROFIT 4.7 MEUR (+47%), YTD 21.1 MEUR (-14%) • Q3 supported by increased sales, stable gross margin and fixed cost and UK joint venture result • Q3 and YTD hurt by significant negative contribution of ramp-up ramp up of new factory in Batam and decline in prof
Slide 8: Operating Profit – Product segments
Operating Profit – Product segments • GROUP PRODUCTS 3.7 MEUR (+76%), YTD 13.3 MEUR (-24%) • Q3 supported by higher sales • YTD hurt by lower sales in first half of the year impacting profitability both at distribution and manufacturing level and costs related to ramp-up of the Batam unit • Non-recu
Slide 9: Net Profit and EPS
Net Profit and EPS • FINANCIAL (NET) EXPENSES 2.3 MEUR (3.0), YTD 5.7 MEUR (5.2) • Negative impact of FX expenses 1.2 MEUR (1.9), YTD 2.7 MEUR (2.3) • Net N t interest i t t and d other th financial fi i l expenses 1.1 1 1 MEUR (1.0), (1 0) YTD 3 3.0 0 MEUR (2.8) (2 8) • NET PROFIT 2.7 MEUR (-1.2),
Slide 10: Cash Flow and Working Capital
Cash Flow and Working Capital • CASH FLOW FROM OPERATIONS 3.0 MEUR (6.7), YTD 17.0 MEUR (14.8) • Q3 cash flow negatively impacted by second quarter record cash flow generated especially from cash release from receivables. • Change in working capital 1.4 MEUR (5.1), YTD -1.0 MEUR (-8.0) • INVENTORIES
Slide 11: Financial Position
Financial Position • LIQUIDITY POSITION OF THE GROUP WAS GOOD • Following an increased focus on cash management, cash and cash equivalents reduced to 12.8 MEUR (24.4) • NET INTEREST-BEARING DEBT AND GEARING INCREASED • Equity-to-assets ratio slightly above last year level at 44.1% (43.9) • The Group
Slide 12: Cornerstones of the Profitable Growth Strategy
Cornerstones of the Profitable Growth Strategy BRANDS RAPALA CULTURE Portfolio of most recognized and Local entrepreneurial spirit and respected brands in the fishing profit responsibility together tackle industry. with a low hierarchy, straightforward business culture Various new product and strong
Slide 13: Short-term Outlook
Short-term Outlook • The Group’s sales and profitability improved during the third quarter, but the short-term outlook is still cautious and visibility limited. • Deliveries of winter fishing pre pre-sales sales have started well and the order book is good especially in North America, but due to nat
Slide 14: End of Presentation
END OF PRESENTATION
Slide 15: Appendices
APPENDICES
Slide 16: QRT Key figures
QRT Key Q y figures g MEUR Q3/2014 Q3/2013 Q1-Q4/2013 Net sales 67.8 66.6 286.6 Operating profit 5.7 2.6 26.1 Operating profit margin, % 8.5% 3.9% 9.1% Comparable operating profit 4.7 3.2 27.1 Comparable operating profit margin, % 7.0% 4.8% 9.5% Net profit for the period 2.7 -1.2 16.1 EPS (basic), E
Slide 17: YTD Key figures
YTD Key y figures g MEUR Q1-Q3/2014 Q1-Q3/2013 Q1-Q4/2013 Net sales 211.7 223.3 286.6 Operating profit 21.7 24.6 26.1 Operating profit margin, % 10.3% 11.0% 9.1% Comparable operating profit 21.1 24.4 27.1 Comparable operating profit margin, % 9.9% 10.9% 9.5% Net profit for the period 11.1 13.2 16.1
Slide 18: EPS
EPS EPS, EUR 0,25 0,20 0,15 0,10 EUR 0,05 0,00 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 ‐0,05 2010 2011 2012 2013 2014 ‐0,10 0,50 100 % 0,45 90 % 0,40 80 % 0 35 0,35 70 % 0,30 60 % EUR 0,25 50 % 0,20 40 % 0,15 30 % 0 10 0,10 20 % 0,05 10 % ‐ 0% 2010 2011 2012 2013 EPS, EUR DPS, EUR P
Slide 19: Profit and loss account
Profit and loss account MEUR Q3 2014 Q3 2013 Q1-Q3 2014 Q1-Q3 2013 Q1-Q4 2013 Net sales 67.8 66.6 211.7 223.3 286.6 Other operating income 0.3 0.1 0.6 0.4 0.8 Materials and services 33.6 33.1 97.9 104.3 134.4 Personnel expenses 15.6 15.6 49.6 48.5 64.0 Other costs and expenses 11.6 13.4 38.3 40.7 54
Slide 20: Balance sheet
Balance sheet MEUR Q1-Q3 2014 Q1-Q3 2013 Q1-Q4 2013 ASSETS Non-current assets Intangible assets 73.5 70.6 70.0 Property, plant and equipment 31.5 30.1 30.6 Non-current assets Interest-bearing 4.6 3.4 3.0 Non-interest-bearing 10.4 10.3 10.1 120.0 114.4 113.7 Current assets Inventories 117.2 112.8 110
Slide 21: Shares and Shareholders
Shares and Shareholders SHARE RELATED DATA (09/2014) Share price index performance in Jan 2013 – Sep 2014 • Market capitalization 160 Indexed values 204.8 MEUR 150 • 12-month 12 month high/lo high/low 6 00/4 95 EUR 6.00/4.95 140 • All-time high/low 8.40/2.50 EUR 130 120 110 MAJOR SHAREHOLDERS (09/20
Slide 22: Financial Trends
Financial Trends 45 35 20% 140 800% Sales and scope Profitability Balance sheet position 275 40 18% 700% 250 30 120 16% 35 225 600% 25 100 14% 200 30 mber of countries 500% 12% Gearing % 175 20 80 % of sales 25 MEUR MEUR MEUR 150 10% 400% 20 125 15 60 Num 8% 300% 100 15 6% 10 40 75 200% 10 4% 50 5 2