Slide 1: Rapala VMC Corporation Q2 2015
RAPALA VMC CORPORATION Q2 2015 July 23, 2015
Slide 2: Summary of Q2 2015
Summary of Q2 2015 • NET SALES 80.1 MEUR (77.7) (+3%) • With comparable exchange rates sales up 1% • USA and RoW positive, Russia and Nordics down • COMPARABLE OPERATING PROFIT 9.9 MEUR (9.7) (+2%) • Margin at last year level 12.4% • Group product positive, Third party products and FX down. • REPORT
Slide 3: Net Sales
Net Sales • Q2 NET SALES 80.1 MEUR (+3%) • Changes in FX rates explain approximately 2.0 MEUR. With comparable FX sales +1% • Early summer season shipments in many markets weighting sales growth to Q1 • Solid first half of the year in the US • Russian situation very challenging. • YTD NET SALES 154.
Slide 4: Q2 Net Sales – Geographical Areas
Q2 Net Sales – Geographical Areas -9% 17,7 19,5 +34% 26,6 +34% +2% -12% 27,0 -12% 19,8 30,7 -5% +16% 8,8 +16% 7,6 • NORTH AMERICA • NORDICS • REST OF EUROPE • REST OF THE WORLD • Comparable net sales +11% • Comparable net sales -8% • Comparable net sales -5% • Comparable net sales +6% • Customer act
Slide 5: YTD Net Sales – Geographical Areas
YTD Net Sales – Geographical Areas • NORTH AMERICA • REST OF EUROPE • Comparable net sales +10% • Comparable net sales -2% • Solid growth in the US • Political and economical turbulence in Russia and weakening of Ruble. • Successful launch of Shadow Rap lure family • Excluding Russia and Ukraine, co
Slide 6: Net Sales – Product Segments
Net Sales – Product Segments • GROUP PRODUCTS 52.7 MEUR (+12%), YTD 103.5 MEUR (+15%) • Comparable net sales +3%, YTD +6%. • Earlier start of summer fishing season and overall solid summer fishing sales in the US, driven by successful launch of the new Shadow Rap lure. Further supported by US dollar
Slide 7: Operating Profit
Operating Profit • COMPARABLE OPERATING PROFIT 9.9 MEUR (+2%), YTD 20.6 MEUR (+26%) • Supported by stronger sales of Group branded products especially in the USA and continuing recovery of Asian manufacturing operations’ profitability • Burdened by continuing turbulence in Russia and unfavorable USD
Slide 8: Operating Profit – Product segments
Operating Profit – Product segments • GROUP PRODUCTS 6.6 MEUR (+40%), YTD 13.8 MEUR (+42%) • Supported by stronger sales especially in USA and by improved profitability of Batam operations • THIRD PARTY PRODUCTS 1.7 MEUR (-56%), YTD 3.6 MEUR (-44%) • Burdened by unfavorable fx on purchases and by de
Slide 9: Net Profit and EPS
Net Profit and EPS • FINANCIAL (NET) EXPENSES 2.0 MEUR (1.6), YTD 4.1 MEUR (3.5) • Negative impact of FX expenses of 1.2 MEUR (0.5), YTD 2.7 MEUR (1.5) • Net interest and other financial expenses 0.8 MEUR (1.0), YTD 1.5 MEUR (1.9) • NET PROFIT 4.0 MEUR (-2%), YTD 8.3 MEUR (-1%) • Notable negative im
Slide 10: Cash Flow and Working Capital
Cash Flow and Working Capital • CASH FLOW FROM OPERATIONS 17.6 MEUR (21.5), YTD 10.7 MEUR (13.5) • Down from last year’s record level. • Change in working capital 9.6 MEUR (13.0), YTD -6.7 MEUR (-2.6) • Receivables tied more cash following increased sales • INVENTORIES 121.8 MEUR (113.9) • Increased
Slide 11: Financial Position
Financial Position • LIQUIDITY POSITION OF THE GROUP WAS GOOD • Undrawn committed long-term credit facilities amounted to 78.2 MEUR • GEARING AND NET INTEREST-BEARING DEBT INCREASED • Equity-to-assets ratio slightly below last year level at 42.3% (42.6) • The Group fulfils all financial covenants re
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 Successful launch of Shadow an
Slide 13: Short-term Outlook
Short-term Outlook • Following the increase in sales and comparable profitability after first six months, the outlook for the whole year is positive • In USA presales of winter fishing equipment progressed well and is expected to be close to last year’s level • Despite termination of a third party w
Slide 14: End of Presentation
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Slide 15: Appendices
APPENDICES RAPALA VMC CORP.
Slide 16: QRT Key figures
QRT Key figures MEUR Q2/2015 Q2/2014 Q1-Q4/2014 Net sales 80.1 77.7 273.2 Operating profit 8.3 8.6 22.9 Operating profit margin, % 10.4% 11.1% 8.4% Comparable operating profit 9.9 9.7 20.9 Comparable operating profit margin, % 12.4% 12.4% 7.6% Net profit for the period 4.0 4.1 10.2 EPS (basic), EUR
Slide 17: YTD Key figures
YTD Key figures MEUR Q1-Q2/2015 Q1-Q2/2014 Q1-Q4/2014 Net sales 154.0 143.9 273.2 Operating profit 17.4 16.0 22.9 Operating profit margin, % 11.3% 11.1% 8.4% Comparable operating profit 20.6 16.3 20.9 Comparable operating profit margin, % 13.4% 11.4% 7.6% Net profit for the period 8.3 8.4 10.2 EPS (
Slide 18: EPS
EPS EPS, EUR 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 Q4 -0,05 2011 2012 2013 2014 2015 -0,10 0,40 100 % 0,35 90 % 80 % 0,30 70 % 0,25 60 % EUR 0,20 50 % 0,15 40 % 30 % 0,10 20 % 0,05 10 % - 0% 2011 2012 2013 2014 2015 EPS, EUR DPS, EUR Payout, % Q2 2015
Slide 19: Profit and loss account
Profit and loss account MEUR Q2 2015 Q2 2014 Q1-Q2/2015 Q1-Q2/2014 Q1-Q4/2014 Net sales 80.1 77.7 154.0 143.9 273.2 Other operating income 0.2 0.2 0.3 0.3 1.0 Materials and services 37.3 35.8 70.6 64.3 128.1 Personnel expenses 17.9 17.1 35.3 34.0 65.6 Other costs and expenses 15.3 14.8 27.8 26.7 50.
Slide 20: Balance sheet
Balance sheet MEUR Q1-Q2 2015 Q1-Q2 2014 Q1-Q4 2014 ASSETS Non-current assets Intangible assets 78.1 70.7 74.4 Property, plant and equipment 32.0 30.9 32.0 Non-current assets Interest-bearing 5.1 3.8 3.0 Non-interest-bearing 12.0 9.6 11.5 127.2 115.0 120.8 Current assets Inventories 121.8 113.9 113.
Slide 21: Shares and Shareholders
Shares and Shareholders SHARE RELATED DATA (6/2015) Share price index performance from Jan 2014 – Jun 2015 • Market capitalization 203.7 MEUR 135 Indexed values 130 • 12-month high/low 5.37/4.69 EUR 125 120 • All-time high/low 8.40/2.50 EUR 115 110 105 100 MAJOR SHAREHOLDERS (6/2015) 95 90 • VMC Hol
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 30 500% Number of countries 175 12% Gearing % 20 80 25 % of sales MEUR MEUR MEUR 150 10% 400% 20 125 15 60 8% 300% 100 15 6% 40 10 75 200% 10 4% 50 5 20