Slide 1: Rapala VMC Corporation Highlights
RAPALA VMC CORPORATION HIGHLIGHTS
Slide 2: Rapala
Rapala RAPALA VMC CORP.
Slide 3: Rapala Pike Lure Launch
Rapala Pike Lure Launch • Deploying the strategy to find incremental growth in new categories • Launched in January in France at the Clermont-Ferrand Show • First 6 month targeted digital marketing reached over 3.5 million people interested in predator fishing in Europe • Full-on approach with three
Slide 4: EFTTEX 2018 Best New Product Competition
EFTTEX 2018 Best New Product Competition Sufix 131 G-Core Best New Braided Line Rapala Super Shadow Rap Best New Hard Lure Rapala X-Rap Peto Best New Soft Lure Storm R.I.P. Spinnerbait Best New Metal Lure
Slide 5: Rapala VMC Corporation 1st Half 2018
RAPALA VMC CORPORATION ST 1 HALF 2018
Slide 6: Sales and profitability grew from last year, inventory continued to decrease
SALES AND PROFITABILITY GREW FROM LAST YEAR, INVENTORY CONTINUED TO DECREASE NET SALES (MEUR) 143,1 140,9 142,5 2016H1 © 2017H1—« 2018 HA. * FX comparable change: +6,5% (+8,7 MEUR) * Strong growth in North America, especially in Rapala lures * Russian market continues to be challenging + EPS is 0,23
Slide 7: Sales growth in all areas in local currencies
SALES GROWTH IN ALL AREAS IN LOCAL CURRENCIES 2017s NN 3:6 6 20.0 22.9 2460.9 NORTH AMERICA NORDIC REST OF EUROPE REST OF THE,WORLD. * FX comparable change: +14,7% (+6,4 * FX comparable change: +4,1% (+4,3 * FX comparable change: +0,4% * FX comparable change: +6,1% (+0,9 MEUR) MEUR) (+0,2 MEUR) MEUR
Slide 8: • 95,0 94,9 94,5 48,1 45,9 48,0 • • 14,0 12,0 11,5 3,6 1,2
• 95,0 94,9 94,5 48,1 45,9 48,0 • • 14,0 12,0 11,5 3,6 1,2 -0,1 8
Slide 9: Execution of Group Strategy Proceeding
EXECUTION OF GROUP STRATEGY PROCEEDING Competitive e Brand t 2 pntioun ag 3 } Research and 4 | Broad own distribution advantages Portfolio established sourcing development network and strong channels capabilities local presence Unique compe e advantages form oundation for Rapala’s strategy Organic g
Slide 10: Short-term Outlook and Guidance
SHORT-TERM OUTLOOK AND GUIDANCE * For the first six months, the Group witnessed growth in all regions from last year in local currencies. The Group continues to see healthy consumer demand for its products via old and new channels in North America despite the ongoing evolvement of retail business. I
Slide 11: Financials
FINANCIALS RAPALA VC CORP.
Slide 12: Comparable and Reported Operating Profit
COMPARABLE AND REPORTED OPERATING PROFIT * Comparable* operating profit was 15.2 MEUR (10.6%) for H1 2018 * The effect of translation exchange rates was negative * Strong sales, especially in North America * Strategic projects are yielding results both in distribution and manufacturing * Indonesian
Slide 13: Cash Flow and Working Capital
CASH FLOW AND WORKING CAPITAL * Total working capital decreased to 110.8 MEUR * Several supply chain management initiatives yielded results * Organic decrease of inventory 1.9 MEUR from last year (excluding inventory allowance and foreign exchange rate changes) * Cash flow from operations was 5.9 ME
Slide 14: Financial Position
FINANCIAL POSITION * Liquidity position of the Group was good. Undrawn committed long-term credit facilities amounted to 59.9 MEUR. Gearing and equity ratios improved from last year. * Following higher profitability, leverage level was below covenant level and the Group is compliant with all financi
Slide 15: Appendices
APPENDICES RAPALA VC CORP.
Slide 16: Key Figures
KEY FIGURES MEUR Net sales 142,5 140,9 Operating profit 15,3 11,0 Operating profit, % of net sales 10,7 % 7,8% Comparable operating profit 15,2 11,4 Comparable operating profit, % of net sales 10,6 % 81% Net profit for the period 9,7 6,0 EPS (basic), EUR 0,23 0,15 Cash flow from operations 5,9 8,1 N
Slide 17: Geographical Net Sales
GEOGRAPHICAL NET SALES NORTH AMERICA NORDIC (MEUR) (MEUR) 47,6 49,6 44,0 46,4 34,1 33,3 J : : : 28,1 29,2 a =2 2014 H1 2015 H1 2016 H1 2017 H1 2018 H1 2014 H1 2015 H1 2016 H1 2017 H1 2018 H1 REST OF EUROPE REST OF THE WORLD (MEUR) (MEUR) 47,4 48,0 43,0 45,8 44,9 15,3 15,7 15,7 i : BEEEE 2014 H1 2015
Slide 18: Profit and Loss Statement
PROFIT AND LOSS STATEMENT MEUR 2018 H1 2017 H1 Net sales 142,5 140,9 Other operating income 0,5 0,6 Materials and services 63,2 63,5 Personnel expenses 35,1 35,2 Other costs and expenses 26,2 28,2 Share of results in associates and joint ventures 0,0 0,0 EBITDA 18,5 14,5 Depreciation, amortization a
Slide 19: Balance Sheet
BALANCE SHEET 2one Ht ASSETS Non-current assets Intangible assets 74,3 74,9 Property, plant and equipment 31,8 34,2 Non-current assets Interest-bearing 0,0 0,0 Non-interest-bearing 6,5 8,5 112,6 117,6 Current assets Inventories 96,7 99,1 Current assets Interest-bearing 0,0 0,9 Non-interest-bearing 6
Slide 20: Shares and Shareholders
SHARES AND SHAREHOLDERS SHARE PRICE INDEX PERFORMANCE 130 Market capitalization 130,3 MEUR 12-month high / low 4,10 / 3,13 EUR All-time high / low 8.40 / 2.50 EUR MAJOR SHAREHOLDERS (6/2018) % OF TOTAI Viellard Migeon & Cie 38,4 % Sofina S.A. 19,2 % —— RAPALA VMC OMX NORDIC MID CAP Nordea Funds 12,5