Slide 1: Q3 Interim Report 2011
Q3 INTERIM REPORT 2011 October 27, 2011 1
Slide 2: Cornerstones of Strategy Implementation
CORNERSTONES OF STRATEGY IMPLEMENTATION STRATEGIC OBJECTIVE: PROFITABLE GROWTH DISTRIBUTION COMPANY MANUFACTURING, SOURCING NETWORK AND R&D • Own distribution unit in 34 countries. • Specialized and effective own manu- facturing units and sourcing • Widest within the industry. organization producing
Slide 3: Rapala's Unique Distribution Power
RAPALA’S UNIQUE DISTRIBUTION POWER Group’s own Group’s own Manufacturing, expanding Sourcing and R&D distribution platform serving company Retail Group’s own Brands Customers network in 34 Globally countries all over the world ranging from world’s largest Australia, Belarus, Brazil, Canada, China, C
Slide 4: Summary of Q3 2011
SUMMARY OF Q3 2011 EUR million III/2011 III/2010 I-III/2011 I-III/2010 I-IV/2010 Net Sales 63.0 60.6 218.7 209.0 269.4 Operating Profit - Reported 2.3 2.9 27.2 27.1 31.3 Operating Profit - Comparable 2.8 3.1 28.1 27.5 31.8 Net Profit for the Period 0.2 1.4 16.1 18.9 20.7 EPS (basic), EUR -0.01 0.01
Slide 5: Analysis of Net Sales
ANALYSIS OF NET SALES 70 Net Sales Development Q-on-Q Y-on-Y MEUR 60 Group Total 4% 5% 50 Group Fishing Products 11 % 8% 40 Other Group Products -12 % 5% Third Party Products -1 % 0% 30 20 North America 3% -3 % Nordics -6 % 5% 10 Rest of Europe 15 % 15 % 0 Q3/2007 Q3/2008 Q3/2009 Q3/2010 Q3/2011 Res
Slide 6: Analysis of Operating Profit
ANALYSIS OF OPERATING PROFIT Operating profit (MEUR) Q3/2011 Q3/2010 Q3/2011 YTD Q3/2010 YTD M€ % M€ % M€ % M€ % Group Total (comparable) 2.8 4.5% 3.1 5.1% 28.1 12.9% 27.5 13.2% Group Fishing Products 1.6 4.8% 0.7 2.4% 18.0 15.1% 17.4 15.8% Other Group Products -0.2 -3.7% 1.1 19.4% 0.7 4.3% 1.7 11.5
Slide 7: Net Result and Cash Flow
NET RESULT AND CASH FLOW EUR million III/2011 III/2010 I-III/2011 I-III/2010 I-IV/2010 Net profit for the period 0.2 1.4 16.1 18.9 20.7 Adjustments (reversal of non-cash items) 3.6 4.0 15.4 13.4 17.4 Financial items and taxes paid/rec -2.9 -3.4 -9.0 -9.4 -12.1 Change in working capital 14.4 5.0 -5.7
Slide 8: Strategy Implementation
STRATEGY IMPLEMENTATION • Implementation of Rapala’s strategy of profitable growth continued during the third quarter of the year by taking several actions relating to manufacturing and distribution activities as wells as Group’s internal supply chain and inventory management. • The transaction to c
Slide 9: Strategic Distribution Alliance with Shimano in UK
STRATEGIC DISTRIBUTION ALLIANCE WITH SHIMANO IN UK Rapala Group Shimano Rapala Group 100% 50/50 ownership and control Shimano 50/50 JV Dynamite Baits Ltd Shimano Normark UK Ltd • Bait manufacturing and • Exclusive distribution in UK of Rapala R&D UK Group’s products (incl. carp tackle) • Brand distr
Slide 10: Expansion of Production to Indonesia
EXPANSION OF PRODUCTION TO INDONESIA Location of Batam, Indonesia Rapala lure factory Batam Key facts of Batam Rapala expansion to Batam • Part of a Special Economic Zone • New lure and hook (VMC) manufacturing operations will be opened in with Singapore Batam to secure access to cost competitive pr
Slide 11: Short-Term Outlook
SHORT-TERM OUTLOOK • The re-emerging uncertainties concerning the future development of world economies and the impacts these may have on consumer and retailer behavior limit the visibility to the future. • So far the recent economic turbulences have only had limited impact on demand for Rapala’s pr
Slide 12: Financial Trends in Rapala
FINANCIAL TRENDS IN RAPALA • It is expected that in 2011 the net sales will increase from 2010. The comparable operating profit is expected to remain close to last year’s level although comparable operating profit margin is expected to be slightly lower. • Financial position getting even stronger al
Slide 13: Shares and Shareholders
SHARES AND SHAREHOLDERS SHARE RELATED DATA (09/2011) Share price index performance in Jan 2010 – Sep 2011 • Market capitalization 211.0 MEUR 150 Indexed values 140 • 12-month high/low 7.38/4.86 EUR 130 • All-time high/low 8.40/2.50 EUR 120 110 100 MAJOR SHAREHOLDERS (09/2011) 90 80 • VMC Holdings 30
Slide 14: End of Presentation
END OF PRESENTATION Tight lines! 14