Slide 1: Q1 Interim Report 2009
Q1 Interim Report 2009 April 28, 2009 Slide 1
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Slide 2
Slide 3: Agenda
Agenda • Q1 in Brief • Business Organisation and Competitor Situation • Sales Analysis • Status of Performance Improvement Initiatives • Profitability Analysis • Cash flow & Working Capital • Strategy Implementation • Outlook for 2009 • Financial Trend History for Rapala • Dividend Pay-out Trends •
Slide 4: Q1 in Brief
Q1 in Brief EUR million I/2009 I/2008 2008 Sales 65.0 65.1 243.0 EBITDA 11.6 12.2 37.5 EBITDA ,excl. non-recurring items 11.7 11.2 36.7 Operating Profit 10.0 10.6 31.3 Operating Profit, excl. non-recurrings 10.1 9.6 30.5 EPS (basic), EUR 0.15 0.16 0.45 Equity-to-assets, % 35.3 36.3 38.0 Net Interest
Slide 5: Group Organization & Cornerstones of Strategy
Group Organization & Cornerstones of Strategy Slide 5
Slide 6: Competition & Major Players in the Industry
Competition & Major Players in the Industry - No major changes in the competitive environment in Q1 2009 Company Worldwide Major product categories Comments sales MUSD* Jarden 500-700* Rods, reels, combos, line, soft plastics US sales ca. 50% of sales Pure Fishing + Shakespeare Daiwa 630* Rods, reel
Slide 7: Net Sales Analysis
Net Sales Analysis • First quarter net sales on last year levels at 65.0 MEUR (65.1). • Good winter season boosted sales in Nordic countries. • Strengthening of USD increased net sales in North America. • Rest of Europe’s net sales suffered from the weakening of many currencies • Rest of the World i
Slide 8: Restructuring of European Operations
Restructuring of European Operations Consolidation of French operations Marttiini - 3 our of 4 units already in new premises - VMC Europe to move next summer Knife manufacturing - Capital gains (1.4 MEUR) in 2008 60 employees in - Personnel down by more than 40 vs. Q1 2008 Rovaniemi & Pärnu
Slide 9: Enhancement of Chinese Manufacturing
Enhancement of Chinese Manufacturing Major operational changes and improvements to enhance production efficiencies and shorten lead times & physical split of fishing tackle & gifts Major increase of outsourcing and production fine-tuned to reach WCM targets Personnel down ca. 2100 from Q1 2008
Slide 10: Operating Profit Analysis
Operating Profit Analysis Comparable operating profit, excluding one- offs, was 10.1 MEUR (9.6) and comparable operating margin 15.5% (14.7%). Q1 2008 included a net one-off gain of 1.0 MEUR (restructuring & real estate sale) Q1 ROCE was 19.3% (22.8%). Result was positively affected by perfo
Slide 11: Cash Flow and Working Capital
Cash Flow and Working Capital EUR million I/2009 I/2008 I-IV/2008 Net profit for the period 6.2 6.8 19.2 Adjustments 5.2 5.0 13.0 Financial items and taxes paid and received -2.2 -2.8 -14.0 Change in working capital -29.0 -25.3 -12.7 Net cash from operating activities -19.8 -16.3 5.4 Net cash used i
Slide 12: Strategy Implementation – Growth & Profitability
Strategy Implementation – Growth & Profitability Rapala continued to implement its strategy for profitable growth. Discussions & negotiations on acquisitions & business combinations continued. Integration of Sufix business progress on plan and sales started strong. In next 2 – 3 years Rapala
Slide 13: Outlook for 2009
Outlook for 2009 – In general, the market outlook for 2009 remains unchanged from February and continues challenging. – The slowdown and uncertainty in North America and European economies as well as in many Asian countries is expected to continue during the coming months. – Fishing tackle business
Slide 14: Financial Position Healthy – Focus on WCM
Financial Position Healthy – Focus on WCM • Rapid growth in last few years from €100m to above € 240m. • Promised turnaround in operating margin continued in 2008. • Focus in 2009-2010: to reduce working capital and improve cash flow. 250 18 % 140 800 % 225 16 % 120 700 % 200 14 % 600 % 175 100 12 %
Slide 15: Dividend Pay-out Trends
Dividend Pay-out Trends Dividend per share increase in each of the last 5 years In 5 years dividend more than doubled from 0.09 euro to 0.19 euro Steady growth in dividend per earnings: from 28.2% to 42.2% Dividend per share price (dividend yield) increased each of the last 5 years Effecti
Slide 16: Share Price Performance & Shareholders
Share Price Performance & Shareholders Share Related Data (3/2009) Share price performance in 2008 & Q1 2009 Market Cap 156 MEUR 12-month high 5.09 EUR 12-month low 2.95 EUR All-time high 8.40 (2/99) All-time low 2.50 (11/01) Major Shareholders VMC 28 % Share price performance 12/2003-12
Slide 17: READY!
READY! Slide 17
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