Slide 1: Rapala VMC Corporation Q3 2015
RAPALA VMC CORPORATION Q3 2015 October 22, 2015
Slide 2: Summary of Q3 2015
Summary of Q3 2015 • NET SALES 64.5 MEUR (67.8) • With comparable exchange rates sales down 5% • COMPARABLE OPERATING PROFIT 3.5 MEUR (4.7) • Down from last year following lower sales and gross margin • REPORTED OPERATING PROFIT 2.9 MEUR (5.7) • Valuation of currency derivatives and non-recurring lo
Slide 3: Net Sales
Net Sales • Q3 NET SALES 64.5 MEUR (-5%) • Changes in FX rates explain approximately 0.4 MEUR. With comparable FX sales -5% • Favorable summer weather in US and France, whereas cold in Nordics • Start of ice fishing sales in North America behind last year’s strong opening, partly due to timing (shif
Slide 4: Q3 Net Sales – Geographical Areas
Q3 Net Sales – Geographical Areas -9% 11,4 12,5 -2% +34% 21,8 +2% -10% 21,7 22,2 24,1 -5% +16% +7% 9,7 9,1 • NORTH AMERICA • NORDICS • REST OF EUROPE • REST OF THE WORLD • Comparable net sales -15% • Comparable net sales -7% • Comparable net sales +2% • Comparable net sales +7% • Favorable summer co
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% • Solid H1 sales in the US supported by strong USD • Political turbulence in Russia and Ukraine affected sales • Good weather in key fishing markets • Excluding Russia and Ukrain
Slide 6: Net Sales – Product Segments
Net Sales – Product Segments • GROUP PRODUCTS 41.0 MEUR (0%), YTD 144.5 MEUR (+10%) • Comparable net sales -4%, YTD +3% • Strong H1 especially in the US • Q3 impacted by good Q2 and by change in some customers’ pre-order behavior and some postponement of sales to Q4 • THIRD PARTY PRODUCTS 23.6 MEUR
Slide 7: Operating Profit
Operating Profit • COMPARABLE OPERATING PROFIT 3.5 MEUR (-26%), YTD 24.1 MEUR (+14%) • Q3 decline driven by lower sales and reduced gross margin impacted by clearance sales • Q3 and YTD supported by continuing recovery of Asian manufacturing operations’ profitability, while negatively impacted by st
Slide 8: Operating Profit – Product segments
Operating Profit – Product segments • GROUP PRODUCTS 2.1 MEUR (-43%), YTD 15.9 MEUR (+20%) • Q3 down due to lower sales volumes and negative gross margin impact from actions to reduce inventory levels • YTD supported by increased sales and by improved profitability of Asian manufacturing operations
Slide 9: Net Profit and EPS
Net Profit and EPS • FINANCIAL (NET) EXPENSES 1.6 MEUR (2.3), YTD 5.7 MEUR (5.7) • Negative impact of FX expenses of 0.8 MEUR (1.2), YTD 3.4 MEUR (2.7) • Net interest and other financial expenses 0.8 MEUR (1.1), YTD 2.3 MEUR (3.0) • NET PROFIT -0.2 MEUR (-107%), YTD 8.1 MEUR (-27%) • Notable negativ
Slide 10: Cash Flow and Working Capital
Cash Flow and Working Capital • CASH FLOW FROM OPERATIONS 5.2 MEUR (4.3), YTD 15.9 MEUR (17.8) • Change in working capital 2.5 MEUR (1.1), YTD -4.3 MEUR (-1.5) • Q3 improvement driven by cash released from receivables, but YTD still behind due to cash tied to receivables • INVENTORIES 117.8 MEUR (11
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 43.4% (44.1) • 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 Next season’s Rapala novelties
Slide 13: Short-term Outlook
Short-term Outlook • Outlook for the full year remains unchanged. • Reduction in Q3 sales was impacted by timing and some of the winter fishing sales is expected to have transferred from Q3 to Q4 • Pre-sales of winter sports equipment has been slightly better than last year, but like with winter fis
Slide 14: End of Presentation
END OF PRESENTATION
Slide 15: Appendices
APPENDICES RAPALA VMC CORP.
Slide 16: QRT Key figures
QRT Key figures MEUR Q3/2015 Q3/2014 Q1-Q4/2014 Net sales 64.5 67.8 273.2 Operating profit 2.9 5.7 22.9 Operating profit margin, % 4.5% 8.5% 8.4% Comparable operating profit 3.5 4.7 20.9 Comparable operating profit margin, % 5.4% 7.0% 7.6% Net profit for the period -0.2 2.7 10.2 EPS (basic), EUR -0.
Slide 17: YTD Key figures
YTD Key figures MEUR Q1-Q3/2015 Q1-Q3/2014 Q1-Q4/2014 Net sales 218.6 211.7 273.2 Operating profit 20.4 21.7 22.9 Operating profit margin, % 9.3% 10.3% 8.4% Comparable operating profit 24.1 21.1 20.9 Comparable operating profit margin, % 11.0% 9.9% 7.6% Net profit for the period 8.1 11.1 10.2 EPS (b
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, % Q3 2015
Slide 19: Profit and loss account
Profit and loss account MEUR Q3 2015 Q3 2014 Q1-Q3/2015 Q1-Q3/2014 Q1-Q4/2014 Net sales 64.5 67.8 218.6 211.7 273.2 Other operating income 0.1 0.3 0.4 0.6 1.0 Materials and services 31.7 33.6 102.3 97.9 128.1 Personnel expenses 15.7 15.6 51.0 49.6 65.6 Other costs and expenses 12.6 11.6 40.4 38.3 50
Slide 20: Balance sheet
Balance sheet MEUR Q1-Q3 2015 Q1-Q3 2014 Q1-Q4 2014 ASSETS Non-current assets Intangible assets 77.0 73.5 74.4 Property, plant and equipment 31.6 31.5 32.0 Non-current assets Interest-bearing 4.2 4.6 3.0 Non-interest-bearing 11.9 10.4 11.5 124.7 120.0 120.8 Current assets Inventories 117.8 117.2 113
Slide 21: Shares and Shareholders
Shares and Shareholders SHARE RELATED DATA (9/2015) Share price index performance from Jan 2014 – Sep 2015 • Market capitalization 186.0 MEUR 135 Indexed values 130 • 12-month high/low 5.85/4.69 EUR 125 120 • All-time high/low 8.40/2.50 EUR 115 110 105 100 MAJOR SHAREHOLDERS (9/2015) 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