Slide 1: Rapala VMC Corporation Highlights
RAPALA VMC CORPORATION HIGHLIGHTS
Slide 2: Rapala Pike Lures
Rapala Pike Lures • Expanding the portfolio with new products to gain more market share following the 2018 success • Second wave launched in January at the Clermont-Ferrand Show in France • Targeted digital marketing reached over 4 million people interested in predator fishing in Europe
Slide 3: Rapala Saltwater Lures
Rapala Saltwater Lures • New products designed for European in-shore fishing with great potential worldwide • Hard baits launched under Rapala, pre-rigged soft plastics under Storm • Launched for the main markets in Spain and France for the spring sea bass season
Slide 4: Rapala VMC Corporation H1 2019
RAPALA VMC CORPORATION ST 1 HALF 2019 H1 2019
Slide 5: Sales and profitability decreased from last year, inventory increased
SALES AND PROFITABILITY DECREASED FROM LAST YEAR, INVENTORY INCREASED. FULL YEAR GUIDANCE UNCHANGED. NET SALES (MEUR) 140,9 142,5 141,2 2017 H1 2018 H1 2019 H1. * FX comparable change: -2,4% (-3,4 MEUR) * North American sales shifted to the second half of the year * Third Party Products sales decrea
Slide 6: Sales in local currencies up in Rest of Europe and Rest of the World
SALES IN LOCAL CURRENCIES UP IN REST OF EUROPE AND REST OF THE WORLD — NORDIC ARE SOFTER AND TIMING ISSUES IN NORTH AMERICA NORTH AMERICA + FX comparable change: -7,2% (-3,8 MEUR) * Sales behind a very strong comparison period, but positive outlook for H2 * Decreased sales largely due to delivery is
Slide 7: • 94,9 94,5 95,2 45,9 48,0 46,0 • • 14,0 11,5 11,7 1,2 0,2
• 94,9 94,5 95,2 45,9 48,0 46,0 • • 14,0 11,5 11,7 1,2 0,2 -0,1
Slide 8: 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 9: Short-term outlook and guidance
SHORT-TERM OUTLOOK AND GUIDANCE * Market outlook for North America is positive and the Group has a strong order book for the second half of 2019. The Group sees continued healthy consumer demand for its products via old and new sales channels. Furthermore, the Group’s position with major customers i
Slide 10: Financials
FINANCIALS RAPALA VC CORP.
Slide 11: Comparable and reported operating profit
COMPARABLE AND REPORTED OPERATING PROFIT * Comparable* operating profit was 12.0 MEUR (8.5%) for H1 2019 * The effect of translation exchange rates was positive ° Especially the lower Group product sales in North America, following the delivery issues of ice products and postponed sales of some othe
Slide 12: Cash flow and working capital
CASH FLOW AND WORKING CAPITAL * Total working capital increased to 115.8 MEUR * The high inventory value resulted partly from the postponed sales but also from lower than expected third party hunting sales. In addition, the anticipation of higher tariffs on Chinese imported goods to USA led to earli
Slide 13: Financial position
FINANCIAL POSITION * Liquidity position of the Group was good. Undrawn committed long-term credit facilities amounted to 59.9 MEUR. Gearing ratio increased and equity-to-assets ratio weakened from last year as a result of the redemption of the 25 MEUR hybrid loan in May. * The application of the IFR
Slide 14: Appendices
APPENDICES RAPALA VC CORP.
Slide 15: Key figures
KEY FIGURES Net sales 141,2 142,5 Operating profit 11,4 15,3 Operating profit, % of net sales 81% 10,7 % Comparable operating profit 12,0 15,2 Comparable operating profit, % of net sales 85% 10,6 % Net profit for the period 7,4 9,7 EPS (basic), EUR 0,17 0,23 Cash flow from operations 11,5 5,9 Net in
Slide 16: Geographical net sales
GEOGRAPHICAL NET SALES NORTH AMERICA NORDIC (MEUR) (MEUR) 47,6 49,6 48,6 44,0 34,4 . 32,3 J : : ; } } } 2014H1 © 2015H1 «= 2017 H1.—Ss«2018H1 = 2019 HA. 2014H1 © 2015H1 © 2017H1 ~=—« «20181 ~=—S 2019 HA. REST OF EUROPE REST OF THE WORLD (MEUR) (MEUR) 47,4 43,0 45,8 44,9 45,9 I ; : i - - oO DO no 201
Slide 17: Profit and loss statement
PROFIT AND LOSS STATEMENT MEUR 2019 H1 2018 H1 Net sales 141,2 142,5 Other operating income 0,5 0,5 Materials and services 63,6 63,2 Personnel expenses 35,9 35,1 Other costs and expenses 24,4 26,2 Share of results in associates and joint ventures 0,0 0,0 EBITDA 17,7 18,5 Depreciation, amortization a
Slide 18: Balance sheet
BALANCE SHEET 2019 H4 2 ASSETS Non-current assets Intangible assets 74,8 74,3 Property, plant and equipment 41,8 31,8 Non-current assets Interest-bearing 0,0 0,0 Non-interest-bearing 6,0 6,5 122,7 112,6 Current assets Inventories 108,6 96,7 Current assets Interest-bearing 0,0 0,0 Non-interest-bearin
Slide 19: Shares and shareholders
SHARES AND SHAREHOLDERS Share price index performance 125 SHARE RELATED DATA (6/2019 120 ( ) 115 Market capitalization 115,7 MEUR 110 42-month high / low 3.81 / 2.85 EUR 105 100 ~ All-time high / low 8.40 / 2.50 EUR 95 | ee iad auel MAJOR SHAREHOLDERS (6/2019) OF TOTAI 80 Viellard Migeon & Cie 38,5