Slide 1: Q1 Interim Report 2008
Q1 Interim Report 2008 April 23, 2008 Slide 1
Slide 2: Agenda
Agenda • Q1 in Brief • Business Organisation • Status of Performance Improvement Initiatives • Sales Analysis • Profitability Analysis • Cash flow & Working Capital • Strategy Implementation • Outlook for 2008 • Financial Trend History for Rapala • Rapala share performance and owners Slide 2
Slide 3: Q1 in Brief
Q1 in Brief EUR million I/2008 I/2007 2007 Sales 65.1 63.4 242.5 EBITDA 12.2 12.3 33.8 Operating Profit (EBIT) 10.6 12.0 28.3 Profit Before Taxes 9.3 11.0 23.3 Net Profit for the Period 6.8 7.7 17.5 EPS (basic), EUR 0.16 0.20 0.45 Equity-to-assets, % 36.3 32.9 38.2 Net Interest-bearing Debt 96.5 109
Slide 4: Group Organization & Cornerstones of Strategy
Group Organization & Cornerstones of Strategy USA FINLAND ESTONIA CANADA SWEDEN RUSSIA (50/50) Distribution POLAND ITALY REST OF EUROPE JAPAN DENMARK MALAYSIA LITHUANIA UKRAINE (50/50) GERMANY BRAZIL NORWAY REST OF WORLD AUSTRALIA LATVIA HUNGARY (57/33/10) NETHERLAND FRANCE S BELGIUM CHINA SPAIN BRA
Slide 5: Restructuring of European Operations
Restructuring of European Operations z Consolidation of French operations Marttiini - Move from Bretagne completed - Move from Central France in mid-2008 z Knife manufacturing - New Morvillars distribution premises in use z 80 employees in - 1st real estate sold (gain of 1.4 MEUR) Rovaniemi & Pärnu
Slide 6: Enhancement of Chinese Manufacturing
Enhancement of Chinese Manufacturing z Major operational changes and improvements to enhance production efficiencies and shorten lead times & physical split of fishing tackle & gifts z International task force established to support the development of manufacturing and supply chain management in Chi
Slide 7: Competition & Major Players in the Industry
Competition & Major Players in the Industry - No major changes in the competitive environment in Q1 Company Worldwide Major product categories Comments sales MUSD Jarden 450** Rods, reels, combos, line, soft US sales ca. 50% of sales Pure Fishing + plastics Shakespeare Shimano 430* Rods, reels, acce
Slide 8: Net Sales Analysis
Net Sales Analysis • In Q1, season started well in Western Europe and Canada. 70 • In end Q1, some US customers started 60 to reduce their inventories as a reaction to 50 to the changes in the US economy. MEUR 40 • US consumer demand continued healthy 30 in the key product categories for Rapala. 20
Slide 9: Operating Profit Analysis (1)
Operating Profit Analysis (1) Q1 operating profit was 10.6 MEUR (12.0). 14 Operating margin was 16.3% (18.9%) & 12 ROCE 22.8% (25.4%). 10 Result was negatively affected by MEUR 8 bad winter season for winter fishing & 6 winter sports in Nordic countries, 4 2 cold and long winter in Norther
Slide 10: Operating Profit Analysis (2)
Operating Profit Analysis (2) Management Analysis I/2008 I/2007 I/2008 I/2007 Net sales as reported 65.1 63.4 Operating profit as reported 10.6 12.0 Foreign exchange effects 3.6 0.0 Non-recurring items (net) -1.0 -1.3 Comparable net sales 68.7 63.4 Foreign exchange effects 0.9 0.0 Comparable operati
Slide 11: Cash Flow and Working Capital
Cash Flow and Working Capital EUR million I/2008 I/2007 I-IV/2007 Net profit for the period 6.8 7.7 17.5 Adjustments 2.2 2.8 3.7 Change in working capital -25.3 -17.8 -3.1 Net cash from operating activities -16.3 -7.3 18.2 Net cash used in investing activities -2.0 -3.0 -3.7 Cash flow before financi
Slide 12: Strategy Implementation - Growth
Strategy Implementation - Growth ¾ In Q1, Rapala continued to develop its product portfolio and market coverage to implement its strategy for profitable growth. Discussions and negotiations regarding acquisitions and business combinations continued. ¾ Rapala’s competitive position both in the global
Slide 13: Strategy Implementation - Profitability
Strategy Implementation - Profitability ¾ Emphasis on performance improvement initiatives continued with a target to further improve the Group’s profitability in 2008. ¾ Consolidation of the French operation proceeded on plan. Sale of the first real estate was signed in Q1 (1.3 MEUR non-recurring ga
Slide 14: Outlook for 2008
Outlook for 2008 – In general, the outlook for 2008 remains unchanged. – Market outlook for 2008 is two-folded. Fishing tackle business in product categories where Rapala operates has traditionally not been strongly influenced by changes in the general economic climate. This together with a good sta
Slide 15: Financial Position Healthy – Fuelled for Growth
FinancialPositionHealthy – FuelledforGrowth • Rapid growth in last few years from €100m to above € 240m. • Promised turnaround in operating margin delivered in 2007. • Continuous growth, improving profitability, strong balance sheet & cash flow. 250 18 % 140 800 % 16 % 700 % 120 200 14 % 600 % 100 1
Slide 16: Share Price Performance & Shareholders
Share Price Performance & Shareholders Share Related Data (3/2008) Share price for last 3 months ¾ Market Cap 197 MEUR ¾ 12-month high 6.18 EUR ¾ 12-month low 4.02 EUR ¾ All-time high 8.40 (2/99) ¾ All-time low 2.50 (11/01) Major Shareholders Share price performance for 2003-2007 (5 years) ¾ VMC 27
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