Slide 1: Q2 Interim Report 2009
Q2 Interim Report 2009 July 24, 2009 Slide 1
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Slide 2
Slide 3: Q2 in Brief
Q2 in Brief EUR million II/09 II/08 I-II/09 I-II/08 2008 Sales 67.7 74.2 132.9 139.4 243.0 EBITDA 11.5 15.4 23.1 27.6 37.5 EBITDA ,excl. non-rec.items 11.6 15.7 23.3 26.9 36.7 Operating Profit 9.4 13.8 19.5 24.5 31.3 Operating Profit, excl.non-rec. 10.2 14.1 20.4 23.8 30.5 EPS (basic), EUR 0.16 0.21
Slide 4: Group Organization & Cornerstones of Strategy
Group Organization & Cornerstones of Strategy Slide 4
Slide 5: Competition & Major Players in the Industry
Competition & Major Players in the Industry - No major changes in the competitive environment in Q2 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, reels,
Slide 6: Net Sales Analysis
Net Sales Analysis • Solid net sales for Q2 but down on last year at 67.7 MEUR (74.2). H1 net sales at 132.9 (139.4); FX: -1.7M (Q2) % -1.3 (H1) • Late spring & FX movements affected net sales negatively in Nordic countries. • Increased business activity and strengthening of USD increased net sales
Slide 7: Restructuring of European Operations
Restructuring of European Operations Consolidation of French operations Marttiini - 3 our of 4 units already in new premises - Capital gains (1.4 MEUR) in 2008 Knife manufacturing - Personnel down by ca. 60 vs. Q2 2008 Ca. 60 employees (FIN&EST) Development of lure manufacturing Personnel
Slide 8: 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. 2300 from Q2 20
Slide 9: Operating Profit Analysis
Operating Profit Analysis Q2 comparable operating profit, excluding one-offs, 10.2 MEUR (14.1) and comparable operating margin 15.1% (19.0%) H1 comparable operating profit 20.4 MEUR(23.8). Q2 included 0.8 MEUR (0.3) one-off costs (Chinese premises) and H1 0.9 MEUR (-0.7) Bookings for share b
Slide 10: Cash Flow and Working Capital
Cash Flow and Working Capital EUR million II/2009 II/2008 I-II/2009 I-II/2008 I-IV/2008 Net profit for the period 7.4 9.4 13.6 16.2 19.2 Adjustments 4.9 3.7 10.1 8.7 13.0 Financial items and taxes paid/rec -1.3 -3.5 -3.5 -6.3 -14.0 Change in working capital 6.7 -3.4 -22.3 -28.7 -12.7 Net cash from o
Slide 11: Strategy Implementation
Strategy Implementation Rapala continued to implement its strategy for profitable growth. Discussions on acquisitions & business combinations continued. Strong emphasis on performance improvement initiatives continued, special focus on Hungarian and South East European distribution operations.
Slide 12: Current Trading Conditions in the USA
Current Trading Conditions in the USA Market Overview – Fishing participation is high this season – due, in part, • to the tough economic times and • high unemployment levels. • Fishing continues to be one of the least expensive entertainment alternatives. – Pleasantly surprised with 2009 retail sal
Slide 13: Current Trading Conditions in the USA
Current Trading Conditions in the USA Retail Situation – Three major retail customers have declared bankruptcy in 2009 (Sportsman’s Warehouse, Boater’s World and Joe’s Sports). This represents a loss in sales of $6M USD. However, much of this lost business has already been shifted to other customers
Slide 14: Actions to Strengthen US Operations
Actions to Strengthen US Operations Actions Taken to Improve Profitability – Terminator lure manufacturing was transferred from third party in Mexico to Group- owned factory in China in February 2009. – Luhr-Jensen Custom Paint Shop in Oregon, USA was closed in march 2009 (Group’s factory in China t
Slide 15: Major New Product Lines Launched in 2009
Major New Product Lines Launched in 2009 Major new Rapala product line intro in May of 2009. The new Rapala MAX RAP. Retail price of $18 (2X – 3X the price of traditional Rapala lures. MAX RAP will have the maximum features of any fishing lure on the market. Plus maximum margin opportunities. Slide
Slide 16: Outlook for 2009
Outlook for 2009 – In general, the market outlook for 2009 remains unchanged and continues challenging. – Positive signs of stabilization in the North American market but the slowdown and uncertainty in European economies as well as in many Asian countries and the Southern hemisphere are expected to
Slide 17: Share Price Performance & Shareholders
Share Price Performance & Shareholders Share Related Data (6/2009) Share price performance in 2008 & H1 2009 Market Cap 168 MEUR 12-month high 4.58 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 1/2004-6/2
Slide 18: READY!
READY! Slide 18
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Slide 19