Slide 1: Annual Accounts 2008
Annual Accounts 2008 F b February 6, 6 2009 Slide 1
Slide 2: Content
Content • Latest Changes in Business Organisation • Q4 and 2008 in Brief • Update on Performance Improvement Initiatives • Cooperation with Shimano and Expansion in Russia • Sa Sales es Analysis a ys s • Profitability Analysis • Cashflow & Working Capital • Strategy Implementation • Outlook O tl k f
Slide 3: Group Organization & Cornerstones of Strategy
Group Organization & Cornerstones of Strategy USA FINLAND ESTONIA CANADA SWEDEN RUSSIA (50/50) ITALY stribution POLAND JAPAN DENMARK REST OF EUROPE UKRAINE (50/50) GERMANY MALAYSIA BRAZIL LITHUANIA NORWAY REST OF WORLD NETHERLAND AUSTRALIA FRANCE LATVIA HUNGARY (57/33/10) S CHINA BELGIUM SPAIN BRAZI
Slide 4: Q4 and 2008 in Brief
Q4 and 2008 in Brief EUR million IV/08 IV/07 2008 2007 Sales 50.9 53.7 243.0 242.5 EBITDA 4.8 4.3 37.5 33.8 Operating Profit (EBIT) 3.2 2.4 31.3 28.3 Profit Before Taxes Ta es 19 1.9 11 1.1 26 5 26.5 23 3 23.3 Net Profit for the Period 1.0 2.0 19.2 17.5 EPS (basic), (basic) EUR 0 05 0.05 0 05 0.05 0
Slide 5: Financial Position Healthy - Fuelled for Growth
Financial Position Healthy - Fuelled for Growth • Rapid growth in last few years from €100m to above € 240m. • Promised turnaround in operating margin continued in 2008. • Succesful performance improvement projects and strong balance sheet. 250 18 % 140 800 % 225 16 % 120 700 % 200 14 % 600 % 175 10
Slide 6: Restructuring of European Operations
Restructuring of European Operations Consolidation of French operations Marttiini - Move from Bretagne completed in Q4 2007 - Move from Central France completed p in Q3 2008 Knife manufacturing - Move of VMC Europe during summer 2009 70 employees in - Both real estates sold (gain of 1.4 MEUR)
Slide 7: Enhancement of Chinese Manufacturing
Enhancement of Chinese Manufacturing Major operational changes and improvements to enhance production efficiencies & shorten lead times and physical split of fishing tackle & gift. International task force established to s support pport the de development elopment initiati initiatives. es Duri
Slide 8: Continuous Strong Growth in Russia
Continuous Strong Growth in Russia - Rapala has penetrated the Russian fishing tackle market already years ago and continuously grown in this market - A additional An dditi l boost b t to t this thi growth th came when h Rapala R l and d Shimano Shi j i d forces joined f i in distribution in Russia
Slide 9: Competition & Major Players in the Industry
Competition & Major Players in the Industry - No major changes in the competitive environment in 2008 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, ac
Slide 10: Net Sales Analysis
Net Sales Analysis Q4 sales were 50.9 MEUR (53.7). Net sales 2008 were 243.0 MEUR (242.5), fx comparable sales up 4%. Increase from Nordic (10%) & Rest of Europe (10%), (10%) sales growth strongest in East Europe. RoW (-14%) affected by weak local currencies. US sales down 14%,, with comparabl
Slide 11: Operating Profit Analysis (1)
Operating Profit Analysis (1) Q4 EBIT up 33% to 3.2 MEUR (2.4). 2008 operating profit increased 11% to 31.3 MEUR (28.3 MEUR). Weakening of several currencies, mainly South African rand, rand Russia ruble and Canadian dollar reduced the operating profit by 3.1 MEUR. Non-recurring Non rec rrin
Slide 12: Operating Profit Analysis (2)
Operating Profit Analysis (2) Management Analysis 2008 2007 2008 2007 Net sales as reported 243.0 242.5 Operating profit as reported 31.3 28.3 Foreign exchange effects 9.1 Non-recurring items (net) -0.8 -1.6 Comparable net sales 252.1 242.5 Foreign exchange effects 3.1 Comparable operating profit 33
Slide 13: Cash Flow and Working Capital
Cash Flow and Working Capital EUR million IV/2008 IV/2007 I-IV/2008 I-IV/2007 Net profit for the period 10 1.0 20 2.0 19 2 19.2 17 5 17.5 Adjustments (reversal of non-cash items) 2.8 0.7 13.0 14.8 Financial items and taxes paid/received -4.7 -3.1 -14.0 -11.1 Change in working capital 2.5 0.2 -12.7 -
Slide 14: Strategy Implementation - Growth
Strategy Implementation - Growth In 2008, management continued discussions and negotiations regarding acquisitions and business combinations to implement the Group strategy. These Th discussions di i resulted lt d an acquisition i iti off Sufix S fi fishing fi hi line li bbrand d from f Yao Y I
Slide 15: Strategy Implementation - Profitability
Strategy Implementation - Profitability Strong focus on performance improvement initiatives continued. Consolidation of French operations p into one location pproceeded on p plan. Both old premises are sold and move of the distribution unit Waterqueen and fishing line supplier Tortue were comple
Slide 16: Outlook for 2009
Outlook for 2009 – Outlook for 2009 looks challenging. No major changes expected in short. – Fishing tackle business has typically been quite non-cyclical during recessions – In the history, fishermen and fisherwomen have continued their activity even in uncertain economic times and, therefore, the
Slide 17: Share Price Performance & Shareholders
Share Price Performance & Shareholders Share Related Data (12/2008) Share price performance in 2008 Market M k t Cap C 137 MEUR 12-month high 5.65 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 18: New Distribution via Amazon.com
New Distribution via Amazon.com • Estimated go-alive on March 1 • America’s Largest Online Retailer (mainly books, video games, toys, music and video recordings) • 4th Quarter net income rose 8.7% • Gained 18% in Nasdaq trading after sales and profits topped estimates, outpacing eBay • Amazon.com gr
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