Analyst & Press Conference Interim Report H1/2017 Event Arena - - PowerPoint PPT Presentation

Robit Plc – Growth Company

Analyst & Press Conference Interim Report H1/2017

Event Arena Bank, Helsinki 17 August 2017

Robit Plc – Growth Company

Highlights in H1/2017

Pros ▪ Strong growth continued ▪ Positive market signals ▪ Korean investment started ▪ List change to Nasdaq Helsinki ▪ Halco unit acquisitions – multibrand

• ffering

▪ Strengthening personnel

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Cons ▪ NWC efficiency need to be improved ▪ Profitability affected by change of list, combined share issue expenses, acquisition-related expenses, adverse foreign exchange trends and certain

• ther one-off growth-related costs

▪ Our capacity could serve higher volumes

Robit Plc – Growth Company

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Robit – Growth and Sales Company

GROWTH

GROWTH

GROWTH

ORGANIC STRUCTURAL THROUGH ACQUISITIONS

SALES SALES SALES

Robit Plc – Growth Company

Robit Business Concept

▪ Robit is above all a growth company. ▪ Robit has tight focus on drilling consumables (all OPEX) having the widest offering in the industry. ▪ 150 dealers together with own sales and service points give an excellent reach to the customer interface in different market segments and applications. ▪ Robit acts globally with 21 sales and service points (today) emphasizing availability via local presence. ▪ One goal for everybody – Growth.

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Robit Plc – Growth Company

Our Focus

Widest offering in consumables & 4 market segments enable further success

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Mining Construction Tunneling Well Drilling

Robit Plc – Growth Company

• Global platform – 21 own sales & service points, ca. 150 dealers
• Availability the key competitive edge – aim to secure it with the strong market presence

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Robit sales & service point

H1/2016 H1/2017 Change, % 6,7 4,1 +63,4 % 2,2 1,8 +22,2 % 16,7 12,1 +38,0 % 17,0 2,9 +486,2 %

Global Sales and Manufacturing Footprint

Net sales, EURm

Robit Plc – Growth Company

Robit’s Growth Continued – Robit Doubled Its Net Sales

7 NET SALES H1 2017 42,6 EURm (+102%) H1 2016 21,0 EURm EBITDA H1 2017 1,3 EURm (3,1%) H1 2016 2,2 EURm (10,4%) EBITDA (adj.) H1 2017 2,9 EURm (6,8%) H1 2016 2,2 EURm (10,4%) EBITA H1 2017

• 0,8 EURm

(-1,9%) H1 2016 1,5 EURm (7,2%) EBITA (adj.) H1 2017 0,8 EURm (1,8%) H1 2016 1,5 EURm (7,2%)

Adjustments consist of following items: expensed share issue expenses 1,3 EURm, other acquisition related expenses 0,3 EURm, amortization related to the acquisitions 0,5 EURm.

Profitability not in line with the company’s strategic targets. However, Robit evaluates profitability on annual level and thus expects it to recover in H2, however it will not reach earlier annual guidance given.

Robit Plc – Growth Company

8 Global sales & manufacturing footprint

• Kazakhstan subsidiary
• Manufacturing plants 4 to 6

Continued assessment of attractive investment opportunities

• Continued analysis for structural growth via acquisitions, e.g. Halco

Stronger Global Management Team

• Investment for personnel

Digital business to drive customer value and strengthen Robit brand

• Further testing and development with customers
• First orders and deliveries

Comprehensive product offering of drilling consumables and strong brands

• Bulroc & DTA integration
• Halco acquisition

Robit 3.0 Growth Concept

Robit Plc – Growth Company

We Have Increased Human Resources

Number of employees at the end of period Age distribution at the end of period ▪ 73 % of personnel outside Finland

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42 50 63 79 139 154 45 44 46 55 124 171

87 94 109 134 263 325* 2012 2013 2014 2015 2016 H1/2017

Sales & Administration Production

43 109 93 65 15 below 20 20-29 30-39 40-49 50-59

• ver 60

*) 2/3 of the employees from acquired companies and 1/3 as new recruitments.

Robit Plc – Growth Company

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Strong Personnel Investments to Enable Further Growth

Robit Plc – Growth Company

Robit Growth Path – In 2017 Halco and Nasdaq Helsinki

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18,9 27,1 30,7 34,0 38,3 45,6 63,9

30,7 34,0 38,3 45,6 64,1 21,0 42,6 2012 2013 2014 2015 2016 H1/2016 H1/2017 Sales (EURm)

IPO Nasdaq First North Acquisitions UK and Australia Asset Purchase Halco USA and Acquisition Halco Brighouse Ltd Change to Nasdaq Main list and equity issue

Robit Plc – Growth Company

Net Sales by Region, EURm

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17,6 20,9 22,0 25,0 29,0 12,1 16,7 4,2 3,5 5,8 8,5 8,5 4,1 6,7 6,3 6,8 7,2 9,0 23,1 2,9 17,0 2,6 2,7 3,2 3,1 3,3 1,8 2,2

10 20 30 40 50 60 70 2012 2013 2014 2015 2016 H1/2016 H1/2017 Europe, Africa and Middle East North and South America Asia and Oceania Russia and CIS countries

Robit Plc – Growth Company

Profitability Development – EBITA, EURm

13 1,9 3,3 3,8 3,4 6,8 1,5

• 0,8
• 2,0
• 1,0

0,0 1,0 2,0 3,0 4,0 5,0 6,0 7,0 8,0 2012 2013 2014 2015 2016 H1/2016 H1/2017

Adjustments consist of following items:

• expensed share issue

expenses 1,3 EUR

• other acquisition related

expenses 0,3 EURm

• amortization related to the

acquisitions 0,5 EURm

• strengthening personnel
• integrating acquired units
• adverse fx trends

Profitability will improve – higher volumes and less one-off expenses in H2.

Robit Plc – Growth Company

Key Financials

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Equity ratio, % Net interest-bearing debt and gearing

Investments 5,8 EURm Robit decided to invest 10 EURm to new state-of-art manufacturing to Korea. 2,0 EURm of this total investment was capitalized in H1. The rest consists of Halco assets in US, UK and some other capital expenditure. 47% 71% 45% 44% 57% 0% 10% 20% 30% 40% 50% 60% 70% 80% 2014 2015 2016 H1/2016 H1/2017 6,9

• 22,1

11,0 36,9

• 3,9

52,9 %

• 46,1 %

23,2 % 71,5 %

• 4,1 %
• 60,0 %
• 40,0 %
• 20,0 %

0,0 % 20,0 % 40,0 % 60,0 % 80,0 %

• 30,0
• 20,0
• 10,0

0,0 10,0 20,0 30,0 40,0

2014 2015 H1/2016 2016 H1/2017 EURm Net debt Net gearing, %

Robit Plc – Growth Company

Cash Flow, EURm (net cash from operating activities)

15 2,8 1,4 0,7 2,9 0,3

• 0,7

0,1

• 1,0
• 0,5

0,0 0,5 1,0 1,5 2,0 2,5 3,0 3,5 2012 2013 2014 2015 2016 H1/2016 H1/2017

Building new global

• rganization has consumed

cash upfront. Net working capital efficiency improvement will be in focus during H2. List change and share issue expenses together with M&A activities.

Robit Plc – Growth Company

Share Price Doubled From IPO 2015

❖ Trading in the shares of Robit Plc commenced on 17 May 2017 on the official list maintained by Nasdaq Helsinki Ltd ❖ Robit Plc issued 5,000,000 (approx. 31% prior and 24% following the offering) new shares in the company to institutional investors in an accelerated book-built offering on 24 May 2017 ❖ The subscription price was set at EUR 9.90 per offer share amounting to total proceeds of EUR 49.5 million before commissions and expenses ❖ The subscription price was 2.9 per cent higher than the volume-weighted average price per share for the period from the date of the announcement to investigate the transfer to the official list of Nasdaq Helsinki

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EUR 10,40 EUR 5,68 1.1.2016 30.6.2017 31.12.2016 EUR 7,90

❖ On 30 June 2017 the company had 2 051 shareholders ❖ On 30 June 2017 the company held 94 674 own shares; 0,4 % of the shares ❖ Market capitalization on 30 June 2017 was EUR 219 million (share price EUR 10,40)

Robit Plc – Growth Company

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Sales, Sales & Sales

• Market share growth

Cash generation

• Profitability
• NWC

Short-Term Focus

Robit Plc – Growth Company

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Focus in Robit 3.0 implementation

• Distribution development
• Continue strong growth

New Robit Way implementation

• Fully utilized

strengthened organization

• Focus on personnel development

Projects

• Korean state-of-art

manufacturing investment

• Digitalization opportunities

Medium & Long-Term Focus

Robit Plc – Growth Company