Annual General Meeting 2017 Hotel Scandic Tampere City 28 March - PowerPoint PPT Presentation

Annual General Meeting 2017 Hotel Scandic Tampere City 28 March 2017 Robit Plc – Growth Company

2 Robit – Growth and Sales Company SALES GROWTH SALES GROWTH ORGANIC Robit Plc – Growth Company SALES STRUCTURAL GROWTH THROUGH ACQUISITIONS

3 Excellent Results in 2016 EBITA DOUBLED NET SALES EBITDA EBITA INCREASE 2016 NET SALES 10,3 EURm 6,8 EURm 6,8 EURm 63,9 EURm + 18,3 EURm 16,2 % 10,6 % 2015 + 40,2 % 3,4 EURm Robit Plc – Growth Company

4 Robit Business Concept  Robit is above all a growth company . Robit has shown growth of approximately 400% during the last ten years in net sales (from EURm 13,0 to EURm 64,0). In 2016: +40,2%.  Robit has tight focus on drilling consumables (all OPEX) having the Robit Plc – Growth Company widest offering in the industry.  Robit acts globally with 20 sales and service points (today) emphasizing availability via local presence.

5 Robit Business Concept  150 dealers together with own sales and service points give an excellent reach to the customer interface in different market segments and applications.  Robit emphasizes the ability Robit Plc – Growth Company and will to reach the set targets.  One goal for everybody – Growth.

6 Asset Purchase Turnover & Profitability Halco USA and Acquisition Acquisitions Halco UK and Australia Brighouse Ltd Acquisition South Korea % EURm IPO Nasdaq 80 First North 63,9 60 70 50 60 45,6 50 40 38,3 40 34,0 30 30,7 Robit Plc – Growth Company 30 27,1 20 20 18,9 10,6% 10 10,0% 9,6% 9,6% 8,6% 10 7,6% 6,2% 0 0 2010 2011 2012 2013 2014 2015 2016 2017 Net Sales, EURm EBITA, %

7 Market Segments Significantly wider offering & 4 market segments enable further success Mining Construction Robit Plc – Growth Company Tunneling Well Drilling

8 Robit Stands on Three Piles Empowered by the wide offering and total package concept each SBU has excellent growth opportunities. Market potential and the present market share don’t limit the growth. Top Hammer SBU Down the Hole SBU Digital Services SBU Robit Plc – Growth Company

9 Global Platform – 20 Own Sales & Service Points, 150 Dealers Availability is the key competitive edge, which Robit wants to secure with Robit presence the strong market presence. Manufacturing Lempäälä, Finland, 1985 Kerava, Finland, 2009 Brighouse, UK, 2017 Moscow, Russia, 2007 Chesterfield, UK, 2016 Seoul, South Korea, 2011 Donghae, South Korea, 2011 Chicago, USA, 2013 Sherman, USA, 2017 Hangzhou, China, 2012 Dubai, UAE, 2016 Hong Kong, 2016 Bangkok, Thailand, 2016 Robit Plc – Growth Company Lima, Peru, 2015 Kalgoorlie, Brisbane, Windhoek, Australia, 2016 Australia, 2016 Sao Paolo, Brasil, 2015 Namibia, 2016 Johannesburg, Perth, South Africa, 2014 Australia, 2016

10 4 Manufacturing Plants – Capacity for Global Needs Top Hammer Down the Hole Robit Plc – Growth Company

11 Halco Brand Forms Own Business Robit Plc – Growth Company  The recently acquired Halco brand with related manufacturing resources form an independent new growth option and outset for parallel strong global branding

12 Significant Strengthening in Personnel  In line with Robit’s key principles the company has renewed and strengthened its management in order to meet the future growth targets  Robit has finalized the intensive recruitment program with which the senior management has been reinforced with people having strong international business background  People make the success in Robit Robit Plc – Growth Company

13 Robit in Brief 2016 H2/2016 NET SALES: 42,9 EURm CONVENTIONAL ROBIT – GROWTH H2/2016 vs. H2/2015: + 16,0 % FY 2016 vs. 2015: + 6,4 % TOTAL ORGANIC AND STRUCTURAL GROWTH H2/2016 vs. H2/2015: + 81,2 % Robit Plc – Growth Company Return on capital Cash flow Equity Earnings Net sales EBITA employed before changes ratio per share (ROCE) in working capital

14 Net Sales by Region, EURm 70 3,3 60 50 23,1 3,1 1,5 3,2 40 9,0 2,7 2,6 8,5 19,0 7,2 30 8,5 6,8 1,7 6,3 5,8 3,5 20 4,3 4,2 5,6 Robit Plc – Growth Company 4,8 29,0 25,0 22,0 20,9 10 17,6 16,8 12,9 0 2012 2013 2014 2015 2016 H2/2015 H2/2016 Europe, Africa and Middle East North and South America Asia and Oceania Russia and CIS countries

15 Profitability Development – EBITA, EURm EBITA, EURm EBITA margin, % 8,0 14% 12,2 % 6,8 7,0 12% 10,0 % 10,6 % 6,0 9,6 % 10% 5,2 5,0 7,6 % 7,2 % EBITA (EURm) 8% 3,8 4,0 6,2 % 3,4 Robit Plc – Growth Company 3,3 6% 3,0 4% 1,9 2,0 1,7 2% 1,0 0,0 0% 2012 2013 2014 2015 2016 H2/2015 H2/2016

16 We Have Increased Human Resources  75 % of personnel outside Finland Number of employees at the end of period Age distribution at the end of period 263 Sales & Administration 96 Production 124 67 134 Robit Plc – Growth Company 46 109 39 94 55 87 46 44 139 45 14 79 63 50 42 1 2012 2013 2014 2015 2016

17 Consolidated Income Statement (FAS) • Net sales was improved 1 Jan -31 Dec 1 Jan -31 Dec Consolidated Income Statement 2016 2016 considerably through 000 EUR acquisitions Net sales 63 932 45 588 • Fixed expenses in line with Changes in stocks of finished goods and work in progress 2 037 1 103 expectations Production for own use 201 232 • EBITDA increased to Other operating income 417 169 10,2 mEUR (16,2 %) – doubled Materials and services -32 651 -27 789 from previous 5,1 mEUR Personnel expenses -11 107 -7 339 Depreciation and amortisation -5 286 -1 676 (11,1 %) Other operating expenses -12 502 -6 899 • Amortization due to acquisitions OPERATING PROFIT (LOSS) 5 042 3 389 1,7 MEUR Financial income and expences total 769 -406 5 811 2 983 PROFIT (LOSS) BEFORE APPROPRIATIONS AND TAXES • Financial income is net income Robit Plc – Growth Company Income taxes -974 -728 due to hedging result of the Changes in deferred income taxes -214 -12 acquisitions PROFIT (LOSS) FOR THE FINANCIAL YEAR 4 623 2 244 Minority -5 0 • Minority interest is relating to the South African black employee Consolidated Net Income 4 618 2 244 empowerment program, where Robit Plc has sold minority of Robit SA shares to BEE Trust (Robit employees)

18 Consolidated Balance Sheet (FAS) Consolidated Balance Sheet 31 Dec. 2016 31 Dec. 2015 000 € 000 € A S S E T S The balance sheet changed NON-CURRENT ASSETS considerably through acquisitions: Intangible assets total 35 783 3 720 Tangible assets total 15 801 7 047 • Group goodwill was increased by Investments total 157 241 32 mEUR Non-current assets total 51 741 11 008 CURRENT ASSETS • Tangible assets were increased Inventories total 29 161 11 679 Long term debtors total 1 009 717 by 12 mEUR Short-term 0 0 Trade debtors 18 185 9 219 • Trade debtors – some key Other debtors 3 604 1 517 customers have long payment Short-term total 21 788 10 737 terms Securities 32 31 Cash in hand and at banks 10 519 33 353 Inventory increase was due to both acquisitions and expanding own Current assets total 62 510 56 517 network 0 0 ASSETS TOTAL 114 250 67 525 Robit Plc – Growth Company The acquisitions were partly funded by Consolidated Balance Sheet 31 Dec. 2016 31 Dec. 2015 senior loans, which were increased by 000 € 000 € L I A B I L I T I E S 18 mEUR – impact also to the short term loans Capital and reserves total 51 551 47 924 Minority shares 101 0 Other non-interest bearing liabilities Obligatory provisions total 532 430 Long-term creditors total 39 262 7 058 have increased also due to Short-term acquisitions Loans from credit institutions 8 219 4 257 Trade creditors 9 628 5 609 Minority interest BEE Trust (Robit Accruals and deferred income 4 958 1 318 Short-term total 22 804 12 113 employees) Creditors total 62 066 19 171 0 0 LIABILITIES TOTAL 114 250 67 525

19 Share Information On 23 rd March 2017 the company had 1 504 shareholders  On 23 rd March 2017 the company held 94 674 own shares; 0,6 % of the shares  Market capitalization on 23 rd March 2017 was EUR 147,9 million (share price EUR 9,20)   The Best Investor Website 2016 in First North Category  Third prize in the Small and Mid-Cap Award 2016 in the International Star category organised by Federation of European Securities Exchanges (FESE) and European Issuers in partnership with the European Commission EUR 9,20 Robit Plc – Growth Company EUR 7,90 EUR 5,68 1.1.2016 31.12.2016 23.3.2017