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

Analyst & Press Conference Interim Report H1/2017 Event Arena Bank, Helsinki 17 August 2017 Robit Plc – Growth Company

2 Highlights in H1/2017 Pros Cons ▪ ▪ Strong growth continued NWC efficiency need to be improved ▪ ▪ Positive market signals Profitability affected by change of list, combined share issue expenses, ▪ Korean investment started acquisition-related expenses, adverse foreign exchange trends and certain ▪ List change to Nasdaq Helsinki other one-off growth-related costs ▪ Halco unit acquisitions – multibrand ▪ Our capacity could serve higher offering volumes ▪ Strengthening personnel Robit Plc – Growth Company

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

4 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 Robit Plc – Growth Company segments and applications. ▪ Robit acts globally with 21 sales and service points (today) emphasizing availability via local presence. ▪ One goal for everybody – Growth.

5 Our Focus Widest offering in consumables & 4 market segments enable further success Mining Construction Robit Plc – Growth Company Tunneling Well Drilling

6 Global Sales and Manufacturing Footprint • Global platform – 21 own sales & service points, ca. 150 dealers • Availability the key competitive edge – aim to secure it with the strong market presence 1,8 2,2 +22,2 % 2,9 17,0 4,1 6,7 Robit Plc – Growth Company +486,2 % +63,4 % 12,1 16,7 +38,0 % H1/2016 H1/2017 Net sales, EURm Change, % Robit sales & service point

7 Robit’s Growth Continued – Robit Doubled Its Net Sales Profitability not in line with the company’s strategic targets. However, Robit evaluates profitability on annual level and th us expects it to recover in H2, however it will not reach earlier annual guidance given. NET SALES EBITDA EBITDA (adj.) EBITA EBITA (adj.) H1 2017 H1 2017 H1 2017 H1 2017 H1 2017 42,6 EURm 1,3 EURm 2,9 EURm -0,8 EURm 0,8 EURm (+102%) (3,1 %) (6,8 %) (-1,9 %) (1,8 %) H1 2016 H1 2016 H1 2016 H1 2016 H1 2016 21,0 EURm 2,2 EURm 2,2 EURm 1,5 EURm 1,5 EURm (10,4%) (10,4%) (7,2%) (7,2%) Adjustments consist of following items: expensed share issue expenses 1,3 EURm, other acquisition related Robit Plc – Growth Company expenses 0,3 EURm, amortization related to the acquisitions 0,5 EURm.

8 Robit 3.0 Growth Concept Comprehensive product offering of drilling consumables and strong brands • Bulroc & DTA integration • Halco acquisition Global sales & manufacturing footprint • Kazakhstan subsidiary • Manufacturing plants 4 to 6 Digital business to drive customer value and strengthen Robit brand • Further testing and development with customers Robit Plc – Growth Company • First orders and deliveries Stronger Global Management Team • Investment for personnel Continued assessment of attractive investment opportunities • Continued analysis for structural growth via acquisitions, e.g. Halco

9 We Have Increased Human Resources ▪ 73 % of personnel outside Finland Number of employees at the end of period Age distribution at the end of period 109 Sales & Administration 93 Production 65 325* 263 Robit Plc – Growth Company 43 171 134 124 109 94 87 15 55 46 154 44 139 45 79 0 63 50 42 below 20-29 30-39 40-49 50-59 over 60 2012 2013 2014 2015 2016 H1/2017 20 *) 2/3 of the employees from acquired companies and 1/3 as new recruitments.

10 Strong Personnel Investments to Enable Further Growth Robit Plc – Growth Company

11 Robit Growth Path – In 2017 Halco and Nasdaq Helsinki Acquisitions UK and Australia Asset Purchase Halco USA and Acquisition Change to Halco Brighouse Ltd Nasdaq Main list and IPO Nasdaq 63,9 equity issue First North 64,1 45,6 45,6 38,3 38,3 42,6 34,0 Robit Plc – Growth Company 34,0 Sales (EURm) 30,7 30,7 27,1 21,0 18,9 2012 2013 2014 2015 2016 H1/2016 H1/2017

12 Net Sales by Region, EURm Europe, Africa and Middle East North and South America Asia and Oceania Russia and CIS countries 70 3,3 60 50 23,1 3,1 2,2 Robit Plc – Growth Company 3,2 40 9,0 2,7 2,6 8,5 17,0 7,2 30 8,5 6,8 6,3 5,8 1,8 3,5 20 6,7 4,2 2,9 29,0 4,1 25,0 22,0 10 20,9 17,6 16,7 12,1 0 2012 2013 2014 2015 2016 H1/2016 H1/2017

13 Profitability Development – EBITA, EURm Profitability will improve – higher volumes and less one-off expenses in H2. 8,0 Adjustments consist of following items: 6,8 • expensed share issue 7,0 expenses 1,3 EUR • other acquisition related 6,0 expenses 0,3 EURm • amortization related to the 5,0 acquisitions 0,5 EURm • strengthening personnel 3,8 • integrating acquired units 4,0 3,4 • adverse fx trends 3,3 3,0 Robit Plc – Growth Company 1,9 2,0 1,5 1,0 0,0 2012 2013 2014 2015 2016 H1/2016 H1/2017 -1,0 -0,8 -2,0

14 Key Financials 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. Equity ratio, % Net interest-bearing debt and gearing 80% 40,0 80,0 % 36,9 71% 71,5 % 70% 52,9 % 30,0 60,0 % 60% 57% 20,0 40,0 % 47% 50% 45% 11,0 44% 10,0 20,0 % 6,9 23,2 % EURm 40% Robit Plc – Growth Company 0,0 0,0 % 30% 2014 2015 H1/2016 2016 H1/2017 -4,1 % -10,0 -20,0 % 20% -3,9 10% -20,0 -40,0 % -22,1 0% -30,0 -60,0 % -46,1 % 2014 2015 2016 H1/2016 H1/2017 Net debt Net gearing, %

15 Cash Flow, EURm (net cash from operating activities) Building new global organization has consumed 3,5 cash upfront. 2,9 3,0 2,8 Net working capital efficiency improvement will be in focus during H2. 2,5 List change and share issue expenses together with M&A 2,0 activities. 1,4 1,5 1,0 Robit Plc – Growth Company 0,7 0,5 0,3 0,1 0,0 2012 2013 2014 2015 2016 H1/2016 H1/2017 -0,5 -0,7 -1,0

16 Share Price Doubled From IPO 2015 ❖ On 30 June 2017 the EUR 10,40 company had 2 051 shareholders ❖ On 30 June 2017 the company held 94 674 own shares; 0,4 % of the shares ❖ Market capitalization on EUR 5,68 30 June 2017 was EUR 7,90 EUR 219 million (share price EUR 10,40) 1.1.2016 31.12.2016 30.6.2017 ❖ Trading in the shares of Robit Plc commenced on 17 May 2017 on the official list maintained by Nasdaq Helsinki Ltd Robit Plc – Growth Company ❖ 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

17 Short-Term Focus Sales, Sales & Sales • Market share growth Robit Plc – Growth Company Cash generation • Profitability • NWC

18 Medium & Long-Term Focus Focus in Robit 3.0 Projects implementation • Korean state-of-art • manufacturing investment Distribution development • Digitalization opportunities • Continue strong growth New Robit Way implementation • Fully utilized strengthened organization • Focus on personnel development Robit Plc – Growth Company

Robit Plc – Growth Company