FINANCIAL STATEMENTS 2017 ANALYST AND PRESS CONFERENCE 20 FEBRUARY - PowerPoint PPT Presentation

FINANCIAL STATEMENTS 2017 ANALYST AND PRESS CONFERENCE 20 FEBRUARY 2018

HIGHLIGHTS 2017 PROS CONS  Growth continued – 38% growth in  Room for improvement in NWC efficiency sales  Profitability affected by share issue expenses, acquisition-  Korean investment progressing as related expenses, adverse foreign exchange effects, slow planned – plant inaugurated on moving inventory write-offs and certain other one-off 8 Feb 2018 growth-related costs  Change to Nasdaq Helsinki main list  Fixed cost growth not in line with sales growth  Halco acquisitions for future growth 2 Robit Plc - Growth Company

ROBIT – GROWTH AND SALES COMPANY GROWTH SALES ORGANIC GROWTH SALES STRUCTURAL THROUGH GROWTH ACQUISITIONS SALES 3 Robit Plc - Growth Company

SALES GROWTH Last 12 years' average growth 26% per annum 100 38% 90 80 70 39% 60 EURm 21% 50 12% 40 10% 15% 42% 30 36% 23% 20 -13% 44% 42% 10 9 13 16 14 19 27 31 34 38 46 64 88 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Sales Growth-% 4 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 supporting its distributors by emphasizing availability via local presence . • One goal for everybody – Growth . 5 Robit Plc - Growth Company

OUR FOCUS - 4 MARKET SEGMENTS MINING CONSTRUCTION TUNNELING WELL DRILLING 6 Robit Plc - Growth Company

COMPREHENSIVE PRODUCT OFFERING OF DRILLING CONSUMABLES • Forming the basis for growth in the future Top Hammer Down the Hole Digital Services 7 Robit Plc - Growth Company

GLOBAL MANUFACTURING FOOTPRINT Brighouse, UK, 2017 Lempäälä, Finland, 1985 DTH TH Donghae, South Korea, 2011 TH Sherman, USA, 2017 DTH SOUTH KOREA + ab. EURm 10 investment in production unit (TH) announced Chesterfield, UK, 2016 in March 2017 DTH Perth, Australia, 2016 DTH SIX MANUFACTURING PLANTS • Ensuring good availability of products and service while enabling efficiency • Supporting future growth 8 Robit Plc - Growth Company

HUMAN RESOURCES  76 % of personnel outside Finland Number of employees at the end of period Age distribution at the end of period 329 Sales & Administration 97 Production 263 81 81 177 124 48 134 109 94 55 87 46 21 152 44 139 45 79 63 50 42 1 2012 2013 2014 2015 2016 2017

RESULTS 2017 • Profitability not in line with the company’s strategic targets EBITA EBITA (adj.) NET SALES EBITDA EBITDA (adj.) 2017 2017 2017 2017 2017 -2,7 EURm (-3,1 %) -0,9 EURm (-1,0 %) 88,2 EURm (+38%) 1,6 EURm (1,8%) 3,5 EURm (4,0 %) 2016 2016 2016 2016 2016 4,7 EURm (7,4%) 7,5 EURm (11,7%) 40,1 EURm 7,5 EURm (11,7%) 10,3 EURm (16,0%) Adjustments consist of following items: expensed share issue expenses 1,3 EURm, other acquisition related expenses 0,5 EURm and re-oragisating expenses 0,1 EURm. Amortization related to the acquisitions were 0,9 EURm. 10 Robit Plc - Growth Company

NET SALES, EURm 88,2 64,1 Sales (EURm) 45,6 45,6 43,0 38,3 34,0 30,7 2012 2013 2014 2015 2016 2017 H2/2016 H2/2017 11 Robit Plc - Growth Company

REGIONAL SALES DEVELOPMENT Net sales M€ 2016 2017 • Global platform – 21 own sales & service points, ca. 150 dealers • Availability is the key competitive edge – aim to secure it with the strong market presence Robit sales & service point Growth% 32,3 29,2 24,7 15,3 12,2 10,9 11,3 8,5 4,5 3,3 +11% +80% +37% +4% +102% EMEA AMERICAS CIS & EAST ASIA AUSTRALASIA 12 Robit Plc - Growth Company

PROFITABILITY DEVELOPMENT 7,5 Adjustments consist of the following items: 7,0 6,0 • Share issue expenses 1,3 EURm • Other acquisition related expenses 5,0 0,5 EURm 3,8 Adjusted EBITA (EURm) 3,4 3,3 • Re-organising related expenses 0,1 EURm 3,0 1,9 • Amortization related to the acquisitions 0,9 EURm 1,0 EBITA was also affected by: • Strengthening personnel -1,0 -0,9 • Integrating acquired units -1,6 • Higher fixed costs • Lower than targetted sales -3,0 2012 2013 2014 2015 2016 2017 H2/2016 H2/2017 13 Robit Plc - Growth Company

CAPITAL EXPENDITURE 11,1 EURm KEY FINANCIALS Robit decided to invest 10 EURm to new state-of-art manufacturing in Korea. 6,9 EURm of this total investment was paid in 2017. The rest of the investments consist of acquisition of Halco assets in USA, UK and some other minor capital expenditure. Equity ratio, % Net interest-bearing debt Net debt Net gearing, % 40,0 80,0 % 36,9 71,5 % 30,0 52,9 % 60,0 % 71% 20,0 40,0 % 11,0 23,2 % 7,7 58% 10,0 20,0 % 6,9 EURm 8,4 % 47% 0,0 0,0 % 44% -4,1 % -10,0 -20,0 % -20,0 -40,0 % -46,1 % -3,9 -22,1 -30,0 -60,0 % 2014 2015 H1/2016 2016 H1/2017 2017 2014 2015 2016 2017 14 Robit Plc - Growth Company

CASH FLOW, EURm (NET CASH FROM OPERATING ACTIVITIES)  Building new global organization has consumed cash upfront = higher fixed costs. 2,9  Net working capital efficiency improvement will be more in 2,8 focus in 2018.  Taxes and interest paid 1,6 EURm. 1,4 1,0 0,7 0,3 -1,9 -2,0 2012 2013 2014 2015 2016 2017 H2/2016 H2/2017 15 Robit Plc - Growth Company

SHARE INFORMATION • On 31 December 2017 the company had 2 178 shareholders EUR 6,47 • On 31 December 2017 the company held 86 320 own shares; 0,4 % of the shares • Market capitalization on EUR 7,90 31 December 2017 was EUR 136 million EUR 5,68 (share price EUR 6,47) 31.12.2016 31.12.2017 1.1.2016 • 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 16 Robit Plc - Growth Company

SHORT-TERM FOCUS Sales, Sales & Sales • Market share growth Cash generation • Profitability • NWC 17 Robit Plc - Growth Company

MEDIUM & LONG-TERM FOCUS New Robit Way Focus in Robit 4.0 Projects Implementation • Distributor concept execution • Project businesses • Continue strong growth • Focus work with distributors • Digitalization opportunities • Branding • Focus on personnel development 18 Robit Plc - Growth Company