INTERIM REPORT H1/2018 MIKA VIRTANEN, CEO ILKKA MIETTINEN, CFO 16 - PowerPoint PPT Presentation

INTERIM REPORT H1/2018 MIKA VIRTANEN, CEO ILKKA MIETTINEN, CFO 16 AUGUST 2018

ROBIT – A GENUINE GROWTH COMPANY ~ 26% 19 ~ 150 GROWTH COMPANY p.a. Organic and Sales growth of Own sales & service Dealers globally structural growth last 12 years points worldwide 4 6 PRODUCT OFFERING MARKET SEGMENTS Mining, Construction, Manufacturing plants Top Hammer Strong brand Well Drilling, Tunneling forming global footprint Down the Hole strategy Digital Services 2 Robit Plc - Growth Company

HIGHLIGHTS H1/2018 PROS CONS Top Hammer business continued strongly with Down the Hole sales development -9% from   growth of +18% comparative period  Strong growth in EMEA and CIS & East  Australasian growth challenging  New major production facility in Korea in full use  Profitability  Operational cash flow  NWC requires continuous focus 3 Robit Plc - Growth Company

RESULTS H1/2018 NET EBITDA EBITA EBITDA EBITA SALES (adj.) (adj.) H1/2018 H1/2018 H1/2018 H1/2018 H1/2018 43,1 EURm -0,9 EURm (-2,2%) 0,1 EURm (0,2%) -3,2 EURm (-7,4 %) -2,2 EURm (-5,0%) H1/2017 H1/2017 H1/2017 H1/2017 H1/2017 2,9 EURm (6,8%) -0,8 EURm (-1,9%) 42,6 EURm 1,3 EURm (3,1%) 0,8 EURm (1,8%) Adjustments consist of re-structuring expenses 1,0 EURm in 2018. 4 Robit Plc - Growth Company

NET SALES, EURm 88,2 64,1 45,6 42,6 43,1 38,3 34,0 30,7 2012 2013 2014 2015 2016 2017 H1/2017 H1/2018 5 Robit Plc - Growth Company

REGIONAL SALES DEVELOPMENT Net sales M€ H1/2017 H1/2018 Robit sales & service point Growth% 16,7 14,7 12,7 11,3 7,0 6,6 6,1 5,6 2,2 2,9 +14% -6% +32% -8% -11% EMEA AMERICAS CIS & EAST ASIA AUSTRALASIA 6 Robit Plc - Growth Company

PROFITABILITY DEVELOPMENT 7,5 ADJUSTMENTS CONSIST OF THE FOLLOWING ITEMS  Restructuring expenses 3,8 1,0 EURm 3,4 3,3 EBITA (EURm) EBITA WAS ALSO AFFECTED BY 1,9 0,8  Adverse fx-impact  Korean new plant ramp-up expenses -0,9  Competition and ambitious pricing in some markets -2,2 2012 2013 2014 2015 2016 2017 H1/2017 H1/2018 7 Robit Plc - Growth Company

KEY FINANCIALS Equity ratio, % Net interest-bearing debt 36,9 40,0 80,0 % 71,5 % 52,9 % 71% 30,0 60,0 % 15,2 % 58% 20,0 40,0 % 57% 55% 12,9 8,4 % 47% 7,7 45% 10,0 6,9 20,0 % EURm 0,0 0,0 % -3,9 -4,1 % -10,0 -20,0 % Net debt, EURm -20,0 -40,0 % -46,1 % Net gearing, % -22,1 -30,0 -60,0 % 2017 2014 2015 2016 2017 H1/2017 H1/2018 2014 2015 2016 H1/2017 2018 H1/2018 CAPITAL EXPENDITURE 4,1 EURm Korean plant investment was 3,2 EURm. The rest of the investments consist of some other minor capital expenditure. 8 Robit Plc - Growth Company

CASH FLOW, EURm (NET CASH FROM OPERATING ACTIVITIES)  Positive operational cash flow  Focus on working capital continues 2,9 2,8 1,4 1,1 0,7 0,3 0,1 -1,9 2012 2013 2014 2015 2016 2017 H1/2017 H1/2018 9 Robit Plc - Growth Company

HUMAN RESOURCES Number of employees at the end of period Age distribution at the end of period 89 Sales & Administration Production 75 65 329 325 290 263 43 152 171 151 124 134 109 17 55 177 46 154 139 139 79 63 1 2014 2015 2016 2017 H1/2017 H1/2018 below 20 20-29 30-39 40-49 50-59 over 60  77% of personnel outside Finland

SHARE INFORMATION 86 320 103,3 2 387 (0,4%) EURm SHAREHOLDERS OWN SHARES MARKET CAP NUMBER OF NOSH IN % OF MKT VALUE NO. MAJOR SHAREHOLDERS PER 29 JUNE 2018 SHARE INFORMATION SHARES MILLION SHARES (EURM) 1 Five Alliance Oy 4 408 253 4,41 20,91 21,60 2 Skandinaviska Enskilda Banken AB (Publ) Helsinki 2 506 395 2,51 11,89 12,28 Branch (Nominee Registered) 3 Keskinäinen Työeläkevakuutusyhtiö Varma 1 657 000 1,66 7,86 8,12 4 Keskinäinen Työeläkevakuutusyhtiö Elo 1 573 597 1,57 7,46 7,71 5 Fondita Nordic Micro Cap Placeringsfond 1 410 000 1,41 6,69 6,91 6 OP-Suomi -Sijoitusrahasto 1 407 649 1,41 6,68 6,90 7 Sijoitusrahasto Aktia Capital 1 012 193 1,01 4,80 4,96 8 Svenska Handelsbanken AB (Publ) Filial Verksamheten i 1 004 982 1,00 4,77 4,92 EUR 5,70 EUR 4,90 Finland (Nominee Registered) 9 Nordea Bank AB (Publ), Finnish Branch (Nominee 632 240 0,63 3,00 3,10 Registered) 10 Keskinäinen Eläkevakuutusyhtiö Ilmarinen 475 000 0,48 2,25 2,33 Top-10 18 572 967 18,57 88,09 91,01 20/05/2015 29/06/2018 Rest of the shareholders 2 510 933 2,51 11,91 12,30

OFFERING HIGHLIGHTS ROTARY BIT SERIES EVOLUTION BIT SERIES COMPLETE DRILLING TOOL SOLUTIONS Major global market New generation of Robit Top Hammer bits Continuous Robit has a complete development of tool portfolio Positive feedback from complete drilling tool customers solutions for especially foundation piling applications 12 Robit Plc - Growth Company

ROBIT 4.0 GROWTH CONCEPT BRANDING & OPERATIONAL DIGITAL STRUCTURAL SALES MARKETING EXCELLENCE GROWTH BUSINESS Sales growth through One strong brand Own automated Complete solution Continued analysis for implemented strategy – Robit manufacturing focus offering to support structural growth via distributor concept on critical items sales growth acquisitions Parallel brand – Halco Executing Robit way of Significant cost saving Further testing and working with Offering rationalization and increase of development with distributors and modularization products’ availability customers Executing best value Increased outsourcing promise Robit Plc - Growth Company Robit Plc - Growth Company Robit Plc - Growth Company 13

SHAREHOLDER VALUE CREATION NET WORKING GROWTH PROFITABILITY CAPITAL EFFICIENCY Distribution Pricing optimization Inventory optimization development is the key Sourcing initiatives Continous receivable Offering coverage collection Eye on fixed costs Acquisitions Focus on contract and payment terms

PROSPECTS FOR 2018  Restructuring activities made during financial year will improve the company's cost structure during the second half-year.  New Korean factory will increase availability.  Market demand to remain on a good level. Robit Plc - Growth Company Robit Plc - Growth Company Robit Plc - Growth Company 15

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