Interim Report January June 2016 Robit Plc Growth Company 2 - PowerPoint PPT Presentation

Interim Report January – June 2016 Robit Plc – Growth Company

2 Highlights 1-6/2016 • Challenging market featured the period – Q2/2016 looked better  H1/2016 net sales dropped – 4,0 % from H1/2015  Q2/2016 increased +3,6 % from Q2/2015  Q2/2016 increased +23,4 % from Q1/2016 • Acquisitions played an essential role during H1/2016  Drilling Tools Australia Pty Ltd was acquired on 30 June 2016  Bulroc (UK) Ltd was acquired immediately Robit Plc – Growth Company after period on 5 July 2016 • Down the Hole business segment was strengthened significantly

3 Our Vision 100 10 0 % % Con Consuma sumables bles & & Mark Market et S Sha hare re Doub Doubled led Applications Applications production drilling well drilling horizontal drilling anchoring site investigation drifting & tunneling bench drilling micropiling & underpinning piling forepoling Robit Plc – Growth Company Robit Plc – Growth Company Ro Robit bit structure tructure Top Hammer Down-the-Hole Digital Services 1 2 3 (SBU BUs) Business Unit Business Unit Business Unit Strategic trategic Turnover/capita >500k€ Organic growth Structural growth Cost competitiveness targets targets

4 Global Platform Ready for Growth • Four manufacturing plants with own focus • Improved regional service thanks to regional Hubs – closer to customers South Korea Finland Top Hammer Robit Plc – Growth Company Australia UK Down the Hole

5 Global Platform Ready for Growth • Robit advanced from international company to global • 12 own offices and 160 dealers service global customers with new wider offering • New offering having Top Hammer, Down the Hole and future technology raises Robit to a top supplier in drilling consumables • Strategic targets were reached Robit Plc – Growth Company

6 Global Platform Ready for Growth • Three SBUs (Strategic Business Units) enable new growth per segment • Each SBU with own growth opportunities will be attacked Robit Plc – Growth Company Top Hammer SBU Down the Hole SBU Digital Services SBU

7 Global Platform Ready for Growth • Robit has strengthened the management with new VPs responsible for SBUs • A new CEO was nominated on 2 January 2016 • A new CFO starts on 1 September 2016 • The total amount of employees is 214 at the end of period (incl. DTA) Robit Plc – Growth Company

8 Market Segments – Well Balanced Thermal & Water Wells Construction Tunneling Mining Robit Plc – Growth Company Robit Plc – Growth Company

9 Top Hammer Essentials Full package • Korea plant has increased the volume in rod and shank production • Total packages offered to customers • DTA acquisition will open the mining market to TH products in Australia – annual supply agreements • Button bit manufacturing will be started in Australia – Perth Robit Plc – Growth Company Robit Plc – Growth Company

10 Down the Hole Essentials Full package • Drilling Tools Australia Pty Ltd (DTA) and Bulroc (UK) Ltd acquisitions closed • Robit has the widest range of DTH hammers • Total, bigger packages offered to customers – total solutions • Brand management will be essential Robit Plc – Growth Company Robit Plc – Growth Company

Cloud Service 11 Digital Services Essentials • Long-term tests delivered concept confidence • Active partnership negotiations at various business levels Cloud service • Great interest among the customers and in the industry • Key technologies: IoT, Big Cockpit tablet Data, digitalization, cloud services Robit Plc – Growth Company Robit Plc – Growth Company • Robit wants to show a technology leader brand and give new value-add to customers Laser scanners

12 Global Platform – 12 Own Units, 160 Dealers Sales split by geography H1/2016, % Europe,Middle East and Africa 8 Asia and Australia 14 North and South America Russia and CIS 58 Russia + CIS 20 H1/2016 H1/2015 Lempäälä, Finland, 1985 1,8 1,4 (HQ, sales, manufacturing) Chesterfield, UK, 2016 (Sales, manufacturing) Seoul, South Korea, 2011 Moscow, Russia, 2007 (Sales) (Sales company) Donghae, South Korea, 2011 EMEA (Manufacturing) Chicago, USA, 2013 H1/2016 H1/2015 (Sales company) Hangzhou, China, 2012 12,2 12,1 Americas (Sales office) H1/2016 H1/2015 Hong Kong, 2016 2,9 3,7 Robit Plc – Growth Company (Sales office) Asia + AUS Bangkok, Thailand, 2016 (Representative office) H1/2016 H1/2015 4,1 4,7 Lima, Peru, 2015 Windhoek, Namibia, (Sales company) 2016 (Sales office) Johannesburg, Perth, Australia, 2016 South Africa, 2014 (Sales, manufacturing) (Sales company) H1/2016 H1/2015 Turn over Robit presence

13 Robit Plc H1/2016 in Brief Net sales EBITA Equity ratio Robit Plc – Growth Company Robit Plc – Growth Company Return on capital employed (ROCE) Cash flow before changes in working capital Earnings per share

14 Net Sales Development, EURm Growth % last 10 years average 23 % per annum 45,6 38,3 34,0 30,7 21,9 21,0 Robit Plc – Growth Company 2012 2013 2014 2015 H1/2015 H1/2016

15 Net Sales by Region, EURm Europe, Middle East and Africa North and South America Asia and Australia Russia and CIS 3,1 9,0 3,2 2,7 7,2 2,6 8,5 6,8 6,3 5,8 3,5 1,4 1,8 4,2 4,7 Robit Plc – Growth Company 4,1 3,7 2,9 25,0 22,0 20,9 17,6 12,1 12,2 2012 2013 2014 2015 H1/2015 H1/2016

16 Profitability Development EBIT margin, % EBIT 12 months, 3,8 EURm 3,4 4,0 3,2 12% EBIT H1, EURm 3,5 10% 3,0 9,8% 9,4% 8% 1,8 2,5 7,8% 7,2% 7,4% 2,0 6% Robit Plc – Growth Company 6,0 % EBIT margin, % 1,5 1,7 EBIT (EURm) 4% 1,5 1,0 2% 0,5 0,0 0% 2012 2013 2014 2015 H1/2015 H1/2016

17 Capital Expenditure * H1/2016 total capital expenditure including DTA acquisition was Capital expenditure as % of sales 31,9 EURm. (DTA was excluded) 8,5 21% 7,7 20% 8,0 19% Capital expenditure 7,5 19,8 % 18% 12 months, EURm 7,0 17% (DTA was excluded) 6,5 16% 15% 6,0 14% 17,0 % 5,5 Capital expenditure 13% 5,0 H1, EUR 12% 4,3 4,5 (DTA was excluded) 11% 10% 4,0 9% 3,5 8% 3,0 Robit Plc – Growth Company 7% 2,5 6% 1,7 5% 2,0 3,1 % 4% 1,5 0,9 0,8 3% 4,5 % 0,7 1,0 2% 0,5 2,9 % 2,5 % 1% 0,0 0% * 2012 2013 2014 2015 H1/2015 H1/2016

18 Capital Employed, EURm 85,8 DTA acquisition effect was 27,0 EURm 58,8 loan. 59,2 57,5 Robit Plc – Growth Company 21,4 18,1 17,8 2012 2013 2014 2015 H1/2015 H1/2016

19 Key Financials Net debt 12 months, EURm Equity ratio, % Net interest-bearing debt Net debt H1, EURm Net gearing, % 71% 15,0 80% 68% 72% 11,3 56% 10,0 6,9 60% 6,1 5,6 53% 5,0 47% 40% 44% 44% 0,0 2012 2013 2014 2015 H1/2015H1/2016 37% 20% 23% -5,0 Robit Plc – Growth Company -10,0 Net debt (EURm) 0% Net gearing, % -15,0 -20% -20,0 -40% -22,1 -25,0 -23,8 2012 2013 2014 2015 H1/2015 H1/2016 -46% -50% -30,0 -60%

Cash Flow, EURm 20 (Net cash from operating activities) 2,9 2,8 2,3 1,4 Robit Plc – Growth Company 0,7 0,1 2012 2013 2014 2015 H1/2015 H1/2016

21 Key Financials Number of employees at the end of period Age distribution at the end of period Sales & Administration Production * H1/2016 total number of In age distribution 64 DTA’s 70 employees employees was 214 when DTA’s 70 employees were were excluded. included. 144 35 134 124 109 Robit Plc – Growth Company 56 94 55 23 87 49 46 15 44 45 88 7 79 75 63 50 42 * 20-29 30-39 40-49 50-59 over 60 Age

22 Share Information • On 30 June 2016 the company had 905 shareholders • The company holds 99 567 own shares; 0,6 % of the shares • Market capitalization on 30 June 2016 was EUR 92,920,815.00 (share price EUR 5.85) • The Best Investor Website 2016 in First North Category Robit Plc – Growth Company 5,85 € 5,70 € (30.6.2016) (21.5.2015)

23 Future Outlook “Robit 2.0” – executed – strong platform for growth 1. • From international to global • Significantly wider offering • DTH SBU especially strengthened • 4 manufacturing plants, 12 offices, 160 dealers 2. Tight focus on drilling consumables • Widest range of offering • Running now approx. 75 EURm annual sales volume • Size enables further investments and growth • Strong cash maintained 3. Strengthened organization with ambitious young personnel Robit Plc – Growth Company • Average age 39 years (w/o acquisitions) • 49 % outside Finland (w/o acquisitions) • 67 % outside Finland (incl. DTA) 4. Competent distributor network got DTH products in their sales package • Dealers grow and get stronger • Robit grows and gets bigger 5. IFRS project started