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Analyst & Press Conference
Interim Report H1/2017Event Arena Bank, Helsinki
17 August 2017
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Highlights in H1/2017
Pros
▪ Strong growth continued
▪ Positive market signals
▪ Korean investment started
▪ List change to Nasdaq Helsinki
▪ Halco unit acquisitions – multibrand
offering
▪ Strengthening personnel
2
Cons
▪ NWC efficiency need to be improved
▪ Profitability affected by change of list,
combined share issue expenses,
acquisition-related expenses, adverse
foreign exchange trends and certain
other one-off growth-related costs
▪ Our capacity could serve higher
volumes
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3Robit – Growth and Sales Company
GROWTH
GROWTH
GROWTH
ORGANIC
STRUCTURAL
THROUGH
ACQUISITIONS
SALES
SALES
SALES
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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 (today)
emphasizing availability via local
presence.
▪ One goal for everybody – Growth.
4
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Our Focus
Widest offering in consumables &
4 market segments enable further success
5
Mining Construction
Tunneling Well Drilling
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• Global platform – 21 own sales & service points, ca. 150 dealers
• Availability the key competitive edge – aim to secure it with the strong market presence
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Robit sales & service point
H1/2016 H1/2017
Change, %
6,74,1
+63,4 %
2,21,8
+22,2 %
16,712,1
+38,0 %
17,02,9
+486,2 %
Global Sales and Manufacturing Footprint
Net sales, EURm
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Robit’s Growth Continued – Robit Doubled Its Net Sales7
NET SALES
H1 2017
42,6 EURm
(+102%)
H1 2016
21,0 EURm
EBITDA
H1 2017
1,3 EURm
(3,1%)
H1 2016
2,2 EURm
(10,4%)
EBITDA (adj.)
H1 2017
2,9 EURm
(6,8%)
H1 2016
2,2 EURm
(10,4%)
EBITA
H1 2017
-0,8 EURm
(-1,9%)
H1 2016
1,5 EURm
(7,2%)
EBITA (adj.)
H1 2017
0,8 EURm
(1,8%)
H1 2016
1,5 EURm
(7,2%)
Adjustments consist of following items: expensed share issue expenses 1,3 EURm, other acquisition related
expenses 0,3 EURm, amortization related to the acquisitions 0,5 EURm.
Profitability not in line with the company’s strategic targets. However, Robit evaluates profitability on annual level and thus
expects it to recover in H2, however it will not reach earlier annual guidance given.
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8
Global sales & manufacturing footprint
• Kazakhstan subsidiary
• Manufacturing plants 4 to 6
Continued assessment of attractive investment opportunities
• Continued analysis for structural growth via acquisitions, e.g. Halco
Stronger Global Management Team
• Investment for personnel
Digital business to drive customer value and strengthen Robit brand
• Further testing and development with customers
• First orders and deliveries
Comprehensive product offering of drilling consumables and strong brands
• Bulroc & DTA integration
• Halco acquisition
Robit 3.0 Growth Concept
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We Have Increased Human Resources
Number of employees at the end of period Age distribution at the end of period
▪ 73 % of personnel outside Finland
9
42 50 63 79139 15445 44 46
55
124
171
87 94109
134
263
325*
2012 2013 2014 2015 2016 H1/2017
Sales & Administration
Production
0
43
109
93
65
15
below20
20-29 30-39 40-49 50-59 over 60
*) 2/3 of the employees from acquired companies and
1/3 as new recruitments.
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10Strong Personnel Investments to Enable Further Growth
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Robit Growth Path – In 2017 Halco and Nasdaq Helsinki11
18,9
27,1
30,7
34,0
38,3
45,6
63,9
30,734,0
38,3
45,6
64,1
21,0
42,6
2012 2013 2014 2015 2016 H1/2016 H1/2017
Sa
les (
EU
Rm
)
IPO Nasdaq
First North
Acquisitions
UK and Australia
Asset Purchase
Halco USA
and Acquisition
Halco Brighouse LtdChange to
Nasdaq Main
list and
equity issue
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Net Sales by Region, EURm12
17,6 20,9 22,0 25,029,0
12,116,7
4,23,5
5,8
8,58,5
4,1
6,7
6,36,8
7,2
9,0
23,1
2,9
17,02,6
2,73,2
3,1
3,3
1,8
2,2
0
10
20
30
40
50
60
70
2012 2013 2014 2015 2016 H1/2016 H1/2017
Europe, Africa and Middle East
North and South America
Asia and Oceania
Russia and CIS countries
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Profitability Development – EBITA, EURm13
1,9
3,3
3,83,4
6,8
1,5
-0,8
-2,0
-1,0
0,0
1,0
2,0
3,0
4,0
5,0
6,0
7,0
8,0
2012 2013 2014 2015 2016 H1/2016 H1/2017
Adjustments consist of
following items:
• expensed share issue
expenses 1,3 EUR
• other acquisition related
expenses 0,3 EURm
• amortization related to the
acquisitions 0,5 EURm
• strengthening personnel
• integrating acquired units
• adverse fx trends
Profitability will improve – higher volumes and less one-off expenses in H2.
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Key Financials14
Equity ratio, % Net interest-bearing debt and gearing
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.
47%
71%
45% 44%
57%
0%
10%
20%
30%
40%
50%
60%
70%
80%
2014 2015 2016 H1/2016 H1/2017
6,9
-22,1
11,0
36,9
-3,9
52,9 %
-46,1 %
23,2 %
71,5 %
-4,1 %
-60,0 %
-40,0 %
-20,0 %
0,0 %
20,0 %
40,0 %
60,0 %
80,0 %
-30,0
-20,0
-10,0
0,0
10,0
20,0
30,0
40,0
2014 2015 H1/2016 2016 H1/2017
EU
Rm
Net debt Net gearing, %
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Cash Flow, EURm (net cash from operating activities)15
2,8
1,4
0,7
2,9
0,3
-0,7
0,1
-1,0
-0,5
0,0
0,5
1,0
1,5
2,0
2,5
3,0
3,5
2012 2013 2014 2015 2016 H1/2016 H1/2017
Building new global
organization has consumed
cash upfront.
Net working capital efficiency
improvement will be in focus
during H2.
List change and share issue
expenses together with M&A
activities.
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Share Price Doubled From IPO 2015
❖ 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
EUR 10,40
EUR 5,68
1.1.2016 30.6.201731.12.2016
EUR 7,90
❖ On 30 June 2017 the
company had 2 051
shareholders
❖ On 30 June 2017 the
company held 94 674 own
shares; 0,4 % of the shares
❖ Market capitalization on
30 June 2017 was
EUR 219 million
(share price EUR 10,40)
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Sales, Sales & Sales
• Market share growth
Cash generation
• Profitability
• NWC
Short-Term Focus
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Focus in Robit 3.0
implementation
• Distribution development
• Continue strong growth
New Robit Way
implementation• Fully utilized
strengthened organization
• Focus on personnel development
Projects
• Korean state-of-art
manufacturing investment
• Digitalization opportunities
Medium & Long-Term Focus
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