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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

6

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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17

Sales, Sales & Sales

• Market share growth

Cash generation

• Profitability

• NWC

Short-Term Focus

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18

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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