Robit OyjHarri Sjöholm, Hallituksen puheenjohtaja

Teknologia-Akatemia 29.10.2015 Teknologiateollisuus ryHaikon Kartano, Porvoo

Teknologia-Akatemia 29.10.2015”Robit Oyj:n tarina uudistumisen ja kasvun näkökulmasta”

Robit Overview

Down-the-hole drilling (DTH) – ground drilling

DescriptionRobit is a fast growing manufacturer of demanding drilling consumables that are critical to customers’ processes

Products used in four end market segments by customers globally

TunnellingGeothermal heating & cooling Construction Mining

Key figures 1

Net sales: EUR 38.3 million

Growth: 23 % (CAGR ‘04-’14)

EBITDA: EUR 4.8 million

EBIT: EUR 3.8 million

124 employees (H1/2015)

Sales to 115 countries

Business lines

Market segments

Top hammer drilling – rock drilling

Drilling consumables – 100% focusProducts

43 %Share of net

sales (%, 2014)

57 %Share of net

sales (%, 2014)

Sales split by geography 2

1) Note: Key figures as reported for 2014 (FAS) unless otherwise noted; number of employees at the end of H1/2015; EBITDA non-FAS figure (calculated as EBIT + D&A)2) Note: Average key figures as reported for H1/2015

43%

22%

17%

12%6%

Europe and Middle East

Asia, Australia and New Zealand

North and South America

Africa

Russia and CIS

2.11.2015 2

Net Sales and Profitability Development

• Strong, predominantly organic, growth

• 23% annual growth in 2004 - 2014 (CAGR)

• Continuous solid profitability

Note: Financials as reported (FAS)

56

9

1316

14

19

27

3134

38

18

22

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 H1/14 H1/15

Net sales (EURm) EBIT margin (%)

8.2% 5.2% 9.8% 13.2% 16.5% 5.0% 9.6% 7.8% 6.0% 9.4% 9.8% 7.9% 7.8%

2.11.2015 3

Sales to 115 Countries

International platform – Robit locations and countries

Chicago, USA(Sales company)

Moscow, Russia(Sales company)

Lempäälä, Finland(HQ, manufacturing)

Johannesburg, South Africa(Sales company)

Seoul, South Korea(Sales)Donghae, South Korea(Manufacturing)

Hangzhou, China(Sales office)

# of countries Manufacturing in Finland and South Korea

Lima, Peru(Sales company)2015 (scheduled)

1990: 5 countries

2000: ~15 countries

2005: ~35 countries

2010: ~85 countries

2014: 115 countries

Active countries

2.11.2015 4

Prerequisites for Finnish Companies to Compete in International Business

2.11.2015 5

• Firm will of owner, board and management

• Business concept has to be extremely focused and global– Robit: only drilling consumables

• Market opportunities are everywhere – Robit 115 countries

• Sales resources = the key competence; manufacturing is ”easy”– Robit: 40 % of personnel in sales

• Cost competitiveness – challenge yourself with tough customers

• Prepare yourself for turbulent market changes– Currency– Duties & trade barriers– Diseases etc etc

• ”Don’t think too small”

Robit Achievements and Successes

2.11.2015 6

• Turnover exceeded 10 MEUR in 2007

• Only 14 % drop in 2009; Lehman Br. + doubling the factory space

• First acquisition in South Korea in 2011

• 100 export countries reached in 2013

• Listing in Nasdaq First North in 2015

• Excellent situation for further strong growth

Moments of Disappointments

7

• Split of Robit into two companies in early 90’s

• VC-company’s role and added value during 1998 – 2002

• Patent disagreements taking 9 & 10 years

• Big inventory mistake in 2009

• Sufficient financing for aggressive growth

2.11.2015

82.11.2015

• Own product, market niche, market trends and key customers’ needs

• Invest in sales force and travelling rather than in market studies

• Choose your customers, choose your market

• Learn by doing – ability to react

• Trust on your own understanding and vision

• Determine your own dream and go for it!

Hints for Growth Companies

Robit® – Bit Better