#1RAPALA VMC CORPORATION FULL YEAR 2020 February 10, 2021#2COMPARABLE OPERATING PROFIT GREW FROM LAST YEAR; SUCCESFULL AND FORCEFUL ACTIONS LED TO SIGNIFICANT REDUCTION IN INVENTORIES NET SALES (MEUR) GROUP PRODUCTS 3RD PARTY COMPARABLE OPERATING PROFIT (MEUR) -5.1% 275.4 253.3 262.4 261.3 84.5 87.8 90.2 73.8 11.4 168.8 174.6 185.2 187.5 +3.7 MEUR INVENTORY VALUE (MEUR) -23.8 MEUR 21.5 99.1 92.5 92.6 17.8 16.7 68.8 2017 FY 2018 FY 2019 FY 2020 FY 2017 FY 2018 FY 2019 FY 2020 FY 2017 FY 2018 FY 2019 FY 2020 FY . • FX comparable change: -2.5% (-6.7 MEUR) Group Products sales grew from 2019 by 4% using comparable FX rates • Termination of Shimano distribution in non-JV countries as well as termination of certain other Third Party distribution agreements decreased total net sales from 2019 FX comparable change: +24.8% (+4.3 MEUR) The increased profitability was driven by improved gross margin as the share of higher margin Group Products sales of total sales increased and decrease in operating expenses • FX comparable change: -22.4% (-19.8 MEUR) Low year-end inventory value driven by tight control in inventory and centralized purchase quota allocations RAPALA VMC CORP. 2#3SALES GROWTH IN NORTH AMERICA 2019 FY 56.6 -26.5% * 2020 FY 41.6 (-15.0) 2019 FY 104.2 5.7% 2020 FY 110.2 (+6.0) 2019 FY 81.3 -1.9% 2020 FY 79.8 (-1.5) 2019 FY 2020 FY 33.3 -10.8% 29.7 (-3.6) NORTH AMERICA • FX comparable change: +8.1% (+8.3 MEUR) • Solid growth driven by rapid ramp-up from June onwards NORDIC • FX comparable change: -26.1% (-14.7 MEUR) . Negative sales impact from the termination of Shimano and certain other Third Party distribution agreements. In addition, poor winter conditions reduced the winter sport sales in first quarter • Sales grew in Group fishing products from the comparison period REST OF EUROPE FX comparable change: +0.7% (+0.5 MEUR) Group Product sales grew, but the termination of Shimano distribution kept the total sales figures on 2019 level REST OF THE WORLD • FX comparable change: -2.6% (-0.8 MEUR) ⚫ Sales heavily hit by the pandemic on the first half. On the second half sales began to recover, but the recovery was slower than in other markets and did not reach the full sales figures of the comparison period • The termination of Shimano distribution also had a negative impact on the sales RAPALA VMC CORP. 3#4CASH FLOW AND WORKING CAPITAL • Total working capital was 83.9 . • Inventories decreased by 23.8 MEUR and was driven by tight control in inventory and centralized purchase quota allocations Cash flow from operations at a high level of 42.5 MEUR A key driver for the record cash flow was the positive development of working capital • Successful implementation and execution of the COVID-19 mitigation plan -24.0% 113.4 110.4 WORKING CAPITAL (MEUR) -25.7% 99.1 92.6 83.9 68.8 6.7 CASH FLOW FROM OPERATIONS (MEUR) +16.6 42.5 25.9 2018 FY 2019 FY 2020 FY 2018 FY 2019 FY 2020 FY 2018 FY 2019 FY 2020 FY TOTAL WORKING CAPITAL INVENTORY RAPALA VMC CORP. 4#5FINANCIAL POSITION . • Liquidity position of the Group was good. Undrawn committed long-term credit facilities amounted to 10.0 MEUR. Gearing ratio decreased significantly and equity-to-assets ratio improved slightly from last year. The financial covenants include limits on the amount of indebtedness, available liquidity, EBITDA as well as gearing ratio. The Group is currently compliant with all financial covenants and expects to comply with all requirements set in the financing agreements also in the future GEARING (%) EQUITY RATIO (%) NET INTEREST-BEARING DEBT (MEUR) -17.6 pp. +0.1 pp. -29.4 74.6 47.8% 49.2% 53.2% 52.4% 52.5% 70.3 31.6% 45.2 2018 FY 2019 FY 2020 FY 2018 FY 2019 FY 2020 FY 2018 FY 2019 FY 2020 FY RAPALA VMC CORP. 5#6SHORT-TERM OUTLOOK AND GUIDANCE General market outlook for fishing products in North America and Europe is positive and end-consumer demand for recreational fishing products is currently on a good level in the Group's key markets. In Europe, exit of Shimano business and termination of certain other Third Party Products businesses decreases net sales and affects consequently market visibility for 2021 for the region. Net sales for these businesses, which the Group will exit, were in the range of 30 MEUR in 2020. Additionally, the ongoing negotiations with Shimano to end the joint ownership of distribution companies in Russia, Kazakhstan, Czech, Belarus, Hungary, Romania and Croatia might have impacts on the business performance for these countries also in the Group Products segment. • The Group's supply chain, including own factories and subcontractors, is currently working robustly and fulfilling customer orders. However, uncertainties caused by the COVID-19 pandemic continue to impact and increase risks for the Group. The pandemic can impact the operating environment of the Group in various ways, including lockdowns, store closures, social distancing rules and overall change in consumer confidence. In addition, weather changes may affect the sales of the Group • The Group expects 2021 full year comparable operating profit (excluding mark-to-market valuations of operative currency derivatives and other items affecting comparability) to be in line or above from the previous year RAPALA VMC CORP. 6#7APPENDICES RAPALA VMC CORP.#8KEY FIGURES MEUR 2020 FY 2019 FY Net sales Operating profit 261.3 275.4 10.7 13.4 Operating profit, % of net sales 4.1 % 4.9 % Comparable operating profit 21.5 17.8 Comparable operating profit, % of net sales 8.2 % 6.5% Net profit for the period 3.4 4.1 EPS (basic), EUR 0.04 0.10 42.5 25.9 Cash flow from operations Net interest-bearing debt ROCE, % Gearing, % Equity to assets, % RAPALA VMC CORP. 45.2 74.6 5.2 % 6.0% 31.6 % 49.2% 52.5 % 52.4 % 8#9GEOGRAPHICAL NET SALES NORTH AMERICA (MEUR) 110.2 104.2 99.2 95.4 91.3 NORDIC (MEUR) 56.2 55.3 55.1 56.6 41.6 2015 FY 2016 FY 2018 FY 2019 FY 2020 FY 2015 FY 2016 FY 2018 FY 2019 FY 2020 FY REST OF EUROPE (MEUR) 86.9 81.3 81.3 78.4 79.8 REST OF THE WORLD (MEUR) 35.9 32.7 33.6 33.3 29.7 2015 FY 2016 FY 2018 FY 2019 FY 2020 FY 2015 FY 2016 FY 2018 FY 2019 FY 2020 FY RAPALA VMC CORP. 9#10PROFIT AND LOSS STATEMENT MEUR Net sales 2020 FY 2019 FY 261.3 275.4 Other operating income 1.6 2.2 Materials and services 125.4 131.2 Personnel expenses 69.4 71.6 Other costs and expenses 41.0 48.6 Share of results in associates and joint ventures -0.8 -0.2 EBITDA 26.2 26.0 Depreciation, amortization and impairments 15.5 12.6 OPERATING PROFIT (EBIT) 10.7 13.4 Financial income and expenses PROFIT BEFORE TAXES 4.2 3.6 6.6 9.8 Income taxes 3.2 5.8 NET PROFIT FOR THE PERIOD 3.4 4.1 RAPALA VMC CORP. 10 10#11BALANCE SHEET MEUR ASSETS Non-current assets Intangible assets Property, plant and equipment Right-of-use asset Non-current assets Interest-bearing Non-interest-bearing Current assets Inventories Current assets Interest-bearing Non-interest-bearing Cash and cash equivalents TOTAL ASSETS 2020 FY 2019 FY 71.2 75.5 22.6 26.9 10.4 13.3 7.2 7.8 11.7 9.2 123.1 132.8 68.8 92.6 53.0 51.8 27.9 12.3 149.8 156.7 272.9 289.5 EQUITY AND LIABILITIES Equity Equity attributable to the equity holders of the company 112.8 121.9 Non-controlling interests 5.2 4.6 Hybrid bond 25.0 25.0 143.0 151.6 Non-current liabilities Interest-bearing Non-interest-bearing Lease liabilities Current liabilities Interest-bearing Non-interest-bearing Lease liabilities 52.7 46.0 8.7 8.5 8.0 9.0 69.4 63.5 15.1 35.3 41.0 34.7 4.5 4.4 60.5 74.4 TOTAL EQUITY AND LIABILITIES 272.9 289.5 RAPALA VMC CORP. 11#12SHARES AND SHAREHOLDERS Share Price Index Performance 170 160 150 Market capitalization 140 12-month high/low 130 120 All-time high/low SHARE RELATED DATA (12/2020) 168.1 MEUR 4.58/2.15 EUR 8.40/2.15 EUR 110 100 MAJOR SHAREHOLDERS (12/2020) % OF TOTAL 90 Viellard Migeon & Cie 38.5 % 80 70 Sofina S.A. 19.2 % 12/19 03/20 06/20 09/20 12/20 Nordea Funds 12.3 % OMX Nordic Small Cap Rapala VMC Corp The State Pension Fund 3.3 % Share Price Development, 2016-2020 Shimano Singapore Private Limited 2.3 % Taaleritehdas Funds 1.5 % 110 4,8 100 aug ≥ “ u ŏ Ilmarinen Mutual Pension Insurance 0.7 % 4,4 4,0 Coble James Jay 0.6 % 3,6 Elo Mutual Pension Insurance 0.4 % 3,2 Säästöpankki Funds 0.3 % 2,8 2,4 Own shares 1.2 % 2,0 12/15 12/16 12/17 12/18 12/19 12/20 Rapala VMC Corp RAPALA VMC CORP. 12