0RPG Robit Plc

ROBIT PLC: INTERIM REPORT 1 JANUARY–30 SEPTEMBER 2022: NET SALES GREW AND PROFITABILITY CONTINUED TO IMPROVE

ROBIT PLC          STOCK EXCHANGE RELEASE          26 OCTOBER 2022 AT 11.25 AM

ROBIT PLC: INTERIM REPORT 1 JANUARY–30 SEPTEMBER 2022: NET SALES GREW AND PROFITABILITY CONTINUED TO IMPROVE

In the text, ‘review period’ or ‘third quarter of the year’ refers to 1 July–30 September 2022 (Q3), and ‘January–September’ refers to 1 January–30 September 2022. Figures from the corresponding time period in 2021 are given in parentheses. All the figures presented are in euros. Percentages are calculated from thousands of euros.

1 July–30 September 2022 in brief

• Net sales EUR 28.4 million (26.4), growth 7.8 percent
• EBITDA EUR 3.5 million (2.5)
• EBITDA 12.3 percent of net sales (9.5)
• EBITA EUR 2.2 million (1.4)
• EBIT 7.0 percent of net sales (4.4)
• Review period net income EUR 1.7 million (0.8)
• Net cash flow for operating activities EUR 2.9 million (0.4)

1 January–30 September 2022 in brief

• Net sales EUR 85.8 million (74.5), growth 15.2 percent
• EBITDA EUR 8.5 million (5.9)
• EBITDA 9.9 percent of net sales (8.0)
• EBITA EUR 4.8 million (2.4)
• EBIT 4.8 percent of net sales (2.4)
• Review period net income EUR 3.1 million (1.0)
• Net cash flow for operating activities EUR 4.0 million (-3.7)
• Equity ratio at the end of the review period 48.2 percent (44.2)

Key financials	Q3 2022	Q3 2021	Change %	Q1–Q3 2022	Q1–Q3 2021	Change %	2021
Net sales, EUR 1,000	28,424	26,359	7.8 %	85,751	74,469	15.2 %	100,755
EBITDA*, EUR 1,000	3,488	2,504	39.3 %	8,472	5,945	42.5 %	7,595
EBITDA, % of net sales	12.3 %	9.5 %		9.9 %	8.0 %		7.5 %
EBITA, EUR 1,000	2,211	1,382	60.0 %	4,781	2,397	99.5 %	2,940
EBITA, % of net sales	7.8 %	5.2 %		5.6 %	3.2 %		2.9 %
EBIT, EUR 1,000	1,984	1,171	69.4 %	4,111	1,754	134.4 %	2,080
EBIT, % of net sales	7.0 %	4.4 %		4.8 %	2.4 %		2.1 %
Result for the period, EUR 1,000	1,718	814	111.1 %	3,051	1,038	194.0 %	886
Result for the period, % of net sales	6.0 %	3.1 %		3.6 %	1.4 %		0.9 %
Earnings per share (EPS), EUR 1,000	0.08	0.04		0.13	0.04		0.04
Return on equity (ROE), %				7.2 %	2.5 %		1.8 %
Return on capital employed (ROCE), %				5.8 %	2.7 %		2.5 %

*No items affecting comparability Q1–Q3/2022 or Q1–Q3/2021

ROBIT’S OUTLOOK FOR 2022

Robit expects global mining and construction industry demand to remain at the current level for the rest of 2022, taking into account identified risk factors. The company has identified global factors such as the war in Ukraine, the cost inflation of raw materials and logistics, and a potential global decline in economic trends. These factors are not expected to have a significant impact on the company’s operations in 2022. Demand in the construction industry is supported by the good work situation in the construction market areas that are relevant to Robit and the significant financing decided globally for the construction industry. The general deterioration of the economic outlook and high-cost inflation may cause construction projects to be postponed. For the time being, Robit is not accepting any new export orders from Russia and Belarus, which accounted for under 8% of the company’s net sales in the 2021 financial period. The company aims to replace this income in other global markets.

GUIDANCE FOR 2022

Company’s guidance is unchanged: Robit estimates that net sales in 2022 will increase and comparable EBITDA profitability in euros will improve compared to 2021, assuming that there are no significant changes in the exchange rates from the level at the end of 2021.

GROUP CEO ARTO HALONEN:

Robit continued its good development in the third quarter of the year. Net sales grew by 7.8 percent to EUR 28.4 million. Orders received increased by 8.1 percent and totalled EUR 27.7 million. Systematic measures to strengthen profitability were reflected in a clear improvement in the company’s EBITDA, which improved to 12.3 percent of net sales (9.5). Net cash inflow from operating activities increased as profitability improved.

The company has identified improving profitability, profitable growth and strengthening cash flow as its most important goals for 2022. Profitability continued to improve in the third quarter of the year. The impact of the increase in the cost of raw materials caused by the war in Ukraine started to materialize during the quarter, but the impact was compensated for by the pricing measures taken.  The effects of the competitive tendering of sea freight, the general decrease in sea freight rates and the logistics optimization measures carried out by the company were reflected in a reduction of freight costs. Procurement savings projects also progressed as planned.

The third-quarter growth continued strong in the Top Hammer business unit, where net sales grew by 16.6 percent. Net sales in the Down the Hole business decreased by 3.2 percent. Decline in net sales in East market area and especially in Russia was the main reason for lower sales in the Down the Hole business.

We achieved growth in all markets. Growth was strongest in the Americas region, where net sales grew by 16.6 percent. Russia and Belarus accounted for 7.6 percent of net sales in the quarter. The company will run down the operations of its subsidiary in Russia by the end of the year. The implementation of sales growth projects is key to securing continued growth despite the effects of the war in Ukraine. During the quarter, we were able to strengthen the sales pipeline in several markets.

The net cash flow from operations improved in the third quarter of the year to EUR 2.9 million (-0.6). The improved profitability supported positive development of cash flow.  We started to optimize inventory management already in the second quarter of the year, which resulted to decreased inventories.

In the quarter, we launched the Robit Rbit button bit series for drifting and tunneling. With the Rbit series, we focus on helping our customers reduce the total cost of drilling with a higher penetration rate and lower cost per drilling meter rate. We also held an international distributor meeting in South Korea, which brought together a significant number of Robit’s key distributors.

NET SALES

Net sales by product area

EUR thousand	Q3 2022	Q3 2021	Change %	Q1–Q3 2022	Q1–Q3 2021	Change %	2021
Top Hammer	16,492	14,077	17.2 %	50,086	40,377	24.0 %	56,287
Down the Hole	11,932	12,282	-2.9 %	35,665	34,092	4.6 %	44,468
Total	28,424	26,359	7.8 %	85,751	74,469	15.2 %	100,755

The Group’s net sales in the third quarter of the year period totaled EUR 28.4 million (26.4). There was an increase of 7.8 percent over the comparison period. In constant currencies, net sales decreased by 1.6 percent. The Top Hammer business continued to grow strongly seeing an increase of 17.2 percent. The Down the Hole business decreased by -2.9 percent mainly due to the decreased sales in East region. Down the Hole business is still at the center of the company’s development measures together with Australasia market area.

The Group’s net sales in January–September totaled EUR 85.8 million (74.5). There was an increase of 15.2 percent over the comparison period. In constant currencies, there was an increase of 9.7 percent. Top Hammer net sales grew by 24.0 percent to EUR 50.1 million (40.4). Delivery capacity was at a good level, which enabled strong growth. Down the Hole net sales grew by 4.6 percent to EUR 35.7 million. Growth was mainly driven by Americas region.

Net sales by market area

EUR thousand	Q3 2022	Q3 2021	Change %	Q1–Q3 2022	Q1–Q3 2021	Change %	2021
EMEA	12,199	11,446	6.6 %	36,105	34,022	6.1 %	45,298
Americas	6,933	5,948	16.6 %	20,192	14,222	42.0 %	19,960
Asia	2,836	2,627	8.0 %	8,919	7,644	16.7 %	10,771
Australasia	3,671	3,560	3.1 %	10,665	10,352	3.0 %	14,001
East	2,785	2,779	0.2 %	9,870	8,230	19.9 %	10,725
Total	28,424	26,359	7.8 %	85,751	74,469	15.2 %	100,755

The company’s growth was strong in the Americas region in the third quarter. In the Americas region, sales especially increased in North America. In the EMEA and Asia regions, net sales also increased, while net sales in the East region remained at the level of the comparison period.

In January–September, all markets experienced growth. The strongest growth was in the Americas region, where net sales grew by 42.0 percent as market demand remained good. The Asia and East regions also grew strongly, achieving a growth of over 15 percent. The Australasia and EMEA regions experienced also growth in the review period, however on a more moderate level

PROFITABILITY

Key figures

EUR thousand	Q3 2022	Q3 2021	Change %	Q1–Q3 2022	Q1–Q3 2021	Change %	2021
EBITDA, EUR 1,000	3,488	2,504	39.3 %	8,472	5,945	42.5 %	7,595
EBITDA, % of net sales	12.3 %	9.5 %		9.9 %	8.0 %		7.5 %
EBIT, EUR 1,000	1,984	1,171	69.4 %	4,111	1,754	134.4 %	2,080
EBIT, % of net sales	7.0 %	4.4 %		4.8 %	2.4 %		2.1 %
Result for the period, EUR 1,000	1,718	814	111.1 %	3,051	1,038	194.0 %	886
Result for the period, % of net sales	6.0 %	3.1 %		3.6 %	1.4 %		0.9 %

The company’s profitability in the review period improved significantly. The EBITDA for the third quarter was EUR 3.5 million (2.5). EBITDA’s share of net sales was at a good level of 12.3 percent (9.5). The company’s EBIT was EUR 2.0 million (1.2). The EBIT was 7.0 percent (4.4) of the review period net sales.

In January–September, the EBITDA was EUR 8.5 million (5.9). The EBITDA’s share of net sales was 9.9 percent (8.0). The company’s EBIT was EUR 4.1 million (1.8). The EBIT was 4.8 percent (2.4) of the net sales in January–September.

Improved operating profit was supported by the company’s improvement measures, which continued their systematic progress. By means of pricing measures the company managed to mitigate the increase in raw material costs and to kept fixed costs under control.

Financial income and expenses in the third quarter of the year totaled EUR -0.2 million (-0.4), of which EUR -0.3 million (-0.3) was interest expenses and EUR 0.1 million (-0.1) exchange rate changes. The result for the quarter improved to EUR 1.7 million (0.8).

In January–September, financial income and expenses totaled EUR -1.2 million (-1.0), of which EUR -0.9 million (-0.9) was interest expenses and EUR -0.1 million (0.0) exchange rate changes. The review period results improved to EUR 3.1 million (1.0).

CASH FLOW AND INVESTMENTS

Consolidated cash flow statement

EUR thousand	Q3 2022	Q3 2021	Q1–Q3 2022	Q1–Q3 2021	2021
Net cash flows from operating activities
Cash flows before changes in working capital	3,323	2,510	8,904	6,119	7,826
Cash flows from operating activities before financial items and taxes	3,197	722	5,267	-2,549	-2,785
Net cash inflow (outflow) from operating activities	2,934	359	3,981	-3,724	-4,174
Net cash inflow (outflow) from investing activities	-177	-1,144	-982	-2,431	-3,885
Net cash inflow (outflow) from financing activities	-2,697	408	-5,809	701	3,091
Net increase (+)/decrease (-) in cash and cash equivalents	59	-376	-2,810	-5,455	-4,968
Cash and cash equivalents at the beginning of the financial year	7,079	9,372	9,525	14,339	14,339
Exchange gains/losses on cash and cash equivalents	-122	-70	300	41	154
Cash and cash equivalents at end of the year	7,016	8,926	7,016	8,926	9,525

The Group’s cash flow before changes in working capital in the third quarter improved to EUR 3.3 million (2.5). Net cash flow for operating activities was EUR 2.9 million (0.4). The changes in working capital had an impact of EUR -0.1 million (-1.8). The change in working capital was affected negatively by the EUR 3.8 million decrease in accounts payable. The decrease in account and other receivables had a positive impact of EUR 2.7 million on cash flow, and the decrease in inventories had an impact of EUR 0.8 million.

The net cash flow from investing activities for the third quarter was EUR -0.2 million (-1.1). Gross investments in production during the review period totalled EUR 0.2 million (1.3). The share of investments in net sales was 0.8 percent (5.1). The investments were mainly directed at the company’s factories in South Korea and Lempäälä, Finland. The investments are aimed at responding to the growth of the Top Hammer business.

The net cash flow from financing activities for the third quarter was EUR -2.7 million (0.4). Net changes in loans totalled EUR 0.1 million (0.8). The change in bank overdrafts was EUR -2.4 million (0.0). The repayment of lease liabilities reported in net cash flow from financing activities under IFRS 16 totalled EUR 0.4 million (0.4).

Depreciation, amortization and write-downs totalled EUR 1.5 million (1.3). Of this, EUR 0.2 million related to the amortization of customer relationships and brand value from business acquisitions.

FINANCIAL POSITION

	30 September 2022	30 September 2021	31 December 2021
Cash and cash equivalents, EUR thousand	7,016	8,926	9,525
Interest-bearing liabilities, EUR thousand	36,366	36,319	41,522
of which short-term interest-bearing financial liabilities:	5,480	3,566	10,500
Net interest-bearing debt, EUR thousand	29,350	27,393	31,996
Undrawn credit facility, EUR thousand	5,807	6,000	2,738
Gearing, %	54.6 %	57.0 %	65.1 %
Equity ratio, %	48.2 %	44.2 %	42.2 %

The Group had interest-bearing debt amounting to EUR 36.4 million (36.3), of which EUR 7.3 million (5.4) was interest-bearing debt under IFRS 16. The Group’s liquid assets totalled EUR 7.0 million (8.9). Interest-bearing net liabilities were EUR 29.4 million (27.4), and interest-bearing net bank debt without IFRS 16 debt impact was EUR 22.1 million (22.0).

The Group’s equity at the end of the review period was EUR 53.6 million (48.1). The Group’s equity ratio was 48.2 percent (44.2) and its net gearing was 54.6 percent (57.0).

PERSONNEL AND MANAGEMENT

The number of personnel decreased by two persons from the end of the comparison period, and at the end of the review period it was 266 (268). At the end of the review period, 71 percent of the company’s personnel were located outside Finland.

The company’s Management Team at the end of the review period was composed of Arto Halonen (CEO), George Apostolopoulos (VP Global Sales), Adam Baker (VP Down the Hole), Jorge Leal (VP Top Hammer), Ville Peltonen (Interim CFO), Ville Pohja (VP Geotechnical) and Jaana Rinne (Group HR Director).

FINANCIAL TARGETS

Robit’s long-term target is to achieve organic net sales growth of 15% annually and comparable EBITDA profitability of 13%.

	Long-term target	2020	2021	1–9 2022
Net sales growth p.a.	15 %	6.0 %	10.0 %	15.2 %
Adjusted EBITDA, % of net sales	13 %	5.6 %	7.5 %	9.9 %

RESOLUTIONS OF THE ANNUAL GENERAL MEETING 2022

Robit Plc’s Annual General Meeting on 22 March 2022 adopted the financial statements presented for 1 January–31 December 2021 and resolved that no dividend would be paid based on the adopted balance sheet for the 2021 financial year.

The General Meeting resolved to discharge the members of the Board of Directors and the Chief Executive Officer from liability for the financial year ending 31 December 2021.

The General Meeting decided to approve the Remuneration Report for Governing Bodies. The decision was advisory.

The General Meeting resolved that the Board of Directors consists of six (6) members. Kim Gran, Mikko Kuitunen, Anne Leskelä and Harri Sjöholm were re-elected as members of the Board of Directors. Markku Teräsvasara and Eeva-Liisa Virkkunen were elected as new members of the Board of Directors.

The annual remuneration for the Chairman of the Board of Directors is EUR 50,000, of which 40 percent is paid in shares and the remaining 60 percent is an advance tax withheld and paid to the Finnish Tax Administration by the company. There is also a meeting fee of EUR 500 per meeting. The fee is paid for meetings attended by the Chairman of the Board. Other costs, such as travel and lodging expenses, will also be compensated.

The annual remuneration for the Board members is EUR 30,000, of which 40 percent is paid in shares and the remaining 60 percent is an advance tax withheld and paid to the Finnish Tax Administration by the company. There is also a meeting fee of EUR 500 per meeting. The fee is paid for meetings attended by the member of the Board. Other costs, such as travel and lodging expenses, will also be compensated.

Members of the Working Committee, Personnel Committee and Audit Committee are paid a financial compensation of EUR 500 per meeting attended. Other costs, such as travel and lodging expenses, will also be compensated.

The annual remuneration of the Chairman of the Board and Board members for the entire term of office will be paid in December 2022. The part of the remuneration paid in shares may be paid by issuing new shares in the company or by acquiring shares by the authorization given to the Board of Directors by the General Meeting. The receiver of the remuneration pays the transfer tax.

Ernst & Young Oy, an audit firm, was re-elected as the company’s auditor for a term that will continue until the end of the next Annual General Meeting. Ernst & Young Oy has notified the company that Authorized Public Accountant Toni Halonen will serve as the company’s principal responsible auditor.

The General Meeting resolved to pay the auditor’s remuneration in accordance with an invoice approved by the company.

The General Meeting resolved to authorize the Board of Directors to resolve on the acquisition of a maximum of 2,117,990 shares of the company and/or accepting the same number of the company’s shares as a pledge, in one or several tranches by using funds in the unrestricted shareholders’ equity. The maximum total of shares that will be acquired and/or accepted as a pledge corresponds to 10% of all the shares in the company as of the date of the notice to the General Meeting. However, the company cannot, together with its subsidiary companies, own or accept as a pledge altogether more than 10% of its own shares at any point in time. The company’s shares may be purchased under this authorization solely by using unrestricted shareholders’ equity.

The shares will be acquired other than in proportion to the share ownership of the shareholders via public trading arranged by Nasdaq Helsinki Ltd at the market price on the date on which the acquisition is made or at a price formed on the market. It is proposed that the authorization be used for the purposes of implementing the company’s share-based incentive schemes or for other purposes as decided by the Board of Directors, for example.

It was resolved that the authorization revokes the authorization granted by the General Meeting on 25 March 2021 to decide on the acquisition of treasury shares.

The authorization is valid until the closing of the next Annual General Meeting, but no longer than until 30 June 2023.

The Annual General Meeting resolved to authorize the Board of Directors to resolve on a share issue and on the issuance of special rights entitling to shares as referred to in Chapter 10, Section 1 of the Finnish Limited Liability Companies Act, in one or more tranches, either against or without consideration.

The number of shares to be issued, including shares to be issued on the basis of special rights, may not exceed 2,117,990, which amounts to 10% of all shares in the company as at the date of the notice to the Annual General Meeting the Board of Directors may decide to either issue new shares or to transfer any treasury shares held by the company.

The authorization entitles the Board of Directors to decide on all terms that apply to the share issue and to the issuance of special rights entitling to shares, including the right to derogate from the shareholders’ pre-emptive right. The authorization will be used, for example, for the purposes of strengthening the company’s balance sheet and improving its financial status, implementing the company’s share-based incentive systems or for other purposes as decided by the Board of Directors.

The authorization is valid until the closing of the next Annual General Meeting, but no longer than until 30 June 2023. The authorization will revoke all the previously granted, unused authorizations to decide on a share issue and the issuance of options or other special rights entitling to shares.

SHARES AND SHARE TURNOVER

On 30 September 2022, the company had 21,179,900 shares and 4,614 shareholders. Trading volume in January–September was 4,254,349 shares (4,470,406).

The company holds 88,464 treasury shares (0.4 percent of total shares). On 30 September 2022, the market value of the company’s shares was EUR 46.6 million. The closing price of the share was EUR 2.20. The highest price in January–September was EUR 4.55 and the lowest price EUR 2.11.

RISKS AND BUSINESS UNCERTAINTIES

The geopolitical situation, which is growing tenser, poses a risk to the company’s business. The war in Ukraine and the sanctions imposed on Russia affect the development of net sales and profitability especially in Russia, Belarus and Ukraine, which accounted for under 8% of the company’s sales in the 2021 financial year. The crisis has also significantly increased the prices of raw materials, to which Robit has reacted with pricing measures. Furthermore, the effects of the sanctions on the Russian payment transactions as well as selling Russian inventory may weaken the company’s cash flow. Robit complies with all the imposed sanctions and continuously monitors the situation.

Robit closely monitors the impact of COVID-19 on demand in the sector. In general, customer operations have returned to normal levels. The effects on Robit’s operations are now limited and only affect individual countries or regions. Robit will continue actions to protect the health of its personnel and to ensure the continuity of the company’s operations. At the time of reporting, all of the company’s factories were operating at planned capacity. No disruptions in the supply chain have been identified that cannot be managed, for example, with current inventory levels and supplier cooperation.

Other uncertainty factors include exchange rate development, the functioning of information systems, integration of corporate acquisitions, risks related to the security of supply and logistics, and IPR risks. Fully transferring the increase in raw material costs to customer prices may pose a financial risk. Changes in export countries’ tax and customs legislation may adversely impact the company’s export trade or its profitability. Risks related to information security and cyber threats may also have a detrimental effect on Robit’s business. Potential changes in the business environment may adversely impact the payment behaviour of the Group’s customers and increase the risk of litigation, legal claims and disputes related to Robit’s products and other operations.

CHANGES IN GROUP STRUCTURE

There were no changes in the Group structure during the review period.

OTHER EVENTS IN JULY–SEPTEMBER 2022                

On 9 August 2022, the company published its half-yearly report for 1 January–30 June 2022.

On 2 September 2022, Robit Plc announced that the four largest registered shareholders of the company (the company’s shareholders list maintained by Euroclear Finland Ltd, 1 September 2022) had appointed the following representatives to the shareholders’ Nomination Committee: Harri Sjöholm (Five Alliance Oy, Chairman of the Board of Directors), Timo Sallinen (Varma Mutual Pension Insurance Company, Senior Vice-President, Investments), Jukka Vähäpesola (Elo Mutual Pension Insurance Company, Head of Equities) and Markus Lindqvist (Aktia Bank Plc, Director, Sustainability). The Committee will elect a chairperson from among its members at its first meeting. The shareholders’ Nomination Committee prepares and presents to the General Meeting proposals on the remuneration and number of Board members and on members to be elected for the Board. In addition, the Nomination Committee prepares and presents to the Board of Directors for approval the principles concerning the diversity of the Board. The shareholders’ Nomination Committee is established for an indefinite period until the General Meeting decides otherwise. The Nomination Committee elected now submits its proposals to the company’s Board of Directors no later than 31 January each year before the next Annual General Meeting. The tasks and composition of the Nomination Committee are described in more detail on the company’s website at https://www.robitgroup.com/investor/corporate-governance/nomination-committee/.

EVENTS AFTER THE REVIEW PERIOD

On 4 October 2022, Robit Plc announced having received a notification under Chapter 9, Section 5 of the Finnish Securities Markets Act from OP Fund Management Company Ltd on 3 October 2022. According to the information received, the total number of Robit shares owned by OP Fund Management Company Ltd decreased below five (5) per cent of the total shares of Robit Plc on 30 September 2022.

Lempäälä, 26 October 2022

ROBIT PLC Board of Directors

For further information, contact:

Arto Halonen, Group CEO +358 40 028 0717 arto.halonen@robitgroup.com

Ville Peltonen, Interim CFO+358 40 759 9142ville.peltonen@robitgroup.com

Distribution:   Nasdaq Helsinki Ltd Key media www.robitgroup.com

Robit is the expert focused on high quality drilling consumables for mining and construction markets globally to help you drill Further. Faster. Robit strives to be world number one company in drilling consumables. Through our high and proven quality Top Hammer, Down the Hole and Geotechnical products, and our expert services, we deliver saving in drilling costs to our customers. Robit has its own sales and service points in eight countries and an active distributor network through which it sells to more than 100 countries. Robit’s manufacturing units are located in Finland, South Korea, Australia and the UK. Robit’s shares are listed on Nasdaq Helsinki Ltd. Further information is available at www.robitgroup.com.

The information presented above includes statements about future prospects. These relate to events or the company’s economic development in the future. In some cases, such statements can be recognised by their use of conditional words (such as “may”, “expected”, “estimated”, “believed”, “predicted” and so on) or other similar expressions. Statements such as these are based on assumptions and factors that Robit’s management have at their disposal and on current decisions and plans. There is always risk and uncertainty attached to any statements regarding future events because they pertain to events and depend on factors that are not possible to predict with certainty. For this reason, future results may differ even significantly from figures expressed or assumed in statements about future prospects. CONDENSED FINANCIAL STATEMENTS

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
EUR thousand	7-9/2022	7-9/2021	1-9/2022		1-9/2021			2021
Net sales	28 424	26 359	85 751		74 469			100 755
Other operating income	1 211	612	3 817		1 414			1 690
Materials and services*	-18 860	-16 847	-56 120		-48 088			-65 699
Employee benefit expense	-3 749	-3 980	-12 538		-12 086			-16 280
Depreciation, amortization and impairment	-1 504	-1 333	-4 361		-4 191			-5 514
Other operating expenses*	-3 538	-3 640	-12 438		-9 765			-12 871
EBIT (Operating profit)	1 984	1 171	4 111		1 754			2 080
Finance income and costs
Finance income	711	80	2 272		667			924
Finance cost	-954	-435	-3 477		-1 682			-2 253
Finance income and costs net	-243	-356	-1 205		-1 015			-1 329
Profit before income tax	1 741	815	2 906		738			751
Income taxes
Current taxes	-15	-36	-158		-73			-333
Change in deferred taxes	-7	35	303		373			468
Income taxes	-22	-1	145		300			135
Result for the period	1 718	814	3 051		1 038			886
Attributable to:
Owners of the parent	1 647	741	2 788		867			843
Non-controlling interest**	71	73	264		171			44
	1 718	-191	3 051		1 038			886
Other comprehensive income
Items that may be reclassified to profit or loss in subsequent periods:
Cash flow hedges	221	-13	587		-13			45
Translation differences	-1 019	-648	763		-58			1 003
Other comprehensive income, net of tax	-798	-662	1 351		-71			1 048
Total comprehensive income	920	152	4 402		967			1 934
Attributable to:
Owners of the parent	849	79	4 165		796			1 892
Non-controlling interest**	71	73	268		171			42
Consolidated comprehensive income	920	152	4 402		967			1 934
Earnings per share
Basic and diluted earnings per share	0,08			0,04		0,13	0,04		0,04

*In the condensed income statement, changes in inventories are presented in Materials and services, and manufacture for own use in Other operating expenses. **Founded in 2015 by Robit SA, Black Employees Empowerment Trust owns 26% of the shares of Robit SA.*** The Group has internal loans that are treated as net investments in foreign entities in accordance with IAS 21 The Effects of Changes in Foreign Exchange Rates.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
EUR thousand	30.9.2022	30.9.2021	31.12.2021
ASSETS
Non-current assets
Goodwill	5 225	5 360	5 487
Other intangible assets	1 770	2 945	2 695
Property, plant and equipment	25 375	24 007	27 396
Loan receivables	264	295	287
Other receivables	0	3	0
Derivatives	790	0	56
Deferred tax assets	2 203	1 755	1 926
Total non-current assets	35 628	34 364	37 847
Current assets
Inventories	45 847	41 689	43 538
Account and other receivables	23 471	24 457	25 337
Loan receivables	92	93	100
Current tax assets	200	40	57
Cash and cash equivalents	7 016	8 926	9 525
Total current assets	76 627	75 205	78 557
Total assets	112 255	109 569	116 403
EQUITY AND LIABILITIES
Equity
Share capital	705	705	705
Share premium	202	202	202
Reserve for invested unrestricted equity	82 570	82 570	82 570
Translation differences	-1 026	-2 856	-1 793
Fair value reserve	632	-13	45
Retained earnings	-32 794	-33 795	-33 738
Profit/loss for the year	2 788	867	843
Equity attributable to parent company shareholders in total	53 077	47 680	48 833
Non-controlling interests*	541	415	281
Capital and reserves in total	53 618	48 096	49 114
Liabilities
Non-current liabilities
Borrowings	25 270	28 879	25 209
Lease liabilities	5 617	3 874	5 813
Deferred tax liabilities	683	641	694
Employee benefit obligations	754	677	725
Total non-current liabilities	32 323	34 088	32 441
Current liabilities
Borrowings	3 813	2 002	8 619
Lease liabilities	1 667	1 563	1 881
Advances received	763	663	771
Income tax liabilities	3	37	259
Account payables and other liabilities	19 796	23 002	23 278
Other provisions	273	117	40
Total current liabilities	26 314	27 385	34 848
Total liabilities	58 637	61 473	67 289
Total equity and liabilities	112 255	109 569	116 403

* Founded in 2015 by Robit SA, Black Employees Empowerment Trust owns 26% of the shares of Robit SA.

CONSOLIDATED CASH FLOW STATEMENT
EUR thousand	7-9/2022	7-9/2021	1-9/2022	1-9/2021	2021
Cash flows from operating activities
Profit before tax	1 741	815	2 906	738	751
Adjustments:
Depreciation, amortisation and impairment	1 504	1 333	4 361	4 191	5 514
Finance income and costs	243	356	1 205	1 015	1 329
Share-based payments to employees	4	21	93	-140	-178
Loss (+)/Gain (-) on sale of property, plant and equipment	0	-167	-24	-168	-144
Other non-cash transactions	-169	153	363	483	553
Cash flows before changes in working capital	3 323	2 510	8 904	6 119	7 826
Change in working capital
Increase (-) in account and other receivables	2 694	-787	3 455	-6 041	-6 452
Increase (-)/decrease (+) in inventories	844	-1 929	-1 345	-6 733	-8 187
Increase (+) in account and other payables	-3 664	930	-5 747	4 109	4 028
Cash flows from operating activities before financial items and taxes	3 197	722	5 267	-2 549	-2 785
Interest and other finance expenses paid	-121	-355	-722	-894	-1 046
Interest and other finance income received	4	-42	4	15	22
Income taxes paid	-146	35	-569	-296	-365
Net cash inflow (outflow) from operating activities	2 934	359	3 981	-3 724	-4 174
Cash flows from investing activities
Purchases of property, plant and equipment	-183	-1 311	-1 009	-2 627	-4 169
Purchases of intangible assets	-42	-23	-80	-92	-124
Proceeds from the sale of property, plant and equipment	48	187	81	224	279
Proceeds from loan receivables	-1	2	27	64	129
Net cash inflow (outflow) from investing activities	-177	-1 144	-982	-2 431	-3 885
Cash flows from financing activities
Dividend payment*	0	0	0	0	-9
Changes in non-current loans	134	782	-1 416	5 731	5 385
Change in bank overdrafts	-2 409	0	-3 068	-3 739	-478
Payment of leasing liabilities	-422	-374	-1 325	-1 291	-1 807
Net cash inflow (outflow) from financing activities	-2 697	408	-5 809	701	3 091
Net increase (+)/decrease (-) in cash and cash equivalents	59	-376	-2 810	-5 455	-4 968
Cash and cash equivalents at the beginning of the financial year	7 079	9 372	9 525	14 339	14 339
Exchange gains/losses on cash and cash equivalents	-122	-70	300	41	154
Cash and cash equivalents at end of the year	7 016	8 926	7 016	8 926	9 525

*Dividend paid to the foundation of Robit SA as a minority shareholder in accordance with the agreement

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
A = Share capital
B = Share premium
C = Reserve for invested unrestricted equity
D = Cumulative translation difference
E = Fair value reserve
F = Retained earnings
G = Equity attributable to parent company shareholders
H = Non-controlling interests
I = Capital and reserves in total
EUR thousand	A	B	C	D	E	F	G	H	I
Equity as at 1 January 2021	705	202	82 570	-2 798		-33 690			46 989
Katsastuskauden tulos							867	171	1 038
Profit for the period
Cash flow hedges					-13				-13
Translation differences				-58				17	607
Total comprehensive changes				-58	-13		867	176	972
Share-based payments to employees						-105			-105
Change in the share of non-controlling owners								240	240
Total transactions with owners, recognised directly in equity						-105		240	135
Equity as at 30 September 2021	705	202	82 570	-2 856	-13	-33 795	867	415	48 096
EUR Thousand	A	B	C	D	E	F	G	H	I
Equity as at 1 January 2022	705	202	82 570	-1 793	45	-32 846	48 883	281	49 114
Profit for the period						2 788	2 788	264	3 051
Other comprehensive income
Cash flow hedges					587		587		587
Translation differences				767			767	-4	763
Total comprehensive changes				767	587	2 788	4 142	260	4 402
Share-based payments to employees						52	52		52
Total transactions with owners, recognised directly in equity						52	52		52
Equity as at 30 September 2022	705	202	82 570	-1 026	632	-30 006	53 077	541	53 618

NOTESContents

1. Scope and principles of the interim report
2. Key figures and calculation
3. Breakdown of net sales
4. Financing arrangements
5. Changes to property, plant and equipment
6. Given guarantees
7. Business acquisitions
8. Derivatives

1. SCOPE AND PRINCIPLES OF THE INTERIM REPORT

This interim report has been prepared in accordance with the IAS 34 standard for interim financial reporting and using the same principles as for the annual financial statements. The interim report has not been audited.

All figures in the summarised financial statement have been rounded to the nearest figure; therefore, the sum of reported figures may not exactly match those presented.

2.1 KEY FIGURES

Consolidated key figures	Q3 2022	Q3 2021	Q1-Q3 2022	Q1-Q3 2021	2021
Net sales, EUR 1,000	28 424	26 359	85 751	74 469	100 755
EBIT, EUR 1000	1 984	1 171	4 111	1 754	2 080
EBIT, % of net sales	7,0 %	4,4 %	4,8 %	2,4 %	2,1 %
Earnings per share (EPS), EUR	0,08	0,04	0,13	0,04	0,04
Return on equity (ROE), %			7,2 %	2,5 %	1,8 %
Return on capital employed (ROCE), %			5,8 %	2,7 %	2,5 %
Equity ratio, %			48,2 %	44,2 %	42,2 %
Net gearing, %			54,6 %	57,0 %	65,1 %
Gross investments, EUR 1,000	224	1 353	1 089	2 720	4 293
Gross investments, % of net sales	0,8 %	5,1 %	1,3 %	3,7 %	4,3 %
Number of shares (outstanding shares)			21 091 436	21 067 436	21 091 436
Treasury shares (owned by the Group)			88 464	112 464	88 464
Percentage of votes/shares			0,42 %	0,53 %	0,42 %

2.2 CONSOLIDATING ALTERNATIVE KEY FIGURES

Robit presents alternative key figures to supplement the key figures given in the Group’s income statements, balance sheets and cash flow statements that have been drawn up according to IFRS standards. Robit considers that the alternative figures give significant extra insight into the result of Robit’s operations, its financial position and cash flows. These figures are often used by analysts, investors and other parties.

Alternative key figures should not be studied apart from the key figures according to IFRS or instead of them. Not all companies calculate their alternative key figures in the same way and, therefore, Robit’s alternative figures may not be directly comparable to those presented by other companies, even if they carry the same headings.

Adjusted EBITDA and EBITA
EUR thousand	7-9/2022	7-9/2021	1–9/2022	1–9/2021	2021
EBIT (Operating profit)	1 984	1 171	4 111	1 754	2 080
Depreciation, amortisation and impairment	1 504	1 333	4 361	4 191	5 514
EBITDA	3 488	2 504	8 472	5 945	7 595
EBIT (Operating profit)	1 984	1 171	4 111	1 754	2 080
Amortisation of acquisitions	227	212	671	643	859
EBITA	2 211	1 382	4 781	2 397	2 940

2.3 CALCULATION OF KEY FIGURES

EBITDA:
EBIT + Depreciation, amortisation and impairment
EBITA
EBIT + Amortisation of customer relationships
Net working capital
Inventory + Accounts receivables and other receivables – Accounts payables and other liabilities
Earnings per share (EPS), EUR
Profit (loss) for the financial year
Amount of shares adjusted with the share issue (average during the financial year)
Return on equity (ROE), %
Profit (loss) for the financial year	x 100
Equity (average during the financial year)
Return on capital employed (ROCE), %
Profit before appropriations and taxes + Interest expenses and other financing expenses	x 100
Equity (average during the financial year) + Interest-bearing financial liabilities (long-term and short-term loans from financial institutions, average during the financial year)
Net interest-bearing financial liabilities
Long-term and short-term loans from financial institutions – Cash and cash equivalents – Short-term financial securities
Equity ratio, %
Equity	x 100
Balance sheet total – Advances received
Gearing, %
Net interest-bearing financial liabilities	x 100
Equity

3. BREAKDOWN OF NET SALES

Entries are recorded according to IFRS 15 in the same way for each business unit and market area.

NET SALES
Net sales by product area
EUR thousand	7–9/2022	7–9/2021	Change %	1–9/2022	1–9/2021	Change %	2021
Top Hammer	16 492	14 077	17,2 %	50 086	40 377	24,0 %	56 287
Down the Hole	11 932	12 282	-2,9 %	35 665	34 092	4,6 %	44 468
Total	28 424	26 359	7,8 %	85 751	74 469	15,2 %	100 755
Net sales by market area
EUR thousand	7–9/2022	7–9/2021	Change %	1–9/2022	1–9/2021	Change %	2021
EMEA	12 199	11 446	6,6 %	36 105	34 022	6,1 %	45 298
Americas	6 933	5 948	16,6 %	20 192	14 222	42,0 %	19 960
Asia	2 836	2 627	8,0 %	8 919	7 644	16,7 %	10 771
Australasia	3 671	3 560	3,1 %	10 665	10 352	3,0 %	14 001
East	2 785	2 779	0,2 %	9 870	8 230	19,9 %	10 725
Total	28 424	26 360	7,8 %	85 751	74 469	15,2 %	100 755

4. FINANCING ARRANGEMENTS

The company’s cash and cash equivalents were EUR 7.0 million on 30 September 2022. In addition, the company has EUR 3.5 million undrawn of the financing agreement of EUR 30 million signed on 8 June 2021. In May 2022, the company utilised the first option to extend the agreement according to the original financing agreement. The company’s sufficient liquidity is secured through cash and a loan that has not been drawn down.

The parent company’s covenants are based on the company’s net debt/EBITDA ratio and the company’s equity ratio. The covenants are tested on a quarterly basis. The company met all the covenant conditions in Q3.

INTEREST-BEARING LOANS
EUR thousand	30.9.2022	30.9.2021	31.12.2021
Non-current borrowings
Loans from credit institutions	25 259	28 848	25 182
Other loans	11	12	12
Lease liabilities	5 616	3 893	5 828
Total non-current borrowings	30 886	32 753	31 022
Current borrowings
Loans from credit institutions	3 563	1 780	5 187
Other loans	193	0	3 262
Bank overdrafts	1 724	1 786	2 051
Lease liabilities	5 480	3 566	10 500
Total current borrowings
	36 366	36 319	41 522
Total borrowings

5. CHANGES TO PROPERTY, PLANT AND EQUIPMENT
EUR thousand		30.9.2022		30.9.2021		31.12.2021
Cost at the beginning of period		53 794		47 323		47 323
Additions		1 921		2 694		6 644
Disposals		-68		-137		-282
Reclassification		0		37		-533
Exchange differences		-728		-188		644
Cost at the end of period		54 920		47 729		53 794
Accumulated depreciation and impairment at the beginning of period		-26 398		-22 682		-22 682
Depreciation		-3 339		-3 169		-3 902
Disposals		11		81		227
Reclassification		-44		-		289
Exchange differences		244		49		-330
Accumulated depreciation and impairment at the end of period		-29 526		-25 721		-26 398
Net book amount at the beginning of period		27 396		24 642		24 642
Net book amount at the end of period		25 393		24 008		27 396
6. GIVEN GUARANTEES
EUR thousand	30.9.2022		30.9.2021		31.12.2021
Guarantees and mortgages given on own behalf	47 839		47 774		48 205
Other guarantee liabilities	48		1 107		80
Total	47 888		48 882		48 285

7. ACQUISITIONS

There were no changes in the Group structure during the review period.

8. DERIVATIVES

The company hedges the most significant net currency positions that can be predicted in time and volume and interest rate risk.

There were no open currency derivatives at the end of the review period.

On 8 June 2021, the company concluded a financing agreement of EUR 30 million and, in connection with this, an interest rate swap of EUR 10 million with an interest rate cap in order to hedge part of its exposure to fluctuating interest rates. The interest rate swap subs. The company applies hedge accounting in accordance with IFRS 9. This effectively leads to the recording of interest expenses on a hedged floating rate loan at a fixed rate.

The company’s main interest rate risk arises from long-term loans with floating interest rates that expose the Group’s cash flow to interest rate risk. The Group’s policy is to use, if necessary, a floating to fixed interest rate swap.

Interest derivatives
EUR thousand	30.9.2022	30.9.2021	31.12.2021
Interest rate swaps
Nominal value	10 000	10 000	10 000
Fair value	790	-17	56

Attachment

• Robit Plc - Interim Report 1 Jan - 30 Sep 2022