ROBIT INVESTIGATES TRANSFER TO THE MAIN LIST

28.2.2017, 10:30 CET

ROBIT PLC COMPANY RELEASE 28 FEBRUARY 2017 AT 11.30 A.M.

ROBIT INVESTIGATES TRANSFER TO THE MAIN LIST

Robit investigates transfer to the Nasdaq Helsinki main list as part of the company's growth and development

The Board of Directors of Robit has decided to initiate a study on the possibility of transferring to the Nasdaq Helsinki main list during 2017 as part of the company's growth and strategic development. At the same time, the company is assessing alternatives for financing growth. In line with the previously announced target, Robit will begin reporting in accordance with IFRS accounting standards from the beginning of 2017.

Robit has successfully implemented its strategy since its First North listing in 2015

Robit has been able to successfully deliver its global growth strategy presented by the company in connection with its May 2015 listing on Nasdaq Helsinki Ltd's First North Finland marketplace. Since the listing, Robit has continued to grow while also improving its profitability. The proceeds raised as a result of the listing have, in line with Robit's strategy, been used to both support organic growth and acquisitions allowing Robit to widen its product offering as well as strengthen its presence in current and new markets.

Strategic acquisitions

In 2016 and 2017, Robit has acquired four companies that have widened the company's product offering especially in the Down-the-Hole ("DTH") business unit and strengthened the company's global presence:

  • Drilling Tools Australia Ltd ("DTA") - an Australian company specialized in drilling consumables offering i.e. DTH and Top Hammer drilling equipment and related solutions to the mining and construction industries especially in Australia (June 2016)
  • Bulroc (UK) Ltd ("Bulroc") - a UK-based provider of large DTH hammers and related accessories (July, 2016)
  • Halco acquisition, 1st stage ("Halco USA") - a commencement of manufacturing in the USA (January, 2017)
  • Halco acquisition, 2nd stage ("Halco UK" and together with Halco USA "Halco") - acquisition of Halco's main location and Halco business expansion of operations to a global level (February, 2017)

Increasing marketing and sales activity

The company has expanded its sales network and currently has 20 own sales and service points globally and an active sales network comprising of external distributors in 115 countries. Robit established its latest own sales company in Dubai, United Arab Emirates in December 2016. By establishing own sales companies Robit can offer more comprehensive service and delivery performance as well as serve its customers even better now and in the future.

Guaranteed availability and increased service model

Robit has 20 own sales and service points as well as an active sales network in 115 countries. In addition, the company has manufacturing units in Finland, South Korea, Australia, UK and USA. The acquisition of DTA enables local production of high quality drilling tools in Perth ensuring better availability and shorter delivery times of products to customers in Oceania and the Far East. The Bulroc acquisition strengthened Robit's platform with a production facility in Chesterfield, England as well as a sales office in Hong Kong. As a result of the Halco USA acquisition, Robit is able to build its own manufacturing unit, service point and stock, located in the middle of the Americas region which has good growth potential. The Halco UK acquisition strengthens Robit's platform with a production unit in Brighouse, England enabling to grow the new own global business unit. Thanks to the expansion and these acquisitions Robit is able to deploy its diversified production strategy and secure even better service and enhanced deliveries to its distributors and direct customers globally.

Flexible, state-of-the-art production concept

Robit has continued investing in its advanced, automated production technology and the company established a technology center in Lempäälä in 2015 where functions related to product and production technology for purposes of securing future growth are located. In addition, a team developing future digital services housed in this technology center.

Human resources

In line with its strategy, Robit has continued to invest in developing the skill sets of its employees as well as adding new competencies to the company. In the beginning of 2017, Robit established a new Global Management Team to reflect the new organization structure and secure growth also in the future. Robit's newly appointed CEO, Mr. Mika Virtanen, has made an over 20-year-long career in several international management positions in the metals and automation industries having worked in the Cargotec group since 2002. The management team has over 200 years of combined experience in international positions in the engineering and automation sectors. At the end of 2016, the company had 263 employees of whom a significant share was sales staff. For comparison, Robit had 109 employees at the end of 2014 before its First North listing.

IPR and R&D

Robit has continued to invest in both its own product development and collective product development projects in the industry in order to secure growth and competitiveness in the future. A prime example of investing in development is Robit's Digital Services business unit which was established to accelerate the development of new digital product innovations and related service business. This business unit develops products and services that allow Robit's customers to utilise the possibilities of for example, IoT, cloud and industrial Big Data. At the heart of this business unit and as a result of several years of product development is Sense Systems, a drill hole measurement system and the technology system built around it. The technology and related services have been well received with great interest from the customers and the first contracts on utilizing Sense Systems have been entered into in early 2017.

Robit continues its most important strategic target - growth

Robit will continue to develop its business based on its strategy. It aims to be globally the preferred company focusing solely on Top Hammer and DTH drilling consumables. The company serves customers in four customer segments, which are mining, construction, tunneling, and geothermal heat and cooling.

Key elements of the company's growth strategy are:

  • Increasing marketing and sales activity
  • Strategic acquisitions
  • Guaranteed availability of products and increased service model
  • Flexible, state-of-the-art, diversified production concept
  • Competent human resources
  • IPR and R&D

In the future, Robit sees the following areas as key elements in implementing its strategy:

  • Comprehensive product offering of drilling consumables and strong brands form the basis for organic growth in the future
  • Global sales and manufacturing footprint ensuring close customer contact, good availability of products and service, enabling efficiency and supporting future growth
  • Digital business based on the company's strong investments in digital services and industrial internet (IoT), which support a competitive and innovative offering and allow even stronger utilization of the potential in digital services in serving customers

The company's renewed operating model with the new four sales regions ensure fast decision making close to its customers and markets. At the same time the new model provides a solid foundation for renewal, development and growth. The size and quality of Robit's Global Management Team has been carefully designed to be capable of driving the company's growth and profitability also now and in the future, in a significantly larger Robit. As part of its growth, Robit will continue to assess different investment alternatives such as investments in automated and robotized production technology a key element of the company's operating model. In addition, the company will continue to analyse potential acquisition targets as part of its growth strategy.

Chairman of the Board of Directors, Harri Sjöholm comments:

"Robit's key target has been to achieve significant growth in the global market. I am proud of the growth we have achieved and our improved profitability as well as the acquisitions which have widened our product offering and strengthened our global presence in our current and new markets. Robit has successfully pursued the strategy it presented in 2015 and we are now taking steps from the "Robit 2.0" phase towards "Robit 3.0" phase. As part of the Robit 3.0 phase we are now initiating a study on the possibility to transfer to the Nasdaq Helsinki main list. At the same time, we assess alternatives for financing the growth targeted by the company", says Harri Sjöholm, Chairman of the Board of Directors of Robit.

Skandinaviska Enskilda Banken AB (publ) Helsinki Branch is acting as the financial advisor in assessing the topics mentioned above.

ROBIT PLC

Harri Sjöholm, Chairman

Further information:

Robit Plc

Harri Sjöholm, Chairman
+358 400 622 092
harri.sjoholm@robit.fi

Certified Advisor
Skandinaviska Enskilda Banken AB (publ) Helsingin Branch
Tel. +358 9 616 28 101

Robit is a strongly internationalized growth company selling and servicing global customers in drilling consumables for applications in mining, construction and contracting, tunneling and well drilling. The company's offering is divided into three product and service range: Top Hammer and Down-the-Hole products as well as Digital Services. Robit has 20 own sales and stock points as well as active sales networks in 115 countries. The manufacturing units are located in Finland, South Korea, Australia, UK and USA. Robit is listed in Nasdaq Helsinki Ltd's First North Finland marketplace with trading code ROBIT. For more information, see www.robit.fi.

Distribution:
Nasdaq Helsinki Ltd
Key media
www.robit.fi