Interim report
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RAPALA VMC | HALF YEAR FINANCIAL REPORT H1 | 20.8.2026 | 1 Rapala VMC’s H1/2026: Strong dynamics in North America led to improved sales and profitability April-June (Q2) in brief Net sales were 65.3 MEUR, up 9% from previous year (60.1). With comparable exchange rates sales were 9% up from previous year. Comparable operating profit* was 5.6 MEUR (3.0). Cash flow from operations was 20.5 MEUR (15.5). January-June (H1) in brief Net sales were 134.8 MEUR, up 7% from previous year (125.5). With comparable exchange rates sales were 11% up from previous year. Comparable operating profit* was 13.5 MEUR (8.6). Earnings per share (basic and diluted) was 0.19 EUR (0.02). Cash flow from operations was 16.7 MEUR (6.2). Inventories were 80.1 MEUR (82.2). Short-term outlook: Rapala VMC expects 2026 full year comparable operating profit (excluding mark-to-market valuations of operative currency derivatives and other items affecting comparability) to be in the range of 12 to 14 MEUR (2025: 8.4 MEUR). * Excluding mark-to-market valuations of operative currency derivatives and other items affecting comparability. Other items affecting comparabil ity include material restructuring costs, impairments, gains and losses on business combinations and disposals, i nsurance compensations, regulatory-related items and other non-operational items President and CEO Cyrille Viellard: “ Replenishment demand has further remained robust in Q2/2026 in the Company’s core North American market, following strong initial fill deliveries in Q1/2026 for the open -water season. This has compensated for softer demand in Europe, where drought conditions and weaker consumer spending have weighed on market activity. Both growth and slower markets have been well managed by our Rapala VMC global team leading to improved performance year-over-year overall. Big thanks to all! While macroeconomic uncertainty persists amid geopolitical instability and tariff volatility, the Company’s strong first-half 2026 performance, healthy inventory levels in the winter fishing category in North America, and a robust innovation pipeline reinf orce the Company’s confidence in Rapala VMC's recovery trajectory. Our continued focus on cash flow resulted in strong cash generation in H1 /2026, supported by improved EBITDA, disciplined capital expenditure and working capital management, as well as the repayment of IEEPA tariffs. The expiration of the Section 122 global tariffs on July 24 and their replacement by permanent Section 301 tariffs is currently expected to have a neutral to slightly positive impact. However, we remain cautious as the tariff environment continues to evolve and further significant changes are expected. The Group will continue advancing its brand strategy in H2/2026 and strengthen marketing investments to support sustained long-term growth.” Key figures Q2 Q2 H1 H1 FY MEUR 2026 2025 2026 2025 2025 Net sales 65.3 60.1 134.8 125.5 227.5 Operating profit 8.1 3.1 15.8 9.1 4.2 % of net sales 12.4% 5.2% 11.7% 7.3% 1.9% Comparable operating profit * 5.6 3.0 13.5 8.6 8.4 % of net sales 8.6% 5.0% 10.0% 6.9% 3.7% Cash flow from operations 20.5 15.5 16.7 6.2 5.5 Gearing % 41.0% 39.2% 41.0% 39.2% 53.5% Earnings per share, EUR, basic and diluted 0.19 0.02 -0.23 * Excluding mark-to-market valuations of operative currency derivatives and other items affecting comparability. Other items affecting comparabil ity include material restructuring costs, impairments, gains and losses on business combinations and disposals, i nsurance compensations, regulatory-related items and other non-operational items. Rapala Group presents alternative performance measures to reflect the underlying business performance and to enhance comparability between financial periods. Alternative performance measures should not be considered in isolation as a substitute for measure s of performance in accordance with IFRS. Definitions and reconciliation of key figures are presented in the financial section of the release.
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RAPALA VMC | HALF YEAR FINANCIAL REPORT H1 | 20.8.2026 | 2 Market Environment The Group’s net sales for the first half of the year were 7% above the comparison period with reported translation exchange rates. With comparable translation exchange rates, net sales were organically up by 11% from the comparison period. During the first half of the year, the operating environment was affected by geopolitical instability and tariff volatility. Despite continued macroeconomic uncertainty, the North American market remained resilient, with consumer demand improving compared to the prior year. The European market remained subdued, with consumer demand further dampened by drought conditions. Business Review January – June 2026 North America In the first half of the year sales in North America increased by 12% from the comparison period. With comparable translation exchange rates sales were up by 19%. Sales in the North American market remained strong in the second quarter, building on the strong performance in the first quarter. Second - quarter replenishment sales demonstrated healthy sell -through of the initial load -in orders shipped at the beginning of the year, as well as the success of new product introductions. Growth remained broad-based across all key brands, led by the flagship Rapala brand. Europe In the first half of the year sales in Europe stayed on the same level as the comparison period with both reporting and comparable exchange rates. The year started with an improved outlook and higher pre-season deliveries. However, drought and challenging weather conditions weakened consumer demand in parts of continental Europe, impacting replenishment sales in the second quarter. Sales of Rapala and Okuma exceeded the prior-year level, while sales declined for brands with greater exposure to the parts of continental European markets affected by adverse weather conditions. Rest of the World In the first half of the year sales in the Rest of the World market increased by 9% from the comparison period with both comparable translation exchange rates and reporting rates. Growth in the region was mainly driven by Latin American markets, where positive momentum continued throughout the reporting period and the new Okuma distributorship in Chile contributed incremental sales. Sales in Asian markets remained challenging and declined, as global trade disputes continued to weigh on consumer sentiment and discretionary spending. External net sales by area Q2 Q2 Change Comparable FY MEUR 2026 2025 % change % 2025 North America 36.7 31.5 +17% +18% 122.8 Europe 21.7 22.6 -4% -4% 79.7 Rest of the World 6.9 6.0 +15% +11% 25.0 Total 65.3 60.1 +9% +9% 227.5 H1 H1 Change Comparable FY MEUR 2026 2025 % change % 2025 North America 77.2 69.0 +12% +19% 122.8 Europe 44.4 44.5 0% 0% 79.7 Rest of the World 13.2 12.1 +9% +9% 25.0 Total 134.8 125.5 +7% +11% 227.5 Financial Results and Profitability In the first half of the year comparable (excluding mark -to-market valuations of operative currency derivatives and other items affecting comparability) operating profit increased by 4.9 MEUR from the comparison period. Reported operating profit increased by 6.7 MEUR from the comparison period and the items affecting comparability had a positive impact of 2.4 MEUR (positive 0.5) on reported operating profit. Comparable operating profit margin was 10.0% (6.9) for the first half of the year. The improved profitability was primarily driven by increased sales in the open water markets. Overall profitability also benefitted from slightly improve sales margin and from lower operating expense level. Reported operating profit margin was 11.7% (7. 3 ) f o r t h e fi r s t h a l f . R e p o rt e d operating profit includes a -0.1 MEUR (0.6) mark-to-market valuation of operative currency derivatives. Other items affecting comparability, included in the reported operating profit, were 2.4 MEUR (-0.2).
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RAPALA VMC | HALF YEAR FINANCIAL REPORT H1 | 20.8.2026 | 3 This amount includes mostly gains from the refunding of IEEPA tariffs in the US. Prior year’s other items include the disposal of real estate in Finland, as well as a non-cash currency translation loss relating to the closure of the Russian manufacturing operation. Total financial (net) expenses were 3.3 MEUR (4.9) for the first half of the year. Net interest and other financing expenses were 3.6 MEUR (3.5) and (net) foreign exchange gains were 0.2 MEUR (losses 1.3). Net profit for the first half of the year increased by 6.2 MEUR and was 8.5 MEUR (2.2) and earnings per share (basic and diluted) was 0.19 EUR (0.02). Key figures Q2 Q2 H1 H1 FY MEUR 2026 2025 2026 2025 2025 Net sales 65.3 60.1 134.8 125.5 227.5 Operating profit / loss 8.1 3.1 15.8 9.1 4.2 Comparable operating profit * 5.6 3.0 13.5 8.6 8.4 Net profit / loss 8.5 2.2 -4.9 * Excluding mark-to-market valuations of operative currency derivatives and other items affecting comparability. Other items affecting comparabil ity include material restructuring costs, impairments, gains and losses on business combinations and disposals, i nsurance compensations, regulatory-related items and other non-operational items. Bridge calculation of comparable operating profit Q2 Q2 H1 H1 FY MEUR 2026 2025 2026 2025 2025 Operating profit / loss 8.1 3.1 15.8 9.1 4.2 Mark-to-market valuations of operative currency derivatives 0.0 -0.1 0.1 -0.6 -0.6 Other items affecting comparability -2.4 0.0 -2.4 0.2 4.8 Comparable operating profit 5.6 3.0 13.5 8.6 8.4 More detailed bridge of comparable operating profit and definitions and reconciliation of key figures are presented in the fi nancial section of the release. Financial Position In January–June cash flow from operations increased from the previous year and landed at 16.7 MEUR (6.2). Change in net working capital had a negative 1.8 MEUR (negative 4.8) impact on cash flow. Excluding working capital impact, cash flow from operations improved from the previous year and was 18.5 MEUR (11.0), driven by improved profitability, strong focus on cash flow, as well as the repayment of IEEPA tariffs. End of the period inventory was 80.1 MEUR (82.2). The change in obsolescence allowance decreased inventory value by 2.3 MEUR. Changes in translation exchange rates increased inventory value by 1.0 MEUR. Organic decrease in inventory was 0.8 MEUR. Inventory turn improved and the composition was healthy. In January–June net cash used in investing activities was 1.6 MEUR (0.7). Capital expenditure was 1.6 MEUR (1.8) and disposals 0.1 MEUR (1.1). Expenditure consisted mainly of maintenance of manufacturing capacity and investments in new products. Prior year disposals include proceeds from the sale of real estate in Finland. Liquidity position of the Group was good. Undrawn committed long-term credit facilities amounted to 21.3 MEUR. Commercial papers sold under the commercial paper program amounted to 11.0 MEUR (14.0) at the end of the reporting period. Gearing ratio increased and equity-to- assets ratio decreased from last year. The Group’s 91.5 MEUR senior secured term and revolving credit facilities agreement includes financial covenants based on the net debt to EBITDA ratio (“leverage ratio”), the ratio of net debt to consolidated equity and the minimum liquidity. The financial leverage ratio covenant level for periods Q4/2025 to Q2/2026 is 3.80, for periods Q3/2026 to Q4/2027 3.50 and from Q1/2028 onwards 3.20. Covenants are regularly tested, either quarterly or on the last day of each month. The risk of breaching the covenants would trigger negotiations between the Group and lending banks to resolve the potential covenant breach, and to agree on actions to rectify the situation. In the unlikely event of unresolv ed covenant breach, the lending banks would have the right to call all or any part of the loans and related interest. On Q1/202 6 and Q2/202 6 testing dates, the leverage ratio landed at 3. 59 and 2. 28. Calculation of the covenants include customary adjustments mainly related to items affecting comparability and asset disposals, and therefore deviate from the reported figu res elsewhere in this report. The Group is currently compliant with all financial covenants and expects to comply with future bank requirements as well. The Group’s liquidity position remains good, and cash and cash equivalents amounted to 28.5 MEUR at June 30, 2026. The Group equity includes a hybrid loan of 25.0 MEUR issued in November 2025. The accumulated non-recognized interest on hybrid bond were 1.3 MEUR.
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RAPALA VMC | HALF YEAR FINANCIAL REPORT H1 | 20.8.2026 | 4 Key figures Q2 Q2 H1 H1 FY MEUR 2026 2025 2026 2025 2025 Cash flow from operations 20.5 15.5 16.7 6.2 5.5 Inventory at the end of the period 80.1 82.2 80.1 82.2 84.4 Net cash used in investing activities -0.7 0.1 -1.6 -0.7 -2.7 Net interest-bearing debt at end of period 60.1 58.6 60.1 58.6 72.9 Gearing % 41.0% 39.2% 41.0% 39.2% 53.5% Equity-to-assets ratio at end of period, % 50.5% 52.3% 50.5% 52.3% 49.3% Definitions and reconciliation of key figures are presented in the financial section of the release. Product Development Rapala turns 90 years in 2026, but is not resting on its laurels. On the contrary: Innovation has again been driving the sales during the first half of 2026. Consumer adoption of the 2026 hero lure Claptail has been exceptionally good and led to the launch of two new sizes of Claptail, 75 and 90 at ICAST 2026. Topwater fishing continues to be a driving force in new freshwater hardbaits. Other important new hardbaits that have been driving Rapala’s sales include the Harvest Shad and Snare crankbaits that are catering to the important 9,99€ retail category. Rapala also introduced Precision Xtreme Air Boss jerkbaits , which represent the next generation of highly technical wobblers specifically developed for European predator fishing. Rapala softbaits continued to grow in all key markets. Crushcity range expanded with Mooch Minnow that is specifically develo ped for forward facing sonar applications. The combination of Rapala Predator softbaits and VMC Mustache heads continued as the driver of European softbait business. On the accessories side Rapala tools have been sold in new packaging designed to reduce plastic use while strengthening the brand image. Following a successful early launch of the CountDown and Hydro bags in Southern Europe and Australia in Q4 2025, both product lines are now available across South America, Northern Europe and APAC, where they are delivering strong results and consistent turnover. Together, these launches are contributing to the continued rejuvenation of Rapala Accessories. The first introductions of 2027 new items to retail chains have commenced in Q2. The reception has been very promising, and all the new exciting items are presented to consumers from July’s ICAST show followed by AFTA in Australia in August. At ICAST 2026, 13 Fishing introduced a significantly expanded lineup of rods, reels, and combos designed to reinforce the brand’s position as an innovation and performance driven competitor. The launches strengthened the assortment across multiple price points and product categories, giving anglers more complete, purpose -built solutions while creating greater opportunities for retail placement and cross -category selling. Collectively, the introductions represent an important step in broadening the brand’s consumer reach, increasing its relevance at retail, and building a stronger platform for future growth. ICAST 2026 saw 4 wins for Rapala VMC with Best of Show for Freshwater Soft Lure with the sea urchin style C.E.O. bait, for Saltwater Soft Lure with the shrimp style Imposter, for Best Fishing Accessory with the High Capacity Line Remover and Best Novelty or Wellness with the Bald Eagle Giant Original Floater underlining the industry recognized innovation and brand strength of Rapala. Sufix Calibr8 is a highly anticipated 8-carrier braided line introduced at ICAST 2026, designed to eliminate guesswork for anglers by tailoring the line's diameter and weave specifically to individual fishing techniques . Lighter pound tests feature a thinner, smoother weave for optimal performance on spinning reels. Heavier tests feature a slightly tighter weave and pick count to add body and strength for baitcasting and heavy- cover fishing. Okuma's first half of 2026 was marked by the global launch of the Zyros spinning reel, with the European predator segment among its primary markets. Built around Okuma's C -40X™ long-strand carbon fiber construction, Zyros weighs just 199 g in the 2500 size at a €100 retail price. Consumer response was immediate: within two months, Zyros had become Okuma's third best-selling reel. In spinning rods, the newly introduced G-Control freshwater series and Ceymar SW range have been well received. Personnel and Organization Average number of personnel was relatively stable at 1 418 (1 424) for the first half of the year. At the end of June, the number of personnel was 1 442 (1 451). Short-term Outlook and Risks Replenishment demand remained robust in Q2/2026 in the core North American market, following strong initial fill deliveries in Q1/2026 for the open-water season. This has compensated for softer demand in Europe, where drought conditions and weaker consumer spending have weighed on mark et activity. While macroeconomic uncertainty persists amid geopolitical instability and tariff volatility, the strong first -half 2026 performance, healthy inventory levels in the winter fishing category in North America, and a robust innovation pipeline re inforce the confidence in Rapala VMC's recovery trajectory and underpin the Group’s improved full-year outlook. Our guidance reflects current market conditions but remains subject to potential trade -related disruptions, including tariffs and regulatory changes, which may impact demand and cost structures.
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RAPALA VMC | HALF YEAR FINANCIAL REPORT H1 | 20.8.2026 | 5 Consequently, the Group revised the outlook (stock exchange release August 14, 2026) and expects 2026 full year comparable operating profit (excluding mark-to-market valuations of operative currency derivatives and other items affecting comparability) to be in the range of 12 to 14 MEUR (2025: 8.4 MEUR). Short-term risks and uncertainties are described in more detail at the end of this report. Annual General Meeting The AGM approved the Board of Director’s proposal, according to which no dividend be paid based on the adopted balance sheet for the financial year 2025. The AGM approved that the Board of Directors consists of six members. Emmanuel Viellard, Julia Aubertin, Vesa Luhtanen, Alexander Rosenlew, Pascal Lebard and Johan Berg were re-elected as members of the Board of Directors . A separate stock exchange release on the decisions of the AGM has been given, and up to date information on the Board’s authorizations and other decisions of the AGM are available also on the corporate website. Authorised Public Accountants Firm Deloitte Ltd was elected as the Company’s auditor. Deloitte Ltd will also carry out the assurance of the company’s sustainability reporting for the financial year 202 6 in accordance with the transitional provision of the act amending the Limited Liability Companies Act (1252/2023) and will be imbursed for this task as per its invoice approved by the company. Helsinki, August 20, 2026 Board of Directors of Rapala VMC Corporation For further information, please contact: Cyrille Viellard, President and Chief Executive Officer, +358 9 7562 540 Miikka Tarna, Chief Financial Officer, +358 9 7562 540 Tuomo Leino, Investor Relations, +358 9 7562 540 An audiocast on the first half year result will be arranged on Friday August 21, 2026, at 10:00 a.m EEST. Please join the audiocast by registering using the following link: https://events.inderes.com/rapala/2026-h1-results Financial information and recording of the audiocast will be available at www.rapalavmc.com
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RAPALA VMC | HALF YEAR FINANCIAL REPORT H1 | 20.8.2026 | 6 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited) STATEMENT OF INCOME H1 H1 FY MEUR 2026 2025 2025 Net sales 134.8 125.5 227.5 Other operating income 0.2 0.1 0.3 Materials and services -58.1 -55.2 -101.8 Employee benefit expenses -32.9 -32.1 -62.7 Other operating expenses -22.7 -23.7 -43.2 Reclassification of translation difference on discontinued operations - - -4.7 Gain on sale of assets 0.0 0.5 0.5 Share of results in associates and joint ventures 0.0 0.0 0.0 EBITDA 21.3 15.0 15.9 Depreciation, amortization and impairments -5.5 -5.9 -11.6 Operating profit/loss (EBIT) 15.8 9.1 4.2 Financial income and expenses -3.3 -4.9 -8.6 Profit/loss before taxes 12.5 4.2 -4.4 Income taxes -4.0 -2.0 -0.5 Net profit/loss for the period 8.5 2.2 -4.9 Attributable to: Equity holders of the parent company 8.5 2.2 -4.9 Earnings per share for profit attributable to the equity holders of the company: Earnings per share, EUR, basic and diluted 0.19 0.02 -0.23 STATEMENT OF COMPREHENSIVE INCOME H1 H1 FY MEUR 2026 2025 2025 Net profit / loss for the period 8.5 2.2 -4.9 Other comprehensive income, net of tax Change in translation differences* 1.9 -7.4 -8.4 Reclassification of translation difference on discontinued operations - - 4.7 Gains and losses on hedges of net investments* -0.1 -0.6 -0.2 Remeasurements of defined benefit liabilities - - 0.0 Total other comprehensive income, net of tax 1.8 -8.0 -3.9 Total comprehensive income for the period 10.2 -5.8 -8.8 Total comprehensive income attributable to: Equity holders of the parent company 10.2 -5.8 -8.8 * Item that may be reclassified subsequently to the statement of income . H1 2025 includes 0.5 MEUR recycling of accumulated translation differences related to the liquidation of the Russian manufacturing subsidiary.
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RAPALA VMC | HALF YEAR FINANCIAL REPORT H1 | 20.8.2026 | 7 STATEMENT OF FINANCIAL POSITION Jun 30 Jun 30 Dec 31 MEUR 2026 2025 2025 ASSETS Non-current assets Intangible assets 97.9 96.6 96.4 Property, plant and equipment 19.5 21.0 20.3 Right-of-use assets 8.8 11.3 9.4 Non-current assets Interest-bearing 0.7 0.7 0.7 Non-interest-bearing 17.7 15.0 17.6 144.6 144.6 144.3 Current assets Inventories 80.1 82.2 84.4 Current assets Non-interest-bearing 37.1 33.9 30.0 Cash and cash equivalents 28.5 25.4 18.2 145.7 141.5 132.6 Total assets 290.3 286.1 276.9 EQUITY AND LIABILITIES Equity Equity attributable to the equity holders of the company 121.6 119.5 111.4 Hybrid bond 25.0 30.0 25.0 146.6 149.5 136.4 Non-current liabilities Interest-bearing 63.9 50.4 63.5 Non-interest-bearing 11.0 11.0 10.9 Right-of-use liabilities 4.8 7.1 5.6 79.7 68.4 80.0 Current liabilities Interest-bearing 16.0 22.5 18.5 Non-interest-bearing 43.5 40.9 37.8 Right-of-use liabilities 4.6 4.8 4.3 64.0 68.2 60.6 Total equity and liabilities 290.3 286.1 276.9
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RAPALA VMC | HALF YEAR FINANCIAL REPORT H1 | 20.8.2026 | 8 STATEMENT OF CASH FLOWS H1 H1 FY MEUR 2026 2025 2025 Net profit / loss for the period 8.5 2.2 -4.9 Adjustments to net profit / loss for the period * 14.3 13.4 25.9 Financial items and taxes paid and received -4.3 -4.7 -9.1 Change in working capital -1.8 -4.8 -6.3 Net cash generated from operating activities 16.7 6.2 5.5 Investments -1.6 -1.8 -4.3 Proceeds from sales of assets 0.1 1.1 1.6 Change in interest-bearing receivables 0.0 0.0 0.0 Net cash used in investing activities -1.6 -0.7 -2.7 Loan withdrawals 27.6 24.5 91.1 Loan repayments -29.0 -24.2 -81.5 Repayment of lease liabilities -2.8 -3.0 -6.0 Hybrid bond ** - - -10.2 Purchase of own shares - - -1.0 Net cash generated from financing activities -4.2 -2.8 -7.6 Change in cash and cash equivalents 10.9 2.7 -4.9 Cash & cash equivalents at the beginning of the period 18.2 21.7 21.7 Foreign exchange rate effect -0.6 1.0 1.4 Cash and cash equivalents at the end of the period 28.5 25.4 18.2 * Includes reversal of non-cash items, income taxes and financial income and expenses. ** Hybrid bond interest.
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RAPALA VMC | HALF YEAR FINANCIAL REPORT H1 | 20.8.2026 | 9 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY Attributable to equity holders of the company MEUR Share capital Share capital Fund for invested non-restricted equity Own shares Translation differences Retained earnings Hybrid bond Total equity Equity on Jan 1, 2025 3.6 16.7 4.9 -3.0 -9.9 113.0 30.0 155.3 Comprehensive income* - - - - -8.0 2.2 - -5.8 Equity on Jun 30, 2025 3.6 16.7 4.9 -3.0 -17.9 115.2 30.0 149.5 Equity on Jan 1, 2026 3.6 16.7 4.9 -4.0 -13.7 103.9 25.0 136.4 Comprehensive income* - - - - 1.8 8.5 - 10.2 Share-based incentive plan - - - - - 0.1 - 0.1 Other changes - - - - - -0.1 - -0.1 Equity on Jun 30, 2026 3.6 16.7 4.9 -4.0 -11.9 112.4 25.0 146.6 * For the period (net of tax) NOTES TO THE INCOME STATEMENT AND FINANCIAL POSITION The financial information included in this financial statement release is unaudited. This financial statement release has bee n prepared in accordance with “IAS 34 Interim Financial Reporting” standard. The accounting principles adopted in the preparation of this report are consistent with those used in the preparation of the financial statements 2025. Use of estimates and rounding of figures Complying with IFRS in preparing financial statements requires the management to make estimates and assumptions. Such estimates affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the amounts of r evenues and expenses. Although these estimates are based on the management's best knowledge of current events and actions, actual results may diffe r from these estimates. All figures in these accounts have been rounded. Consequently, the sum of individual figures can deviate from the presented sum figure. Key figures have been calculated using exact figures. Events after the end of the half year period The Group has no knowledge of any significant events after the end of the reporting period that would have a material impact on the financial statements for January-June 2026. Acquisitions and divestments There were no significant acquisitions or divestments during the first half of the year.
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RAPALA VMC | HALF YEAR FINANCIAL REPORT H1 | 20.8.2026 | 10 Key figures H1 H1 FY 2026 2025 2025 EBITDA, % of net sales 15.8% 12.0% 7.0% Operating profit, % of net sales 11.7% 7.3% 1.9% Return on capital employed, % 15.2% 8.6% 2.0% Capital employed at end of period, MEUR 206.7 208.2 209.3 Net interest-bearing debt at end of period, MEUR 60.1 58.6 72.9 Equity-to-assets ratio at end of period, % 50.5% 52.3% 49.3% Debt-to-equity ratio (gearing) at end of period, % 41.0% 39.2% 53.5% Earnings per share, EUR, basic and diluted 0.19 0.02 -0.23 Equity per share at end of period, EUR 3.19 3.07 2.92 Average personnel for the period 1 418 1 424 1 408 Definitions and reconciliation of key figures are presented at the end of the financial section. External net sales by area H1 H1 FY MEUR 2026 2025 2025 North America 77.2 69.0 122.8 Europe 44.4 44.5 79.7 Rest of the world 13.2 12.1 25.0 Total 134.8 125.5 227.5 Related party transactions The Group's related parties include its mana gement (the Group management and the Board of Directors) , entity with significant influence over the Group and associated company. H1 H1 FY MEUR 2026 2025 2025 Sales and other income 0.0 0.0 0.0 Purchases and other expenses 0.0 0.0 0.0 Rents paid* 0.1 0.2 0.3 * Rents paid includes mostly lease agreement for the real estate for the consolidated operations in France.
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RAPALA VMC | HALF YEAR FINANCIAL REPORT H1 | 20.8.2026 | 11 Intangible assets 2026 MEUR Goodwill Trademarks Customer relations Other intangible assets Total Acquisition cost Jan 1 61.5 33.7 2.6 7.4 105.2 Additions 0.0 0.1 0.1 Disposals -0.3 -0.3 -0.7 Reclassifications 0.0 0.0 Translation differences 1.2 0.5 0.1 0.1 1.8 Acquisition cost Jun 30 62.7 34.2 2.3 7.3 106.5 Accumulated amortization Jan 1 -0.7 -2.6 -5.6 -8.9 Disposals 0.3 0.3 0.7 Amortization during the period -0.1 0.0 -0.2 -0.3 Reclassifications 0.0 0.0 Translation differences 0.0 -0.1 0.0 -0.2 Accumulated amortization Jun 30 -0.8 -2.3 -5.5 -8.6 Carrying value Jan 1 61.5 33.0 0.0 1.8 96.4 Carrying value Jun 30 62.7 33.3 0.0 1.9 97.9 Tangible assets 2026 MEUR Land Buildings and structures Machinery and equipment Other tangible assets Advance payments and construction in progress Total Acquisition cost Jan 1 1.3 20.3 54.4 14.7 1.3 92.0 Additions 0.0 0.5 0.3 0.7 1.5 Disposals 0.0 0.0 -0.3 0.0 -0.4 Reclassifications 0.2 0.2 -0.7 -0.3 Translation differences 0.0 0.1 0.1 0.2 0.0 0.4 Acquisition cost Jun 30 1.3 20.4 55.2 15.0 1.3 93.2 Accumulated depreciation Jan 1 -15.8 -43.5 -12.4 -0.1 -71.7 Disposals 0.0 0.0 0.3 0.3 Reclassifications 0.1 0.0 0.1 0.3 Depreciation during the period -0.4 -1.3 -0.6 -2.3 Translation differences -0.1 0.0 -0.2 -0.3 Accumulated depreciation Jun 30 -16.2 -44.7 -12.7 0.0 -73.6 Carrying value Jan 1 1.3 4.6 10.9 2.3 1.2 20.3 Carrying value Jun 30 1.3 4.2 10.5 2.3 1.3 19.5
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RAPALA VMC | HALF YEAR FINANCIAL REPORT H1 | 20.8.2026 | 12 Fair values of financial instruments Jun 30 Jun 30 Dec 31 2026 2025 2025 MEUR Carrying value Fair value Carrying value Fair value Carrying value Fair value Assets Other shares (level 3) 0.1 0.1 0.1 0.1 0.1 0.1 Derivatives (level 2) 0.1 0.1 0.4 0.4 0.1 0.1 Total 0.2 0.2 0.4 0.4 0.2 0.2 Liabilities Non-current interest-bearing liabilities (excl. derivatives) 63.9 64.0 50.4 50.4 63.5 63.6 Derivatives (level 2) 0.5 0.5 1.0 1.0 0.7 0.7 Total 64.4 64.4 51.4 51.5 64.1 64.2 Fair values of other financial instruments do not differ materially from their carrying value. Shares and share capital The Annual General Meeting (AGM) kept on April 29, 2026 approved the Board of Director’s proposal that no dividend will be paid. A separate stock exchange release on the decisions of the AGM has been given, and up to date information on the Board’s authorizations and other decisions of the AGM are available also on the corporate website. Share related key figures Jun 30 Jun 30 2026 2025 Number of shares 39 000 000 39 000 000 Number of shares, average 39 000 000 39 000 000 Number of treasury shares* 870 159 123 891 Number of treasury shares, %* 2.2% 0.3% Number of outstanding shares 38 129 841 38 876 109 Number of shares traded, YTD 4 316 765 3 915 862 Share price, EUR 1.21 1.23 Highest share price, YTD, EUR 1.30 1.99 Lowest share price, YTD, EUR 0.92 1.20 Average price of treasury shares, all time, EUR 2.20 7.41 * Rapala VMC Oyj has an agreement with Allshares Oy concerning the long -term share -based incentive schemes for key personnel. Pursuant to the agreement Allshares Hedging 6 Oy owns Rapala VMC Oyj’s shares related to the incentive schemes until the shares are granted to employees particip ating in the scheme. As of 30.6.2026 Allshares Hedging 6 Oy held 746 268 shares reported as treasury shares. The legal ownership of Allshares Hedging 6 Oy is with an external service provider, but based on the agreement, Rapala VMC Oyj exercises control over the arrangement. Therefore the holding company is combined with the IFRS consolidated financial statements as a structured entity. Short term risks and uncertainties The objective of Rapala VMC Group’s risk management is to support the implementation of the Group's strategy and execution of business targets. Group management continuously develops its risk management practices and internal controls. Detailed description s of the Group's strategic, operative and financial risks as well as risk management principles are included in the Financial Statements 2025. Due to the nature and seasonality of the fishing tackle business, weather impacts consumer demand and may have impact on the Group’s sales for current and following seasons. However, the weather risk is to some extent diversified as the Group has a wide geographical footprint and sells products both for summer and winter seasons. The biggest deliveries for peak seasons are concentrated into relatively short time periods, and hence a well -functioning supply chain is required. The uncertainties in future demand as well as the length of the Group’s supply chain increases complexity in supply chain management. Delays in shipments from internal or external suppliers or unexpected changes in customer demand may lead to shortages in del iveries and contractual penalties, lost sales or excess inventories and subsequent clearance sales with lower margins. The current economic climate with uncertainty in the global trade environment (including tariffs) can impact the sales of fis hing tackle and more over impact the profitability of the Group’s operations as products are manufactured in or sourced from many different countries in Europe and Asia. Retailers reducing their inventory levels and facing financial challenges contribute to this volatility. Additional ly, rapid and significant increases in living expenses or sudden fluctuations in foreign exchange rates can temporarily affect consumer spending. Nevertheless, consumer
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RAPALA VMC | HALF YEAR FINANCIAL REPORT H1 | 20.8.2026 | 13 demand has historically remained relatively stable. Political tensions may have negative effects on the Group's business and geopolitical development is followed closely. The global nature of the Group's sales and operations diversifies market risks. Nevertheless, a significant portion of the Gr oup’s sales is generated in North America. The Group is cautiously monitoring the development both in global macro economy as well as in the various local markets it operates in. While Group’s customer base is generally diversified, changes in retail landscape may have an impact on purchase behavior of customers. New distribution agreements, termination of old agreements or changes in product offering made by the principal may affect sales at short notice. Cash collection and credit risk management is high on the agenda of local management and this m ay affect sales to some customers. The quality of the accounts receivable is closely monitored to mitigate credit risk. The Group's sales, profitability, and balance sheet are impacted by the changes in foreign exchange rates, and the Group has hedging agreements according to the foreign exchange risk management policy set by the Board of Directors. As the Group is not appl ying hedge accounting in accordance to IFRS 9, the unrealized mark-to-market valuations of operative currency hedging agreements have an impact on the Group's reported operating profit. Some of the Group’s currency positions are not possible or feasible to be hedged and therefore may have impact on the Group’s net result. The Group’s 91.5 MEUR senior secured credit facilities include liquidity, profitability and solvency -related financial covenants, which are actively monitored. The covenants are regularly tested, either quarterly or monthly. The Group actively monitors deve lopment in financial performance in relation to the financial covenants and expects to continue to fulfill the requirements of its lenders. Liquid ity risks are under control. The term of the credit facilities is twenty-four (24) months from the signing of the facilities agreement in December 2025, subject to an extension option of eight (8) months. No significant changes are identified in the Group's strategic risks or business environment with the exception of the increased geopolitical risk environment and uncertainties in the global trade environment.
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RAPALA VMC | HALF YEAR FINANCIAL REPORT H1 | 20.8.2026 | 14 Definitions of key figures Operating profit before depreciation and impairments (EBITDA) Operating profit + depreciation and impairments Items affecting comparability Change in mark-to-market valuations of operative currency derivatives +/- other items affecting comparability Other items affecting comparability Restructuring costs + impairments +/- gains and losses on business combinations and disposals - insurance compensations +/- other non-operational items Comparable operating profit Operating profit +/- change in mark-to-market valuations of operative currency derivatives +/- other items affecting comparability Net interest-bearing debt Total interest-bearing liabilities + right-of-use liabilities - total interest-bearing assets - cash and cash equivalents Capital employed (average for the period) Total equity (average for the period) + net interest-bearing debt (average for the period) Working capital Inventories + total non-interest-bearing assets - total non-interest-bearing liabilities Total non-interest-bearing assets Total assets - interest-bearing assets - intangible and tangible assets - assets classified as held-for-sale Total non-interest-bearing liabilities Total liabilities - interest-bearing liabilities Return on capital employed (ROCE), % Operating profit (full-year adjusted) x 100 Capital employed (average for the period) Debt-to-equity ratio (Gearing), % Net interest-bearing debt x 100 Total equity Equity-to-assets ratio, % Total equity x 100 Total equity and liabilities - advances received Earnings per share, EUR Net profit for the period attributable to the equity holders of the parent company - hybrid capital accrued unrecognized interest after tax Adjusted weighted average number of shares Equity per share, EUR Equity attributable to equity holders of the parent company Adjusted number of shares at the end of the period Average number of personnel Calculated as average of month end personnel amounts
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RAPALA VMC | HALF YEAR FINANCIAL REPORT H1 | 20.8.2026 | 15 Reconciliation of key figures to IFRS H1 H1 FY 2026 2025 2025 Items affecting comparability Change in mark-to-market valuations of operative derivatives 0.1 -0.6 -0.6 Other items affecting comparability -2.4 0.2 4.8 Items affecting comparability -2.3 -0.5 4.2 Other items affecting comparability Finland sale of real estate - -0.5 -0.5 US organizational restructuring - 0.1 0.1 Organizational restructurings 0.0 - 0.3 Currency translation loss from closing of Russian manufacturing subsidiary - 0.5 0.5 Currency translation loss from closing of Indonesian manufacturing subsidiary - - 4.3 US tariff refunds (IEEPA) -2.5 - - Other items affecting comparability -2.4 0.2 4.8 Capital employed (average for the period) Total equity (average for the period) 141.5 152.4 145.8 Net interest-bearing debt (average for the period) 66.5 60.2 67.4 Capital employed (average for the period) 208.0 212.6 213.2 Return on capital employed (ROCE), % Operating profit (full-year adjusted) 31.6 18.2 4.2 Capital employed (average for the period) 208.0 212.6 213.2 Return on capital employed (ROCE), % 15.2% 8.6% 2.0% Equity-to-assets ratio, % Total equity 146.6 149.5 136.4 Total equity and liabilities 290.3 286.1 276.9 Advances received 0.1 0.2 0.5 Equity-to-assets ratio, % 50.5% 52.3% 49.3% Earnings per share, EUR Net profit for the period attributable to the equity holders of the parent company 8.5 2.2 -4.9 Hybrid capital accrued unrecognized interests after tax 1.1 1.5 -4.0 Adjusted weighted average number of shares 38 129 841 38 876 109 38 549 872 Earnings per share, EUR 0.19 0.02 -0.23 Equity per share, EUR Equity attributable to equity holders of the parent company 121.6 119.5 111.4 Adjusted number of shares at the end of the period 38 129 841 38 876 109 38 129 841 Equity per share, EUR 3.19 3.07 2.92