RAPALA VMC CORPORATION'S JANUARY TO JUNE 2014: SALES AND PROFITS UNDER PRESSURE, CASH FLOW AT RECORD LEVEL

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| Source: Rapala VMC
Rapala VMC Corporation
Interim report
July 21, 2014 at 2:00 p.m.

RAPALA VMC CORPORATION'S JANUARY TO JUNE 2014: SALES AND PROFITS UNDER PRESSURE,
CASH FLOW AT RECORD LEVEL

April-June in brief:

  * Net sales were 77.7 MEUR, down 5% from previous year (81.4). With comparable
    exchange rates sales up 1%.
  * Comparable operating profit was 9.7 MEUR (13.1).
  * Cash flow from operations was 22.3 MEUR (16.2).
  * Earnings per share was 0.08 EUR (0.16).
  * Own lure manufacturing operations in China ceased.
  * Full year net sales and comparable operating profit are expected to be below
    2013 levels. Guidance unchanged from July 11, 2014.
January-June in brief:

  * Net sales were 143.9 MEUR, down 8% from previous year (156.7). With
    comparable exchange rates sales down 2%.
  * Comparable operating profit was 16.3 MEUR (21.2).
  * Cash flow from operations was 14.0 MEUR (8.1).
  * Earnings per share was 0.19 EUR (0.31).


President  and  CEO  Jorma  Kasslin:  "In  second quarter the development of our
business  was twofold. In  several European and  overseas markets our sales were
growing  well, having support from the early start of the season. However in the
same  time in some  of our biggest  markets, like in  USA and  Russia, our sales
were  behind  last  year,  impacted  by  the  slow-down  of the consumer demand,
unfavorable  currency movements and weathers. This together with the extra costs
relating  to ramping up the production in Batam was burdening our second quarter
profitability.  On positive side, our second quarter operating cash flow reached
record level.

Our  own manufacturing  operations in  China have  now practically ceased, which
will start to show its positive results towards the end of this year and give us
totally new start for the next year."



Key figures

                          II     II change   I-II   I-II change            I-IV

 MEUR                   2014   2013      %   2014   2013      %            2013

 Net sales              77.7   81.4    -5%  143.9  156.7    -8%           286.6

 Operating profit        8.6   13.4   -36%   16.0   22.0   -27%            26.1

 % of net sales        11.1%  16.5%         11.1%  14.1%                   9.1%

 Comparable operating
 profit *                9.7   13.1   -26%   16.3   21.2   -23%            27.1

 % of net sales        12.4%  16.1%         11.4%  13.5%                   9.5%

 Cash flow from
 operations             22.3   16.2   +38%   14.0    8.1   +73%            15.3

 Gearing %             73.2%  68.1%         73.2%  68.1%                  71.2%

 EPS, EUR               0.08   0.16   -50%   0.19   0.31   -39%            0.32

 * Excluding non-recurring items and mark-to-market valuations of operative
 currency derivatives.

 Market environment

Global market conditions continue challenging with positive signs in some
regions. Sales developed positively in several European countries and pre-sales
of ice fishing products for the coming winter season in the US has been good.
Political unrest in Eastern Europe, unfavourable development of several
currencies and ongoing economical uncertainties in some other markets continue
to hurt sales. Abnormal and extreme weather conditions had an adverse impact on
the peak season of summer fishing sales in some markets. Tough economic
situation and extraordinary weather conditions have impacted customer spending,
timing and length of seasons and forced retailers to put tighter control on
their purchases.

Business Review April-June 2014

The Group's net sales for the second quarter were down 5%. Changes in
translation exchange rates explain approximately 4.8 MEUR of the decline in net
sales. With comparable translation exchange rates quarterly net sales grew 1%
from last year.

North America

Despite gradual positive development of general consumer sentiment in North
America, the retail sales of fishing tackle products slowed down. This was
impacted by late and rainy spring and summer as well as flooding, which have
impacted fishing conditions in some main areas. More than half of the decline
net sales is due to change in currency exchange rates. With comparable rates
sales were down 4%.

Nordic

Nordic sales increased in local currency terms. With comparable rates net sales
were 2% above last year level. Early spring supported the beginning of the
summer fishing season, while subsequent cooling down of the weathers partly hurt
the sales. Consequently second quarter sales were partly negatively impacted by
earlier timing of summer fishing sales. Sales were supported by growth in Norway
and Marttiini kitchen knife sales in Finland.

Rest of Europe

Sales in Russia and Ukraine continued to suffer from the political and
economical unrest in the area.  Currencies, mainly Ruble, had a strong negative
impact on the sales in the Rest of Europe compared to last year and with
comparable rates net sales were up 3%. Excluding Russia and Ukraine sales of
Rest of Europe sales increased 6% from last year, assuming comparable rates.
Sales improved in France and UK as well as in Hungary and Spain where economies
show cautious recovery. Quarterly sales were negatively impacted by delivery
problems of suppliers.

Rest of the World

Despite volume growth net sales declined due to currency impact, most of all
South African Rand and Australian dollar. With comparable rates sales were 8%
above last year's level. Business developed well in Korea and Thailand, while
the business conditions were tough in Australia. Economic and political
instability continued to disturb the business in South Africa.
External Net Sales by Area

                       II     II change   I-IV

 MEUR                2014   2013      %   2013

 North America       19.8   21.9   -10%   88,4

 Nordic              19.5   19.8    -2%   60,8

 Rest of Europe      30.7   31.9    -4%  103,6

 Rest of the World    7.6    7.8    -3%   33,8

 Total               77.7   81.4    -5%  286,6



Business Review January-June 2014

The Group net sales for the first half of the year were down 8%. Changes in
translation exchange rates explain approximately 8.9 MEUR of the decline in net
sales. With comparable translation exchange rates six-month net sales were 2%
behind last year's level.

North America

Currencies cut North American sales compared to last year, with comparable rates
net sales were down 5%. Extreme winter weathers, late start of spring and rainy
summer delayed sales of summer fishing products, but conversely supported the
replenishment sales of ice fishing products of 2013/2014 winter season.

Nordic

Nordic sales were down 3% with comparable rates. Nordic countries suffered from
late and exceptionally mild and snowless winter which impacted the sales of
winter sports and ice fishing products especially in Finland. Sales in Norway
have developed positively.

Rest of Europe

Political and economical turbulence in Russia and Ukraine had adverse impact on
sales in these countries. Currencies, mainly Ruble, had a clear negative impact
on sales in the Rest of Europe compared to last year and with comparable rates
net sales were slightly behind last year. Excluding Russia and Ukraine sales of
Rest of Europe in local currency term improved 2% from last year supported by
growth in Poland, Hungary, Spain and UK.

Rest of the World

Rest of the World sales were also impacted negatively by weakening of several
currencies and with comparable rates sales were slightly above last year level.
Local currency sales developed well in several Asian and Latin American
countries, while suffered in Australia. Transfer of production from China to
Batam impacted negatively external sales of the Asian manufacturing unit.



External Net Sales by Area

                     I-II   I-II change   I-IV

 MEUR                2014   2013      %   2013

 North America       39.2   43.7   -10%   88,4

 Nordic              32.7   34.9    -6%   60,8

 Rest of Europe      57.3   61.4    -7%  103,6

 Rest of the World   14.7   16.6   -11%   33,8

 Total              143.9  156.7    -8%  286,6


Financial Results and Profitability

Comparable (excluding non-recurring items and mark-to-market valuations of
operative currency derivatives) and reported operating profit decreased from
last year for the second quarter and for the first half of the year. Changes in
translation exchange rates decreased quarterly operating profit by approximately
0.5 MEUR and six-month operating profit by approximately 0.6 MEUR. With
comparable translation exchange rates comparable operating profit was 2.9 MEUR
behind last year's level for the quarter and 4.3 MEUR for the first half of the
year.

Comparable operating profit margin was 12.4% (16.1) for the quarter and 11.4%
(13.5) for the six-month period. Second quarter profitability was hurt by lower
sales, both at distribution and manufacturing level, as well as more aggressive
sales campaigns reducing the margins. Ramp-up of the new factory in Batam had a
significant negative contribution in the Group's profitability. Profitability
was supported by the favourable exchange rate impact on purchases, improved
result of the UK joint venture and improved margin in the first quarter of the
year.

Respectively reported operating profit margin was 11.1% (16.5) for the quarter
and 11.1% (14.1) for the six-month period. Reported operating profit included
net loss of non-recurring items of 0.5 MEUR (0.1) for the quarter and 0.4 MEUR
(0.1) for the first half of the year related to the closing down of the
manufacturing operations in China. Mark-to-market valuation of operative
currency derivatives included in the reported operating profit was 0.6 MEUR loss
(0.5 gain) for the quarter and 0.1 MEUR gain (0.9 gain) for six-months.

Total financial (net) expenses were 1.6 MEUR (1.9) for the quarter and 3.5 MEUR
(2.2) for the first half. Financial items were negatively impacted by the (net)
foreign exchange expenses of 0.5 MEUR (0.8) for the quarter and 1.5 MEUR (0.4)
for the six-months. Net interest and other financing expenses were at last
year's level at 1.0 MEUR (1.0) for the quarter and 1.9 MEUR (1.8) for the first
half.

Net profit for the quarter reduced from last year and earnings per share were
0.08 EUR (0.16) for the quarter and 0.19 EUR (0.31) for the first half of the
year. Six-month net profit includes a positive tax impact of 1.0 MEUR related to
an agreement with the Finnish tax authority on the parent company's taxation in
years 2006-2013. The share of non-controlling interest in net profit decreased
from last year and totalled 1.0 MEUR (1.6) for the quarter and 0.9 MEUR (2.5)
for the first half of the year.



Key figures
                          II     II change   I-II   I-II change            I-IV

 MEUR                   2014   2013      %   2014   2013      %            2013

 Net sales              77.7   81.4    -5%  143.9  156.7    -8%           286.6

 Operating profit        8.6   13.4   -36%   16.0   22.0   -27%            26.1

 Comparable operating
 profit *                9.7   13.1   -26%   16.3   21.2   -23%            27.1

 Net profit              4.1    7.8   -47%    8.4   14.4   -42%            16.1

 * Excluding non-recurring items and mark-to-market valuations of operative
 currency derivatives.

Segment Review

Group Products

Second quarter and six-months sales of Group Products decreased from last year.
Sales were burdened by foreign exchange rates and with comparable exchange rates
net sales were at last year's level for the quarter and down 2% for the first
half of the year. Quarterly sales was supported by increased sales of fishing
accessories. Unfavourable weather conditions impacted negatively quarterly sales
of summer fishing tackle in some markets, particularly the US. First half sales
were also impacted by lower sales of winter fishing and winter sports products
in Europe due to mild winter.

Operating profit for Group Products decreased from last year in the second
quarter and first half of the year. Operating profit was negatively impacted by
foreign exchange rates, lower sales impacting profitability both at distribution
and manufacturing level, special campaigns and costs related to closing down the
manufacturing unit in China and ramp-up of the Batam unit.


Third Party Products

Sales of Third Party Products were below last year in the second quarter and
first half of the year. With comparable exchange rates net sales were up 3% in
the quarter and down 4% in the six-month period. Quarterly sales increase
resulted from increase in sales of third party fishing products. Third Party
Products sales faced challenges due to supplier's delivery problems, economical
instabilities and weather conditions.

Operating profit for Third Party Products was slightly behind last year level
supported by more favourable exchange rates on purchases and recovery of margin
while burdened by lower sales.


Net Sales by Segment

                          II     II change   I-II   I-II change   I-IV

 MEUR                   2014   2013      %   2014   2013      %   2013

 Group Products         47.0   49.4    -5%   90.3   96.6    -7%  176.3

 Third Party Products   30.7   32.1    -4%   53.6   60.2   -11%  110.5

 Eliminations            0.0   -0.1           0.0   -0.1          -0.1

 Total                  77.7   81.4    -5%  143.9  156.7    -8%  286.6




Operating profit by Segment
                          II     II change   I-II   I-II change   I-IV

 MEUR                   2014   2013      %   2014   2013      %   2013

 Group Products          4.7    9.1   -48%    9.7   15.3   -37%   19.4

 Third Party Products    3.9    4.3    -9%    6.4    6.7    -4%    6.7

 Total                   8.6   13.4   -36%   16.0   22.0   -27%   26.1


Financial position

Cash flow from operations improved significantly and reached record levels of
22.3 MEUR (16.2) for the second quarter and 14.0 MEUR (8.1 MEUR) for the first
half of the year, despite the reduced net result. Improvement was driven by
positive development in the net working capital as especially receivables
released more cash. High second quarter cash flow reflects earlier timing of
purchases and later collection of cash compared to last year. Net change in
working capital amounted to 13.6 MEUR (2.1) for the quarter and -2.4 MEUR (-
13.0) for the six-month period. Inventories increased by 1.4 MEUR from last June
amounting to 113.9 MEUR (112.5). Currency impact decreased inventories by some
5.8 MEUR. Increase in inventories was driven primarily by slowdown in sales and
transfer of production from China to Batam.

Net cash used in investing activities was at last year's level and totalled 2.4
MEUR (2.4) for the quarter and 4.5 MEUR (4.5) for the first half of the year,
for the most part consisting of normal operative capital expenditure.

Liquidity position of the Group was good. Following an increased focus on cash
management, cash and cash equivalents reduced to 15.6 MEUR (28.1) and undrawn
committed long-term credit facilities amounted to 78.5 MEUR at the end of the
period. Net interest-bearing debt and gearing increased from last year and
equity-to-assets ratio was slightly below last year level. The Group fulfils all
financial covenants related to its credit facilities.



Key figures

                                   II     II change   I-II   I-II change   I-IV

 MEUR                            2014   2013      %   2014   2013      %   2013

 Cash flow from operations       22.3   16.2   +38%   14.0    8.1   +73%   15.3

 Net interest-bearing debt at
 end of period                   96.4   95.7    +1%   96.4   95.7    +1%   96.3

 Gearing %                      73.2%  68.1%         73.2%  68.1%         71.2%

 Equity-to-assets ratio at end
 of period, %                   42.6%  42.8%         42.6%  42.8%         44.5%

Strategy Implementation

Execution of the Rapala Group's strategy of profitable growth is based on three
cornerstones: brands, manufacturing and distribution, supported by strong
corporate culture. During the second quarter strategy implementation continued
in various areas.

Ramp-up of the Group's new ice drill manufacturing unit in Korpilahti, Finland,
has been finalized and the unit is on time producing Mora Ice and Rapala UR
branded ice drills and related accessories for the next winter season.

The operations of the Group's own lure manufacturing unit in China ceased during
the second quarter and remaining premises will be handed over during third
quarter. The new lure manufacturing unit in Batam, employing more than 800
people, is intensively focusing on increasing the operative efficiencies, in
order to capitalize the benefits of streamlined production processes and cheaper
production costs.

Initiatives to streamline the Group's supply chain are proceeding, focusing on
consolidating purchasing and logistics processes in selected third party
products in Europe and setting up a new logistics hub in Asia. The Group-level
supply chain organization has been restructured and formalized to further boost
the initiatives to bring down the Group's inventory levels.

Discussions and negotiations regarding acquisitions and business combinations
continued during the second quarter of the year, as the Group continues to seek
also non-organic growth opportunities.

Product Development

Continuous product development and consistent innovation are core competences
for the Group and major contributor to the value and commercial success of the
brands.

New products for 2015 season were presented in EFTTEX and ICAST trade shows
during the summer. Rapala's Interface Rain Suit and Dynamite Baits' Trout
Nuggets won Best New Products Awards at the 2014 EFTTEX, Europe's largest and
most important international fishing tackle trade show.

Organization and Personnel

Average number of personnel for the second quarter was 2 672 (2 183) and 2 666
(2 235) for the first half of the year, majority of the increase relating to
expansion of lure manufacturing operations in Batam and reduction of outsourcing
in China. At the end of June, the number of personnel was 2 692 (2 425).

Short-term Outlook and Risks

First half of the year was affected by adverse weathers, volatile currency
exchange rates and economical and political uncertainties, which have
contributed in the slowdown of sales in several major markets. While there were
also some positive signs especially in Europe, the short-term visibility is
still limited and outlook is cautious.

In the US the consumer demand for guns and ammunition is slowing down and
consequently retailers are turning their focus more towards other outdoor
categories such as fishing.

In North America the presales of ice fishing products for the coming winter
season has been good and will support the sales in latter part of the year. In
Europe previous winter's bad weathers will have some knock-on impact on next
winter season's sales in latter part of the year.

The continuing political turbulence between Russia and Ukraine is still a
concern for these markets. Further escalation of the crisis may have negative
impacts on customer consumption even more widely in Europe. Drastic changes in
foreign exchange rates may impact negatively the profit margins and consumer
demand in some countries.

The closure of manufacturing operations in China will still trigger some extra
costs during 2014, but the new lure factory in Batam is expected to clearly
improve the situation during latter part of the year as the ramp-up period is
coming to the end.

The Group will increase the focus on bringing down the increased inventory
levels.

The Group expects full year net sales and comparable operating profit (excluding
non-recurring items and mark-to-market valuations of operative currency
derivatives) to be below 2013 levels. The guidance is unchanged from July
11, 2014.

Short term risks and uncertainties and seasonality of the business are described
in more detail in the end of this interim report.

Third quarter interim report will be published on October 21.



Helsinki, July 21, 2014

Board of Directors of Rapala VMC Corporation



For further information, please contact:

Jorma Kasslin, President and Chief Executive Officer, +358 9 7562 540
Jussi Ristimäki, Chief Financial Officer, +358 40 700 1344
Olli Aho, Investor Relations, +31 653 140 818



A  conference call  on the  quarter result  will be  arranged today at 3:00 p.m.
Finnish   time   (2:00   p.m.   CET).   Please   dial   +44 (0)20   3364 5719 or
+1 212 444 0096 or  +358 (0)9 2310 1675 (pin code:  763161#) five minutes before
the  beginning of  the event.  A replay  facility will  be available for 14 days
following  the teleconference.  The number  to dial  is +44 (0)20 3427 0598 (pin
code:  3526090). Financial  information  and  teleconference replay facility are
available at www.rapalavmc.com.


INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)


 STATEMENT OF INCOME                             II     II   I-II   I-II   I-IV

 MEUR                                          2014   2013   2014   2013   2013

 Net sales                                     77.7   81.4  143.9  156.7  286.6

 Other operating income                         0.2    0.2    0.3    0.3    0.8

 Materials and services                        35.8   36.0   64.3   71.2  134.4

 Personnel expenses                            17.1   16.7   34.0   32.9   64.0

 Other costs and expenses                      14.8   13.7   26.7   27.3   54.9

 Share of results in associates and joint       0.2    0.0    0.2   -0.2   -0.5
 ventures

 EBITDA                                        10.4   15.2   19.5   25.4   33.6

 Depreciation, amortization and impairments     1.8    1.7    3.5    3.4    7.5

 Operating profit (EBIT)                        8.6   13.4   16.0   22.0   26.1

 Financial income and expenses                  1.6    1.9    3.5    2.2    5.5

 Profit before taxes                            7.0   11.6   12.5   19.8   20.6

 Income taxes                                   2.9    3.8    4.1    5.4    4.6

 Net profit for the period                      4.1    7.8    8.4   14.4   16.1



 Attributable to:

 Equity holders of the company                  3.1    6.2    7.5   11.9   12.5

 Non-controlling interests                      1.0    1.6    0.9    2.5    3.6



 Earnings per share for profit attributable
 to the equity holders of the company:

 Earnings per share, EUR (diluted =             0.08   0.16   0.19   0.31  0.32
 non-diluted)




 STATEMENT OF COMPREHENSIVE INCOME          II     II   I-II   I-II   I-IV

 MEUR                                     2014   2013   2014   2013   2013

 Net profit for the period                 4.1    7.8    8.4   14.4   16.1

 Other comprehensive income, net of tax

 Change in translation differences*         2.2  -4.9    1.0   -2.9   -7.1

 Gains and losses on cash flow hedges*      0.0   0.4    0.1    0.7    0.9

 Gains and losses on hedges of net         -0.5   0.2    0.1   -0.1   -2.3
 investments*

 Actuarial gains (losses) on defined          -     -      -      -    0.1
 benefit plan
                                                            ---------------
 Total other comprehensive income, net      1.6  -4.4    1.2   -2.3   -8.4
 of tax
                                                            ---------------


 Total comprehensive income for the         5.8   3.4    9.6   12.1    7.7
 period



 Total comprehensive income attributable to:

 Equity holders of the Company              4.5   2.3 8.8      10.1    5.1

 Non-controlling interests                  1.3   1.1 0.9       2.0    2.6



 * Item that may be reclassified subsequently to the statement of income


 STATEMENT OF FINANCIAL POSITION                         June 30 June 30 Dec 31

 MEUR                                                       2014    2013   2013

 ASSETS

 Non-current assets

 Intangible assets                                          70.7    71.8   70.0

 Property, plant and equipment                              30.9    29.6   30.6

 Non-current assets

   Interest-bearing                                          3.8     3.4    3.0

   Non-interest-bearing                                      9.6    10.3   10.1

                                                           115.0   115.0  113.7

 Current assets

 Inventories                                               113.9   112.5  110.3

 Current assets

   Interest-bearing                                          1.0     2.3    1.0

   Non-interest-bearing                                     64.2    70.8   62.1

 Cash and cash equivalents                                  15.6    28.1   16.9

                                                           194.7   213.7  190.3



 Total assets                                              309.7   328.7  304.1



 EQUITY AND LIABILITIES

 Equity

 Equity attributable to the equity holders of the
 company                                                   122.4   129.1  123.1

 Non-controlling interests                                   9.3    11.4   12.0

                                                           131.7   140.5  135.1

 Non-current liabilities

 Interest-bearing                                           40.1    70.1   39.4

 Non-interest-bearing                                       12.3    13.8   12.8

                                                            52.4    83.9   52.2

 Current liabilities

 Interest-bearing                                           76.6    59.5   77.8

 Non-interest-bearing                                       49.0    44.9   38.9

                                                           125.6   104.3  116.7



 Total equity and liabilities                              309.7   328.7  304.1





                                               II     II   I-II   I-II     I-IV

 KEY FIGURES                                 2014   2013   2014   2013     2013

 EBITDA margin, %                           13.4%  18.6%  13.5%  16.2%    11.7%

 Operating profit margin, %                 11.1%  16.5%  11.1%  14.1%     9.1%

 Return on capital employed, %              14.6%  22.3%  13.9%  19.0%    11.4%

 Capital employed at end of period, MEUR    228.1  236.2  228.1  236.2    231.4

 Net interest-bearing debt at end of         96.4   95.7   96.4   95.7     96.3
 period, MEUR

 Equity-to-assets ratio at end of period,   42.6%  42.8%  42.6%  42.8%    44.5%
 %

 Debt-to-equity ratio at end of period, %   73.2%  68.1%  73.2%  68.1%    71.2%

 Earnings per share, EUR (diluted = non-     0.08   0.16   0.19   0.31     0.32
 diluted)

 Equity per share at end of period, EUR      3.18   3.34   3.18   3.34     3.19

 Average personnel for the period           2 672  2 183  2 666  2 235    2 428

 Definitions of key figures are consistent with those in the financial
 statement 2013.



 STATEMENT OF CASH FLOWS                       II     II   I-II   I-II   I-IV

 MEUR                                        2014   2013   2014   2013   2013

 Net profit for the period                    4.1    7.8    8.4   14.4   16.1

 Adjustments to net profit for the period
 *                                            6.8    7.5   10.7   10.8   18.6

 Financial items and taxes paid and
 received                                    -2.2   -1.2   -2.8   -4.1   -8.6

 Change in working capital                   13.6    2.1   -2.4  -13.0  -10.8

 Net cash generated from operating
 activities                                  22.3   16.2   14.0    8.1   15.3

 Investments                                 -1.8   -1.9   -3.8   -3.9  -10.7

 Proceeds from sales of assets                0.1    0.1    0.2    0.1    0.2

 Sufix brand acquisition                     -0.7   -0.7   -0.7   -0.7   -0.7

 Acquisition of other subsidiaries, net of
 cash                                           -      -   -0.2    0.0    0.0

 Proceeds from disposal of subsidiaries,
 net of cash                                    -      -      -      -    0.5

 Change in interest-bearing receivables       0.0    0.0    0.0    0.0   -0.1

 Net cash used in investing activities       -2.4   -2.4   -4.5   -4.5  -10.8

 Dividends paid to parent company's
 shareholders                                -9.2   -8.9   -9.2   -8.9   -8.9

 Dividends paid to non-controlling
 interest                                       -      -      -      -      -

 Net funding                                 -5.5   -7.1   -1.6   -4.5  -16.0

 Purchase of own shares                      -0.1   -0.2   -0.3   -0.5   -1.0

 Net cash generated from financing
 activities                                 -14.9  -16.3  -11.1  -14.0  -25.9

 Adjustments                                 -0.6    1.0    0.1    1.1    1.5

 Change in cash and cash equivalents          4.3   -1.5   -1.4   -9.3  -19.8

 Cash & cash equivalents at the beginning
 of the period                               11.0   30.8   16.9   38.2   38.2

 Foreign exchange rate effect                 0.2   -1.2    0.1   -0.8   -1.4

 Cash and cash equivalents at the end of
 the period                                  15.6   28.1   15.6   28.1   16.9

 * Includes reversal of non-cash items, income taxes and financial income and
 expenses.


   CONSOLIDATED STATEMENT OF CHANGES IN
   EQUITY

                        Attributable to equity holders of the
                 company

                                     Cumul. Fund for               Non-

                         Share  Fair trans- invested         Re- contr-

                                                non-
                          pre- value lation    rest-  Own tained olling

                   Share  mium   re- diffe-   ricted sha-  earn-  inte-  Total

   MEUR          capital  fund serve rences   equity  res   ings  rests equity
                ---------------------------------------------------------------
   Equity on Jan
   1, 2013           3.6  16.7  -2.3   -4.1      4.9 -3.4  112.8    9.4  137.7
                ---------------------------------------------------------------
   Comprehensive
   income *            -     -   0.7   -2.5        -    -   11.9    2.0   12.1

   Purchase of
   own shares          -     -     -      -        - -0.5      -      -   -0.5

   Dividends           -     -     -      -        -    -   -8.9      -   -8.9

   Share based
   payment             -     -     -      -        -    -    0.2      -    0.2

   Other changes       -     -     -      -        -    -    0.0    0.0    0.0
  -----------------------------------------------------------------------------
   Equity on Jun
   30, 2013          3.6  16.7  -1.5   -6.6      4.9 -3.9  116.0   11.4  140.5
  -----------------------------------------------------------------------------

  -----------------------------------------------------------------------------
   Equity on Jan
   1, 2014           3.6  16.7  -1.4  -12.5      4.9 -4.4  116.2   12.0  135.1
  -----------------------------------------------------------------------------
   Comprehensive
   income *            -     -   0.1    1.2        -    -    7.5    0.9    9.6

   Purchase of
   own shares          -     -     -      -        - -0.3      -      -   -0.3

   Dividends           -     -     -      -        -    -   -9.2   -3.6  -12.8
  -----------------------------------------------------------------------------
   Equity on Jun
   30, 2014          3.6  16.7  -1.3  -11.3      4.9 -4.6  114.5    9.3  131.7
  -----------------------------------------------------------------------------
 * For the period, (net
         of tax)






 SEGMENT INFORMATION*

 MEUR                                      II     II   I-II   I-II   I-IV

 Net Sales by Operating Segment          2014   2013   2014   2013   2013

 Group Products                          47.0   49.4   90.3   96.6  176.3

 Third Party Products                    30.7   32.1   53.6   60.2  110.5

 Eliminations                             0.0   -0.1    0.0   -0.1   -0.1

 Total                                   77.7   81.4  143.9  156.7  286.6



 Operating Profit by Operating Segment

 Group Products                           4.7    9.1    9.7   15.3   19.4

 Third Party Products                     3.9    4.3    6.4    6.7    6.7

 Total                                    8.6   13.4   16.0   22.0   26.1

                                           Jun 30   Jun 30   Dec 31

 Assets by Operating Segment                 2014     2013     2013

 Group Products                             218.3    217.8    215.7

 Third Party Products                        71.1     77.1     67.4

 Non-interest-bearing assets total          289.4    294.9    283.1

 Unallocated interest-bearing assets         20.4     33.8     21.0

 Total assets                               309.7    328.7    304.1

* Segments are consistent with those in the financial statements 2013.
Segments are described in detail in note 2 of the financial statements 2013.


 External Net Sales by Area     II     II   I-II   I-II   I-IV

 MEUR                         2014   2013   2014   2013   2013

 North America                19.8   21.9   39.2   43.7   88.4

 Nordic                       19.5   19.8   32.7   34.9   60.8

 Rest of Europe               30.7   31.9   57.3   61.4  103.6

 Rest of the world             7.6    7.8   14.7   16.6   33.8

 Total                        77.7   81.4  143.9  156.7  286.6


 KEY FIGURES BY QUARTERS       I    II   III    IV  I-IV     I    II

 MEUR                       2013  2013  2013  2013  2013  2014  2014

 Net sales                  75.3  81.4  66.6  63.3 286.6  66.2  77.7

 EBITDA                     10.3  15.2   4.5   3.7  33.6   9.1  10.4

 Operating profit            8.6  13.4   2.6   1.5  26.1   7.4   8.6

 Profit before taxes         8.3  11.6  -0.4   1.2  20.6   5.5   7.0

 Net profit for the period   6.6   7.8  -1.2   2.9  16.1   4.3   4.1



NOTES TO THE INCOME STATEMENT AND FINANCIAL POSITION

The financial statement figures included in this release are unaudited.

This  report has been prepared in  accordance with IAS 34. Accounting principles
adopted  in the preparation of this report are consistent with those used in the
preparation of the Financial Statements 2013, except for the adoption of the new
or amended standards and interpretations.

Adoption  of the revised standards IFRS  10, IFRS 11, IFRS 12, IAS 27, IAS 28 as
well as the amended standards IAS 36 and IAS 39 did not result in any changes in
the  accounting principles that would have affected the information presented in
this interim report.

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 revenues and expenses. Although these estimates are based on the
management's  best knowledge of  current events and  actions, actual results may
differ 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 interim period

The  Group  has  no  knowledge  of  any  significant events after the end of the
interim period that would have a material impact on the financial statements for
January-June  2014. Material events after the end of the interim period, if any,
have been discussed in the interim review by the Board of Directors.

Inventories

On  June 30, 2014, the  book value  of inventories  included a provision for net
realizable value of 5.0 MEUR (4.7 MEUR at June 30, 2013 and 4.5 MEUR at December
31, 2013).

Impact of business acquisitions on the consolidated financial statements

In  January 2014, the Group acquired  100% of the shares and  voting rights of a
French coarse fishing attractant manufacturer Mystic s.a.r.l.. The consideration
amounted  to  0.2 MEUR.  The  closing  accounts  were finalized during the first
quarter  and goodwill of 0.3 MEUR was  recognized. The acquisition does not have
material impact on the result or financial position of the Group.



 Non-recurring income and expenses included in
 operating profit                                    II    II  I-II  I-II  I-IV

 MEUR                                              2014  2013  2014  2013  2013

 Closure of Chinese lure manufacturing *           -0.5     -  -0.5     -  -0.8

 Other restructuring costs                            -  -0.1   0.1  -0.1  -0.2

 Other non-recurring items                            -     -     -   0.0  -0.1

 Total included in EBITDA and operating profit     -0.5  -0.1  -0.4  -0.1  -1.1

 Other non-recurring impairments                      -     -     -     -  -0.2
-------------------------------------------------------------------------------
 Total included in operating profit                -0.5  -0.1  -0.4  -0.1  -1.3
-------------------------------------------------------------------------------
*  The  Group  classifies  all  exceptional  income  and expenses related to the
closure of China manufacturing that are not related to normal business operation
as  non-recurring, primarily consisting of  write-offs and one-off costs related
to restructuring.


 Commitments                                         June 30   June 30   Dec 31

 MEUR                                                   2014      2013     2013

 On own behalf

 Guarantees                                                -       0.1        -



 Minimum future lease payments on operating leases      16.5      14.2     16.8



                                    Sales                  Other

 Related party transactions     and other    Pur-  Rents  expen-  Recei-  Paya-

 MEUR                              income  chases   paid     ses  vables   bles

 I-II 2014

 Joint venture Shimano Normark        1.6       -      -     0.0     0.5      -
 UK Ltd

 Associated company Lanimo Oü           -       -      -       -     0.0      -

 Entity with significant                -       -    0.1     0.1     0.0      -
 influence over the Group*

 Management                             -       -    0.1       -     0.0    0.0



 I-II 2013

 Joint venture Shimano Normark        1.5       -      -       -     0.5      -
 UK Ltd

 Associated company Lanimo Oü         0.0     0.1      -       -       -      -

 Entity with significant                -       -    0.1     0.1     0.0    0.0
 influence over the Group*

 Management                             -       -    0.1       -       -    0.0



 I-IV 2013

 Joint venture Shimano Normark        3.0       -      -       -     0.1      -
 UK Ltd

 Associated company Lanimo Oü         0.0     0.1      -       -     0.0      -

 Entity with significant                -       -    0.2     0.1     0.0      -
 influence over the Group*

 Management                             -       -    0.3       -       -    0.0

 * Lease agreement for the real estate for the consolidated operations in
 France and a service fee.




                                    Jun 30         Jun 30                Dec 31

 Open derivatives                     2014           2013                  2013

                            Nominal   Fair Nominal   Fair Nominal          Fair

 MEUR                         Value  Value   Value  Value   Value         Value

 Operative hedges

 Foreign currency
 derivatives                   45.1    0.1    44.1    0.6    49.4           0.0



 Monetary hedges

 Foreign currency
 derivatives                   39.7   -0.8    20.7    0.0    24.6           0.1

 Interest rate
 derivatives*                  69.6   -1.2    80.0   -3.1    69.5          -2.0

  * Includes also two cross-
 currency swaps.

 The  changes in the fair values of  derivatives that are designated as hedging
 instruments  but do not  qualify for hedge  accounting are recognized based on
 their  nature either in  operative costs, if  the hedged item  is an operative
 transaction,  or in  financial income  and expenses  if the  hedged item  is a
 monetary  transaction. Some derivatives designated to hedge monetary items are
 accounted  for  according  to  hedge  accounting.  Financial risks and hedging
 principles are described in detail in the financial statements 2013.




 Changes in unrealized mark-to-market valuations for operative foreign currency
 derivatives

                                II   II I-II I-II                          I-IV

                              2014 2013 2014 2013                          2013
------------------------------
 Included in operating profit -0.6  0.5  0.1  0.9                           0.3
------------------------------


 Operative  foreign currency derivatives that are marked-to-market on reporting
 date  cause timing differences between the changes in derivative's fair values
 and  hedged  operative  transactions.  Changes  in fair values for derivatives
 designated  to hedge future cash  flow but are not  accounted for according to
 the principles of hedge accounting impact the Group's operating profit for the
 accounting  period. The underlying foreign  currency transactions will realize
 in future periods.




 Fair values of                Jun 30               Jun 30               Dec 31
 financial
 instruments

                                 2014                 2013                 2013

 MEUR               Carrying     Fair    Carrying     Fair    Carrying     Fair
                       value    value       value    value       value    value

 Financial
 assets

 Loans and              79.7     79.7        97.4     97.4        77.8     77.8
 receivables

 Available-for-          0.3      0.3         0.3      0.3         0.3      0.3
 sale financial
 assets (level
 3)

 Derivatives             1.2      1.2         1.1      1.1         0.8      0.8
 (level 2)



 Financial
 liabilities

 Financial             140.6    141.0       152.1    152.7       138.1    138.7
 liabilities at
 amortized cost

 Derivatives             3.1      3.1         3.7      3.7         2.8      2.8
 (level 2)





Shares and share capital

On April 10, 2014 The Annual General Meeting (AGM) updated Board's authorization
on  repurchase of shares. A separate stock  exchange release on the decisions of
the  AGM was given, and up to date information on the board's authorizations and
other decision of the AGM are available also on the corporate website.

At  the end of the reporting period the share capital fully paid and reported in
the  Trade Register was 3.6 MEUR and the total number of shares was 39 000 000.
The  average number of shares during the reporting period was 39 303 720. During
the  reporting period, company bought back a  total of 51 427 own shares. At the
end  of the reporting  period the company  held 491 826 own shares, representing
1.3% of  the total  number of  shares and  the total  voting rights. The average
share price of all repurchased own shares held by the company was 5.16 EUR.

On  April  10, 2014 the  Board  decided  to  cancel 468 449 treasury shares. The
cancellation  did not have an effect on  the share capital. The cancellation was
registered  with the Trade  Register on April  28, 2014. After the cancellation,
the number of Rapala VMC Corporation's shares is 39 000 000.

During the reporting period, 425 993 shares (2 052 824) were traded at a high of
6.00 EUR and a low of 5.00 EUR. The closing share price at the end of the period
was 5.73 EUR.

Short term risks and uncertainties

The  objective of  Rapala VMC  Corporation's risk  management is  to support the
implementation  of the Group's  strategy and execution  of business targets. The
importance  of  risk  management  has  increased  as  Rapala VMC Corporation has
continued  to expand its operations.  Accordingly, Group management continuously
develops   it's  risk  management  practices  and  internal  controls.  Detailed
descriptions  of the Group's strategic, operative and financial risks as well as
risk management principles are included in the Financial Statements 2013.

Due  to the nature of the fishing  tackle business and the geographical scope of
the  Group's operations, the business has traditionally been seasonally stronger
in  the  first  half  of  the  year  compared  to the second half, although this
seasonality  pattern may partly  change as the  Group has increased  its role in
winter  fishing business. Weathers impact consumer demand and may have impact on
the  Group's sales for current and following seasons. The Group is more affected
by  winter weathers after the expansion  into winter fishing business, while the
impacts on summer and winter seasons are partly offsetting each other.

The  biggest deliveries for both summer and winter 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 the challenges in supply chain management. Delays
in  shipments  from  internal  or  external  suppliers  or unexpected changes in
customer  demand upwards or  downwards may lead  to shortages and  lost sales or
excess inventories and subsequent clearance sales with lower margins.

The transfer of lure manufacturing operations from China to Batam have increased
certain  production cost  and supply  chain risks  temporarily, while  this risk
starts to reduce as Chinese operations have practically ceased.

The Group refinanced its main credit facilities in 2012. These credit facilities
include  some  financial  covenants,  which  are actively monitored. The Group's
liquidity and refinancing risks are well under control.

The  fishing tackle business  has not traditionally  been strongly influenced by
increased  uncertainties and downturns in the general economic climate. They may
however influence, at least for a short while, the sales of fishing tackle, when
retailers  reduce  their  inventory  levels  and face financial challenges. Also
quick  and  strong  increases  in  living  expenses,  such  as  gasoline  price,
uncertainties  concerning  employment,  sudden  fluctuations in foreign exchange
rates  and  governmental  austerity  measures  may  temporarily  affect consumer
spending.  Additionally political tensions, such  as the conflict between Russia
and  Ukraine, may have effects on  the Group's business. However, the underlying
consumer demand has historically proven to be fairly solid.

The  truly global nature of the Group's  sales and operations spreads the market
risks  caused by the current  uncertainties in the global  economy. The Group is
cautiously  monitoring the development both in  the global macro economy as well
as in the various local markets it operates in.

Cash  collection  and  credit  risk  management  is  high on the agenda of local
management  and this may affect sales to some customers. Quality of the accounts
receivables is monitored closely and write-downs are initiated if needed.

The  Group's  sales  and  profitability  are  impacted by the changes in foreign
exchange  rates and the risks are monitored  actively. To fix the exchange rates
of  future  foreign  exchange  denominated  sales  and  purchases, the Group has
entered  into  several  currency  hedging  agreements  according  to the foreign
exchange  risk management policy set by the  Board of Directors. As the Group is
not  applying hedge accounting in accordance  to IAS 39, the unrealized mark-to-
market  valuations of currency hedging agreements  have an impact on the Group's
reported operating profit. The Group is closely monitoring market development as
well  as its cost structure and considering possibility and feasibility of price
increases, hedging actions and cost rationalization.

No significant changes are identified in the Group's strategic risks or business
environment.


[HUG#1832051]