RAPALA VMC CORPORATION: PRELIMINARY INFORMATION CONCERNING 2016 FULL YEAR SALES, PROFITABILITY AND CASH FLOW

RAPALA VMC CORPORATION: PRELIMINARY INFORMATION CONCERNING 2016 FULL YEAR SALES, PROFITABILITY AND CASH FLOW

The- Group's full year net sales and comparable- operating profit (excluding mark-to­ market valuations of operative- currency derivatives and other items affecting comparability) has been previously guided tobe below 2015levels.

The Group's 2016fu II year net sales will be about 260MEUR(2.78.2 MEUR),same 6%

lower than in 2015,impacted by lowe-r turnover in seve-ral big markets.

Group's comparable- ope-rating profit (e-xcluding mark-to-market valuations of ope-rative­ currency de-rivative-s and other items affecting comparability) will be- about 18-20MEUR (2.5.3 MEUR), burdened by the lower sales.

After the changes in the- Group's management during 03/2016,the- Group has initiated a strate-gy update proce-ss during the fourth quarter. According to the- decisions made- in conjunction with this strate-gy update-, the- Group redefine-s inventory valuation to support new strategic actions to improve- the Group's capital e-fficiency (e.g. re-newal and optimization of product range, improved product lifecycle and inventory management) and to support imple-me-ntati on of new management procedure-s. Accordingly, the Group will book ca. 9 MEUR provisions on its inventory value-s, which will have impact on the- Group's

2.016 re-ported ope-rating profit and net result, netted with taxe-s. The- provisions are re-cogniz.ed as items affecting comparability and will not impact cash flow.

The- Group's 2016cash flow from operations will improve clearly from last year and it wil lbe- about 2.4-2.7MEUR (15.6MEUR).

The- figures pre-se-nted above are unaudited.

More- details of the- strate-gy update- will be released toge-ther with the- 2016annual accounts release on February 16, 2017.

Helsinki, January 2.0, 2017

RAPALA VMC CORPORATION

Jussi Ristimaki

Chief Exe-cutive- Officer

For further information, please- contact:

Jussi Ristimaki, Chief Exe-cutive- Officer, tel. [phone]

Olli Aho, lnve-stor Relations, te-1. [phone]

Distribution: Nasdaq l+elsinki and main me-dia

Rapala VMC Corporation ("the Group") is a leading fishing tackle company and the global market leader in fishing lures, treble hooks and fishing relate-d knives and tools. The Group also has a strong global position in other fishing categories and it is one of the

leading distributors of outdoor, hunting and winter sport products in the Nordic countries. The Group has the largest distribution network in the industry. The main manufactur ing facilities are located in Finland, France, Estonia, Russia, China, Indonesia and the UK. The Group brand portfolio includes the leading brand in the industry, Rapala, and other global brands like VMC, Sufix, Storm, Blue Fox, Luhr Jensen, Williamson, Dynamitelfaits, Mora Ice, StrikeMaster, Marttiini and Peltonen. The Group, with net sales of EUR 278 million in 2015, employs some 3 200 people in 40 countries. Rapala VMC Corporation's share is

liste-d and trade-d on the Nasdaq Helsinki stock exchange since 1998.