Roblon — Regulatory Filings 2016

Sep 28, 2016

Roblon

Company Announcement No 16 - 2016

Roblon wants to grow its core business

Roblon has prepared a strategy plan for the next five years. The strategy establishes the Roblon Engineering and Roblon Industrial Fiber business segments as Roblon's core business, in which significant market potential has been identified.

The Roblon Lighting business segment will henceforth not be included in the company's core business. Roblon Lighting, which has a strong brand within specially designed fibre optic lighting, will be operated as a portfolio company in future, with a view to selling it off.

Roblon A/S
PO box 120
Nordhavnsvej 1
9900 Frederikshavn
Denmark

Tel. +45 9620 3300
Fax +45 9620 3399
info@roblon.com
www.roblon.com

CVR no. 5706 8515

Roblon's vision

Roblon will be the preferred supplier of selected strategic customers in the company's two business segments:

• Roblon Engineering is vying for position as global market-leading supplier of production equipment and services for selected strategic customers in the rope-making industry. We are also aiming to be a niche supplier of equipment for manufacturing and coiling of cables for the fibre optic cable industry as well as other selected industries.
• Roblon Industrial Fiber is aiming for a position as a total supplier of strength element solutions for selected strategic customers in the fibre optic cable industry. We are also aiming to be a market-leading supplier of strength elements for the Offshore industry.

The company expects to achieve its vision for 2020/21 through both organic growth and acquisitions. Roblon possesses the financial liquidity for this.

Roblon's strategy

The strategic initiatives are concentrated around an increased sales campaign, with a starting point in key account management (KAM), both for existing customers and to access selected, new strategic customers on the global market. In future, the sales campaign (KAM) and production development will continually expand in order to achieve the company's financial objectives. Investments for this are expected to have a negative impact on the operating profit and key figures during the first year of the strategy period.

Roblon's financial objectives

Within the strategy period 2016/17-2020/21, the company is aiming to establish a basis from which it can achieve the following annual key figures under normal economic conditions:

• An annual growth in revenue (organic) of min. 7%
• An EBIT margin of min. 10%
• An annual growth in earnings per share of min. 7%
• A return of the invested capital (ROIC) of min. 15% before tax

Management expectations for 2015/16

The management is maintaining its expectations for profit before tax for 2015/16, which were announced to be in the region of DKK 25 million in the annual report for 2014/15. Since Roblon Lighting will henceforth be operated as a portfolio company, with a view to selling it off, the company's total revenue in 2015/16 will be reduced by approx. DKK 20 million, which will be reported under "discontinuing activities". The management's expectations for total revenue for 2015/16 will therefore be reduced from the region of DKK 250 million to DKK 230 million.

Frederikshavn, 28 September 2016
Roblon A/S

Jørgen Kjær Jacobsen
Chairman of the Board

Lars Østergaard
Managing Director and CEO

Enquiries regarding this announcement must be made to:
Managing Director and CEO Lars Østergaard, tel. +45 9620 3300

Company Announcement no. 16 2015/16
28 September 2016