Slide 1

Interim Report - July to Sept 2005November 9, 2005

Slide 2

• Group Overview

• Q3 In Brief

• Sales and Profitability

• Cashflow & Working Capital

• Strategy Implementation

• North American Perspective

• Outlook for 2005

AGENDA

RAPALA FINLAND IRELAND ESTONIA

SOFTBAITS

STORM

OTHER LURES

BLUE FOX

WILLTECH

HONG KONG CHINA

HOOKS

TERMINAL TACKLE

KNIVES

SHIMANO

OTHER FISHING

HUNTING

OUTDOOR

ACCESSORIES LINE

RODS&REELS

USA

CHINA

KNIVES

REST OF EUROPE

REST OF WORLD

Dis

trib

uti

on

Gro

up

B

ran

ds

FINLAND

MANUFACTURING AND R&D SOURCING R&D

OWN R&D AND MANUFACTURING OR SOURCING

OWN GROUP BRANDS

OWN DISTRIBUTIONSHIMANO

LOCAL IMPORTERS

THIRD PARTY SUPPLIERS

Su

pp

ly

SO

UR

CE

PR

OD

UC

T

HARDBAITS RAPALA

SPINNERS BLUE FOX

STORM

Group Overview

Slide 3

FINLAND

SWEDEN

DENMARK

NORWAY

FRANCE

SPAIN

SWITZERLAND

USA

CANADA

JAPAN

BRAZIL

AUSTRALIA

CHINA

THAILAND

ESTONIA

POLAND

RUSSIA

UKRAINE

LITHUANIA

LATVIA

HUNGARY

ITALY

GERMANY

NETHERLANDS

BELGIUM

VMC FRANCE

WILLTECH CHINA

MARTTIINI FINLAND, ESTONIA & CHINA

PELTONEN FINLAND

PORTUGAL

MALAYSIA

CZECH REPUBLIC

Slide 4

Q3 IN BRIEF

EUR million III/05 III/04 I-III/05 I-III/04 2004

Sales 39.0 32.1 151.3 139.0 174.5

EBITDA 1.3 0.5 23.0 23.5 27.3

Operating Profit (EBIT) -0.2 -0.8 18.8 19.8 20.5

Profit Before Taxes -0.5 -1.9 18.1 16.7 15.7

Net Profit for the Period -0.6 -1.2 13.2 13.3 12.0

EPS (basic), EUR -0.01 -0.03 0.35 0.35 0.32

Equity-to-assets, % 34.0 34.2 34.0 34.2 32.0

Net Interest-bearing Debt 79.4 77.8 79.4 77.8 81.7

Q3 2005 a satisfactory but seasonally slow quarter driven by distribution business

Group’s strategy implementation progressed with acquisitions & organic growth

Outlook: 2005 sales is forecast to be close to 190 MEUR and operating profit is expected to be at last year levels or slightly better

Slide 5

NET SALES BY QUARTER

Q3 2005 sales increased 18% from last year (YTD +9%). Rapala Freetime, acquired in July, contributed to Q3 sales with more than 1 MEUR.

9-month sales increased in all geographical segments

New products for 2006 received well with increased product listings by major customers in key markets.

0,0

10,0

20,0

30,0

40,0

50,0

60,0

70,0

Q1/04 Q2/04 Q3/04 Q4/04 Q1/05 Q2/05 Q3/05

MEU

R

0,0

40,0

80,0

120,0

160,0

I-III/04 I-III/05

MEU

R

Slide 6

OPERATING PROFIT & EBITDA BY QUARTER

Q3 2005 operating profit was seasonally low at -0.2 MEUR but improved from the corresponding quarter last year (-0.8 MEUR). Q3 operating profit margin was -0.5% and return on capital employed -0.5%.

All geographical segments made a positive YTD result, NA even improved its result.

Fixed costs have temporarily increased as a result of increased activity in business development, start-up of new operations, weakening of USD (YTD 0.3 MEUR) and IFRS option costs (YTD 0.5 MEUR).

Equity-to-assets ratio increased to 34.0% (Dec 04: 32.0%), gearing decreased to 109.6% (Dec 04: 136.5%) & net interest-bearing debt decrease to 79.4 (Dec 04: 81.7)

-2,0

0,0

2,0

4,0

6,0

8,0

10,0

12,0

14,0

Q1/04 Q2/04 Q3/04 Q4/04 Q1/05 Q2/05 Q3/05

ME

UR

EBITDA Oper. Profit

0,0

5,0

10,0

15,0

20,0

25,0

I-III/04 I-III/05

EBITDA Oper. Profit

Slide 7

CASHFLOW AND WORKING CAPITAL

Cash flow from operating activities clearly positive at 10.2 MEUR in Q3

Working capital decreased 10.3 MEUR from June 2005, but is still 7.5 MEUR above December 2004 levels mainly due to new businesses and increased sales

Group’s management continues to drive working capital down, target to get below last year level, excluding new or acquired operations (Q3 net stock down 1.4 MEUR)

STATEMENT OF CASH FLOWS July-Sept July-Sept Jan-Sept Jan-Sept Jan-Dec

EUR million 2005 2004 2005 2004 2004

Net profit for the period -0.6 -1.3 13.2 13.3 12.0

Adjustments 1.3 1.8 4.7 6.9 8.7

Change in working capital 10.2 6.5 -7.5 -3.9 -8.2

Net cash generated from operating activities 10.9 7.1 10.5 16.3 12.5

Net cash used in investing activities -3.1 -1.9 -6.1 -5.9 -8.6

Cash flow before financing activities 7.8 5.2 4.4 10.4 3.9

Net cash generated from financing activities -2.2 -10.1 6.1 -4.7 3.3

Adjustments 0.3 -0.1 1.4 0.0 0.4

Decrease in cash and cash equivalents 5.9 -5.0 11.9 5.7 6.7

Slide 8

STRATEGY IMPLEMENTATION IN Q3

Rapala’s strategic objective is profitable growth, founded on 3 established strenghts: a unique manufacturing and sourcing platform (China and Europe) a leading global distribution network in fishing tackle industry a strong brand portfolio with several leading brands

New Markets

The acquisition of Freetime, an Australian distributor with annual sales of 5 MEUR in July was followed by purchase of the remaining 33% minority stake in Rapala’s Danish distribution company in August

Rapala Eurohold Ltd was established together with the former management of Eurohold Trade Ltd, Mr Karoly Agh Senior and Junior and it acquired the fishing tackle distribution and retail business of Eurohold in the beginning of October. Rapala owns 70% of Rapala Eurohold and Mr Agh Senior and Junior together own 30 %. In 2004, the net sales of Eurohold were some 2 MEUR.

A worldwide exclusive distribution agreement was sign with Kiotech Ltd, effective from the beginning of October, for sport fishing for the pheromone biotechnology branded as Ultrabite. Ultrabite is a pheromone based fish attractant developed by CEFAS governmental laboratories in the UK,

which generates natural and irresistible feeding behavior in fish. In the future, Rapala will launch a wide range of lures and baits containing these pheromones. On a larger

scale, the impact on sales will be seen only in 2007 and onwards.

Slide 9

STRATEGY IMPLEMENTATION IN Q3

New Markets (continue) Opening of new sales companies in China and Thailand progressed and sales offices

in Bangkok and Beijing were opened in October.

New Products The acquisition of lure and other fishing tackle business of Luhr Jensen & Sons, Inc

(USA) was closed in mid-October. Luhr Jensen manufactures a wide range of lures for freshwater and saltwater species. It is one of the five largest lure companies in the USA and the market leader in the Pacific

Northwest and Alaska (USA) and in British Columbia (Canada). The net sales of its lure and fishing tackle business were somewhat below EUR 7 million in the

financial year ended in June 30, 2005. With Rapala and Luhr Jensen combined, the Group is now the world’s largest manufacturer of

metal fishing lures. This deal contributes to the Group’s brand strategy and portfolio while it leverages Rapala’s

unique manufacturing and distribution platforms. The production of Luhr Jensen products will be transferred to the Rapala factories, primarily

Rapala’s factory located in China, during a 12-month transition period. The consideration of the deal comprises of cash and newly issued shares of Rapala. The part of

payment that will be made in shares will take place after one year.

Slide 10

STRATEGY IMPLEMENTATION IN Q3

New Products (continue) The acquisition of Finnish knife manufacturer Marttiini Oy from Lauri Marttiini,

his son Ilkka Marttiini and Ilkka Marttiini’s family members was closed in early November. The deal includes the Finnish knife factory in Rovaniemi, the knife sheaths factory in

Estonia and the 49% share in the Chinese knife joint-venture with Rapala. The net sales for the acquired business was some 6 MEUR in 2004 of which Rapala

has bought more than 40%. This acquisition further strengthens the filleting knife business of the Group and Rapala

is now the market leader worldwide. Rapala will add Marttiini brand to its portfolio of global brands, and Rapala´s own

distribution companies in 25 countries will strengthen the distribution of Marttiini-branded knives.

The consideration of the deal comprises of cash and newly issued shares of Rapala. Ramp-up of the Chinese knife manufacturing join venture (Rapala ownership

100% after the Marttiini deal) proceeds on plan. The launch of Rapala’s new product line for fishing clothing (Rapala ProWear)

proceeds on plan and products are available for 2006 season.

Slide 11

STRATEGY IMPLEMENTATION IN Q3

New Products (continue) The conditional acquisition of 61% of Peltonen Ski Oy

was done to ensure increasing volumes of skis to be distributed through the Group distribution companies in Finland and increasingly also in Norway..

The net sales of Peltonen were some 2 MEUR in 2004 of which some 50% was bought by Rapala, who owns the Peltonen brand since 2002.

Winter-sports, together with hunting, have an important role in the Group distribution business in Nordic countries were the fishing tackle business is very slow in autumn and winter time. This deal has not yet been closed.

These acquisitions and new operations had next to none effect on Q3. They, including Freetime, will have a modest but positive impact on fourth quarter operating profit and they are estimated to increase the Group net sales with some 4 MEUR.

They are expected to increase 2006 net sales in excess of 15 MEUR compared to 2005 and be earnings enhancing.

The total purchase price for all acquisitions announced in 2005 is close to 12 MEUR of which some 7 MEUR will be allocated to fixed assets and some 5 MEUR to inventories. This purchase price represents on an average a EBITDA multiple of 4-5.

Group’s management continues to plan and negotiate new initiatives to implement the Group strategy.

Slide 12

NORTH AMERICAN PERSPECTIVE

Third Quarter Performance and Development Initiatives

9-month sales are slightly up from last year level and profitability has improved Focus to reduce working capital and especially inventories progressed Plans to improve efficiency and productivity finalized

New Products for 2006 Seasons All new products in inventory or on the way to be received Shipments to customers have started New products well received

Business Development for 2006 Major increase in listings with some

key customers Potentially more listings to come New Concept Shop with Cabelas Price increases implemented succesfully for 2006 Efficiency and productivity programs to be kicked off before year-end 2005

Slide 13

Financial position stable with gearing at 109.6% (136.5% at Dec 2004) and equity-to-assets ratio at 34.0% (32.0% at Dec 2004). Working capital on ongoing operations to be reduced below last year level

Sales for 2005 expected to increase from last year and be close to 190 MEUR including the impact of newly acquired businesses.

The gap in operating profit compared to 2004 was 2.7 MEUR in Q1. This gap reduced in Q2 to 1.6 MEUR and in Q3 to 1.0 MEUR. This gap is expected to disappear in Q4.

Operating profit for the financial year 2005 is expected to be at last year levels or slightly better. The impact of newly acquired businesses on operating profit is slightly positive.

Strategy implementation continues to ensure profitable growth.

New products for 2006 well received with increased product listings by major customers in key markets. Deliveries of products for 2006 season have started in Q4.

OUTLOOK FOR 2005

Slide 14