Rapala VMC Oyj : RAPALA VMC CORPORATION'S ANNUAL ACCOUNTS 2012: SALES, CASH FLOW AND GEARING REACHED RECORDS

 Rapala VMC Oyj : RAPALA VMC CORPORATION'S ANNUAL ACCOUNTS 2012: SALES, CASH
                       FLOW AND GEARING REACHED RECORDS

Rapala VMC Corporation
Stock Exchange Release
February 6, 2013 at 9:30 a.m.

  *Net sales for the fourth quarter increased by 12% to 67.9 (60.8 MEUR)  and 
    was up by 4% at  290.7 MEUR (279.5 MEUR) for  the year, reaching all  time 
    record sales for the fourth quarter and full year. Sales were supported by
    new ice fishing business, continuing growth in Russia and foreign exchange
    rates.

  *Comparable operating profit, excluding non-recurring items, decreased from
    last year to  0.5 MEUR (2.4  MEUR) for  the fourth quarter  and 26.5  MEUR 
    (30.5 MEUR) for the year. Profitability was weaker due to expenses related
    to start-up of the new manufacturing units, lower gross margin and  impact 
    of foreign exchange  rates. Comparable  operating profit  margin was  0.7% 
    (4.0%) for the quarter and 9.1% (10.9%) for the full year.

  *Net profit for the quarter  reduced to -2.1 MEUR  (1.1 MEUR) and was  13.9 
    MEUR (17.2 MEUR)  for the year.  Earnings per share  were -0.05 EUR  (0.02 
    EUR) and 0.26 EUR (0.36 EUR) for the year.

  *Cash flow from operating activities, following an intense focus on working
    capital, reached historically high level of  6.0 MEUR (-1.6 MEUR) for  the 
    fourth quarter. Cash  flow from operations  for the year  was an all  time 
    record at 25.2 MEUR  (15.2 MEUR). Strengthening  of Group's balance  sheet 
    continued and gearing reached all time record low level of 65.1% (67.1%).

  *Implementation  of  the  Rapala  Group's  strategy  of  profitable  growth 
    continued throughout  the  year  by taking  several  actions  relating  to 
    manufacturing  and  distribution  activities.  New  ice  fishing  business 
    started in the latter part of the year.

  *The Group's outlook for 2013 is  positive. The Group's sales are  expected 
    to increase  from last  year and  comparable operating  profit,  excluding 
    non-recurring items and mark-to-market valuations of currency derivatives,
    to be 30 MEUR plus or minus 10%.

  *Board proposes to the  Annual General Meeting that  a divided of 0.23  EUR 
    per share to be paid. This represents 88% of earnings per share.

The attachment  presents the  summary of  the annual  review by  the Board  of 
Directors as well as extracts from the financial statements for 2012.

Contact information and conference call details  are at the end of the  review 
by the Board of Directors.

Distribution: NASDAQ OMX Helsinki ja Main Media

Market Situation and Sales

The Rapala Group's  business developed positively  during 2012 breaking  sales 
records despite the  impact of  divestment of  the gift  business in  December 
2011. 2012  sales  were supported  by  introduction  of the  new  ice  fishing 
business, continuing  strong  growth in  Russia  and foreign  exchange  rates, 
especially USD.  Winter 2011/2012  was short  and spring  early, which  had  a 
significant negative impact  on winter  sports equipment sales  in the  Nordic 
countries in the first quarter, but  gave good start to summer fishing  season 
in North America and Europe. However, in the latter part of the summer  season 
weather conditions turned  unfavorable in  some European  and Nordic  markets. 
Difficult winter 2011/2012 conditions and continuing economical  uncertainties 
had impact on some customers' financial position, which together with  tighter 
credit control impacted the sales in some countries.

US economy  showed clear  signs  of recovery  supporting  the sales  in  North 
America although general  economy was  still dragging.  Consumer spending  was 
increasing, while US retailers focused increasingly on sports categories other
than fishing.

The new  ice fishing  business started  in the  latter part  of the  year  and 
changed the sales mix. Sales of ice fishing products started off well, but due
to late winter  2012/2013 in the  USA and knock-on  effect of previous  year's 
mild winter, the new  ice fishing business generated  less sales in 2012  than 
initially expected.

The Group's intense focus on cash flow and working capital management resulted
in increasing inventory clearance sales towards the end of the year, which  to 
some extent replaced ordinary sales.

Net sales for the  fourth quarter increased  by 12% to  all-time high of  67.9 
(60.8 MEUR) with positive impact of currency exchange rates of 2.2 MEUR.  Full 
year sales  were up  by 4%  at  290.7 MEUR  (279.5 MEUR)  for the  year,  also 
reaching all time record. Changes in foreign exchange rates increased the full
year sales  by  9.4 MEUR.  Establishment  of new  units  and new  ice  fishing 
business offset by divestment of  gift business, increased quarterly sales  by 
5.5 MEUR and full year sales by  1.3 MEUR. With comparable exchange rates  and 
organization structure net sales for the quarter and for the full year was  at 
last year's  level.  New  units  and new  ice  business  included,  net  sales 
increased by 12% in the fourth quarter and 4% compared to last year.

Fourth quarter net sales of Group  Products increased 10% and full year  sales 
1% from  last year  despite negative  impact  of the  divestment of  the  gift 
business. Excluding the impact of gift divestment, Group products' sales  were 
up by 15%  for the  fourth quarter  and 7% for  the year.  Sales increase  was 
driven by new  ice fishing  sales and  good sales  of lures  and baits.  Sales 
growth was turned down by slow winter sports equipment sales in the  beginning 
of the year.

Net sales of Third Party Products increased  15% in the fourth quarter and  9% 
in 2012 compared to last year with increased sales of third party fishing  and 
hunting products, while sales of third party winter sports equipment was down.
Third Party Fishing  sales was  supported by  new sales  of MarCum  underwater 
cameras and sonars in North America.

In North America fourth quarter  external sales were up  by 37% and full  year 
sales up by 21% as a result of new ice fishing business, improving US business
conditions and strengthening of the US  Dollar, which was 8% stronger in  2012 
compared to 2011. With comparable exchange  rates quarterly sales were up  30% 
and full year 12% above last year's level.

In Nordic counties, sales were down by  11% for the fourth quarter and 4%  for 
the year. Sales were impacted by structural changes in Norway and  challenging 
2011/2012 winter conditions,  which had  knock-on effect also  for the  fourth 
quarter especially in Finland.

Fourth quarter sales in Rest  of Europe were 14%  above last year's level  and 
increased by 5% for the year. 2012 sales developed positively in East  Europe, 
especially in Russia, and France,  while change in distribution structure  and 
bad weathers reduced sales in the UK. Spain, Hungary and Switzerland  suffered 
from the impacts of the on-going uncertainties of the European economy.

In Rest of World  fourth quarter sales were  down by 5% and  full year by  15% 
compared to  last  year impacted  by  the  divestment of  the  gift  business. 
Excluding the gift business divestment, net sales of Rest of the World were up
by 17% in the quarter  and 12% during the full  year. Full year sales grew  in 
all distribution markets, especially  in Japan where  fishing line sales  were 
growing heavily.

Financial Results and Profitability

Comparable operating  profit, excluding  non-recurring items,  decreased  from 
last year to 0.5 MEUR (2.4 MEUR) for  the fourth quarter and was down to  26.5 
MEUR (30.5 MEUR)  for the full  year. Comparable operating  profit margin  was 
0.7% (4.0%) for the fourth quarter and 9.1% (10.9%) for the full year. Decline
of the fourth quarter and full year comparable operating profit was driven  by 
reduced gross margin, which was largely impacted by the Group's intense  focus 
on  cash  flow  and  working   capital  and  consequent  inventory   clearance 
initiatives. Fourth quarter  profitability was  also impacted  by slower  than 
expected start of  the lower margin  ice fishing business  as well as  foreign 
exchange rates, which also hurt the full year profits. Full year profitability
was also burdened  by start-up  expenses and  lower than  expected demand  for 
products from the  Group's new  manufacturing facilities,  divestment of  gift 
business and difficult 2011/2012 winter season.

Reported operating profit for  the fourth quarter decreased  to 0.2 MEUR  (3.5 
MEUR) and 25.9 MEUR (30.7 MEUR)  for the year 2012. Reported operating  profit 
for the fourth  quarter included  non-recurring costs  of 0.3  MEUR (gain  1.1 
MEUR) related to the divestment of the gift business. Non-recurring costs  for 
the full year amounted to  0.6 MEUR (gain 0.2  MEUR) related to divestment  of 
gift business and other non-recurring costs. Reported operating margin for the
quarter was 0.3% (5.8%) and for 2012 8.9% (11.0%). Return on capital  employed 
was 0.4% (6.2%) for the quarter and 11.4% (13.8%) for 2012.

Key figures                    IV     IV   I-IV   I-IV
MEUR                       2012 2011 2012 2011
Net sales                    67.9   60.8  290.7  279.5
EBITDA as reported            1.9    5.5   32.6   37.7
EBITDA excl. one-off items    2.2    4.1   33.2   37.1
Operating profit (EBIT)       0.2    3.5   25.9   30.7
EBIT excl. one-off items      0.5    2.4   26.5   30.5

Group Products' reported operating profit for the fourth quarter was 2.0  MEUR 
(3.7 MEUR). In 2012 reported operating profit of Group Products was 18.9  MEUR 
(22.4 MEUR). Operating profit was negatively impacted by the divestment of the
gift business. Excluding the impact of the gift divestment quarterly operating
profit was at last year's level and  full year operating profit was 7%  behind 
2011. Group products' operating profit margin was pushed down by lower margins
of the  ice  fishing  business, increased  fixed  costs,  inventory  clearance 
initiatives, establishment of new manufacturing units and difficult  2011/2012 
winter season.

Third party  products' operating  profit was  -1.8 MEUR  (-0.1 MEUR)  for  the 
quarter and 7.0 MEUR  (8.4 MEUR) for  the full year  impacted by lower  margin 
third party ice  fishing business,  impact of currency  exchange movements  on 
purchases and inventory clearance initiatives.

Total financial (net)  expenses for  the quarter  increased to  2.0 MEUR  (1.0 
MEUR) primarily due to negative change in (net) currency expenses. 2012  total 
financial (net) expenses decreased to 4.9  MEUR (5.5 MEUR). 2012 net  interest 
and other financial expenses were close to last year's level at 4.0 MEUR  (3.7 
MEUR). Financial  items  were  positively  impacted by  the  change  in  (net) 
currency exchange expenses of 0.9 MEUR (1.8 MEUR).

Net profit for  the year  and earnings per  share decreased  from last  year's 
levels to 13.9 MEUR (17.2 MEUR) and 0.26 EUR (0.36 EUR) respectively, impacted
by increased  profitability of  joint venture  companies with  non-controlling 
shareholders. Net profit was also impacted by start-up losses of the new units
increasing the effective tax rate.

Cash Flow and Financial Position

Following the Group's  intense focus on  cash flow and  working capital,  cash 
flow from operating  activities reached all  time annual record  of 25.2  MEUR 
(15.2 MEUR) and improved  significantly also during  the fourth quarter  being 
6.0 MEUR (-1.6  MEUR) despite  receivables tied up  into the  new ice  fishing 
business. Positive cash flow impact for the fourth quarter and whole year came
from the net change in working capital, which was 5.7 MEUR (-1.6 MEUR) and 4.2
MEUR (-7.3 MEUR) respectively.  Main driver for  the positive working  capital 
change were the inventories, where the  actions to reduce the tied up  capital 
created results.

The Group's inventories decreased by 4.9 MEUR from last December and 10.0 MEUR
from September  2012,  amounting  to  110.6 MEUR  (115.5  MEUR)  in  December. 
Inventories of the new ice fishing business, new business units and impact  of 
currency movements  increased  year-end  inventories  by  5.8  MEUR,  thus  on 
comparable basis inventories reduced 10.7  MEUR from last year. On  comparable 
basis, excluding the  impacts of the  divested gift business  and the new  ice 
fishing  business,  the  inventory-to-sales  ratio  dropped  more  than   five 
percentage points from last year.

Net cash used in investing activities was 1.2 MEUR (1.4 MEUR) for the  quarter 
and 13.6  MEUR  (9.6  MEUR)  for  the  full  year.  Fourth  quarter  investing 
activities included 0.8 MEUR (0.6 MEUR) of proceeds related to disposal of the
gift business. Operative capital expenditure was  2.1 MEUR (2.7 MEUR) for  the 
fourth quarter and  7.7 MEUR  (8.4 MEUR) for  the full  year. 2012  investment 
activities included the acquisition of the assets of Strike Master Corporation
and Mora  Ice brand  with total  of 6.7  MEUR and  2011 investment  activities 
include acquisition of UK joint venture of 1.5 MEUR.

In the end of 2012 net interest bearing debt reduced to 89.9 MEUR (91.1 MEUR).
Strengthening of the Group's balance  sheet continued and gearing reached  all 
time record  low  level of  65.1%  (67.1%). Equity-to-assets  ratio  decreased 
slightly and was 42.3% (43.2%).

Strategy Implementation

Implementation of the Rapala Group's  strategy of profitable growth  continued 
throughout the year 2012 by  taking several actions relating to  manufacturing 
and distribution activities.

In February the Group entered seriously into ice drill business and closed the
deals to acquire assets of Strike Master Corporation as well as the brand  and 
intellectual property  rights  relating  to Mora  Ice  products.  These  deals 
together with the US distribution  agreements concluded for MarCum  underwater 
cameras and sonars and Otter Outdoors sleds and shelters, latter one  starting 
in 2013, will give the Rapala Group the global leadership position in the  ice 
fishing category. Strong expansion into ice fishing business will increase the
sales in the seasonally slower  second half of the  year in all main  northern 
markets. Deliveries of  the new  ice fishing  products started  as planned  in 
autumn 2012  and concentrated  on the  fourth quarter  of the  year,  although 
suffering from unfavorable winter conditions in the USA.

The Group's new lure and hook manufacturing units on Batam Island in Indonesia
started their operations during the first quarter and employed some 250 people
in the end of the year. Production  volumes of lure production were ramped  up 
during the year as production was  gradually transferred from China to  Batam. 
Operational efficiencies are in line with expectation. The first phase of lure
production transfer to Batam will be  finalized during first quarter of  2013. 
Construction  and  installation  work  for  tripling  the  lure  manufacturing 
operations are  proceeding  and certain  new  production phases  were  already 
started in the  fourth quarter.  New products  and production  phases will  be 
added gradually  during the  next  12-18 months.  Hook manufacturing  will  be 
technically fully ramped up  by March 2013.  In 2012, due  to lack of  demand, 
total production volumes of the new Batam manufacturing operations were behind
initial  expectations   and   thereby  negatively   impacting   the   expected 
profitability.

The Group's  new  distribution company  in  Chile started  its  operations  in 
October and  will  strengthen  the  Group's  presence  in  Latin  America.  In 
September the Group acquired 20% share in the Indonesian distribution  company 
from its non-controlling shareholder, increasing ownership to 100%. In the end
of 2012 the  Group has wholly  or partly owned  distribution operations in  35 
countries around the world.

In 2012 special  initiatives to improve  the performance were  carried out  in 
distribution companies in Norway  and in Switzerland,  where the program  will 
continue in 2013.

Working capital and cash flow management  was still one of the top  priorities 
of the Group, and the Group continues  to work to reduce the inventory  levels 
and develop  the Group's  internal  supply chain  as  well as  its  purchasing 
processes.

In 2012 the Group introduced again a  range of new innovative products to  the 
market and was honored  with the Best  New Hard Lure and  Best New Metal  Lure 
awards at EFTTEX 2012, the  Europe's largest and most important  international 
fishing tackle trade show. In February 2013  the Group will also launch a  new 
Scatter Rap lure family, which will be available in the USA for retailers  and 
consumers already for season 2013.

Discussions and negotiations regarding acquisitions and business  combinations 
continued during the year 2012.

Short-term Outlook

The Group's outlook for 2013 is positive.

Sales are expected to grow in most markets, especially in East Europe and USA.
In the biggest market USA growth  is supported with early introduction of  the 
new Scatter Rap  lure family  and beginning  of distribution  of Otter  winter 
fishing products.  In  Finland first  quarter  winter sports  equipment  sales 
should benefit from more favourable weathers than last year, while in USA  and 
Central Europe it is questionable whether summer season can start as early  as 
last year and how the foreign exchange rates will develop.

Profitability  of  the  new  manufacturing  units  as  well  as  a  few  other 
underperforming units is expected to improve gradually. The continuing actions
to reduce  the Group's  inventory  levels may  have  some negative  impact  on 
profitability, but support the cash flow generation.

The Group's  sales are  expected to  increase from  last year  and  comparable 
operating profit, excluding non-recurring items and mark-to-market  valuations 
of currency derivatives, to be 30 MEUR plus or minus 10%.

Proposal for profit distribution

The Board of Directors proposes to the Annual General Meeting that a  dividend 
of EUR 0.23  for 2012  (2011: EUR  0.23) per share  be paid  from the  Group's 
distributable equity and that any  remaining distributable funds be  allocated 
to retained earnings. At December 31, 2012 the distributable equity totaled to
26.2 MEUR.

No material changes have taken place  in the Group's financial position  after 
the end of the financial year 2012. The Group's liquidity is good and the view
of the Board of  Directors is that the  distribution of the proposed  dividend 
will not undermine this liquidity.

Financial Statements and Annual General Meeting

Financial Statements  for  2012 and  Corporate  Governance Statement  will  be 
published in week 12. Annual  General Meeting is planned  to be held on  April 
11, 2013.

Helsinki, February 6, 2013

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 9 7562 540
Olli Aho, Investor Relations, +358 9 7562 540

A conference call  on the  2012 result  will be  arranged today  at 4.00  p.m. 
Finnish time (3.00 p.m.  CET). Please dial +44  (0)20 3147 4971 or  +1212444 
0889 or  +358 (0)9  2310 1667  (pin  code: 492802#)  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 7111 1244  (pin 
code: 492802#). Financial information  and teleconference replay facility  are 
available at www.rapalavmc.com.

INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

STATEMENT OF INCOME                                   IV     IV   I-IV   I-IV
MEUR                                              2012 2011 2012 2011
Net sales                                           67.9   60.8  290.7  279.5
Other operating income                               0.6    2.3    1.3    2.9
Materials and services                              35.8   28.6  140.7  129.0
Personnel expenses                                  15.8   16.3   62.6   62.4
Other costs and expenses                            14.8   12.7   55.8   53.3
Share of results in associates and joint ventures   -0.2   -0.1   -0.3   -0.1
EBITDA                                               1.9    5.5   32.6   37.7
Depreciation, amortization and impairments           1.7    1.9    6.8    7.0
Operating profit (EBIT)                              0.2    3.5   25.9   30.7
Financial income and expenses                        2.0    1.0    4.9    5.5
Profit before taxes                                 -1.8    2.5   21.0   25.2
Income taxes                                         0.3    1.5    7.1    8.0
Net profit for the period                           -2.1    1.1   13.9   17.2
Attributable to:
Equity holders of the Company                       -2.1    0.9   10.1   14.0
Non-controlling interests                            0.0    0.2    3.8    3.2
Earnings per share for profit attributable
to the equity holders of the company:
Earnings per share, EUR (diluted = non-diluted)    -0.05   0.02   0.26   0.36

STATEMENT OF COMPREHENSIVE INCOME               IV   IV I-IV   I-IV
MEUR                                          2012 2011 2012 2011
Net profit for the period                     -2.1  1.1 13.9   17.2
Other comprehensive income, net of tax
Change in translation differences             -1.9  4.9 -0.3    2.0
Gains and losses on cash flow hedges           0.1  0.0 -0.6   -0.1
Gains and losses on hedges of net investments  0.1 -0.4  0.2   -0.4
Total other comprehensive income, net of tax  -1.7  4.5 -0.8    1.5
Total comprehensive income for the period     -3.8  5.6 13.2   18.7
Total comprehensive income attributable to:
Equity holders of the company                 -3.8  5.2  9.4   15.8
Non-controlling interests                      0.0  0.4  3.7    2.9

STATEMENT OF FINANCIAL POSITION                           Dec 31        Dec 31
MEUR                                                        2012          2011
ASSETS
Non-current assets
Intangible assets                                           72.6          68.0
Property, plant and equipment                               29.3          28.5
Non-current financial assets
 Interest-bearing                                           3.7           5.8
 Non-interest-bearing                                      11.2          10.9
                                                           116.9         113.2
Current assets
Inventories                                                110.6         115.5
Current financial assets
 Interest-bearing                                           2.5           1.1
 Non-interest-bearing                                      58.5          55.4
Cash and cash equivalents                                   38.2          28.9
                                                           209.7         201.0
Assets classified as held-for-sale                             -           0.3
Total assets                                               326.6         314.5
EQUITY AND LIABILITIES
Equity
Equity attributable to the equity holders of the           128.6         128.6
company
Non-controlling interests                                    9.4           7.2
                                                           138.0         135.8
Non-current liabilities
Interest-bearing*                                           49.7          10.8
Non-interest-bearing                                        15.1          15.5
                                                            64.8          26.2
Current liabilities
Interest-bearing*                                           84.5         116.2
Non-interest-bearing                                        39.3          36.3
                                                           123.8         152.5
Total equity and liabilities                               326.6         314.5
* As of April 2012 the new revolving credit facilities of the new bank loan
agreements were classified as non-current liabilities to the extent banks'
commitment is valid for longer than 12 months.

                                               IV        IV     I-IV      I-IV
KEY FIGURES                                2012    2011   2012    2011
EBITDA margin, %                             2.8%      9.0%    11.2%     13.5%
Operating profit margin, %                   0.3%      5.8%     8.9%     11.0%
Return on capital employed, %                0.4%      6.2%    11.4%     13.8%
Capital employed at end of period, MEUR     227.9     226.9    227.9     226.9
Net interest-bearing debt at end of          89.9      91.1     89.9      91.1
period, MEUR
Equity-to-assets ratio at end of period,    42.3%     43.2%    42.3%     43.2%
%
Debt-to-equity ratio at end of period, %    65.1%     67.1%    65.1%     67.1%
Earnings per share, EUR (diluted =          -0.05      0.02     0.26      0.36
non-diluted)
Equity per share at end of period, EUR       3.32      3.30     3.32      3.30
Average personnel for the period            1 993     2 223    1 994     2 208
Definitions of key figures are consistent with those in the financial
statement 2011 and can be found on corporate website.

STATEMENT OF CASH FLOWS                                IV     IV   I-IV   I-IV
MEUR                                               2012 2011 2012 2011
Net profit for the period                            -2.1    1.1   13.9   17.2
Adjustments to net profit for the period *            5.2    2.2   20.6   17.6
Financial items and taxes paid and received          -2.9   -3.3  -13.6  -12.3
Change in working capital                             5.7   -1.6    4.2   -7.3
Net cash generated from operating activities          6.0   -1.6   25.2   15.2
Investments                                          -2.1   -2.7   -7.7   -8.4
Proceeds from sales of assets                         0.1    0.3    0.8    0.7
Acquisition of joint venture Shimano Normark UK         -    0.5      -   -1.5
Dynamite Baits acquisition, net of cash                 -   -0.1      -   -0.1
Sufix brand acquisition                                 -      -   -0.8   -0.7
Strikemaster and Mora Ice acquisitions                  -      -   -6.7      -
Acquisition of other subsidiaries, net of cash          -    0.0    0.0    0.0
Proceeds from disposal of subsidiaries, net of        0.8    0.6    0.8    0.6
cash
Change in interest-bearing receivables                0.0    0.0    0.0    0.0
Net cash used in investing activities                -1.2   -1.4  -13.6   -9.6
Dividends paid to parent company's shareholders         -      -   -8.9   -9.0
Dividends paid to non-controlling interest           -0.1   -0.1   -1.6   -2.9
Net funding                                           2.1   -0.8    9.1    6.7
Purchase of own shares                               -0.5   -0.1   -0.7   -0.1
Net cash generated from financing activities          1.4   -1.0   -2.2   -5.2
Adjustments                                           0.2    1.1    0.2    0.4
Change in cash and cash equivalents                   6.3   -2.9    9.6    0.8
Cash & cash equivalents at the beginning of the      32.0   31.5   28.9   27.9
period
Foreign exchange rate effect                         -0.1    0.3   -0.4    0.2
Cash and cash equivalents at the end of the period   38.2   28.9   38.2   28.9

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Attributable to equity holders of the company

                                    Cumul.  Fund for               Non-
                        Share  Fair trans-  invested         Re- contr-
                         pre- value lation non-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       3.6  16.7  -1.5   -6.0       4.9 -2.5  106.7    7.4  129.2
1, 2011
Comprehensive         -     -  -0.1    1.9         -    -   14.0    2.9   18.7
income *
Purchase of own       -     -     -      -         - -0.1      -      -   -0.1
shares
Dividends             -     -     -      -         -    -   -9.0   -3.2  -12.1
Other changes         -     -     -      -         -    -      -    0.0    0.0
Equity on Dec       3.6  16.7  -1.6   -4.1       4.9 -2.6  111.8    7.2  135.8
31, 2011
Equity on Jan       3.6  16.7  -1.6   -4.1       4.9 -2.6  111.8    7.2  135.8
1, 2012
Comprehensive         -     -  -0.6    0.0         -    -   10.1    3.7   13.2
income *
Purchase of own       -     -     -      -         - -0.7      -      -   -0.7
shares
Dividends             -     -     -      -         -    -   -8.9   -1.5  -10.4
Share based           -     -     -      -         -    -    0.3      -    0.3
payments
Other changes         -     -     -      -         -    -      -    0.0    0.0
Equity on Dec       3.6  16.7  -2.3   -4.1       4.9 -3.4  113.2    9.4  138.0
31, 2012
* For the period,
(net of tax)

SEGMENT INFORMATION*
MEUR                                      IV     IV   I-IV   I-IV
Net Sales by Operating Segment        2012 2011 2012 2011
Group Products                          44.2   40.2  176.4  174.5
Third Party Products                    23.7   20.6  114.3  105.0
Total                                   67.9   60.8  290.7  279.5
Operating Profit by Operating Segment
Group Products                           2.0    3.7   18.9   22.4
Third Party Products                    -1.8   -0.1    7.0    8.4
Total                                    0.2    3.5   25.9   30.7

                                      Dec 31 Dec 31
Assets by Operating Segment             2012   2011
Group Products                           213.8    209.9
Third Party Products                      68.5     68.8
Non-interest bearing assets total        282.3    278.7
Unallocated interest-bearing assets       44.3     35.9
Total assets                             326.6    314.5

Net Sales by Area**     IV     IV   I-IV   I-IV
MEUR                2012 2011 2012 2011
North America         25.6   18.7   83.6   69.1
Nordic                13.4   15.1   62.7   65.3
Rest of Europe        19.1   16.7  108.2  102.7
Rest of the world      9.8   10.3   36.2   42.4
Total                 67.9   60.8  290.7  279.5

* As  of  January  1,  2012 the  reportable  operating  segments  include  the 
following product lines: Group Products  include Group Fishing Products,  such 
as Lures, Fishing  Hooks, Fishing Lines  and Fishing Accessories,  as well  as 
Other Group Products, mainly Winter Sports and some other non-fishing  related 
business manufactured and/or sourced by the  Group and sold under the  Group's 
brands. Third Party  Products include non-Group  branded fishing products  and 
third party products for hunting, outdoor and winter sports distributed by the
Group.

** Geographical information has  been prepared on source  basis i.e. based  on 
the location of  the business unit.  As of January  1, 2012 the  net sales  is 
presented excluding  intra-Group  transactions, i.e.  including  only  Group's 
external sales

KEY FIGURES BY         I    II   III    IV  I-IV     I    II   III    IV  I-IV
QUARTERS
MEUR               2011 2011 2011 2011 2011 2012 2012 2012 2012 2012
Net sales           74.7  80.9  63.0  60.8 279.5  73.5  83.7  65.6  67.9 290.7
EBITDA              13.7  14.4   4.1   5.5  37.7  12.0  13.3   5.4   1.9  32.6
Operating profit    12.1  12.8   2.3   3.5  30.7  10.4  11.6   3.7   0.2  25.9
Profit before       11.1  11.3   0.3   2.5  25.2  10.4  10.5   1.9  -1.8  21.0
taxes
Net profit for the   7.9   8.0   0.2   1.1  17.2   7.5   7.2   1.3  -2.1  13.9
period

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 Annual Report 2011, except for the adoption of the  new 
or amended standards and interpretations. Adoption of amendment of IFRS 7  and 
IAS 12 did not result in any  changes in the accounting principles that  would 
have affected the information presented in this interim report.

The Group  changed its  reportable operating  segments from  January 1,  2012. 
Reportable operating segments are Group  Products consisting of Group  Fishing 
Products and Other Group Products, and Third Party Products.

Classification of  certain balance  sheet items  between interest-bearing  and 
non-interest-bearing assets  and liabilities  were  redefined. The  change  in 
presentation led  into  changes in  calculation  of some  non-IFRS  based  key 
figures. All comparative periods have been restated accordingly.

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-December  2012.  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 December 31, 2012, the book  value of inventories included a provision  for 
net realizable value of 4.4 MEUR (3.2 MEUR at December 31, 2011).

Assets held for sale

As a part of the relocation of Finnish distribution operations, a real  estate 
in Korpilahti, Finland,  was classified  as held  for sale  during the  fourth 
quarter of  2011. During  the last  quarter of  2012 a  decision was  made  to 
restore the real estate to manufacturing  use. The classification as held  for 
sale was ceased and the carrying  amount was adjusted by depreciation for  the 
full year 2012.

Impact of business  acquisitions and disposals  on the consolidated  financial 
statements

In September  2012,  the  Group  purchased  a  20%  share  of  the  Indonesian 
distribution company. This acquisition raised  the Group's ownership to  100%. 
Acquisition has no  significant impact on  the Group's consolidated  financial 
statements.

During the  first  quarter  the  Group acquired  the  assets,  including  Mora 
trademark in  North  America, of  Minnesota  based Strike  Master  Corporation 
("Strike Master"), the  leading supplier of  ice augers in  the US. The  Group 
also acquired 100% of the share capital  of Swedish Mora Ice Ab including  the 
Mora Ice brand, together with all intellectual property rights relating to the
Mora Ice  products. Mora  Ice is  Europe's leading  and premium  brand of  ice 
augers and auger cutting  blades. Both of the  acquisitions were completed  in 
February. The closing accounts were finalized during the third quarter and the
final  payment  of  0.4  MEUR  was  made  to  the  sellers  in  August.  Total 
considerations for the acquisitions during 2012 amounted to 6.8 MEUR.

These strategic  initiatives  will give  the  Rapala Group  global  leadership 
position in the ice  fishing category. The Group  is well equipped to  exploit 
this position as it is having strong distribution companies in all main arctic
markets: US, Canada,  Russia, East  European and Nordic  countries, Japan  and 
China.

Net sales after the acquisitions, 5.1  MEUR, are included in the  consolidated 
income statement. The acquisitions did not have material impact on the  profit 
of the Group. Due to the structure  of the acquisitions it is not possible  to 
reliably determine pre-transaction sales and profit prior in 2012.

The transaction costs of 0.0 MEUR have  been expensed and are included in  the 
other  operating  expenses  in   the  income  statement   and  treated  as   a 
non-recurring item.

The goodwill of 0.7 MEUR is  justified by expansion of product assortment  and 
market coverage as well as utilization  of economies of scale in sourcing  and 
distribution. None of the goodwill is expected to be deductible for income tax
purposes. The goodwill was be tested for impairment.

The business  combinations  are  accounted for  by  applying  the  acquisition 
method. The fair value  of intellectual property  rights is established  using 
the relief from royalty  method. The fair value  of customer relationships  is 
established with the income approach based on the future economic returns from
the customers over their useful lives.

The first  installment of  1.1 MEUR  of  the promissory  note related  to  the 
disposal of  the Gift  manufacturing unit  in China  in 2011  was received  in 
December 2012 according  to the terms  of the agreement.  The sales price  was 
adjusted as  a result  of  the finalization  of  the closing  accounts.  Price 
adjustment of 0.3 MEUR was paid during  the fourth quarter. Net effect to  the 
Group cash flow in 2012 was 0.8 MEUR.

MEUR                                              2012
Inventories                                        1.8
Trade and other non-interest-bearing receivables   0.3
Intangible assets                                  4.4
Tangible assets                                    0.1
Trade and other non-interest-bearing payables      0.0
Deferred tax liability (net)                      -0.6
Non-controlling interests                          0.0
Fair value of acquired net assets                  6.0
MEUR                                              2012
Cash paid upon closing                             6.4
Cash paid later                                    0.4
Total purchase consideration                       6.8
Goodwill                                           0.7
Cash paid for the acquisitions                     6.8
Cash and cash equivalents acquired                   -
Net cash flow                                      6.8

Non-recurring income and expenses            IV         IV      I-IV      I-IV
included in operating profit
MEUR                                      2012      2011     2012     2011
Costs related to business                   0.0       -0.2       0.0      -0.3
acquisitions
Restructuring of Hungarian operations         -        0.1         -       0.1
Relocation of Finnish operations              -       -0.1         -      -0.3
Net gain from sale of gift                 -0.3        1.7      -0.7       1.5
manufacturing unit in China*
Other restructuring costs                     -       -0.2         -      -0.4
Gain on disposal of real estate in            -          -       0.1         -
Finland
Other non-recurring items                   0.0          -       0.0         -
Total included in EBITDA                   -0.3        1.3      -0.6       0.6
Impairment of non-current assets              -       -0.2         -      -0.4
relating to relocation of Finnish
operations
Other non-recurring impairments               -        0.0         -       0.0
Total included in operating profit         -0.3        1.1      -0.6       0.2
* I-IV 2011: Including a gain of 1.9 MEUR and costs related to divestment.
I-IV 2012: including an adjustment to sales price and costs related to the
disposed business.

Commitments                                          Dec 31         Dec 31
MEUR                                                     2012             2011
On own behalf
Business mortgage*                                          -             16.1
Guarantees                                                0.1              0.1
Minimum future lease payments on operating               16.6             15.2
leases
* The Group refinanced its loan facilities in April 2012, and the business
mortgage related to the previous facility was released. The new loan
facilities are unsecured and include normal financial covenants.

                                   Sales                  Other
Related party transactions    and other    Pur- Rents expen- Recei- Paya-
MEUR                              income chases  paid     ses  vables   bles
I-IV 2012
Joint venture Shimano Normark        3.9       -      -       -     0.1    0.0
UK Ltd
Associated company Lanimo Oü           -     0.0      -       -     0.0      -
Entity with significant                -       -    0.2     0.1     0.0      -
influence over the Group*
Management                           0.0       -    0.4       -       -    0.0
I-IV 2011
Joint venture Shimano Normark        1.6       -      -       -     0.1      -
UK Ltd
Associated company Lanimo Oü           -     0.1      -       -     0.0      -
Entity with significant                -       -    0.2     0.1     0.0    0.0
influence over the Group*
Management                             -       -    0.3       -     0.0    0.0
* Lease agreement for the real estate for the consolidated operations in
France and a service fee.

Open derivatives           Nominal  Positive fair   Negative  Net fair
MEUR                          amount           values     fair      values
                                                          values
Dec 31, 2012
Foreign currency options        62.3              0.3        0.7        -0.4
and forwards
Interest rate swaps             85.0              0.3        3.3        -3.0
Total                          147.3              0.6        4.0        -3.4
Dec 31, 2011
Foreign currency options         3.4              0.2          -         0.2
Interest rate swaps             67.9                -        2.1        -2.1
Total                           71.3              0.2        2.1        -1.9
Financial risks and hedging principles are described in detail in the
financial statement 2011 and will be updated in financial statements 2012.

Share based incentive plan

In June 2012,  the Board approved  a new  share based incentive  plan for  the 
Group's key personnel. The plan includes one earning period which commenced on
April 1, 2012 and  will end on  June 30, 2013. The  potential reward from  the 
plan will  be based  on development  of Rapala  Group's inventory  levels  and 
EBITDA.  The  potential  reward   will  be  paid   primarily  as  Rapala   VMC 
Corporation's shares in August 2013. The target group of the plan consists  of 
20 key employees. The gross rewards to be  paid on the basis of the plan  will 
correspond to the value maximum total of 235 000 company shares.

Shares and share capital

On April 11, 2012 The Annual General Meeting updated Board's authorization  on 
issuance and repurchase of shares.

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 
468449. The  average  number  of  shares  during  the  reporting  period  was 
39468449. During the reporting  period, company bought back  a total of  149 
343 own shares. At the  end of the reporting  period the company held  701400 
own shares, representing  1.8% 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 4.78 EUR.

During the reporting period,  5679 621 shares  (6 479 735)  were traded at  a 
high of 6.50 EUR and a low of 4.52 EUR. The closing share price at the end  of 
the period was 4.85 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 continued to
develop risk management practices and internal controls during 2012.  Detailed 
descriptions of the Group's strategic,  operative and financial risks as  well 
as risk management  principles will  be included in  the Financial  Statements 
2012.

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. In  2012, 
54% of net sales and 85% of  operating profit was generated in the first  half 
of the year.  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 Group's  sales are to  some extent affected  by 
weather as  it  impacts consumer  demand  and the  timing  and length  of  the 
seasons. The summer fishing season in the USA and Europe started early in 2012
and the summer season 2013 may start  later impacting the sales. The Group  is 
more affected  by winter  weathers  after the  expansion into  winter  fishing 
business. On the  other hand, unfavorable  winter weathers may  lead to  early 
summer fishing season and resulting in higher summer fishing sales.

A major supply chain and logistics initiative to improve the Group's inventory
turnovers and  shorten the  factory lead-times  continued in  2012,  including 
planning and  implementation of  new  initiatives. Inventory  clearance  sales 
supporting the inventory reduction targets  may have some short-term  negative 
impacts on sales and profitability  of some product groups. The  uncertainties 
in future demand as well as the  length of the Group's supply chain  increases 
the importance  of supply  chain  management. Strong  and rapid  increases  in 
consumer demand may put challenges on Group's supply chain to meet the demand.
Management balances between risk  of shortages and  risk of excess  production 
and purchasing, which would lead to excess inventories in the Group.

The ramp-up phase of  the new production facilities  in Batam, Indonesia,  may 
increase certain production and supply chain risks temporarily.

The Group successfully refinanced its  credit facilities in April, 2012.  This 
has decreased  the Group's  liquidity and  refinancing risks.  The new  credit 
facilities include some financial covenants, which are actively monitored.

The fishing tackle business has not traditionally been strongly influenced  by 
the 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 and governmental austerity
measures may temporarily affect consumer  spending also in the fishing  tackle 
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. Declining oil
price may  negatively  impact the  growing  Russian market,  while  same  time 
supporting  consumption  in  USA.  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.  The  disturbances  in  global economy  may  cause  heavy  and 
unexpected fluctuations in foreign exchange rates. The Group monitors actively
its currency position  and risks  and hedges  risks in  several currencies  by 
following the risk policy set by the  Board of Directors. 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 has an impact on  the 
Group's operating  profit. Following  the implementation  of an  updated  risk 
policy in 2012  the nominal value  of hedging instruments  were increased  and 
thereby potentially increasing the quarterly volatility of unrealized items in
operating profit. The  continuing strengthening  of the  Chinese yuan  coupled 
with the possible  strengthening of  the US dollar  increases cost  pressures. 
Additionally, certain inflationary trends increase this pressure. The Group is
closely monitoring  market  development  and 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.

Stock Exchange Release

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Source: Rapala VMC Oyj via Thomson Reuters ONE
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