Investor presentation€¦ · Interior. Business Area Vita ... This presentation contains forward- looking statements that reflect management’s current views with respect to certain

Investor presentation

August 2020

Content

• Fiskars Group in brief• Business Areas• Financials• Appendices

August 2020ⓒ Fiskars Group 2020 2

Fiskars Group in brief

ⓒ Fiskars Group 2020 August 2020 3


Our purpose:

Makingthe everyday

extraordinary

Strong brand portfolio


NET SALES BY SEGMENT

41%46%

13%

Key categories in 2019


TERRA VITA

SCISSORS & CREATING

CREA

COOKING

TABLEWARE

INTERIOR

DRINKWARE

WATERING

OUTDOOR

GARDENING

NET SALES SPLIT BY BRAND NET SALES SPLIT BY GEOGRAPHY

ⓒ Fiskars Group 2020 7

Net sales in 2019

August 2020

38%Fiskars

9%Iittala9%

Royal Copenhagen

8%Waterford

7%Gerber

7%Wedgwood

23%Other brands

13%Asia-Pacific

39%Americas

48%Europe

Main markets for the key international brands

ⓒ Fiskars Group 2020

Americas Europe Asia-Pacific

Fiskars

Gerber

Iittala

Royal Copenhagen

Wedgwood

Waterford

Based on net sales split in 2019

8August 2020

Our global presence


EMPLOYEES 7,000

PRESENCE IN 30 COUNTRIES

BRANDS AVAILABLE IN MORE

THAN 100 COUNTRIES

MORE THAN 350 STORES

Development of digital

capabilities

Vita Transformation

Strategic priorities


INSPIRING PEOPLE

GROWING BUSINESS

EXCITING CONSUMERS

IMPROVING PERFORMANCE

Sharpening focus on:

Our sustainability commitments

CIRCULAR PRODUCTS AND SERVICES

• Design for sustainability

• Create zero waste

• Explore service models

CARBON NEUTRAL BUSINESS

• Improve our energy efficiency

• Invest in renewable energy sources

• Reduce emissions from value chain


POSITIVE IMPACT

• Inspire people through leadership

• Champion safety, diversity and inclusion

• Create positive societal impact

Organizational structure


Supply Chain

Sales

Consumer Experience & Growth

JOHAN HEDBERG

VITA TERRA CREA

Interim CEO SARI POHJONEN

TINA ANDERSSON

RISTO GAGGL

SARI POHJONEN

NIKLAS LINDHOLM

PÄIVI TIMONEN

MAIJA TAIMI

Business Area Business Area Business Area

TUOMAS HYYRYLÄINEN

JAMES BROUILLARD

CHRISTIAN BACHLER

Finance & IT

Human Resources

Legal & Compliance

Communications & Sustainability

Update on programs


Transformation programFocusing on:

• The Vita business, to improve its profitability

• Actions in retail, distribution and supply network as well as organizational structure

Targeted annual cost savings app. EUR 17 million• Subject to the full implementation of the program

• Targeted cost savings are expected to be achieved gradually, and the majority of the savings are expected to materialize after the program is completed (end of 2021)

Costs of the program app. EUR 40 million in 2018–2021

By the end of Q2 2020, EUR 20.2 million of costs had been booked

Restructuring program Focusing on:

• Synergies and efficiencies in our selling and administrative spending

• Evaluating our entire supply and distribution network for efficiency improvements

Targeted annual cost savings app. EUR 20 million• Subject to the full implementation of the program

• Targeted cost savings are expected to be achieved gradually, and the majority of the savings are expected to materialize after the program is completed (end of 2021)

Costs of the program app. EUR 30 million in 2019–2021

By the end of Q2 2020, EUR 8.1 million of costs had been booked

Business Areas


Business Area Vita


NET SALES AND COMPARABLE EBITA MARGIN

110,2101,3

117,6

171,6

93,680,92,7 %

-0,5 %

8,0 %

15,7 %

-3,8 %

-9,8 %-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

0

20

40

60

80

100

120

140

160

180

200

Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020

KEY CATEGORIES

KEY BRANDS

InteriorDrinkwareTableware

Business Area Vita


• Nordics• UK• U.S.• Japan

DISTRIBUTION CHANNELS

Direct consumer sales Stores, E-comm

WholesaleStores & e-comm

Hospitality BtoB

KEY MARKETS

Business Area Terra


127,5 124,5

95,1 95,7

129,3

153,7

17,2 %

9,1 %

0,1 %

2,9 %

15,0 %

17,7 %

0%

5%

10%

15%

20%

25%

0

20

40

60

80

100

120

140

160

Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020

NET SALES AND COMPARABLE EBITA MARGINKEY CATEGORIES

KEY BRANDS

WateringOutdoorGardening

Business Area Terra


• U.S.• North & Central

EuropeDirect

consumer salesStores, E-comm


BtoB

DISTRIBUTION CHANNELSKEY MARKETS

Business Area Crea


29,9

38,535,0

39,5

32,3

44,8

14,4 %

24,3 %

18,0 %

20,4 %

17,4 %

28,4 %

0%

5%

10%

15%

20%

25%

30%

0

10

20

30

40

50

60

70

Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020

KEY CATEGORIES NET SALES AND COMPARABLE EBITA MARGIN

KEY BRANDS

Scissors & creating

Cooking

Business Area Crea


• U.S.• North & Central

EuropeDirect

consumer salesStores, E-comm


BtoB

DISTRIBUTION CHANNELSKEY MARKETS

Store evolution – Iittala Vintage

Rolled out in all own Iittala stores in Finland in 2019

Scaling ongoing

Assessing expansion to other countries


CASE

August 2020 21


Brands with own e-commerce

Store network

BY REGION


BY TYPE

A total of 347 own stores at the end of 2018

33%EMEA

62%APAC

5%Americas

59%Concession

30%Outlet

11%Store

Financials


660716 743 748 799 768

1 1071 205 1 186

1 119 1 090

33,5 %35,4 % 35,0 %

36,7 %

40,9 % 41,0 %38,7 %

42,5 % 43,2 % 43,4 %41,0 %

25%

30%

35%

40%

45%

50%

55%

60%

0

200

400

600

800

1 000

1 200

1 400

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Group net sales and profitability development


Net sales, EUR million Comparable gross margin Net sales CAGR

+5%

Long-term target to reach a reported EBITA margin of 12%

COMPARABLE EBITA

August 2020 26

75,7

107,1119 121,7

90,6

42,147,6

6,8 %

8,9 %

10,0 %10,9 %

8,3 % 7,9 %8,9 %

0%

2%

4%

6%

8%

10%

12%

14%

0

20

40

60

80

100

120

140

2015 2016 2017 2018 2019 H1-19 H1-20

Comparable EBITA, EUR million Comparable EBITA margin

22,4

29,1

35,4

23,6 22,3

27,0

48,8

25,9

16,113,4

35,1

18,9

28,6

0

10

20

30

40

50

60

Comparable EBITA Rolling 12 months average

290270

319

266 273256

324

269 265249

308

256

280

0

50

100

150

200

250

300

350

Net sales Rolling 12 months average

NET SALES, EUR MILLION COMPARABLE EBITA, EUR MILLION


Quarterly development – last 3 years

August 2020

10% 9% 11%16%

12% 11% 9%

9%

3% 4%3%

4%

Q1 Q2 Q3 Q4

Vita Terra Crea

3%-1%

9%

26%21%

11%0%

3%4%

9%6%

8%

Q1 Q2 Q3 Q4

Vita Terra Crea

NET SALES COMPARABLE EBITA


Seasonalities creating balanced income profile

Seasonal distribution by quarter and business area in 2019. Percentages as share of total full year group figures

August 2020


SKU reduction ongoing with potential remaining

August 2020

0

10 000

20 000

30 000

40 000

50 000

60 000

70 000

80 000

90 000

0

5 000

10 000

15 000

20 000

25 000

30 000

35 000

40 000

45 000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Number of Stock Keeping Units Net sales / SKU, EUR

Number of Stock Keeping Units (SKU)

Sales / SKU, EUR

Royal Copenhagen

acquired

Brand portfolio

acquired (incl. Wedgwood and

Waterford)

Nelson and Gilmour acquired

Targeting to reach the previous high in sales / SKU

-36,2

39,1 40,3

77,5

-46,4

48,624,8

103,5

-39,2

42,7 41,1

92,2

-25,8

48,1

10,5

84,7

-37,5

55,8

-100

-50

0

50

100

150

200

Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20

Cash flow Rolling 12 months


Cash flow

Cash flow from operating activities before financial items and taxes EUR million

August 2020

28,5

42,8

37,4 38,843,8

59,6

0

10

20

30

40

50

60

70

2014 2015 2016 2017 2018 2019

35,032,4

37,6

32,8

46,2

40,0

4,6 %

2,9 % 3,1 % 2,8 %

4,1 %3,7 %

0%

2%

4%

6%

8%

10%

12%

14%

0

5

10

15

20

25

30

35

40

45

50

2014 2015 2016 2017 2018 2019

Capex as % of sales

DEPRECIATION, AMORTIZATION AND IMPAIRMENT, EUR MILLION

CAPEX, EUR MILLION


Capital expenditure

Depreciation increased as a result of IFRS 16

August 2020

152,0 148,0135,4

261,1278,0 289,5

0

50

100

150

200

250

300

350

2016 2017 2018 2019 Q2-19 Q2-20

69% 69% 70%

56% 56%

49%

12% 12% 11%

34%37% 38%

0%

10%

20%

30%

40%

50%

60%

70%

80%

0%

10%

20%

30%

40%

50%

60%

70%

80%

2016 2017 2018 2019 Q2-19 Q2-20

Equity ratio Net gearing

NET DEBT, EUR MILLION NET GEARING AND EQUITY RATIO


Solid balance sheet

IFRS 16-impact visible in figures from Q1 2019 and Wärtsilä share distribution in Q2 2019

Increase in 2019 due to IFRS 16

Long-term financial targets


GROWTH

The average annual net sales growth to exceed 5%, through a combination of organic growth and targeted acquisitions

PROFITABILITY

EBITA margin to reach 12%

CAPITAL STRUCTURE

Net gearing* below 100%

DIVIDEND

Fiskars aims to distribute a stable, over time increasing dividend, to be paid biannually

EUR 0.56 per share, paid in two installments of 0.28 each-2.5% YoY

-3.9% YoY (comparable)6.7% 8.3% (comparable)

34%2019

**Net gearing ratio is the ratio of interest-bearing debt, less interest-bearing receivables and cash and bank equivalents, divided by total equity

Wärtsilä share distribution changed the baseline for dividend growth

ⓒ Fiskars Group 2020 34August 2020

0,00

0,20

0,40

0,60

0,80

1,00

1,20

1,40

1,60

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Dividend per share (DPS) history 2009–2019EUR

Extra DividendBase Dividend

0.71

0.35

First dividendSecond dividend

0.520.60

1.30

0.62

0.750.65

2.60

0.67 0.68 0.70 0.72

0.36

0.27

0.27

Wärtsilä share distribution

0.36

0.54

5.31

0.28

0.28*

0.56

*Subject to a decision by the Board of Directors in September 2020

Appendices


Largest shareholders as of July 31, 2020


# Shareholder name Number of shares % of shares and votes1 Virala Oy Ab 12,650,000 15.44

2 Turret Oy Ab 10,930,961 13.35

3 Holdix Oy Ab 10,165,537 12.41

4 Bergsrådinnan Sophie von Julins Foundation 2,556,000 3.12

5 Oy Julius Tallberg Ab 2,554,350 3.12

6 Gripenberg Gerda Margareta Lindsay Dödsbo 1,982,000 2.42

7 Ilmarinen Mutual Pension Insurance Company 1,855,442 2.27

8 Varma Mutual Pension Insurance Company 1,719,326 2.10

9 von Julin Sofia Margareta dödsbo 1,560,000 1.90

10 Wrede Anna 928,684 1.13

10 largest shareholders, total 46,902,300 57.26Other shareholders 35,002,942 42.74

Total 81,905,242 100.00

Data supplied by Euroland

August 2020

Shareholder structure as of July 31, 2020

August 2020 37

Data supplied by Euroland

Sector Number of shareholders

% of total shareholders

Number of shares

% of shares and votes

Private companies 674 2.7% 28,374,713 34.6%Households 24,340 95.8% 28,109,253 34.3%Financial and insurance institutions 37 0.1% 12,075,261 14.7%Public sector and non-profit organizations 224 0.9% 9,641,266 11.8%Nominee registered and non-Finnish holders 133 0.5% 3,704,749 4.5%

Total 81,905,242 100.00

34,6%

34,3%

14,7%

11,8%4,5%

Private companies

Households

Financial and insuranceinstitutionsPublic sector and non-profitorganizationsNominee registered and non-Finnish holders

Fiskars Group Leadership Team


SARI POHJONEN

Interim CEO & Chief Financial Officer

TINA ANDERSSON

Chief Consumer OfficerCHRISTIAN BACHLER

Executive Vice President,BA Vita

TUOMAS HYYRYLÄINEN

Executive Vice President,BA Crea

NIKLAS LINDHOLM

Chief People OfficerMAIJA TAIMI

Chief Communications Officer

PÄIVI TIMONEN

Chief Legal Officer

JAMES BROUILLARD

Executive Vice President,BA Terra

JOHAN HEDBERG

Chief Sales Officer

RISTO GAGGL

Chief Supply Chain Officer

Board of Directors


PAUL EHRNROOTH

Chairman

JYRI LUOMAKOSKI

Vice Chairman

ALBERT EHRNROOTH

LOUISE FROMOND

INKA MERO

FABIAN MÅNSSON

PETER SJÖLANDER

RITVA SOTAMAA

NATHALIE AHLSTRÖM

Disclaimer


This presentation contains forward-looking statements that reflect management’s current views with respect to certain future events and potential financial performance. Although Fiskars believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. Accordingly, results could differ materially from those set out in the forward-looking statements as a result of various factors.

Important factors that may cause such a difference for Fiskars include, but are not limited to: (i) the macroeconomic development and consumer confidence in the key markets, (ii) change in the competitive climate, (iii) change in the regulatory environment and other government actions, (iv) change in interest rate and foreign exchange rate levels, and (v) internal operating factors.

This presentation does not imply that Fiskars has undertaken to revise these forward-looking statements, beyond what is required by applicable law or applicable stock exchange regulations if and when circumstances arise that will lead to changes compared to the date when these statements were provided.


Makingthe everyday

extraordinary

Documents

Investor presentation€¦ · Interior. Business Area Vita ... This presentation contains forward- looking statements that reflect management’s current views with respect to certain