investor presentation...ⓒ fiskars group 2020 may–june 2020 13 transformation program focusing...

Investor presentation

May 2020

Content

• Fiskars Group in brief• Segments• Financials• Appendices

May–June 2020ⓒ Fiskars Group 2020 2

Fiskars Group in brief

ⓒ Fiskars Group 2020


Our purpose:

Makingthe everyday

extraordinary

Key categories in 2019


Tableware Drinkware Interior Gardening Outdoor Watering

TERRA VITA

Scissors & Creating

Cooking

CREA

NET SALES BY SEGMENT

41% 46%

13%

NET SALES SPLIT BY BRAND NET SALES SPLIT BY GEOGRAPHY

ⓒ Fiskars Group 2020 6

Net sales in 2019

May–June 2020

38%Fiskars

9%Iittala9%

Royal Copenhagen

8%Waterford

7%Gerber

7%Wedgwood

23%Other brands

13%Asia-Pacific

39%Americas

48%Europe

Strong brand portfolio


Main markets for the key international brands

May–June 2020ⓒ Fiskars Group 2020

Americas Europe Asia-Pacific

Fiskars

Gerber

Iittala

Royal Copenhagen

Wedgwood

Waterford

Based on net sales split in 2019

8

Our global presence


EMPLOYEES 7,000

PRESENCE IN 30 COUNTRIES

BRANDS AVAILABLE IN MORE

THAN 100 COUNTRIES

MORE THAN 350 STORES

Growing the core

Expanding in China and e-commerce

Exploring services

Strategic priorities


INSPIRING PEOPLE

GROWING BUSINESS

EXCITING CONSUMERS

IMPROVING PERFORMANCE

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 English & Crystal Living business, to improve its profitability

• Planned 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 would 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 2019, EUR 19.5 million of costs had been booked

Restructuring program Focusing on:

• Looking for 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 would 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 2019, EUR 7.0 million of costs had been booked

Segments


Business Area Vita

ⓒ Fiskars Group 2020 15May–June 2020

Tableware Drinkware

Interior

KEY CATEGORIES NET SALES AND COMPARABLE EBITAKEY BRANDS

110.2101.3

117.6

171.6

93.6

2.7 %-0.5 %

8.0 %

15.7 %

-3.8 %

-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

Gardening Outdoor

Watering

Business Area Terra


127.5 124.5

95.1 95.7

129.3

17.2 %

9.1 %

0.1 %

2.9 %

15.0 %

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


Scissors & Creating

Cooking

Business Area Crea


29.9

38.535.0

39.5

32.314.4 %

24.3 %

18.0 %

20.4 %

17.4 %

0%

5%

10%

15%

20%

25%

0

10

20

30

40

50

60

Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020


Store evolution – Iittala Vintage

Rolled out in all own Iittala stores in Finland in 2019

Scaling ongoing

Assessing expansion to other countries


CASE

May–June 2020 18

Other service models under development

Responding to new consumer habits, such as sharing and rentingArabia launched subscription service in November 2019


CASE


Brands with own e-commerce

Store network

54 %

46 %

BY BUSINESS

English & Crystal LivingScandinavian Living

33 %

62 %

5 %

BY REGION

EMEA APAC Americas


59 %30 %

11 %

BY TYPE

Concession Outlet Store

A total of 347 own stores at the end of 2018

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

May–June 2020 24

75.7

107.1119 121.7

90.6

25.918.9

6.8 %

8.9 %

10.0 %10.9 %

8.3 %

9.7 %

7.4 %

0%

2%

4%

6%

8%

10%

12%

14%

0

20

40

60

80

100

120

140

2015 2016 2017 2018 2019 Q1-19 Q1-20

Comparable EBITA, EUR million Comparable EBITA margin

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

May–June 2020


SKU reduction ongoing with potential remaining

May–June 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 2019Number 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

-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

Quarter Rolling 12 months


Cash flow

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

May–June 2020

28.5

42.837.4 38.8

43.8

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

May–June 2020

152 148 135.4

261.1

321.6 331.3

0

50

100

150

200

250

300

350

2016 2017 2018 2019 Q1-19 Q1-20

69% 69% 70%

56%

65%

51%

12% 12% 11%

34%

26%

44%

0%

10%

20%

30%

40%

50%

60%

70%

80%

0%

10%

20%

30%

40%

50%

60%

70%

80%

2016 2017 2018 2019 Q1-19 Q1-20

Equity ratio Net gearing

NET DEBT, EUR MILLION NET GEARING AND EQUITY RATIO


Solid balance sheet

Excluding IFRS 16-impact and Wärtsilä share distribution:

Equity ratio: 71%Net gearing 12%

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


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

Appendices


Largest shareholders as of April 30, 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 Varma Mutual Pension Insurance Company 2,469,326 3.01

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

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

9 Ilmarinen Mutual Pension Insurance Company 1,105,442 1.35

10 Wrede Anna 928,684 1.13

10 largest shareholders, total 46,902,300 57.26Other shareholders 35,002,942 42.74Total 81,905,242 100.00

Data supplied by Euroland

May–June 2020

Shareholder structure as of April 30, 2020

May–June 2020 34

Data supplied by Euroland

Sector Number of shareholders

% of total shareholders

Number of shares

% of shares and votes

Private companies 700 2.8% 28,412,377 34.7%Households 24,096 95.6% 28,096,117 34.3%Financial and insurance institutions 36 0.1% 121,07,697 14.8%Public sector and non-profit organizations 231 0.9% 9,731,679 11.9%Nominee registered and non-Finnish holders 133 0.5% 3,557,372 4.3%

Total 81,905,242 100.00

34.7%

34.3%

14.8%

11.9%4.3%

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

investor presentation...ⓒ fiskars group 2020 may–june 2020 13 transformation program focusing...

Documents