Fiskars Oyj Abp · OMXHEX:FSKRS
Fiskars Oyj Abp — Q3 2018 Earnings Presentation
21 slides from Fiskars Oyj Abp's earnings presentation, October 2018
Slide 1: Interim report January–September 2018
Interim report January–September 2018 Fiskars, Gerber, Iittala, Royal Copenhagen, Waterford, Wedgwood, Arabia, Gilmour, Royal Albert, Royal Doulton, Rörstrand
Slide 2: Today’s speakers
Today’s speakers Jaana Tuominen Sari Pohjonen President & CEO CFO Interim President, Deputy to the CEO SBU Functional
Slide 3: Disclaimer
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 assura
Slide 4: Key takeaways for Q1–Q3 2018
Key takeaways for Q1–Q3 2018 1 2 3 4 Mixed performance with Comparable EBITA Product mix and Outlook for 2018 progress in the Functional increased in the decreased sales unchanged segment, but challenges in Functional segment, volumes contributed the Living segment. Cash supported by the to a decrea
Slide 5: Q1–Q3 2018
Q1–Q3 2018 Net sales Comparable EBITA** Cash flow from operating activities*** Earnings per share Q3 EUR million (Q3 2017: 270.1) EUR million (29.1) EUR million (24.8) EUR (0.34)**** 255.8 27.0 41.1 0.34 YoY -5.3% YoY -7% Comparable* change -4.2% EUR million (Q1–Q3 2017: 866.3) EUR million (83.5) EU
Slide 6: Fiskars Group in Q3 2018
Fiskars Group in Q3 2018 Net sales and comparable EBITA % Comparable EBITA EUR million EUR million -4.2% Comparable change -5.3% -7% 36.3 35.4 334 319 32.0 306 29.1 281 290 27.0 270 266 273 24.9 256 22.4 23.6 22.3 10.9 10.5 10.8 11.1 10.6 8.9 8.9 8.2 7.7 1.3 -1.5 -8.2 -1.1 -1.1 -4.9 -1.6 -2.1 -0.3 Q
Slide 7: Net sales bridge Q3 2018
Net sales bridge Q3 2018 Net sales Comparable EUR million change -4.2% 270.1 -3.1 0.0 0.7 -12.0 0.2 255.8 Q3 2017 FX rate Divestments SBU Functional SBU Living Other Q3 2018 7 Fiskars Q3 2018
Slide 8: Transformation program in the Living business
Transformation program in the Living business Key items • The Transformation program focuses primarily on: • Targeted annual cost savings app. • The English & Crystal Living business, to improve its profitability EUR 17 million • Planned actions in retail, distribution and supply network as well • S
Slide 9: Living marketing Q3 highlights
Living marketing Q3 highlights • Royal Copenhagen was introduced in the Australian market during the quarter. Additionally, Royal Copenhagen expanded the distribution of the new Blomst series to the Korean and Taiwanese markets • Arabia in Finland and Rörstrand in Sweden are participating in the Pin
Slide 10: Functional marketing Q3 highlights
Functional marketing Q3 highlights • Fiskars won a Teachers’ Choice Award, celebrating the 13th consecutive year when Fiskars’ products have been awarded • Fiskars launched a fall and winter gardening campaign, as part of driving a second gardening season in the fall • The Outdoor business introduce
Slide 11: Fiskars Q3 2018
Fiskars Q3 2018 11 Fiskars Q3 2018
Slide 12: Living in Q3 2018
Living in Q3 2018 EUR million Q3 2018 Q3 2017 Change Q1-Q3 2018 Q1-Q3 2017 Change Comparable Q3 2018: -9.1% Net sales 120.0 133.8 -10.3% 344.9 386.1 -10.7% change* Comparable EBITA 8.8 17.9 -51% 14.5 32.5 -55% -10.3% Capital expenditure 5.4 4.6 16% 16.5 9.1 81% 188 • Comparable net sales decreased b
Slide 13: Functional in Q3 2018
Functional in Q3 2018 EUR million Q3 2018 Q3 2017 Change Q1-Q3 2018 Q1-Q3 2017 Change Comparable Q3 2018: 0.5% Net sales 134.6 135.4 -0.6% 446.8 477.3 -6.4% change* Comparable EBITA 19.1 13.6 40% 66.4 58.7 13% -0.6% Capital expenditure 6.1 3.3 84% 13.2 12.8 3% *Using comparable exchange rates and ex
Slide 14: Net sales by geography in Q3 2018
Net sales by geography in Q3 2018 Comparable Comparable EUR million Q3 2018 Q3 2017 Change Q1-Q3 2018 Q1-Q3 2017 Change change* change* Europe 119.4 131.3 -9.1% -7.9% 369.1 402.6 -8.3% -6.6% Americas 104.1 105.8 -1.6% -1.2% 332.4 355.8 -6.6% 1.2% Asia-Pacific 29.1 33.6 -13.1% -10.6% 93.0 106.4 -12.6
Slide 15: Other segment
Other segment • The Other segment contains the Group’s investment portfolio, the real estate unit, corporate headquarters and shared services • Based on the new IFRS 9 standard that Fiskars adopted from January 1, 2018, Fiskars Group records the change in fair value of investments in other comprehen
Slide 16: Earnings per share
Earnings per share EPS • Prior to Q1 2018, Fiskars has reported earnings per EUR per share 0.34 0.34 share (EPS) and operative earnings per share 0.28 • In accordance with the IFRS 9 accounting principles, the change in fair value of investments has been moved 0.23 0.21 0.25 0.20 to other comprehens
Slide 17: Improved working capital in Q3 2018
Improved working capital in Q3 2018 Cash flow from operating activities before Working capital financial items and taxes EUR million EUR million 258 252 104 242 232 227 232 78 218 218 196 49 43 40 41 25 -39 -46 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2016 2016 2017 2017 2017 2017 2018
Slide 18: Net debt decreased in Q3 2018
Net debt decreased in Q3 2018 Net debt Equity ratio and net gearing EUR million 257 228 226 226 68 69 67 69 69 68 68 69 211 66 207 204 152 148 21 19 18 17 18 17 16 12 12 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2016 2016 2017 2017 2017 2017 2018 2018 2018 2016 2016 2017 2017 2017 2017 2
Slide 19: Outlook for 2018 unchanged
Outlook for 2018 unchanged In 2018, Fiskars expects the Group's comparable net sales to be slightly below the previous year and comparable EBITA to increase from 2017. The fourth quarter of the year is significant both in terms of net sales and profitability. • The comparable net sales excludes the
Slide 20: Long-term financial targets
Long-term financial targets LTM* 2017 GROWTH -7.2% YoY -1.6% YoY The average annual net sales growth to exceed 5%, through a combination of organic growth and targeted acquisitions PROFITABILITY 9.7% 9.5% EBITA margin to exceed 10% CAPITAL STRUCTURE 12% Net gearing** below 100% DIVIDEND A total of E
Slide 21: Making the everyday extraordinary
Making the everyday extraordinary