Fiskars Oyj Abp · OMXHEX:FSKRS

Fiskars Oyj Abp — Q2 2023 Earnings Presentation

29 slides from Fiskars Oyj Abp's earnings presentation, Jul 20, 2023

  1. Slide 1: Half-year Financial Report 2023

    Half-year Financial Report 2023 SALES AND EBIT DECLINED IN A CHALLENGING OPERATING JANU ARY – JU NE 2023 ENVIRONMENT, FOCUS ON CASH FLOW DELIVERED RESULTS

  2. Slide 2: 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 Group believes that the expectations reflected in such forward-looking statements are reasonable, no as

  3. Slide 3: Highlights of Q2 2023

    Highlights Highlights of ofQ2 Q22023 2023 SAFOLECSUA S NODNE BI T S AGLE ROS SDSE CMLI ARNG E IDN D T CS TORUATTGERGIEW C 20 2203 2 3G G UUI DI D AN CE AN CE CE D ACS LI HN FLO ED W IN A D IUMEPRTO O VLOE DW - O TH FO C U S PA Y S OLS E R C H A N NE FF : RUE IPD TEARTAEDTEDO: N A CN HD PR ONFI A LLE

  4. Slide 4: Q2 2023 Group key figures

    Q2 2023 Group key figures GROSS MARGIN % NET SALES, EUR MILLION COMPARABLE EBIT (EUR MILLION) -16.0% *-12.7% AND EBIT MARGIN (%) 46.8 Q2/2022: 43.4 50 13.5% 15 319 307 11.4% 280 7.8% 41.4 10 265 268 40 8.7% FREE CASH FLOW 4.9% 36.3 EUR MILLION 5 30 21.9 23.4 0 41.6 -5 Q2/2022: -3.1 20 13.1 -10 10 EA

  5. Slide 5: Vita Q2: Sales decreased in the retailer channel, own e-commerce developed positively

    Vita Q2: Sales decreased in the retailer channel, own e-commerce continued to develop positively NET SALES, EUR MILLION COMPARABLE EBIT (EUR MILLION) AND COMPARABLE EBIT MARGIN, % -10.3% *-6.4% 140 15 14.4 15 • E-commerce growth driven 12.2 127 10.6% 11.4% especially by China and the 120 116 114 10

  6. Slide 6: Terra Q2: Clearly lower shipments in the gardening season

    Terra Q2: Clearly lower shipments in the gardening season due to retailers’ inventories and cold spring NET SALES, EUR MILLION COMPARABLE EBIT (EUR MILLION) AND COMPARABLE EBIT MARGIN, % -24.0% 160 154 *-20.3% 30 20 • Similar development in the 149 17.0% 139 26.1 U.S. and in Europe 140 11.7% 15 125

  7. Slide 7: Crea Q2: All-time high second quarter EBIT despite lower volumes

    Crea Q2: All-time high second quarter EBIT despite lower volumes NET SALES, EUR MILLION COMPARABLE EBIT (EUR MILLION) AND COMPARABLE EBIT MARGIN, % -9.3%% *-8.1% 12.8 55 14 27.2% 30 • Sales decreased in Europe 52 25.9% 26.8% 11.7 50 23.5% - in the U.S., sales were rather 47 22.5% 25 45 12 11.6 11.3

  8. Slide 8: Our clear Growth Strategy sets the framework for our choices

    Our clear Growth Strategy sets the framework for the choices we make WE FOCUS ON WINNING: LOGIC Brands Channels Countries Commercial excellence Direct to consumer TRANSFORMATION LEVERS U.S. China INNOVATION ENABLERS PEOPLE DIGITAL SUSTAINABILITY & DESIGN JULY 20, 2023

  9. Slide 9: 3/4 of transformation levers delivering

    3/4 of transformation levers delivering Q2 2023 1-6/2023 Commercial • Gross margin +340 bps • Gross margin +160 bps excellence Direct to • DTC: 8% growth; and 22% of net sales • DTC: 6% growth; and 21% of net sales consumer • E-commerce +31%; own retail network stable • E-commerce +22%; own retail n

  10. Slide 10: Continued good progress in our ESG strategy and a new Inclusion target

    Continued good progress in our ESG strategy and a new target set for Inclusion Experience Environmental Social Q2 Q2 2023 Target 2023 Target Q2 2023 Q2 2023 Q2 2023 5.0 0 72 80** 8% -53% 42% Base year 2021 50% Base year 2017 -60% Target set 2020 60% in 2030 in 2030 in 2024 Net sales from Emissions f

  11. Slide 11: Other highlights of the second quarter

    Other highlights of the second quarter Creating ownership Moomin Arabia entered Wedgwood launched Coming soon: culture: First enrollment home with bedroom its new creative vision Fiskars LAB period in employee and bathroom textiles and a collaboration with share savings plan Charles Jeffrey MyFiskar

  12. Slide 12: Guidance for 2023

    Guidance for 2023 Assumptions behind the guidance (updated on July 5, 2023) - continued volatility of + savings from the the market environment; targeted organizational low consumer confidence changes from H2 onward Fiskars expects comparable EBIT and retailer focus on and prudent cost management to

  13. Slide 13: Q2 2023 Financials

    Q2 2023 Financials JULY 20, 2023

  14. Slide 14: Q2 Net sales decline driven by Terra

    Q2 Net sales decline driven by Terra Q2 2023 NET SALES BRIDGE BY BUSINESS AREAS, Q2 2023 NET SALES BRIDGE BY GEOGRAPHICAL EUR MILLION AREAS, EUR MILLION -16.0% -12.7%* -16.0% -12.7%* 319.1 -4.5 319.1 -4.5 320 -7.8 320 -7.8 310 306.7 -7.8 310 306.7 -16.9 -27.0 300 300 -18.1 290 290 -6.4% -12.3% 280 2

  15. Slide 15: Q2 Comparable EBIT declined due to volumes, gross margin improved clearly

    Q2 Comparable EBIT declined due to volumes, gross margin improved clearly Q2 2023 EBIT BRIDGE BY BUSINESS AREAS, Q2 2023 EBIT BRIDGE BY COMPONENTS, EUR MILLION EUR MILLION -12.9 -9.1 -12.9 -9.1 38 36.3 -2.0 40 36 36.3 -2.0 -1.8 -1.8 34 35 32.5 -10.4 32.5 32 30 30 28 25 23.4 26 24 +1.4 +0.5 23.4 -0.6

  16. Slide 16: Q2 Cash flow increased significantly

    Q2 Cash flow increased significantly driven by continued actions to adjust supply volumes EUR million EUR million 99 100 250 75 200 75 68 +45 49 150 50 39 42 36 34 36 100 24 25 13 50 0 0 0 -3 -3 -25 -50 -100 -50 -49 -150 -64 -75 -70 -200 -100 -250 Q2-20 Q3-19 Q4-19 Q1-20 Q3-22 Q4-22 Q2-22 Q1-23 Q3-2

  17. Slide 17: Trade Working Capital reduced by EUR 23 million vs. year-end

    Trade Working Capital reduced by EUR 23 million vs. year-end driven by Terra inventories EUR MILLION % 40% 600 38% 40 38% 36% 550 34% 34% 33% 34% 514 35 33% 32% 500 31% 31% 456 29% 30% 451 450 29% 29% 439 428 30 28% 426 26% 400 373 373 367 358 361 366 25 346 349 350 336 313 310 300 291 20 250 15 200

  18. Slide 18: Net debt decreased in Q2 but above year-end level

    Net debt decreased in Q2 but still above the year- end level due to increased lease liabilities EUR MILLION 400 3.2 370 3.0 350 344 342 2.8 332 325 323 318 2.6 300 290 134 2.4 279 102 262 107 133 2.2 117 101 115 250 2.0 107 222 104 215 207 1.8 200 111 1.6 180 95 105 1.4 144 146 145 107 150 137 1.2 9

  19. Slide 19: Capital Employed slightly down from the year-end

    Capital Employed slightly down from the year-end driven by Trade Working Capital reduction. ROCE down due to both declined profitability and asset efficiency. Funding (EURm) 30.06.22 31.12.22 30.06.23 Capital Employed (EURm) Equity 818 824 789 30.06.22 31.12.22 30.06.23 Interest-bearing debt 191 326

  20. Slide 20: Progress towards our financial targets

    Challenging operating environment is reflected in the progress towards our financial targets FINANCIAL TARGETS TRACKING FY FY LTM JUNE KPI TARGET 2021 2022 2023 NET SALES Organic, FX neutral Mid-Single-Digit growth 14.2% 1.7% -6.3% EBIT Mid-teen EBIT margin (excl. IAC) by end of 2025 12.3% z 12.1% 1

  21. Slide 21: Highlights of Q2 2023

    Highlights Highlights of ofQ2 Q22023 2023 SAFOLECSUA S NODNE BI T S AGLE ROS SDSE CMLI ARNG E IDN D T CS TORUATTGERGIEW C 20 2203 2 3G G UUI DI D AN CE AN CE CE D ACS LI HN FLO ED W IN A D IUMEPRTO O VLOE DW - O TH FO C U S PA Y S OLS E R C H A N NE FF : RUE IPD TEARTAEDTEDO: N A CN HD PR ONFI A LLE

  22. Slide 22: Thank you!

    Fiskars Gro up 202 3 Thank you! JULY 20, 2023

  23. Slide 23: Appendix

    FISKARS ss. GROUP 0 Appendix

  24. Slide 24: Consolidated Q2/H1 2023 income statement

    Consolidated Q2/H1 2023 income statement Q2/H1 P&L KEY FIGURES, EUR MILLION Key Takeaways Q2 H1 2023 2022 2023 2022 Gross margin +340bps (Q2), and +210bps (H1) vs. LY Net sales 267.9 319.1 542.8 651.7 • +160bps organically in H1 Comparable gross profit 125.4 138.5 253.0 290.1 Operational expenses do

  25. Slide 25: Q2/H1 2023 Cash flow

    Q2/H1 2023 Cash flow Q2 Q2 and and H1 H1 Cash Cash Flow Flow vs. vs. LY LY and (EURm) Plan (EURm) Q2 and H1 Change in Cash vs. LY (EURm) Q2 Q2 H1 H1 2023 2023 vs. vs. LY LY 2023 2023 vs. vs. LY LY Q2 H1 EBITDA EBITDA 37 37 --17 17 82 82 --27 27 2023 vs. LY 2023 vs. LY Non-cash Non-cash adjustments a

  26. Slide 26: Fiskars Group's quarterly development – last 3 years

    Fiskars Group’s quarterly development – last 3 years NET SALES, EUR MILLION COMPARABLE EBIT (EUR MILLION) AND EBIT MARGIN, % 60 20 -16.0% 51.8 18 353 -12.7%* 50 333 46.6 16 313 319 302 307 292 293 304 41.4 280 14 267 275 268 40 35.7 36.0 36.3 34.1 33.2 12 32.2 29.7 31.2 30 10 23.4 21.9 8 20 6 4 10 2

  27. Slide 27: BA Vita's quarterly development – last 3 years

    BA Vita’s quarterly development – last 3 years NET SALES, EUR MILLION COMPARABLE EBIT (EUR MILLION) AND EBIT MARGIN, % -10.3% -6.4%* 200 187 40 35.9 25 171 176 31.9 20 30 24.9 24.5 24.6 15 150 140 134 116 121 127 20 14.4 10 111 108 108 114 12.4 10.6 12.2 10.7 5 100 10 7.8 81 3.0 0 0 -5 50 -10 -10 -1

  28. Slide 28: BA Terra's quarterly development – last 3 years

    BA Terra’s quarterly development – last 3 years NET SALES, EUR MILLION COMPARABLE EBIT (EUR MILLION) AND EBIT MARGIN, % 180 173 40 25 -24.0% 35.5 160 154 157 -20.3%* 149 31.2 20 139 30 140 130 26.1 118 22.8 15 120 113 111 108 106 98 20 17.4 10 100 87 15.0 12.4 11.8 80 5 10 6.8 6.2 5.2 60 0 40 0 -5 2

  29. Slide 29: BA Crea's quarterly development – last 3 years

    BA Crea’s quarterly development – last 3 years NET SALES, EUR MILLION COMPARABLE EBIT (EUR MILLION) AND EBIT MARGIN, % -9.3% -8.1%* 55 52 15 35 13.9 50 47 47 12.8 45 46 30 45 44 42 43 11.6 11.7 42 40 11.3 11.4 40 38 37 10.0 25 36 10 35 8.3 8.1 8.1 20 30 7.8 25 15 5.7 20 4.5 5 15 10 10 5 5 0 0 0 Q2 Q

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