Fiskars Oyj Abp · OMXHEX:FSKRS

Fiskars Oyj Abp — Fiskars Group — Investor Presentation (December 2021)

58 slides from Fiskars Oyj Abp's investor presentation, December 2021

  1. Slide 1: Investor presentation November-December 2021

    Investor presentation November-December 2021

  2. Slide 2: Content

    Content • Fiskars Group in brief • Strategy • Business Areas • Financials • Appendices ⓒ Fiskars Group 2021

  3. Slide 3: Making the everyday extraordinary

    Our purpose: Making the everyday extraordinary Fiskars Group is a global lifestyle company with a unique portfolio of much-loved brands ⓒ Fiskars Group 2021 November-December 2021 3

  4. Slide 4: Strong brand portfolio

    Strong brand portfolio ⓒ Fiskars Group 2021 November-December 2021 4

  5. Slide 5: Business Areas and key categories

    Business Areas and key categories VITA TERRA CREA BUSINESS AREAS & KEY CATEGORIES Tableware Drinkware Interior Gardening Outdoor Watering Scissors Cooking & creating KEY BRANDS BA SHARE OF NET SALES 44% 43% 14% ⓒ Fiskars Group 2021 November-December 2021 5

  6. Slide 6: Fiskars the largest brand – LTM sales splits

    Fiskars the largest brand – LTM* sales splits SALES SPLIT BY BRAND SALES SPLIT BY GEOGRAPHY SALES SPLIT BY CATEGORY Cooking Other Asia-Pacific Scissors & Creating 5% 18% 15% 9% Tableware Watering 27% Moomin 7% 3% Fiskars 41% Waterford 6% 47% Europe Outdoor 7% Wedgwood 7% 8% 38% Drinkware 7% Americas

  7. Slide 7: Our global presence

    Our global presence EMPLOYEES >6,000 PRESENCE IN 30 COUNTRIES BRANDS AVAILABLE IN MORE THAN 100 COUNTRIES MORE THAN 360 STORES ⓒ Fiskars Group 2021 November-December 2021 7

  8. Slide 8: Content

    Content • Fiskars Group in brief • Strategy • Business Areas • Financials • Appendices ⓒ Fiskars Group 2021

  9. Slide 9: Value Creation - Growth strategy addresses all value creation levers

    Value Creation - Growth strategy addresses all value creation levers TSR drivers • We secure profit growth through increased focus on Gross Margin improvement PROFIT • OPEX fluidity to ensure funding of the strategic growth investments GROWTH • We manage both short- and long-term profit improvement

  10. Slide 10: The Growth Strategy – clear strategic focus and transformation levers

    The Growth Strategy – clear strategic focus and transformation levers WE FOCUS ON WINNING: LOGIC Brands Channels Countries Commercial excellence Direct to consumer TRANSFORMATION LEVERS U.S. China ENABLERS INNOVATION PEOPLE DIGITAL SUSTAINABILITY & DESIGN ⓒ Fiskars Group 2021 November-December 2021

  11. Slide 11: We focus on winning brands, enabled through clear roles across our portfolio

    We focus on winning brands, enabled through clear roles across our portfolio WINNING BRANDS WINNING BRANDS TURNAROUND BRANDS ⓒ Fiskars Group 2021 November-December 2021 11

  12. Slide 12: Driving Fiskars as our #1 brand

    Driving Fiskars as our #1 brand WINNING BRANDS • Global brand with strong recognition • Strong historical performance − >40% of Fiskars Group net sales LTM − 7% comp. net sales CAGR 2017-LTM • Further room to utilize brand stretch and surround the consumer − Product portfolio across key markets − Cl

  13. Slide 13: We are building winning brands through new ways of thinking

    We are building winning brands through new ways of thinking WINNING BRANDS Case Moomin • Story telling translated into collectibles • Currently net sales over EUR 30 million • Fiskars Group minority shareholder in Rights & Brands since Sept ‘21 • Strategic partnership enables global growth beyond ou

  14. Slide 14: Strengthening our DTC to address the needs of the modern consumer

    Strengthening our DTC to address the needs of the modern consumer WINNING CHANNELS • Win in the channel shift; focus on growing in the direct channel, incl. eCom and own stores • Invest significantly in digital organization and capabilities • Optimize store presence, incl. new store openings in Chin

  15. Slide 15: The direct channel (DTC) increasingly important

    The direct channel (DTC) increasingly important WINNING CHANNELS GROUP NET SALES BY CHANNEL (LTM*) NUMBER OF STORES Direct, e-commerce Direct, stores Indirect, e-commerce Total number of stores: 362 (by end of Q3) 5% 13% 9% Store Europe Outlet 13% 21% 32% 67% 2% Americas 66% 73% Asia-Pacific Concess

  16. Slide 16: Commercial excellence drives our performance improvement across all channels

    Commercial excellence drives our performance improvement across all channels WINNING CHANNELS Our Commercial Excellence, examples • Win with the Winners • Value-based pricing • In-store and online excellence • Distribution and product coverage ⓒ Fiskars Group 2021 November-December 2021 16

  17. Slide 17: U.S. continues to deliver a majority of our growth

    U.S. continues to deliver a majority of our growth WINNING COUNTRIES • Favorable market dynamics − Demand driver for branded consumer products • Strong platform with scale in place − Fiskars leading gardening brand − Strong presence at key big-box retailers and e-tailers • Further improvement in sig

  18. Slide 18: We have a strong start in China with significant growth opportunities ahead

    We have a strong start in China with significant growth opportunities ahead WINNING COUNTRIES NET SALES IN CHINA (EURm) • Strong market demand • Solid foundation, impressive track-record 26 − Capable local team in place CAGR: − 50% net sales CAGR during past 4 years +50% − 40% of LTM* net sales thro

  19. Slide 19: Our enablers for the future

    Our enablers for the future PEOPLE DIGITAL INNOVATION SUSTAINABILITY & DESIGN ⓒ Fiskars Group 2021 November-December 2021 19

  20. Slide 20: We have clear sustainability priorities to drive real impact

    We have clear sustainability priorities to drive real impact ⓒ Fiskars Group 2021 November-December 2021 20

  21. Slide 21: Fiskars Group commits to climate action by joining the UN Business Ambition for 1.5°C

    Fiskars Group commits to climate action by joining the UN Business Ambition for 1.5°C and setting science-based targets Fiskars Group’s science-based targets are: 1. Fiskars Group commits to reduce greenhouse gas emissions from own operations (scope 1 and 2) 60% by 2030 from a 2017 base year. 2. Fis

  22. Slide 22: Organizational structure

    Organizational structure CEO NATHALIE AHLSTRÖM J O H AN Sales H ED B ERG Business Area Business Area Business Area Consumer Experience & T IN A A N D ER SSON Communications R IST O Supply Chain G A G GL VITA TERRA CREA PET ER Digital & IT C A B EL L O H O L M B ERG J U SSI Finance SIIT O NEN CHRISTI

  23. Slide 23: Content

    Content • Fiskars Group in brief • Strategy • Business Areas • Financials • Appendices ⓒ Fiskars Group 2021

  24. Slide 24: BA Vita

    BA Vita KEY CATEGORIES NET SALES AND COMPARABLE EBITA MARGIN EURm % 180 172 171 30 160 22.1% 134 Tableware Drinkware Interior 140 19.9% 20 120 118 15.7% 111 116 110 13.2% 108 101 11.6% 12.1% 100 94 KEY BRANDS 8.0% 81 10 80 2.7% 60 -0.5% 0 40 -3.8% 20 -9.8% 0 -10 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q

  25. Slide 25: BA Vita – Markets and channels

    BA Vita – Markets and channels KEY MARKETS DISTRIBUTION CHANNELS • Nordics • UK Retailers; stores & Direct consumer sales; BtoB • U.S. e-comm stores & e-comm • China • Japan ⓒ Fiskars Group 2021 November-December 2021 25

  26. Slide 26: BA Vita – net sales splits (LTM)

    BA Vita – net sales splits (LTM*) SALES SPLIT BY BRAND SALES SPLIT BY CHANNEL SALES SPLIT BY GEOGRAPHY Iittala Asia-Pacific Others 21% 22% Direct 31% Europe 38% Moomin 7% 54% 21% Indirect 62% 13% 15% Waterford Royal Copenhagen 16% Americas Wedgwood ⓒ Fiskars Group 2021 *LTM referring to the period Q

  27. Slide 27: BA Terra

    BA Terra KEY CATEGORIES NET SALES AND COMPARABLE EBITA MARGIN EURm % 160 154 157 30 149 140 128 129 Gardening Outdoor Watering 125 120 113 20.5% 112 98 20 100 17.2% 95 96 17.6% 14.9% KEY BRANDS 80 11.8% 12.5% 60 9.2% 10 7.9% 40 6.8% 20 2.9% 0.1% 0 0 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1

  28. Slide 28: BA Terra – Markets and channels

    BA Terra – Markets and channels KEY MARKETS DISTRIBUTION CHANNELS • U.S. • North & Central Retailers; Direct stores & BtoB consumer sales; Europe e-comm stores & e-comm ⓒ Fiskars Group 2021 November-December 2021 28

  29. Slide 29: BA Terra – net sales splits (LTM)

    BA Terra – net sales splits (LTM*) SALES SPLIT BY CATEGORY SALES SPLIT BY CHANNEL SALES SPLIT BY GEOGRAPHY Direct Asia-Pacific Watering 1% 3% Europe 17% 39% Outdoor 17% 66% 58% Americas 99% Gardening Indirect ⓒ Fiskars Group 2021 *LTM referring to the period Q4 2020 – Q3 2021 November-December 2021

  30. Slide 30: BA Crea

    BA Crea KEY CATEGORIES NET SALES AND COMPARABLE EBITA MARGIN EURm % 50 40 45 46 45 42 44 42 34.2% Scissors Cooking 40 39 40 & creating 36 35 35 32 28.3% 30 30 27.7% 30 26.1% 25 24.4% 23.7% KEY BRANDS 20 20.5% 19.5% 18.0% 20 15 17.3% 10 14.4% 5 0 10 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1

  31. Slide 31: BA Crea – Markets and channels

    BA Crea – Markets and channels KEY MARKETS DISTRIBUTION CHANNELS • U.S. • North & Central Retailers; Direct BtoB Europe stores & consumer sales; e-comm stores & e-comm ⓒ Fiskars Group 2021 November-December 2021 31

  32. Slide 32: BA Crea – net sales splits (LTM)

    BA Crea – net sales splits (LTM*) SALES SPLIT BY CATEGORY SALES SPLIT BY CHANNEL SALES SPLIT BY GEOGRAPHY Direct Asia-Pacific 2% 6% Cooking 37% 48% 50% 63% 94% Scissors & Creating Indirect Americas Europe ⓒ Fiskars Group 2021 *LTM referring to the period Q4 2020 – Q3 2021 November-December 2021 32

  33. Slide 33: Content

    Content • Fiskars Group in brief • Strategy • Business Areas • Financials • Appendices ⓒ Fiskars Group 2021

  34. Slide 34: Long-term financial targets – issued on Nov 8, 2021

    Long-term financial targets – issued on Nov 8, 2021 KPI TARGET Organic, FX neutral growth: approximately 5 % NET SALES (mid-single digit) EBIT margin (excl. IAC): approximately 15 % PROFIT (mid-teen) by the end of 2025 CASH FLOW CONVERSION Free Cash Flow / Net Profit ≥ 80% NET DEBT / EBITDA Net Debt

  35. Slide 35: Group net sales and profitability development

    Group net sales and profitability development EURm % 1,400 30 1,205 1,186 1,200 1,107 1,119 1,090 1,116 1,000 901 20 803 800 600 42.5% 43.2% 43.4% 38.7% 41.0% 40.5% 42.9% 10 400 40.0% 200 0 0 2015 2016 2017 2018 2019 2020 Q1-Q3 2020 Q1-Q3 2021 Net sales Gross margin ⓒ Fiskars Group 2021 November-Dec

  36. Slide 36: Profitability has improved

    Profitability has improved EURm % 160 25 140 136.8 132.7 121.7 20 119.0 120 107.1 100 14.7% 90.6 15 86.8 12.3% 80 75.7 13.5% 10.9% 10.8% 10.0% 8.9% 10 60 9.8% 8.3% 9.8% 6.8% 8.7% 9.1% 40 7.7% 7.1% 5.9% 5 20 0 0 2015 2016 2017 2018 2019 2020 Q1-Q3 Q1-Q3 2020 2021 Comp. EBITA Comp. EBITA margin Comp.

  37. Slide 37: Quarterly development – last 3 years

    Quarterly development – last 3 years NET SALES, EUR MILLION COMPARABLE EBITA, EUR MILLION 400 60 49 50 50 324 50 308 313 302 307 45 300 292 280 266 273 269 265 267 39 256 256 40 38 249 35 200 30 29 27 26 24 22 20 19 16 100 13 10 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q

  38. Slide 38: Cost of Goods Sold

    Cost of Goods Sold COGS Total Own Production Direct Material Key Takeaways 100% 100% 100% • Full year cost inflation Logistics expected to be approx. EUR Plastics 35m from inbound logistics Inbound (sea freights), raw materials 75% 75% Direct Materials 75% and finished goods price Steel increases. S

  39. Slide 39: Net sales growth avenues

    Net sales growth avenues LTM* NET SALES BY WINNING BRANDS, AND THEIR CONTRIBUTION TO COUNTRIES AND CHANNELS THE MSD GROWTH TARGET 100% MSD Retail E-comm 80% Fiskars USA USA DTC & China 60% China Winning brands Iittala RC 40% Other Gerber Moomin RoW Other RoW channels 20% Turnaround brands Turnaround

  40. Slide 40: Future P&L structure – emphasis on increasing Gross Margin

    Future P&L structure – emphasis on increasing Gross Margin AVERAGE 2025 2016–19 FY 2020 LTM* SEP’21 TARGET GROSS MARGIN 42.9% 40.5% 42.8% 46–47% MARKETING 4.4% 3.3% 3.6% 4–5% SG&A 30.3% 27.3% 26.0% 27–28% EBIT** 8.4% 9.8% 13.0% Mid-teen *LTM referring to the period Q4 2020 – Q3 2021 **Excl. Items Af

  41. Slide 41: Transformation levers contributing to the Gross Margin improvement

    Transformation levers contributing to the Gross Margin improvement TRANSFORMATION LEVERS CONTRIBUTING TO THE FROM TO GROSS MARGIN IMPROVEMENT Commercial Vita DTC USA China Excellence Vita Crea Vita Group Crea Group Terra Terra Terra Crea Gross Margin Gross Margin LTM* Sep’21 Directional Target *LTM

  42. Slide 42: Investments in growth building blocks are funded thru fluidity and Gross Profit improvement

    Investments in growth building blocks are funded thru fluidity and Gross Profit improvement OPEX COMPONENTS (% OF NET SALES) OPEX LOGIC % Growth • Sales expenses (incl. DTC) 40 driven • Expected to follow topline growth • Sales expenses growth driven by DTC mitigated thru efficiency 30 improvements

  43. Slide 43: OPEX Investments - Enabling sustainable growth from 2022 onwards

    OPEX Investments - Enabling sustainable growth from 2022 onwards Commercial DTC Digital Excellence TARGET SUSTAINABLE, PROFITABLE ACCELERATE GROWTH ENABLE GROWTH, DRIVE GROWTH FROM Q1-22 EFFICIENCY ONWARDS IMPACT • Stable, sustainable Net Sales • Growth acceleration • Enabling growth especially in D

  44. Slide 44: Free Cash Flow remains solid

    Free Cash Flow remains solid 2018 2019 2020 LTM* Sep’2021 TARGET 137 137 118 118 224 224 232 232 • Increased profit drives up 30 33 cash flow from operations 46 40 20 31 • NWC growth expected to 23 be slightly below the 18 178 topline growth (=NWC 124 26 114 efficiency improvement) 174 • CAPEX to in

  45. Slide 45: Fund allocation follows the strategic acceleration – DTC and Digital share of CAPEX to increase

    Fund allocation follows the strategic acceleration – DTC and Digital share of CAPEX to increase CAPEX Development 2018 – LTM* Sep’21 TARGET 4.1 % of 3.7 % of 2.6 % of 2.6 % of ~4% of Net Sales Net Sales Net Sales Net Sales Net Sales 20% 31% 30% 25% 15% 26% Supply Chain 13% 24% 14% 16% DTC 41% 43% 45

  46. Slide 46: Strong balance sheet enables growth

    Strong balance sheet enables growth NET DEBT / LTM* EBITDA Q4/2017 – Q3/2021 NET DEBT 31.12.2017 – 30.9.2021 261 3.0X 2.5X Target to remain below 2.5x 111 2.0X 148 144 135 136 1.5X 95 87 1.0X 150 0.5X 49 49 0.0X Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 31.12. 31.12. 31.12. 31.12. 30.9. 2017 2

  47. Slide 47: No changes to dividend policy – stable, over time increasing dividend

    No changes to dividend policy – stable, over time increasing dividend, to be paid biannually DIVIDEND PER SHARE (DPS) HISTORY 2009–2020 Wärtsilä share EUR distribution 1.30 2.60 5.31 1,00 0,90 0,80 0.75 0.70 0.71 0.72 0.68 0,70 0.65 0.67 0.62 0.60 0.60 0,60 0.36 0.54 0.56 0.52 0,50 0.30 0,40 0.35 0.

  48. Slide 48: SKU reduction ongoing with potential remaining

    SKU reduction ongoing with potential remaining Number of Stock Sales / SKU, EUR Keeping Units (SKU) 45 000 90 000 40 000 80 000 Targeting to reach the previous high in sales / SKU 35 000 70 000 30 000 60 000 25 000 50 000 20 000 40 000 15 000 30 000 10 000 20 000 5 000 10 000 0 0 2007 2008 2009 2010

  49. Slide 49: The ongoing programs to be completed by the end of the year

    The ongoing programs to be completed by the end of the year – expected savings to materialize with lower costs TARGETED COST SAVINGS WILL BE REALIZED COSTS WILL BE SIGNIFICANTLY LOWER THAN ORIGINALLY ANTICIPATED • Transformation program app. EUR 17 million • Originally anticipated to be a total of E

  50. Slide 50: Group seasonality balanced by portfolio

    Group seasonality balanced by portfolio NET SALES AND EBIT – QUARTERLY SPLIT SEASONAL FEATURES BY BUSINESS AREA 0% 25% 50% 75% 100% Vita Vita • Highest season in year-end holiday period • Seasonal pre-orders approx. one-third of the business; the NET SALES Terra rest from replenishment and DTC • Ord

  51. Slide 51: Content

    Content • Fiskars Group in brief • Strategy • Business Areas • Financials • Appendices ⓒ Fiskars Group 2021

  52. Slide 52: Largest shareholders as of October 31, 2021

    Largest shareholders as of October 31, 2021 # Shareholder name Number of shares % of shares and votes 1 Virala Oy Ab 12,650,000 15.44 2 Turret Oy Ab 10,885,961 13.29 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 G

  53. Slide 53: Shareholder structure as of October 31, 2021

    Shareholder structure as of October 31, 2021 5,6% 12,2% Private companies 34,6% Households 14,2% Financial and insurance institutions Public sector and non-profit organizations Nominee registered and non- Finnish holders 33,5% Number of % of total Number of % of shares Sector shareholders shareholde

  54. Slide 54: Fiskars Group Leadership Team

    Fiskars Group Leadership Team NATHALIE AHLSTRÖM JUSSI SIITONEN TINA ANDERSSON CHRISTIAN BACHLER JAMES BROUILLARD RISTO GAGGL President & CEO Chief Financial Officer, Chief Consumer Officer Executive Vice President, Executive Vice President, Chief Supply Chain Officer deputy to the CEO BA Vita BA Ter

  55. Slide 55: Board of Directors

    Board of Directors PAUL JYRI ALBERT LOUISE EHRNROOTH LUOMAKOSKI EHRNROOTH FROMOND Chairman Vice Chairman INKA FABIAN PETER RITVA MERO MÅNSSON SJÖLANDER SOTAMAA ⓒ Fiskars Group 2021 November-December 2021 55

  56. Slide 56: Calculation of financial indicators

    Calculation of financial indicators INDICATOR DEFINITION EBITDA EBIT + depreciation and amortization EBITDA + change in provisions + non-cash adjustments – capital expenditure +/- change Free Cash Flow in inventories, trade receivables and trade payables – cash taxes Cash conversion Free cash flow /

  57. Slide 57: 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

  58. Slide 58: Fiskars Group

    FISKARS > GROUP

Fiskars Group — Investor Presentation (December 2021) on 6ix