Slide 1: Investor presentation
Investor presentation UPDATED FEBRUARY 21, 2022
Slide 2: Content
Content Fiskars Group in brief Strategy Business Areas Financials Q4 2022 Appendices 2 FEBRUARY-MARCH 2023 FISKARS GROUP
Slide 3: Our purpose: Pioneering design to make the everyday extraordinary
OU R PU RPOSE Pioneering design to make the everyday extraordinary THE GLOBAL HOME OF DESIGN-DRIVEN BRANDS FOR INDOOR AND OUTDOOR LIVING 3 FEBRUARY-MARCH 2023 FISKARS GROUP
Slide 4: Strong brand portfolio
Strong brand portfolio 4 FEBRUARY-MARCH 2023 FISKARS GROUP
Slide 5: Fiskars Group key figures 2022
Fiskars Group key figures 2022 Net sales Comparable EBIT EUR million EUR million 1,248.4 151.0 Earnings per share Cash flow from EUR operating activities 1.21 before financial items and taxes EUR million Personnel -24.9 Dec 31, 2022 6,595 5 FEBRUARY-MARCH 2023 FISKARS GROUP
Slide 6: Business Areas and key categories
Business Areas and key categories VITA TERRA CREA BUSINESS AREAS & KEY CATEGORIES Scissors Tableware Drinkware Interior Gardening Outdoor Watering & creating Cooking KEY BRANDS BA SHARE OF NET SALES 45% 41% 14% 6 FEBRUARY-MARCH 2023 FISKARS GROUP
Slide 7: Fiskars the largest brand – 2022 sales splits
Fiskars the largest brand – 2022 sales splits SALES SPLIT BY BRAND SALES SPLIT BY GEOGRAPHY SALES SPLIT BY CATEGORY Cooking Watering Other Asia-Pacific Creating 5% 1% 14% Scissors 2% 17% 7% Tableware Moomin 3% 29% Waterford Outdoor 6% Fiskars 9% 43% 48% Europe Gerber 8% 35% 8% 8% Drinkware Americas
Slide 8: Our global presence
Our global presence Our brands are present in over 100 countries We have ~350 own stores Close to 7,000 employees globally 11 own manufacturing units 8 FEBRUARY-MARCH 2023 FISKARS GROUP
Slide 9: Strategy
Content Fiskars Group in brief Strategy Business Areas Financials Q4 2022 Appendices 9 FEBRUARY-MARCH 2023 FISKARS GROUP
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 INNOVATION ENABLERS PEOPLE DIGITAL SUSTAINABILITY & DESIGN 10 FEBRUARY-MARCH 2023 FISKARS GROUP
Slide 11: We focus on winning brands, enabled through clear roles across our portfolio
WINNING BRANDS We focus on winning brands, enabled through clear roles across our portfolio WINNING BRANDS TURNAROUND BRANDS 11 FEBRUARY-MARCH 2023 FISKARS GROUP
Slide 12: Driving Fiskars as our #1 brand
Driving Fiskars WINNING BRANDS as our #1 brand Global brand with strong recognition Strong historical performance • >40% of Fiskars Group net sales • Approx. 7% comp. net sales CAGR 2017 Further room to utilize brand stretch and surround the consumer • Product portfolio across key markets • Clothing
Slide 13: We are building winning brands through new ways of thinking
We are building WINNING BRANDS winning brands through new ways of thinking Case Moomin • Story telling translated into collectibles • Currently net sales close to EUR 40 million • Fiskars Group minority shareholder in Rights & Brands since Sept ‘21 Strategic partnership enables global growth beyond
Slide 14: Strengthening our DTC to address the needs of the modern consumer
Strengthening our WINNING BRANDS DTC to address the needs of the modern consumer • 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 China
Slide 15: The direct channel (DTC) increasingly important
WINNING CHANNELS The direct channel (DTC) increasingly important – already 21% of group net sales GROUP NET SALES BY CHANNEL IN 202 2 NUMBER OF STORES IN 202 2 TOTAL NUMBER OF STORES: ~350 Direct, stores 14% Store Outlet 12% Direct, e-commerce 19% 6% Europe 32% 8% Indirect, e-commerce <1% 68% Americ
Slide 16: Commercial excellence drives our performance improvement across all channels
Commercial excellence WINNING CHANNELS drives our performance improvement across all channels Our Commercial Excellence, examples • Win with the Winners • Value-based pricing • In-store and online excellence • Distribution and product coverage 16 FEBRUARY-MARCH 2023 FISKARS GROUP
Slide 17: U.S. continues to deliver a majority of our growth
U.S. continues to WINNING COUNTRIES deliver a majority of our growth • 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
Slide 18: We have a strong start in China with significant growth opportunities ahead
We have a strong WINNING COUNTRIES start in China with significant growth NET SALES IN CHINA (EURm) opportunities ahead <50 CAGR: • Strong market demand >+50% • Solid foundation, impressive track -record 29 − Capable local team in place − >50% net sales CAGR during past few years 15 − Growth driven
Slide 19: Transformation levers are delivering results
Transformation levers are delivering results Q4 2022 FY 2022 • Cost increases compensated by mitigation Commercial • Gross margin +120 bps actions, gross margin +160 bps excellence (+90 bps organically) (+60 bps organically) Direct to • DTC: 3% growth; and 28% of net sales • DTC+8% growth; and 21% o
Slide 20: Our enablers for the future
Our enablers for the future PEOPLE DIGITAL INNOVATION & SUSTAINABILITY DESIGN We are committed to We want to be We are on a mission for building an inclusive data-driven, and are We are known for our the lasting wellbeing of culture. We want to investing significantly design, and want to people and
Slide 21: Our sustainability targets by 2030
Our sustainability targets by 2030 PIONEERING DESIGN AGAINST THROWAWAY CULTURE • A majority of our net sales comes from circular products and services by 2030. • Reducing our impact in line with a 1.5ºC future by 2030 • GHG emissions from own operations (Scope 1 and 2) reduced by 60% from a 2017 bas
Slide 22: Fiskars has committed to climate action by joining the UN Business Ambition for 1.5°C
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. Fiskars Group commits to reduce greenhouse gas emissions from upstream transportation and distribution (Scope 3) 30% by 2030
Slide 23: Concrete actions towards our sustainability targets
Concrete actions towards our sustainability targets Approximately EUR 10 million energy efficiency investment in our Iittala factory in Finland • Natural gas powered furnaces replaced with electricity- powered furnaces • With this investment, Fiskars Group’s annual direct carbon dioxide emissions (S
Slide 24: Business Areas
Content Fiskars Group in brief Strategy Business Areas Financials Q4 2022 Appendices 24 FEBRUARY-MARCH 2023 FISKARS GROUP
Slide 25: BA Vita
BA Vita NET SALES AND COMPARABLE EBIT MARGIN KEY CATEGORIES EURm % 200 30 187 180 176 172 171 20.4% 160 18.3% 17.5% 20 17.0% Tableware Drinkware Interior 14.3% 14.6% 140 140 116 134 127 11.1% 10.6% 121 11.4% 9.8% 120 8.9% 10 111 108 100 94 KEY BRANDS 81 80 0 60 -6.5% 40 -10 -15.4% 20 0 -20 Q4 19 Q1
Slide 26: BA Vita – Markets and channels
BA Vita – Markets and channels KEY MARKETS DISTRIBUTION CHANNELS • Nordics • UK D i r e ct R e tai l e rs; c o n su m er • U.S. S to r e s & sal e s; Bto B • China e - c o mm sto r e s & e - c o mm • Japan 26 FEBRUARY-MARCH 2023 FISKARS GROUP
Slide 27: BA Vita – net sales splits (2022)
BA Vita – net sales splits (2022) SALES SPLIT BY BRAND SALES SPLIT BY CHANNEL SALES SPLIT BY GEOGRAPHY Royal Americas Others Copenhagen 16% 22% 21% Direct 42% Moomin 7% 51% Europe 19% 58% Indirect Wedgwood 34% 14% Asia-Pacific Waterford 18% Iittala 27 FEBRUARY-MARCH 2023 FISKARS GROUP
Slide 28: BA Terra
BA Terra NET SALES AND COMPARABLE EBIT MARGIN KEY CATEGORIES EURm % 180 173 30 160 154 157 149 19.9% 20.5% 139 140 129 20 Gardening Outdoor Watering 17.0% 120 118 14.5% 113 112 108 98 11.7% 100 96 11.0% 10.7% 87 10 KEY BRANDS 80 7.0% 5.6% 4.8% 60 2.2% 0 40 -2.8% 20 -8.4% 0 -10 Q4 19 Q1 20 Q2 20 Q3 2
Slide 29: BA Terra – Markets and channels
BA Terra – Markets and channels KEY MARKETS DISTRIBUTION CHANNELS • U.S. • North & D i r e ct Central R e tai l e rs; c o n su m er Europe S to r e s & Bto B sal e s; sto r e s e - c o mm & e - c omm 29 FEBRUARY-MARCH 2023 FISKARS GROUP
Slide 30: BA Terra – net sales splits (2022)
BA Terra – net sales splits (2022) SALES SPLIT BY CATEGORY SALES SPLIT BY CHANNEL SALES SPLIT BY GEOGRAPHY Watering Direct 4% 1% Outdoor 21% Europe 44% 52% Americas 75% Gardening 99% 4% Asia-Pacific Indirect 30 FEBRUARY-MARCH 2023 FISKARS GROUP
Slide 31: BA Crea
BA Crea NET SALES AND COMPARABLE EBIT MARGIN KEY CATEGORIES EURm % 55 40 52 50 47 45 42 46 45 33.5% 44 43 42 40 40 Scissors Cooking 40 38 & creating 35 36 30 35 32 26.8% 25.9% 30 25.0% 23.2% KEY BRANDS 25 22.5% 22.5% 21.3% 20 19.9% 19.0% 20 15 16.9% 16.2% 10 12.3% 5 11.1% 0 10 Q3 19 Q4 19 Q1 20 Q2 2
Slide 32: BA Crea – Markets and channels
BA Crea – Markets and channels KEY MARKETS DISTRIBUTION CHANNELS • U.S. • North & D i r e ct Central R e tai l e rs; c o n su m er Europe S to r e s & Bto B sal e s; sto r e s e - c o mm & e - c omm 32 FEBRUARY-MARCH 2023 FISKARS GROUP
Slide 33: BA Crea – net sales splits (2022)
BA Crea – net sales splits (2022) SALES SPLIT BY CATEGORY SALES SPLIT BY CHANNEL SALES SPLIT BY GEOGRAPHY Direct Asia-Pacific Creating 2% 17% 6% 47% Scissors 48% 50% 35% Cooking 94% Americas Europe Indirect 33 FEBRUARY-MARCH 2023 FISKARS GROUP
Slide 34: Seasonality – Balanced by portfolio
Seasonality │Balanced by portfolio Net Sales and EBIT – Quarterly Split (2019-2022) Seasonal features by Business Area 0% 25% 50% 75% 100% Vita • Highest season in year-end holiday period Vita • Seasonal pre-orders approx. one-third of the business; the rest from replenishment and DTC NET SALES Terr
Slide 35: Financials
Content Fiskars Group in brief Strategy Business Areas Financials Q4 2022 Appendices 35 FEBRUARY-MARCH 2023 FISKARS GROUP
Slide 36: Group net sales and gross margin development
Group net sales and gross margin development EURm % 1,400 30 1,254 1,248 1,205 1,186 1,200 1,107 1,119 1,116 1,090 1,000 20 800 600 43.0% 44.9% 42.5% 43.2% 43.4% 38.7% 41.0% 40.5% 10 400 200 0 0 2015 2016 2017 2018 2019 2020 2021 2022 Net sales Gross margin 36 FEBRUARY-MARCH 2023 FISKARS GROUP
Slide 37: Profitability has improved
Profitability has improved EURm % 160 154 151 14 12.3% 12.1% 140 12 9.8% 120 109 109 10 100 7.1% 9.8% 8 80 78 6 60 4 40 20 2 0 0 2018 2019 2020 2021 2022 Comparable EBIT margin Comparable EBIT 37 FEBRUARY-MARCH 2023 FISKARS GROUP
Slide 38: Quarterly development – last 3 years
Quarterly development – last 3 years NET SALES, EUR MILLION COMPARABLE EBIT, EUR MILLION 400 60 353 52 333 313 319 50 308 302 307 304 47 300 292 293 280 41 267 256 40 36 36 36 34 33 32 32 30 200 30 22 20 15 100 10 0 0 Q4 Q1- Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1- Q2 Q3 Q4 Q4 Q1- Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1- Q2 Q3 Q4
Slide 39: Progress towards our financial targets
Challenging operating environment is reflected in the progress towards our financial targets FINANCIAL TARGETS TRACKING FY FY FY KPI TARGET 2020 2021 2022 NET SALES Organic, FX neutral Mid-Single-Digit growth z 3.4% 14.2% 1.7% EBIT Mid-teen EBIT margin (excl. IAC) by end of 2025 9.8% 12.3% z 12.1% C
Slide 40: The Growth Strategy addresses all value creation levers
The Growth Strategy addresses all value creation levers TSR DRIVERS • We secure profit growth through increased focus on Gross Margin improvement PROFIT GROWTH • OPEX fluidity to ensure funding of the strategic growth investments • We manage both short- and long-term profit improvement thru our tigh
Slide 41: Net Sales – Winning brands, countries and channels
Net Sales │Winning brands, countries and channels share of Net Sales and contribution to Net Sales growth Net Sales structure by Winning brands, … and their contribution to the 2022 growth vs. countries and channels… expected contribution to the MSD growth target MSD MSD 1,248 1,248 1,248 1.7% targe
Slide 42: OPEX – Investments in growth building blocks
OPEX │Investments in growth building blocks are funded through fluidity and Gross Profit improvement OPEX components, % of Net Sales OPEX Logic 35 30 25 20 15 10 5 0 2016-2019 2020 2021 2022 Target Growth driven Investment Admin 42 FEBRUARY-MARCH 2023 FISKARS GROUP
Slide 43: Capital Expenditure – Fund allocation follows the strategic acceleration
Capital Expenditure │Fund allocation follows the strategic acceleration – DTC and Digital share to increase CAPEX Development 2018-2022 Target 4.1 % of 3.6 % of 2.6 % of 2.7 % of 3.8 % of ~ 4 % of Net sales Net sales Net sales Net sales Net sales Net sales 20% Supply Chain 31% 27% 31% 8% 25% DTC 15%
Slide 44: Free Cash Flow – Sources and Uses
Free Cash Flow │Sources and Uses 2018 2019 2020 2021 2022 137 137 118 118 224 224 221 221 285 285 13 3 29 46 57 46 39 20 101 33 209 26 18 36 114 124 178 175 184 64 60 95 47 29 Sources Uses Sources Uses Sources Uses Sources Uses Sources Uses Cash Flow from Operation Change in NWC CAPEX Cash Taxes Fre
Slide 45: Balance Sheet Structure – Balance Sheet remains strong
Balance Sheet Structure│Balance Sheet remains strong Net Debt (EURm), Net Debt / EBITDA Capital Structure (EURm), Net Debt / Equity (%) 400 2.5X 1,400 40 1,200 35 2.0X 300 1,000 30 835.6 800 25 1.5X 764.5 200 600 761.6 816.3 20 325.3 1.0X 400 15 262.0 325.6 100 200 160.1 10 0.5X 112.4 65.1 144.4 145
Slide 46: Financing – Interest expenses increased mainly due to higher leverage
Financing│Interest expenses increased mainly due to higher leverage. Average interest rate 2.9% Financial Items (EURm) Debt Maturity Profile (EURm) 218.0 220 2018 2019 2020 2021 2022 Dividends 15.0 7.8 - - 0.3 200 Interest income - - - - 2.8 180 FV change of investments 3.4 3.8 - 6.4 - FX gains - he
Slide 47: Board proposes an increasing dividend of EUR 0.80 per share
Board proposes an increasing dividend of EUR 0.80 per share DIVIDEND PER SHARE, EUR Wärtsilä share distribution KEY FACTS: 5.85 3.27 • Payout ratio: 66%* 1.90 (2021: 71.5%) • Dividend yield: 5.2%* 1.37 (3.3%) 2.60 5.31 1.30 1.06 • Dividend growth: 5.3%* 0.75 0.35 0.76 0.80* 0.68 0.70 0.72 0.65 0.60
Slide 48: Content Q4 2022
Content Fiskars Group in brief Strategy Business Areas Financials Q4 2022 Appendices 48 FEBRUARY-MARCH 2023 FISKARS GROUP
Slide 49: Q4 2022 Net sales declined due to lower consumer confidence
Q4 2022 Net sales declined due to lower consumer confidence and retailers’ high inventory levels NET SALES, EUR MILLION Q4 2022 NET SALES BRIDGE, EUR MILLION -13.9% -13.9% -12.2%* -12.2%* 353 353.2 -18.5 333 +11.9 346.5 -12.2 313 319 302 307 304 292 293 -21.5 -6.5% -8.7 -19.9% 0.0 304.1 -18.6% Q4 Q1
Slide 50: Q4 2022 Comparable EBIT declined due to volume drop, margin improved
Q4 2022 Comparable EBIT declined due to volume drop, margin improved COMPARABLE EBIT (EUR MILLION) AND EBIT MARGIN (%) % COMPARABLE EBIT BRIDGE, EUR MILLION EUR million Q4/22 vs. Q4/21 reported Q4/22 vs. Q4/21 adjusted 60 20 -2.6 -3.1 51.8 18 +3.4 -2.8 50 +1.7 32.7 -2.2 46.6 16 32.2 -1.2 -1.5 29.7 4
Slide 51: Consolidated Q4 and FY2022 income statement
Consolidated Q4 and FY2022 income statement Q4 AND FY P&L KEY FIGURES, EUR MILLION Key Takeaways Q4 FY 2022 2021 2022 2021 Gross margin up 120bps (Q4) and 160bps (FY) vs. Net sales 304.1 353.2 1,248.4 1,254.3 2021 Comparable gross profit 138.8 156.8 560.1 543.7 • Organic GM up +90bps in Q4 and up 60
Slide 52: Q4 and FY 2022 EBIT bridge
52 Q4-2021 32.2 North American Watering -2.5 Business FEBRUARY-MARCH 2023 Adjusted 31.0 Translation FX Sales FISKARS GROUP Volume Q4 EBIT BRIDGE, EUR MILLION Price & Mix -1.3 Product Marketing SG&A Other Q4-2022 29.7 Q4 and FY 2022 EBIT bridge FY-2021 154.2 North American Watering -3.2 Business Adju
Slide 53: Vita Q4: Own ecom and China helped offset sales decline
Vita Q4: Own ecom and China helped offset sales decline in the U.S and Nordics, margin reached 20% NET SALES, EUR MILLION COMPARABLE EBIT (EUR MILLION) AND EBIT MARGIN (%) -5.9% EUR million % -6.5%* 200 187 40 25 176 35.9 171 20 31.9 150 140 30 15 134 127 121 24.9 24.5 24.6 10 116 108 5 100 20 14.4
Slide 54: Terra Q4: Sales declined especially in the U.S.
Terra Q4: Sales declined especially in the U.S. due to retailers’ high inventories NET SALES, EUR MILLION COMPARABLE EBIT (EUR MILLION) AND EBIT MARGIN (%) EUR million -26.6% % -19.9%* 40 25 200 35.5 173 31.2 20 157 30 149 150 139 15 111 118 108 20 17.4 10 98 14 15.0 100 87 10 5 6.8 6.2 5.2 50 105 0
Slide 55: Crea Q4: Sales declined mainly due to the U.S.
Crea Q4: Sales declined mainly due to the U.S. NET SALES, EUR MILLION COMPARABLE EBIT (EUR MILLION) AND EBIT MARGIN (%) -14.1% EUR million % -18.6% 60 15 35 52 50 47 11.7 30 46 11.3 11.4 44 42 43 40 10.0 25 40 36 38 10 8.3 8.1 8.1 20 30 5.7 15 20 5 4.5 10 10 5 0 0 0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q4 Q1
Slide 56: Q4 Net sales by geography
Q4 Net sales by geography: DTC growth in Europe and America bright spots of the quarter NET SALES BY REGION, EUR MILLION SALES TOTAL, EUR MILLION DTC, EUR MILLION Comp. -13.9% Q4 2022 Q4 2021 Change +2.9% Change* -12.2%* +4.3%* 353 84 86 Europe 154.3 167.9 -8.1% -3.8% Of which DTC 34.9 32.6 +7.1% +9
Slide 57: Q4 Free Cash Flow improved as a result of actions taken
Q4 Free Cash Flow improved as a result of actions taken FREE CASH FLOW, EUR MILLION CHANGE IN CASH POSITION, EUR MILLION Q4 FY Q4 FY 2022 2021 2022 2021 2022 2021 2022 2021 EBITDA 39 39 196 205 Cash Balance period opening 54 24 32 63 Translation difference 0 2 4 3 Non-cash adjustments 4 7 -12 16 Fre
Slide 58: Balance Sheet remains strong, but efficiency declined
Balance Sheet remains strong, but efficiency declined CAPITAL EMPLOYED, EUR MILLION FUNDING, EUR MILLION 31.12.22 31.12.21 Change 31.12.22 31.12.21 Change GW and other intangible 500 489 + 11 Equity 836 816 + 19 PPE and biological assets 193 195 -3 Interest-bearing debt 326 65 + 260 Capitalised leas
Slide 59: Appendices
Content Fiskars Group in brief Strategy Business Areas Financials Q4 2022 Appendices 59 FEBRUARY-MARCH 2023 FISKARS GROUP
Slide 60: Largest shareholders as of January 31, 2023
Largest shareholders as of January 31, 2023 NUMBER OF % OF SHARES AND # SHAREHOLDER NAME SHARES VOTES 1 Virala Oy Ab 12,740,000 15.73 2 Turret Oy Ab 11,430,961 14.11 3 Holdix Oy Ab 10,165,537 12.55 4 Sophie Von Julins Stiftelse 2,556,000 3.16 5 Julius Tallberg Corp. 2,554,350 3.15 6 Gripenberg Gerda
Slide 61: Shareholder structure as of January 31, 2023
Shareholder structure as of January 31, 2023 Financial and NU MBER OF % OF SHARES 5.0% 1.7% insurance SECTOR SHARES AND VOTES 16.5% 7.2% corporations Financial and insurance Households corporations 13,336,649 16.46 Households 27,004,540 33.34 Non-financial corporations Non-financial corporations 29,
Slide 62: Leadership Team
Leadership Team Nathalie Ahlström Jussi Siitonen Christian Bachler Charlene Zappa Tuomas Hyyryläinen CEO CFO Executive Vice President, Executive Vice President, Executive Vice President, Employed 2020 Employed 2021 Business Area Vita, Business Area Terra Business Area Crea Employed 2010 Employed 202
Slide 63: Board of Directors
Board of Directors 63 FEBRUARY-MARCH 2023 FISKARS GROUP
Slide 64: Cost of Goods
Cost of Goods COGS TOTAL OWN PRODUCTION DIRECT MATERIALS 100% 100% 100% Logistics & Warehousing Plastics Direct materials 75% 75% 75% Steel Sourcing Aluminium 50% 50% Direct labour 50% Packaging Indirect labour 25% 25% 25% Components Energy Own Production Maintenance mtrl Depreciation Other Other ov
Slide 65: Calculation of financial indicators
Calculation of financial indicators INDICATOR DEFINITION EBIT Operating profit Comparable EBIT Operating profit (EBIT) +/- items affecting comparability EBITDA + change in provisions + non-cash adjustments – capital expenditure +/- change Free Cash Flow in inventories, trade receivables and trade pa
Slide 66: 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
Slide 67: Thank you!
Thank you!