Slide 1: Investor presentation
Investor presentation 23.3.2020
Slide 2: Agenda
• Fiskars Group in brief • Planned organizational structure • Segments • Financials • Appendices ⓒ Fiskars Group 2020 Mar 2020 2
Slide 3: Fiskars Group in brief
Fiskars Group in brief ⓒ Fiskars Group 2020
Slide 4: Making the everyday extraordinary
Our purpose: Making the everyday extraordinary ⓒ Fiskars Group 2020 Mar 2020 4
Slide 5: Key categories in 2019
Key categories in 2019 FUNCTIONAL LIVING NET SALES BY SEGMENT Gardening School, office Outdoor & craft EUR 585.5 EUR 501.0 Dinnerware Drinkware million million 54% 46% Watering Cooking Fixing Interior Other ⓒ Fiskars Group 2020 Mar 2020 5
Slide 6: Net sales in 2019
Net sales in 2019 NET SALES SPLIT BY BRAND NET SALES SPLIT BY GEOGRAPHY 13% 23% Asia-Pacific Other brands 38% Fiskars 48% Europe 7% 39% Wedgwood 7% 9% Americas Gerber 8% 9% Iittala Waterford Royal Copenhagen ⓒ Fiskars Group 2020 Mar 2020 6
Slide 7: Strong brand portfolio
Strong brand portfolio ⓒ Fiskars Group 2020 Mar 2020 7
Slide 8: Main markets for the key international brands
Main markets for the key international brands Americas Europe Asia- Pacific Fiskars Gerber Iittala Royal Copenhagen Wedgwood Waterford Based on net sales split in 2019 ⓒ Fiskars Group 2020 Aug-Sep Mar Oct 2019 2020 8
Slide 9: Our global presence
Our global presence EMPLOYEES 7,000 PRESENCE IN 30 COUNTRIES BRANDS AVAILABLE IN MORE THAN 100 COUNTRIES MORE THAN 350 STORES ⓒ Fiskars Group 2020 Mar 2020 9
Slide 10: Strategic priorities
Strategic priorities Growing Inspiring Exciting Improving business people consumers performance Expanding in Growing China Exploring the core and services e-commerce ⓒ Fiskars Group 2020 Mar 2020 10
Slide 11: Our sustainability commitments
Our sustainability commitments CIRCULAR PRODUCTS CARBON NEUTRAL POSITIVE IMPACT AND SERVICES BUSINESS • Inspire people through • Design for sustainability • Improve our energy efficiency leadership • Create zero waste • Invest in renewable energy • Champion safety, diversity and sources inclusion •
Slide 12: New organizational structure
New organizational structure ⓒ Fiskars Group 2020
Slide 13: New organization structure, effective April 1
New organization structure, effective April 1. President & CEO JAANA TUOMINEN JO HAN Sales HEDBERG Business Area Business Area Business Area T INA Consumer Experience & Growth AND E RS SO N RIST O Supply Chain G AG G L VITA TERRA CREA SARI Finance & IT PO HJO NEN NIKL AS Human Resources LINDHO LM CH
Slide 14: Planned new Business Areas responsible for driving business results
Planned new Business Areas responsible for driving business results VITA TERRA CREA • BA Vita is a world leader in premium • BA Terra to consist of garden, watering, and • BA Crea would bring together activities tableware and interior design and would outdoor categories, with the global reach, that
Slide 15: Building one Sales and one Consumer Experience & Growth function
Building one Sales and one Consumer Experience & Growth function • The global Sales function would integrate our sales into one global function, streamlining the organization, developing common ways of working and continuing to build long-term strategic relationships with our customers. The sales fu
Slide 16: Fiskars Group Leadership Team
Fiskars Group Leadership Team JAAN A T UO M INEN SARI PO HJO NEN T INA AN DE RS SO N CHRIST I AN BACH LE R RIST O G AG G L President & CEO Chief Financial Officer & Chief Consumer Officer EVP Chief Supply Chain Officer Deputy to the President & CEO N. N. JO HAN HEDBERG T UO M AS HY Y RY LÄIN EN NIKL
Slide 17: Planned Reporting Structure (as of Q1/2020)
Planned Reporting Structure (as of Q1/2020) PRIMARY REPORTING VITA TERRA CREA OTHER SEGMENTS SECONDARY REPORTING Americas SEGMENTS Europe Asia-Pacific ⓒ Fiskars Group 2020 Mar 2020 17
Slide 18: Update on programs
Update on programs Transformation program Restructuring program Focusing on: Focusing on: • The English & Crystal Living business, to improve its • Looking for synergies and efficiencies in our selling and profitability administrative spending • Planned actions in retail, distribution and supply net
Slide 19: SBU Functional
SBU Functional ⓒ Fiskars Group 2020
Slide 20: Functional – good position in key markets and categories
Functional – good position in key markets and categories O U R B R AN D S N E T S AL E S , E U R M I L L I O N C O M PAR A B L E E B I TA, % 200 25% 163 157,2 20% 150 138,4 16,5 % 135,6 129,8 15% 12,7 % 100 8,3 % 10% 6,6 % 50 4,9 % 5% 0 0% Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 ⓒ Fiskars Group 2020
Slide 21: Functional – U.S. market a key driver
Functional – U.S. market a key driver Europe 40% Canada <5% U.S. >50% *Functional 2017 net sales by region *Functional 2017 net sales by region South America Asia-Pacific <5% <5% ⓒ Fiskars Group 2020 Mar 2020 21
Slide 22: Functional – Growth opportunities in several categories
Functional – Growth opportunities in several categories 13% Outdoor 18% School, office & craft (SOC) 2% Fixing 13% Watering 45% Gardening 10% Cooking *Functional 2017 net sales by category ⓒ Fiskars Group 2020 Mar 2020 22
Slide 23: Functional – Sales channels
Functional – Sales channels Distribution Work with Strong trade fully through some of the partnerships indirect largest retailers is one of our channels globally strengths E-commerce • Total indirect e-commerce: >5% of 2017 net sales • Share of total e-commerce higher in the Americas than other mark
Slide 24: SBU Living
SBU Living ⓒ Fiskars Group 2020 Mar 2020 24
Slide 25: Living – Strong player in fragmented markets
Living – Strong player in fragmented markets OUR BRANDS NET SALES, EUR MILLION COMPARABLE EBITA, % English and Crystal Living 200 30% 184,7 171,3 23,0 % 25% 150 20% 117,9 15,6 % 110,5 15% 101,3 100 Scandinavian Living 8,0 % 10% 2,9 % 5% 50 -0,5 % 0% 0 -5% Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 ⓒ Fi
Slide 26: Living – Well balanced footprint
Living – Well balanced footprint Europe 52% U.S. 22% *Living 2017 net sales by region Asia-Pacific 26% ⓒ Fiskars ⓒ Fiskars Group Group 2019. 2020 Company confidential. Mar 2020 26
Slide 27: Living – Category split
Living – Category split Key categories by brand (% of Living net sales 2017) Dinnerware 45% Drinkware 17% Interior 23% Other 15% Key international brands Regional brands ⓒ Fiskars Group 2020 Mar 2020 27
Slide 28: Living – E-commerce driving growth
Living – E-commerce driving growth SHARE OF 2017 NET SALES Direct channel includes our own: • Stores (8% of total number of locations) Direct: ~33% • Shop-in-shops (64%) Total e-commerce: • Outlets (28%) ~15% • E-commerce Wholesale: ~60% Indirect e-commerce represents those customers who are operati
Slide 29: Store evolution – Iittala Vintage
CASE Store evolution – Iittala Vintage Rolled out in all own Iittala stores in Finland in 2019 E-commerce in piloting phase Assessing expansion to other countries – decision to expand to Sweden taken ⓒ Fiskars Group 2020 Mar 2020 29
Slide 30: Other service models under development
CASE Other service models under development Responding to new consumer habits, such as sharing and renting Arabia launched subscription service in November 2019 ⓒ Fiskars Group 2020 Mar 2020 30
Slide 31: Brands with own e-commerce
Brands with own e-commerce ⓒ Fiskars Group 2020 Mar 2020 31
Slide 32: Store network in SBU Living
Store network in SBU Living A total of 347 own stores at the end of 2018 BY BUSINESS BY REGION BY TYPE 5% 11 % 33 % 46 % 54 % 30 % 59 % 62 % English & Crystal Living Scandinavian Living EMEA APAC Americas Concession Outlet Store ⓒ Fiskars Group 2020 Mar 2020 32
Slide 33: Financials
Financials ⓒ Fiskars Group 2020
Slide 34: Group net sales and profitability development
Group net sales and profitability development 1 400 60% +5% 1 205 1 186 1 200 1 107 1 119 55% 1 090 1 000 50% 799 768 800 716 743 748 42,5 % 43,2 % 43,4 % 45% 660 40,9 % 41,0 % 41,0 % 600 38,7 % 40% 36,7 % 35,4 % 35,0 % 400 33,5 % 35% 200 30% 0 25% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2
Slide 35: Long-term target to reach a reported EBITA margin of 12%
Long-term target to reach a reported EBITA margin of 12% COMPARABLE EBITA 140 14% 119 121,7 120 12% 107,1 100 10,9 % 90,6 10% 10,0 % 80 75,7 8,9 % 8% 8,3 % 60 6,8 % 6% 40 4% 20 2% 0 0% 2015 2016 2017 2018 2019 Comparable EBITA, EUR million Comparable EBITA margin Mar 2020 35
Slide 36: Seasonalities creating balanced income profile
Seasonalities creating balanced income profile NET SALES COMPARABLE EBITA 11% 16% 10% 11% 4% 2% 30% 11% 21% 14% 14% 18% 12% 12% 10% 5% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Functional Living Functional Living Seasonal distribution by quarter and business (average 2016-19). Percentages as share of total full year
Slide 37: 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
Slide 38: Cash flow has improved
Cash flow has improved Cash flow from operating activities before financial items and taxes EUR million 200 150 103,5 100 92,2 84,7 77,5 64,6 48,6 42,7 41,1 48,1 50 39,1 40,3 32,5 24,8 4,9 10,5 0 -25,8 -50 -36,2 -39,2 -51,9 -46,4 -100 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17
Slide 39: Capital expenditure
Capital expenditure DEPRECIATION, AMORTIZATION CAPEX, EUR MILLION AND IMPAIRMENT, EUR MILLION 70 50 14% 46,2 59,6 45 60 40,0 12% 40 37,6 35,0 50 35 32,4 32,8 10% 42,8 43,8 37,4 38,8 30 40 8% 25 30 28,5 6% 20 20 15 4,6 % 4% 4,1 % 10 3,7 % 2,9 % 3,1 % 10 2,8 % 2% 5 0 0 0% 2014 2015 2016 2017 2018 2019
Slide 40: IFRS 16 impacting balance sheet
IFRS 16 impacting balance sheet NET DEBT, EUR MILLION NET GEARING AND EQUITY RATIO Excluding IFRS 16-impact and Wärtsilä share distribution: IFRS 16-impact (yoy) Equity ratio: 71% EUR 111 million Net gearing 12% 300 80% 80% 261,1 69% 69% 70% 70% 70% 250 60% 56% 60% 200 50% 50% 152 148 150 135,4 40%
Slide 41: Long-term financial targets
Long-term financial targets Growth Profitability Capital structure Dividend The average annual net sales EBITA margin Net gearing* below 100% Fiskars aims to distribute a growth to exceed 5%, through a to reach 12% stable, over time increasing combination of organic growth and dividend, to be paid t
Slide 42: Wärtsilä share distribution changed the baseline for dividend growth
Wärtsilä share distribution changed the baseline for dividend growth Wärtsilä share Dividend per share (DPS) history 2009–2019 distribution EUR 5.31 1,60 2.60 1,40 1.30 1,20 1,00 0,80 0.75 0.70 0.71 0.72 0.65 0.67 0.68 0.60 0.62 0,60 0.54 0.56 0.52 0.36 0,40 0.27 0.28 0,20 0.35 0.36 0.27 0.28 0,00 2
Slide 43: Appendices
Appendices ⓒ Fiskars Group 2020 Mar 2020 43
Slide 44: Largest shareholders as of February 29, 2020
Largest shareholders as of February 29, 2020 # Shareholder name Number of shares % of shares and votes 1 Virala Oy Ab 12,650,000 15.44 2 Turret Oy Ab 10,330,961 12.61 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
Slide 45: Shareholder structure as of February 29, 2020
Shareholder structure as of February 29, 2020 2,8% 12,4% Private companies 34,6% Households 14,8% Financial and insurance institutions Public sector and non-profit organizations Nominee registered and non- Finnish holders 35,4% Number of % of total Number of % of shares Sector shareholders sharehold
Slide 46: Board of Directors
Board of Directors Paul Ehrnrooth Jyri Luomakoski Nathalie Ahlström Albert Ehrnrooth Louise Fromond Chairman Vice Chairman Inka Mero Fabian Månsson Peter Sjölander Ritva Sotamaa ⓒ Fiskars Group 2020 Mar 2020 46
Slide 47: 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 assuranc
Slide 48: Making the everyday extraordinary
Making the everyday extraordinary ⓒ Fiskars Group 2020 Mar 2020 48