Slide 1: Investor presentation
Investor presentation August 2020
Slide 2: Content
Content • Fiskars Group in brief • Business Areas • Financials • Appendices ⓒ Fiskars Group 2020 August 2020 2
Slide 3: Fiskars Group in brief
Fiskars Group in brief ⓒ Fiskars Group 2020 August 2020 3
Slide 4: Making the everyday extraordinary
Our purpose: Making the everyday extraordinary ⓒ Fiskars Group 2020 August 2020 4
Slide 5: Strong brand portfolio
Strong brand portfolio ⓒ Fiskars Group 2020 August 2020 5
Slide 6: Key categories in 2019
Key categories in 2019 NET SALES BY SEGMENT CREA SCISSORS & CREATING COOKING 13% TERRA VITA GARDENING TABLEWARE 46% OUTDOOR 41% DRINKWARE WATERING INTERIOR ⓒ Fiskars Group 2020 August 2020 6
Slide 7: 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% Wedgwood 39% 7% Americas Gerber 8% 9% Waterford 9% Iittala Royal Copenhagen ⓒ Fiskars Group 2020 August 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 August 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 August 2020 9
Slide 10: Strategic priorities
Strategic priorities GROWING INSPIRING EXCITING IMPROVING BUSINESS PEOPLE CONSUMERS PERFORMANCE Development Vita Sharpening of digital Transformation focus on: capabilities ⓒ Fiskars Group 2020 August 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: Organizational structure
Organizational structure Interim CEO SARI POHJONEN 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 CHRISTIAN JAM ES TUOM AS BACH
Slide 13: Update on programs
Update on programs Transformation program Restructuring program Focusing on: Focusing on: • The Vita business, to improve its profitability • Synergies and efficiencies in our selling and administrative spending • Actions in retail, distribution and supply network as well as organizational structure
Slide 14: Business Areas
Business Areas ⓒ Fiskars Group 2020 August 2020 14
Slide 15: Business Area Vita
Business Area Vita KEY CATEGORIES NET SALES AND COMPARABLE EBITA MARGIN 200 30% 180 171,6 25% Tableware Drinkware 160 Interior 20% 15,7 % 140 15% 117,6 120 110,2 101,3 8,0 % 10% 100 93,6 2,7 % 80,9 5% 80 KEY BRANDS -0,5 % 0% 60 40 -3,8 % -5% 20 -10% -9,8 % 0 -15% Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2
Slide 16: Business Area Vita: key markets and distribution channels
Business Area Vita KEY MARKETS DISTRIBUTION CHANNELS • Nordics • UK Wholesale Stores & Direct consumer sales • U.S. e-comm Stores, E-comm • Japan Hospitality BtoB ⓒ Fiskars Group 2020 August 2020 16
Slide 17: Business Area Terra
Business Area Terra KEY CATEGORIES NET SALES AND COMPARABLE EBITA MARGIN 160 153,7 25% 140 129,3 127,5 124,5 Gardening 20% Outdoor Watering 120 17,7 % 17,2 % 95,1 95,7 15,0 % 100 15% 80 10% KEY BRANDS 60 9,1 % 40 5% 2,9 % 20 0,1 % 0 0% Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 ⓒ Fiskars Group
Slide 18: Business Area Terra: key markets and distribution channels
Business Area Terra KEY MARKETS DISTRIBUTION CHANNELS • U.S. • North & Central Wholesale Direct Stores & BtoB consumer sales Europe e-comm Stores, E-comm ⓒ Fiskars Group 2020 August 2020 18
Slide 19: Business Area Crea
Business Area Crea KEY CATEGORIES NET SALES AND COMPARABLE EBITA MARGIN 70 28,4 % 30% 60 24,3 % 25% Scissors Cooking 20,4 % 50 & creating 44,8 20% 18,0 % 17,4 % 38,5 39,5 40 14,4 % 35,0 32,3 15% 29,9 30 KEY BRANDS 10% 20 5% 10 0 0% Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 ⓒ Fiskars Group 2020
Slide 20: Business Area Crea: key markets and distribution channels
Business Area Crea KEY MARKETS DISTRIBUTION CHANNELS • U.S. • North & Central Wholesale Direct Stores & consumer sales BtoB Europe e-comm Stores, E-comm ⓒ Fiskars Group 2020 August 2020 20
Slide 21: Store evolution – Iittala Vintage
CASE Store evolution – Iittala Vintage Rolled out in all own Iittala stores in Finland in 2019 Scaling ongoing Assessing expansion to other countries ⓒ Fiskars Group 2020 August 2020 21
Slide 22: Brands with own e-commerce
Brands with own e-commerce ⓒ Fiskars Group 2020 August 2020 22
Slide 23: Store network
Store network A total of 347 own stores at the end of 2018 BY REGION BY TYPE 5% 11% Americas Store 33% EMEA 30% Outlet 59% Concession 62% APAC ⓒ Fiskars Group 2020 August 2020 23
Slide 24: Financials
Financials ⓒ Fiskars Group 2020
Slide 25: 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 26: 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 % 8,9 % 8% 8,3 % 7,9 % 60 6,8 % 6% 47,6 42,1 40 4% 20 2% 0 0% 2015 2016 2017 2018 2019 H1-19 H1-20 Comparable EBITA, EUR million Comparable EBITA margin Au
Slide 27: Quarterly development – last 3 years
Quarterly development – last 3 years NET SALES, EUR MILLION COMPARABLE EBITA, EUR MILLION 350 60 319 324 308 300 290 280 48,8 270 266 273 269 50 265 256 256 249 250 40 35,4 35,1 200 29,1 28,6 30 27,0 25,9 150 22,4 23,6 22,3 18,9 20 16,1 100 13,4 50 10 0 0 Net sales Rolling 12 months average Comparab
Slide 28: Seasonalities creating balanced income profile
Seasonalities creating balanced income profile NET SALES COMPARABLE EBITA 4% 8% 3% 4% 3% 3% 9% 4% 12% 11% 9% 9% 21% 26% 6% 0% 16% 11% 9% 10% 9% 11% 3% -1% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Vita Terra Crea Vita Terra Crea Seasonal distribution by quarter and business area in 2019. Percentages as share of total
Slide 29: 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 30: Cash flow
Cash flow Cash flow from operating activities before financial items and taxes EUR million 200 150 103,5 100 92,2 84,7 77,5 55,8 48,6 42,7 48,1 50 39,1 40,3 41,1 24,8 10,5 0 -25,8 -50 -36,2 -39,2 -37,5 -46,4 -100 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3
Slide 31: 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 38,8 30 40 37,4 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 32: Solid balance sheet
Solid balance sheet NET DEBT, EUR MILLION NET GEARING AND EQUITY RATIO 350 80% 80% 69% 69% 70% 300 289,5 70% 70% 278,0 261,1 60% 56% 56% 60% 250 49% 50% 50% 200 152,0 40% 40% 148,0 150 135,4 37% 38% 30% 34% 30% 100 20% 20% 50 10% 10% 12% 12% 11% 0 0% 0% 2016 2017 2018 2019 Q2-19 Q2-20 2016 2017 2018
Slide 33: 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 dividend, to be paid biann
Slide 34: 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
Slide 35: Appendices
Appendices ⓒ Fiskars Group 2020 August 2020 35
Slide 36: Largest shareholders as of July 31, 2020
Largest shareholders as of July 31, 2020 # Shareholder name Number of shares % of shares and votes 1 Virala Oy Ab 12,650,000 15.44 2 Turret Oy Ab 10,930,961 13.35 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 Grip
Slide 37: Shareholder structure as of July 31, 2020
Shareholder structure as of July 31, 2020 4,5% 11,8% Private companies 34,6% Households 14,7% Financial and insurance institutions Public sector and non-profit organizations Nominee registered and non- Finnish holders 34,3% Number of % of total Number of % of shares Sector shareholders shareholders
Slide 38: Fiskars Group Leadership Team
Fiskars Group Leadership Team SARI POHJONEN TINA ANDERSSON CHRISTI AN BACHLER JAMES BROUILLARD RISTO GAGGL Interim CEO & Chief Consumer Officer Executive Vice President, Executive Vice President, Chief Supply Chain Officer Chief Financial Officer BA Vita BA Terra JOHAN HEDBERG TUOMAS HYYRYLÄI NEN NI
Slide 39: Board of Directors
Board of Directors PAUL JYRI NATHALIE ALBERT LOUISE EHRNROOTH LUOMAKOSKI AHLSTRÖM EHRNROOTH FROMOND Chairman Vice Chairman INKA FABI AN PETER RITVA MERO MÅNSSON SJÖLANDER SOTAM AA ⓒ Fiskars Group 2020 August 2020 39
Slide 40: 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 41: Making the everyday extraordinary
Making the everyday extraordinary ⓒ Fiskars Group 2020 August 2020 41