Fiskars Oyj Abp · OMXHEX:FSKRS
Fiskars Oyj Abp — Q4 2022 Earnings Presentation
24 slides from Fiskars Oyj Abp's earnings presentation, Feb 7, 2023
Slide 1: Financial Statement Release 2022
Financial Statement Release 2022 SOLID YEAR IN A CHALLENGING JANU ARY – DECEM BE R 2022 OPERATING ENVIRONMENT
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
Slide 3: Highlights of Q4 2022
Highlights of Q4 2022 NNI INNTTHH CCOOSSTT I INNCCRREEAS ASES ES I INNVVEESSTTM MENENTS TS I INN FY FY OOUUTTLO LOOOKK CCOONN SSEOECUT CUT I IVE VELI T Y PA PARO RTT O U T LO O K D I V I D END PR FI T ABI UI IA RALLY LLY GROWTH GG2R0ROO2 OU W3WTTO THU LO HTOLO K O K: UUNBNC OCH A DHANGE IANGE R VDI
Slide 4: Q4 2022 net sales declined due to lower consumer confidence and high retailer inventory
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 5: 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 6: 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 7: Our focus is firmly on our Growth Strategy
Our focus is firmly on our Growth Strategy WE FOCUS ON WINNING: LOGIC Brands Channels Countries Commercial excellence Direct to consumer TRANSFORMATION LEVERS U.S. China INNOVATION ENABLERS PEOPLE DIGITAL SUSTAINABILITY & DESIGN FEBRUARY 7, 2023
Slide 8: 3/4 of transformation levers improving
3/4 of transformation levers improving 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% of net
Slide 9: We are transforming the company
We are transforming the company 5 brands DTC >50% >100 MEUR of net sales in Royal Copenhagen in net sales and Wedgwood 25% Wedgwood of net sales from to a winning luxury brands brand from a turnaround brand FEBRUARY 7, 2023
Slide 10: Continuing with our ambitious approach to sustainability
Continuing with our ambitious approach to sustainability New ESG strategy with 5 key targets: 1. majority of net sales from circular products and services by 2030 2. GHG emissions from own operations (Scope 1 & 2) reduced by 60% from a 2017 base year by 2030 3. 60% of Fiskars Group’s suppliers by sp
Slide 11: Accelerating strategy execution and allocating resources to growth drivers
Accelerating strategy execution and allocating resources to growth drivers CEO Nathalie Ahlström Changes in the Executive Board (as of Jan 1, 2023) • New position of EVP, DTC Sales Americas Johan Hedberg Global commercial BA BA BA • Wholesale organization split into Sales Europe & APA Vita Terra Cre
Slide 12: Outlook for 2023
Outlook for 2023 Key factors impacting the outlook Fiskars expects comparable EBIT - expected continued volatility + savings from the planned targeted organizational changes of the market environment and to be slightly below the 2022 level weaker demand especially in H1 from H2 onwards (2022: EUR 15
Slide 13: Financials
Financials FEBRUARY 7, 2023
Slide 14: Challenging operating environment reflected in progress towards 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 15: 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 16: Q4 and FY 2022 EBIT bridge
Q4-2021 32.2 North American Watering -2.5 Business FEBRUARY 7, 2023 Adjusted 31.0 Translation FX Sales 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 Adjusted 145.8 Translati
Slide 17: 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 18: 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 19: 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 20: 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 21: 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 22: 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 23: Highlights of Q4 2022
Highlights of Q4 2022 NNI INNTTHH CCOOSSTT I INNCCRREEAS ASES ES I INNVVEESSTTM MENENTS TS I INN FY FY OOUUTTLO LOOOKK CCOONN SSEOECUT CUT I IVE VELI T Y PA PARO RTT O U T LO O K D I V I D END PR FI T ABI UI IA RALLY LLY GROWTH GG2R0ROO2 OU W3WTTO THU LO HTOLO K O K: UUNBNC OCH A DHANGE IANGE R VDI
Slide 24: Thank you!
Fiskars Gro up 2022 Thank you! FEBRUARY 7, 2023