Fiskars Oyj Abp · OMXHEX:FSKRS

Fiskars Oyj Abp — Fiskars Group — Investor Presentation (December 2019)

50 slides from Fiskars Oyj Abp's investor presentation, December 2019

  1. Slide 1: Investor presentation December 2019

    Investor presentation December 2019

  2. Slide 2: Agenda

    Agenda • Fiskars Group in brief • Planned organizational structure • Segments • Financials • Appendices ⓒ Fiskars Group 2019 Nov 2019 2

  3. Slide 3: Fiskars Group in brief

    Fiskars Group in brief ⓒ Fiskars Group 2019

  4. Slide 4: Making the everyday extraordinary

    Established in Finland in 1649 Globally recognized brands Products in more than 100 countries Approximately 350 own stores Net sales in 2018 EUR 1,119 million 7,600 employees in 30 countries Our purpose: Making the everyday extraordinary ⓒ Fiskars Group 2019 Nov 2019 4

  5. Slide 5: Key categories in 2018

    Key categories in 2018 FUNCTIONAL LIVING NET SALES BY SEGMENT Gardening School, office Outdoor Dinnerware Drinkware & craft EUR 585.2 EUR 529.6 million million 52% 48% Watering Cooking Fixing Interior Other ⓒ Fiskars Group 2019 Nov 2019 5

  6. Slide 6: Net sales in 2018

    Net sales in 2018 NET SALES SPLIT BY BRAND NET SALES SPLIT BY GEOGRAPHY 13% Asia-Pacific 25% Other brands 34% Fiskars 47% Europe 7% Wedgwood 40% Americas 8% 9% Gerber 8% 9% Royal Copenhagen Iittala Waterford ⓒ Fiskars Group 2019 Nov 2019 6

  7. Slide 7: Strong brand portfolio

    Strong brand portfolio ⓒ Fiskars Group 2019 Nov 2019 7

  8. 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 2018 ⓒ Fiskars Group 2019 Aug-Sep Nov Oct 2019 8

  9. Slide 9: Our sites globally

    Our sites globally Factories & offices 67 Employees 7,600 ⓒ Fiskars Group 2019 Nov 2019 9

  10. Slide 10: Our strategic priorities

    Our strategic priorities ⓒ Fiskars Group 2019 Nov 2019 10

  11. Slide 11: Our approach to sustainability

    Our approach to sustainability For Fiskars Group, sustainable business is integral in building long-term economic success. We work towards our vision to have a positive, lasting impact on our quality of life by acting as a responsible business and pushing ourselves forward in creating positive chang

  12. Slide 12: Planned new organizational structure

    Planned new organizational structure ⓒ Fiskars Group 2019

  13. Slide 13: Proposed organization structure

    * Planning leads for the Proposed organization structure respective business or function President & CEO JAANA TUOMINEN JO HAN Sales HEDBERG * Business Area Business Area Business Area JAAN A Consumer Experience & Growth T UO M INEN* RIST O Supply Chain G AG G L* VITA TERRA CREA SARI Finance & IT PO

  14. 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

  15. 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

  16. Slide 16: Fiskars Group Leadership Team, effective immediately

    Fiskars Group Leadership Team, effective immediately JAANA TUOMINEN SARI POHJONEN TINA ANDERSSON CHRISTI AN BACHLER RISTO GAGGL President & CEO Chief Financial Officer & Chief Consumer Officer EVP Chief Supply Chain Deputy to the President & CEO (starting in May 2020 Officer at the latest) JOHAN HED

  17. Slide 17: Restructuring Program

    Restructuring Program The Restructuring Program The savings are expected to come from a wide range of areas, including the removal of overlaps in the organization, simplified processes and ways of working, and reduction of workforce is aimed at reducing costs As part of the program, we will look for

  18. Slide 18: 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. 4.12.2019 18

  19. Slide 19: SBU Functional

    SBU Functional ⓒ Fiskars Group 2019

  20. 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% 163.0 157.2 20% 150 138.4 134.6 16.5% 129.8 14.2% 15% 12.7% 100 10% 6.6% 50 4.9% 5% 0 0% Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 ⓒ Fiskars Group 2019 N

  21. 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 2019 Nov 2019 21

  22. 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 2019 Nov 2019 22

  23. 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

  24. Slide 24: SBU Living

    SBU Living ⓒ Fiskars Group 2019 Nov 2019 24

  25. 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 23.0% 25% 150 20% 120 117.9 110.5 15% 101.3 100 Scandinavian Living 7.3% 8.1% 10% 2.9% 5% 50 -0.5% 0% 0 -5% Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 ⓒ Fiskars Gr

  26. 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. 2019 Company confidential. Nov 2019 26

  27. 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 2019 Nov 2019 27

  28. 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

  29. Slide 29: Store evolution

    Store evolution New flagship store concepts to be rolled out, omnichannel focus Stores as a platform for new services ⓒ Fiskars Group 25.11.2019 29

  30. Slide 30: Stores support implementation of services

    Stores support implementation of services Rolled out in all own iittala stores in Finland in 2019 E-commerce extension in piloting phase Assessing expansion to other countries ⓒ Fiskars Group 25.11.2019 30

  31. Slide 31: Other service models under development

    Other service models under development Responding to new consumer habits, such as sharing and renting Arabia launched subscription service on November 18, 2019 ⓒ Fiskars Group 25.11.2019 31

  32. Slide 32: Brands with own e-commerce

    Brands with own e-commerce ⓒ Fiskars Group 25.11.2019 32

  33. Slide 33: 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 25.11.2019 33

  34. Slide 34: Financials

    Financials ⓒ Fiskars Group 2019

  35. Slide 35: Group net sales and profitability development

    Group net sales and profitability development 1,400 60% +6% 1,205 1,186 1,200 1,107 1,119 55% 1,000 50% 799 768 800 716 743 748 42.5% 43.2% 43.4% 45% 660 40.9% 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 Net sales, EUR million C

  36. Slide 36: 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% 119.0 121.7 120 12% 107.1 100 10.9% 9.2% 10% 10.0% 80 75.7 8.9% 72.9 8% 7.1% 60 55.5 6% 6.8% 40 4% 20 2% 0 0% 2015 2016 2017 2018 Q1-3 Q1-3 18 19 Comparable EBITA, EUR million Comparable EBITA margin Nov 2019 36

  37. Slide 37: Seasonalities creating balanced income profile

    Seasonalities creating balanced income profile NET SALES COMPARABLE EBITA 11% 16% 10% 11% 4% 2% 32% 11% 14% 14% 19% 17% 12% 12% 11% 3% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Functional Living Functional Living Seasonal distribution by quarter and business (average 2016-18). Percentages as share of total full year

  38. Slide 38: 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

  39. Slide 39: 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 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 Q4 1

  40. Slide 40: Capital expenditure increased in 2018 due to a factory expansion

    Capital expenditure increased in 2018 due to a factory expansion DEPRECIATION, AMORTIZATION CAPEX, EUR MILLION AND IMPAIRMENT, EUR MILLION 50 50 14% 46.2 43.8 44.1 45 42.8 45 12% 40 38.8 40 37.6 37.4 35.0 35 35 32.4 32.8 10% 32.0 30 28.5 30 27.4 27.1 8% 25 25 6% 20 20 15 15 4.6% 4% 4.1% 10 10 2.9% 3

  41. Slide 41: 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: 70% EUR 100 million Net gearing 18% 350 80% 45% 317.1 69% 69% 70% 69% 70% 42% 40% 300 35% 60% 55% 250 30% 203.8 50% 200 25%

  42. Slide 42: 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

  43. Slide 43: Outlook for 2019

    Outlook for 2019 (updated on October 16, 2019) In 2019, Fiskars expects the comparable net sales and comparable EBITA to be below the previous year’s level. The outlook is influenced by the company’s investments in growth initiatives that are expected to add sustainable value in the long-term. In ad

  44. Slide 44: 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 2009–2018 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 0.52 0.54 0.36 0.40 0.27 0.20 0.35 0.36 0.27 0.00 2009 2010 2011 2

  45. Slide 45: Appendices

    Appendices ⓒ Fiskars Group 2019 Nov 2019 45

  46. Slide 46: Largest shareholders as of November 30, 2019

    Largest shareholders as of November 30, 2019 # 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

  47. Slide 47: Shareholder structure as of November 30, 2019

    Shareholder structure as of November 30, 2019 2.7% 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

  48. Slide 48: Board of Directors

    Board of Directors Paul Ehrnrooth Jyri Luomakoski Albert Ehrnrooth Louise Fromond Chairman Vice Chairman Inka Mero Fabian Månsson Peter Sjölander Ritva Sotamaa ⓒ Fiskars Group 2019 Nov 2019 48

  49. Slide 49: 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

  50. Slide 50: Making the everyday extraordinary

    Making the everyday extraordinary ⓒ Fiskars Group 2019 Nov 2019 50

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