Slide 1: Investor presentation February-March 2022
Investor presentation February-March 2022
Slide 2: Content
Content • Fiskars Group in brief • Strategy • Business Areas • Financials • Appendices ⓒ Fiskars Group 2022
Slide 3: Making the everyday extraordinary
Our purpose: Making the everyday extraordinary Fiskars Group is a global lifestyle company with a unique portfolio of much-loved brands ⓒ Fiskars Group 2022 February-March 2022 3
Slide 4: Strong brand portfolio
Strong brand portfolio ⓒ Fiskars Group 2022 February-March 2022 4
Slide 5: Business Areas and key categories
Business Areas and key categories VITA TERRA CREA BUSINESS AREAS & KEY CATEGORIES Tableware Drinkware Interior Gardening Outdoor Watering Scissors Cooking & creating KEY BRANDS BA SHARE OF NET SALES 44% 43% 14% ⓒ Fiskars Group 2022 February-March 2022 5
Slide 6: Fiskars the largest brand – 2021 sales splits
Fiskars the largest brand – 2021 sales splits SALES SPLIT BY BRAND SALES SPLIT BY GEOGRAPHY SALES SPLIT BY CATEGORY Cooking Other Asia-Pacific Scissors & Creating 5% 18% 15% 9% Tableware Watering 28% Moomin 7% 3% Fiskars 41% Waterford 6% 47% Europe Outdoor 7% Gerber 7% 38% 8% Drinkware 7% Americas W
Slide 7: Our global presence
Our global presence EMPLOYEES >6,000 PRESENCE IN 30 COUNTRIES BRANDS AVAILABLE IN MORE THAN 100 COUNTRIES MORE THAN 360 STORES ⓒ Fiskars Group 2022 February-March 2022 7
Slide 8: Content
Content • Fiskars Group in brief • Strategy • Business Areas • Financials • Appendices ⓒ Fiskars Group 2022
Slide 9: Value Creation - Growth strategy addresses all value creation levers
Value Creation - Growth strategy addresses all value creation levers TSR drivers • We secure profit growth through increased focus on Gross Margin improvement PROFIT • OPEX fluidity to ensure funding of the strategic growth investments GROWTH • We manage both short- and long-term profit improvement
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 ENABLERS INNOVATION PEOPLE DIGITAL SUSTAINABILITY & DESIGN ⓒ Fiskars Group 2022 February-March 2022 10
Slide 11: We focus on winning brands, enabled through clear roles across our portfolio
We focus on winning brands, enabled through clear roles across our portfolio WINNING BRANDS WINNING BRANDS TURNAROUND BRANDS ⓒ Fiskars Group 2022 February-March 2022 11
Slide 12: Driving Fiskars as our #1 brand
Driving Fiskars as our #1 brand WINNING BRANDS • Global brand with strong recognition • Strong historical performance − >40% of Fiskars Group net sales LTM − 7% comp. net sales CAGR 2017-LTM • Further room to utilize brand stretch and surround the consumer − Product portfolio across key markets − Cl
Slide 13: We are building winning brands through new ways of thinking
We are building winning brands through new ways of thinking WINNING BRANDS Case Moomin • Story telling translated into collectibles • Currently net sales over EUR 30 million • Fiskars Group minority shareholder in Rights & Brands since Sept ‘21 • Strategic partnership enables global growth beyond ou
Slide 14: Strengthening our DTC to address the needs of the modern consumer
Strengthening our DTC to address the needs of the modern consumer WINNING CHANNELS • 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 Chin
Slide 15: The direct channel (DTC) increasingly important
The direct channel (DTC) increasingly important WINNING CHANNELS GROUP NET SALES BY CHANNEL (LTM*) NUMBER OF STORES Direct, e-commerce Direct, stores Indirect, e-commerce Total number of stores: 362 5% 13% 9% Store Europe Outlet 13% 21% 32% 67% 2% Americas 66% 73% Asia-Pacific Concession Indirect, o
Slide 16: Commercial excellence drives our performance improvement across all channels
Commercial excellence drives our performance improvement across all channels WINNING CHANNELS Our Commercial Excellence, examples • Win with the Winners • Value-based pricing • In-store and online excellence • Distribution and product coverage ⓒ Fiskars Group 2022 February-March 2022 16
Slide 17: U.S. continues to deliver a majority of our growth
U.S. continues to deliver a majority of our growth WINNING COUNTRIES • 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 start in China with significant growth opportunities ahead WINNING COUNTRIES NET SALES IN CHINA (EURm) • Strong market demand • Solid foundation, impressive track-record 29 − Capable local team in place CAGR: − >50% net sales CAGR during past 4 years +55% − 40% of LTM* net sales thr
Slide 19: Our enablers for the future
Our enablers for the future PEOPLE DIGITAL INNOVATION SUSTAINABILITY & DESIGN ⓒ Fiskars Group 2022 February-March 2022 19
Slide 20: We have clear sustainability priorities to drive real impact
We have clear sustainability priorities to drive real impact ⓒ Fiskars Group 2022 February-March 2022 20
Slide 21: Fiskars Group commits to climate action by joining the UN Business Ambition for 1.5°C
Fiskars Group commits to climate action by joining the UN Business Ambition for 1.5°C and setting science-based targets 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. Fis
Slide 22: Organizational structure
Organizational structure CEO NATHALIE AHLSTRÖM JO HAN Sales HEDBERG Business Area Business Area Business Area RIST O Supply Chain G AG G L PET ER Digital & IT CAB EL LO HO LM BERG VITA TERRA CREA JUSSI Finance SIIT O NEN ANN A Human Resources M INDELÖ F* CHRISTIAN CHARLENE TUOM AS BACHLER ZAPPA HYYR
Slide 23: Content
Content • Fiskars Group in brief • Strategy • Business Areas • Financials • Appendices ⓒ Fiskars Group 2022
Slide 24: BA Vita
BA Vita KEY CATEGORIES NET SALES AND COMPARABLE EBITA MARGIN EURm % 200 30 187 180 172 171 22.1% Tableware Drinkware Interior 160 19.9% 18.0% 20 140 134 15.7% 111 118 13.2% 108 116 120 110 11.6% 12.1% 101 100 8.0% 94 10 KEY BRANDS 81 80 2.7% 60 -0.5% 0 40 -3.8% 20 -9.8% 0 -10 Q1 19 Q2 19 Q3 19 Q4 19
Slide 25: BA Vita – Markets and channels
BA Vita – Markets and channels KEY MARKETS DISTRIBUTION CHANNELS • Nordics • UK Retailers; stores & Direct consumer sales; BtoB • U.S. e-comm stores & e-comm • China • Japan ⓒ Fiskars Group 2022 February-March 2022 25
Slide 26: BA Vita – net sales splits (2021)
BA Vita – net sales splits (2021) SALES SPLIT BY BRAND SALES SPLIT BY CHANNEL SALES SPLIT BY GEOGRAPHY Others Iittala 22% 21% Asia-Pacific Direct 31% 38% Moomin 7% 54% Europe Indirect 21% 62% 13% Royal Copenhagen Waterford 15% Americas 16% Wedgwood ⓒ Fiskars Group 2022 February-March 2022 26
Slide 27: BA Terra
BA Terra KEY CATEGORIES NET SALES AND COMPARABLE EBITA MARGIN EURm % 160 157 30 154 149 140 128 129 Gardening Outdoor Watering 125 20.5% 120 118 20 17.2% 17.6% 113 112 14.9% 100 95 96 98 11.8% 12.5% 80 9.2% 10 KEY BRANDS 7.9% 6.8% 60 2.9% 0.1% 40 -1.2% 0 20 0 -10 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20
Slide 28: BA Terra – Markets and channels
BA Terra – Markets and channels KEY MARKETS DISTRIBUTION CHANNELS • U.S. • North & Central Retailers; Direct stores & BtoB consumer sales; Europe e-comm stores & e-comm ⓒ Fiskars Group 2022 February-March 2022 28
Slide 29: BA Terra – net sales splits (2021)
BA Terra – net sales splits (2021) SALES SPLIT BY CATEGORY SALES SPLIT BY CHANNEL SALES SPLIT BY GEOGRAPHY Asia-Pacific Direct Watering 3% 1% 17% Europe 39% Outdoor 17% 58% Americas 66% 99% Gardening Indirect ⓒ Fiskars Group 2022 February-March 2022 29
Slide 30: BA Crea
BA Crea KEY CATEGORIES NET SALES AND COMPARABLE EBITA MARGIN EURm % 50 40 47 45 46 45 42 44 42 34.2% Scissors Cooking 40 40 39 & creating 36 35 35 32 30 28.3% 30 27.7% 30 26.0% 25 24.4% KEY BRANDS 23.6% 20 20.5% 19.6% 20 15 18.0% 17.3% 10 14.4% 12.8% 5 0 10 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20
Slide 31: BA Crea – Markets and channels
BA Crea – Markets and channels KEY MARKETS DISTRIBUTION CHANNELS • U.S. • North & Central Retailers; Direct BtoB Europe stores & consumer sales; e-comm stores & e-comm ⓒ Fiskars Group 2022 February-March 2022 31
Slide 32: BA Crea – net sales splits (2021)
BA Crea – net sales splits (2021) SALES SPLIT BY CATEGORY SALES SPLIT BY CHANNEL SALES SPLIT BY GEOGRAPHY Direct Asia-Pacific 2% 6% Cooking 40% 48% 50% 60% 94% Scissors & Creating Indirect Americas Europe ⓒ Fiskars Group 2022 February-March 2022 32
Slide 33: Content
Content • Fiskars Group in brief • Strategy • Business Areas • Financials • Appendices ⓒ Fiskars Group 2022
Slide 34: Long-term financial targets – issued on Nov 8, 2021
Long-term financial targets – issued on Nov 8, 2021 KPI TARGET Organic, FX neutral growth: approximately 5 % NET SALES (mid-single digit) EBIT margin (excl. IAC): approximately 15 % PROFIT (mid-teen) by the end of 2025 CASH FLOW CONVERSION Free Cash Flow / Net Profit ≥ 80% NET DEBT / EBITDA Net Debt
Slide 35: Group net sales and profitability development
Group net sales and profitability development EURm % 1,400 30 1,254 1,205 1,186 1,200 1,107 1,119 1,090 1,116 1,000 20 800 600 42.5% 43.2% 43.0% 43.4% 38.7% 41.0% 40.5% 10 400 200 0 0 2015 2016 2017 2018 2019 2020 2021 Net sales Gross margin ⓒ Fiskars Group 2022 February-March 2022 35
Slide 36: Profitability has improved
Profitability has improved EURm % 180 25 168.8 160 136.8 20 140 119.0 121.7 120 107.1 13.5% 15 100 90.6 12.3% 10.9% 12.3% 80 75.7 10.0% 8.9% 10 9.8% 8.3% 9.8% 60 8.7% 6.8% 7.7% 7.1% 40 5.9% 5 20 0 0 2015 2016 2017 2018 2019 2020 2021 Comp. EBITA Comp. EBITA margin Comp. EBIT margin February-March 20
Slide 37: Quarterly development – last 3 years
Quarterly development – last 3 years NET SALES, EUR MILLION COMPARABLE EBITA, EUR MILLION 400 60 353 49 50 50 324 50 308 313 302 307 45 300 292 280 266 273 269 265 267 39 256 256 40 38 249 35 36 200 30 29 27 26 24 22 20 19 16 100 13 10 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 38: Cost of Goods Sold
Cost of Goods Sold COGS Total Own Production Direct Material 100% 100% 100% Logistics Plastics Inbound 75% 75% Direct Materials 75% Steel Sourcing Aluminium 50% 50% 50% Packaging Labour Inbound 25% 25% 25% Components Own production Energy Other Other 0% 0% 0% ⓒ Fiskars Group 2022 February-March 2022
Slide 39: Net sales growth avenues
Net sales growth avenues LTM* NET SALES BY WINNING BRANDS, AND THEIR CONTRIBUTION TO COUNTRIES AND CHANNELS THE MSD GROWTH TARGET 100% MSD Retail E-comm 80% Fiskars USA USA DTC & China 60% China Winning brands Iittala RC 40% Other Gerber Moomin RoW Other RoW channels 20% Turnaround brands Turnaround
Slide 40: Future P&L structure – emphasis on increasing Gross Margin
Future P&L structure – emphasis on increasing Gross Margin AVERAGE 2025 2016–19 FY 2020 LTM* SEP’21 TARGET GROSS MARGIN 42.9% 40.5% 42.8% 46–47% MARKETING 4.4% 3.3% 3.6% 4–5% SG&A 30.3% 27.3% 26.0% 27–28% EBIT** 8.4% 9.8% 13.0% Mid-teen *LTM referring to the period Q4 2020 – Q3 2021 **Excl. Items Af
Slide 41: Transformation levers contributing to the Gross Margin improvement
Transformation levers contributing to the Gross Margin improvement TRANSFORMATION LEVERS CONTRIBUTING TO THE FROM TO GROSS MARGIN IMPROVEMENT Commercial Vita DTC USA China Excellence Vita Crea Vita Group Crea Group Terra Terra Terra Crea Gross Margin Gross Margin LTM* Sep’21 Directional Target *LTM
Slide 42: Investments in growth building blocks are funded thru fluidity and Gross Profit improvement
Investments in growth building blocks are funded thru fluidity and Gross Profit improvement OPEX COMPONENTS (% OF NET SALES) OPEX LOGIC % Growth • Sales expenses (incl. DTC) 40 driven • Expected to follow topline growth • Sales expenses growth driven by DTC mitigated thru efficiency 30 improvements
Slide 43: OPEX Investments - Enabling sustainable growth from 2022 onwards
OPEX Investments - Enabling sustainable growth from 2022 onwards Commercial DTC Digital Excellence TARGET SUSTAINABLE, PROFITABLE ACCELERATE GROWTH ENABLE GROWTH, DRIVE GROWTH FROM Q1-22 EFFICIENCY ONWARDS IMPACT • Stable, sustainable Net Sales • Growth acceleration • Enabling growth especially in D
Slide 44: Free Cash Flow remains solid
Free Cash Flow remains solid 2018 2019 2020 LTM* Sep’2021 TARGET 137 137 118 118 224 224 232 232 • Increased profit drives up 30 33 cash flow from operations 46 40 20 31 • NWC growth expected to 23 be slightly below the 18 178 topline growth (=NWC 124 26 114 efficiency improvement) 174 • CAPEX to in
Slide 45: Fund allocation follows the strategic acceleration – DTC and Digital share of CAPEX to increase
Fund allocation follows the strategic acceleration – DTC and Digital share of CAPEX to increase CAPEX Development 2018 – LTM* Sep’21 TARGET 4.1 % of 3.7 % of 2.6 % of 2.6 % of ~4% of Net Sales Net Sales Net Sales Net Sales Net Sales 20% 31% 30% 25% 15% 26% Supply Chain 13% 24% 14% 16% DTC 41% 43% 45
Slide 46: Strong balance sheet enables growth
Strong balance sheet enables growth NET DEBT / LTM EBITDA Q4/2017 – Q4/2021 NET DEBT 2017 – 2021 261 3.0X 2.5X Target to remain below 2.5x 111 2.0X 148 144 144 135 1.5X 95 112 1.0X 150 0.5X 49 33 0.0X Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 31.12. 31.12. 31.12. 31.12. 31.12. 2017 2018 201
Slide 47: Clear growth in dividend for FY 2021
Clear growth in dividend for FY 2021 Wärtsilä share Dividend per share (DPS) history 2009–2021 distribution EUR 2.60 5.31 1.60 1.40 1.30 1.20 1.00 0.80 0.75 0.76 0.70 0.71 0.72 0.65 0.67 0.68 0.60 0.62 0.60 0.60 0.54 0.56 0.52 0.36 0.38 0.28 0.30 0.40 0.35 0.27 0.20 0.36 0.36 0.30 0.38 0.27 0.28 0.0
Slide 48: Net sales / SKU continued to increase
Net sales / SKU continued to increase Number of Stock Sales / SKU, EUR Keeping Units (SKU) 45 000 90 000 40 000 80 000 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 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Numbe
Slide 49: Group seasonality balanced by portfolio
Group seasonality balanced by portfolio NET SALES AND EBIT – QUARTERLY SPLIT SEASONAL FEATURES BY BUSINESS AREA 0% 25% 50% 75% 100% Vita Vita • Highest season in year-end holiday period • Seasonal pre-orders approx. one-third of the business; the NET SALES Terra rest from replenishment and DTC • Ord
Slide 50: Content
Content • Fiskars Group in brief • Strategy • Business Areas • Financials • Appendices ⓒ Fiskars Group 2022
Slide 51: Largest shareholders as of January 31, 2022
Largest shareholders as of January 31, 2022 # Shareholder name Number of shares % of shares and votes 1 Virala Oy Ab 12,650,000 15.45 2 Turret Oy Ab 10,885,961 13.29 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 G
Slide 52: Shareholder structure as of January 31, 2022
Shareholder structure as of January 31, 2022 5,5% 2,6% 19,7% Financial and insurance 7,8% corporations Households Non-financial corporations Non-profit institutions General government 26,3% 38,1% Rest of the world Sector Number of shares % of shares and votes Financial and insurance corporations 14,
Slide 53: Fiskars Group Leadership Team
Fiskars Group Leadership Team NATHALIE AHLSTRÖM JUSSI SIITONEN CHRISTI AN BACHLER CHARLENE ZAPPA RISTO GAGGL President & CEO Chief Financial Officer, Executive Vice President, Executive Vice President, Chief Supply Chain Officer deputy to the CEO BA Vita BA Terra JOHAN HEDBERG PETER CABELLO TUOMAS H
Slide 54: Board of Directors
Board of Directors PAUL JYRI ALBERT LOUISE EHRNROOTH LUOMAKOSKI EHRNROOTH FROMOND Chairman Vice Chairman INKA FABI AN PETER RITVA MERO MÅNSSON SJÖLANDER SOTAM AA ⓒ Fiskars Group 2022 February-March 2022 54
Slide 55: Calculation of financial indicators
Calculation of financial indicators INDICATOR DEFINITION EBITDA EBIT + depreciation and amortization EBITDA + change in provisions + non-cash adjustments – capital expenditure +/- change Free Cash Flow in inventories, trade receivables and trade payables – cash taxes Cash conversion Free cash flow /
Slide 56: 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 57: Fiskars Group
FISKARS > GROUP