Fiskars Oyj Abp · OMXHEX:FSKRS
Fiskars Oyj Abp — Fiskars Group — Investor Presentation (June 2019)
30 slides from Fiskars Oyj Abp's investor presentation, Jun 4, 2019
Slide 1: Making the everyday extraordinary
Making the everyday extraordinary
Slide 2: Fiskars in 2018
Fiskars in 2018 Net sales by segment Net sales by brand Net sales by geographic area Living Key categories: Tabletop 529.6 € m 25% 34% 13% Interior décor Gifting 48 % 7% 47% 40% Functional Key categories: Gardening 585.2 € m 8% 8% 9% 9% School, office and craft Kitchen Watering Outdoor 52 % Fiskars
Slide 3: Building a family of iconic lifestyle brands
Building a family of iconic lifestyle brands 3
Slide 4: Making the everyday extraordinary
Making the everyday extraordinary The leading A Danish luxury Empowers A design brand Continuously outdoor gear porcelain brand Enables people everyday that provides a provides new brand that that elevates to celebrate Irish creativity to progressive perspectives of empowers people memorable convivi
Slide 5: Fiskars Group fundamentals, vision and strategy
Fiskars Group Fundamentals Vision Strategy Values Sustainability Creating a positive, Building a Innovation Promoting creativity lasting impact on family of iconic Integrity Challenging disposability our quality of life lifestyle brands Accountability Empowering people Teamwork Purpose Making the ev
Slide 6: Sustainability key drivers
Sustainability key drivers Promoting Challenging Empowering creativity disposability people 6
Slide 7: SBU Living
SBU Living Offers premium and luxury products for tabletop, giftware and interior décor 7
Slide 8: Strategic business unit Living in brief
Strategic business unit Living in brief English and Crystal Living Net sales, EUR million – Comparable EBITA,% 200 184.7 23.0% 150 120 112.4 112.4 110.5 Scandinavian Living 100 7.3% 50 3.0% 2.1% 2.9% 0 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 8
Slide 9: SBU Living – Well balanced footprint
SBU Living – Well balanced footprint Europe 52% Americas 22% *Living 2017 net sales by region Asia-Pacific 26% 9
Slide 10: SBU Living – Category split
SBU 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 10
Slide 11: SBU Living – sales channels
SBU Living – sales channels Share of 2017 net sales Direct channel includes our own: • Stores (currently 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 Hospitality: >5% custo
Slide 12: SBU Functional
SBU Functional Provides tools for use in and around the house as well as outdoors 12
Slide 13: Strategic business unit Functional
Strategic business unit Functional Our brands Net sales, EUR million – Comparable EBITA,% 200 159.4 157.2 152.8 150 138.4 134.6 15.7% 16.5% 14.6% 14.2% 100 6.6% 50 0 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 13
Slide 14: SBU Functional – Well balanced footprint
SBU Functional – Well balanced footprint Europe Canada 40% <5% U.S. >50% *Functional 2017 net sales by region South America Asia-Pacific <5% <5% 14
Slide 15: SBU Functional – Category split
SBU Functional – Category split 13% 18% Outdoor School, office & craft (SOC) 2% Fixing 13% 45% Watering Gardening 10% *Functional 2017 net Cooking sales by category 15
Slide 16: SBU Functional – Sales channels
SBU Functional – Sales channels Distribution fully Work with some of Strong trade through indirect the largest retailers partnerships is one channels globally of our strengths E-commerce in Functional • Total indirect e-commerce: >5% of 2017 net sales • Share of total e-commerce higher in the Americ
Slide 17: Other
Other Other segments contains the corporate headquarters, shared services, investment portfolio and real estate unit. Investment portfolio mainly consisting of share in Wärtsilä. 17
Slide 18: Group net sales and profitability development
Group net sales and profitability development 1,200 +6% 55% 1,000 50% 800 43.2% 43.4% 45% 42.5% 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 Comp. gross profit Net sales CAGR 18
Slide 19: Comparable EBITA increased in 2018
Comparable EBITA increased in 2018 Comparable EBITA, EUR million 140 119.0 121.7 120 107.1 100 10.9% 10.0% 9.7% Comparable EBITA 75.7 8.9% 8.9% Comparable EBITA margin 80 6.8% 60 40 23.6 25.9 20 0 2015 2016 2017 2018 Q1 18 Q1 19 19
Slide 20: Seasonalities creating balanced income profile
Seasonalities creating balanced income profile Net sales Comparable EBITA 3% 12% 14% 14% 12% 11% 32% 19% 16% 17% 11% 10% 11% 11% 4% 2% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Living Functional Living Functional Seasonal distribution by quarter and business (average 2016-18). Percentages as share of total full year
Slide 21: 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 sales split in 2018 21
Slide 22: SKU reduction ongoing
SKU reduction ongoing Number of Stock Keeping Units (SKU) Sales / SKU, EUR 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 2011 2012 2013 2014 2015 2016 2017 201
Slide 23: Cash flow has increased
Cash flow has increased Cash flow from operating activities before financial items and taxes EUR million 160 140 120 100 80 60 103.5 92.2 40 77.5 64.6 20 39.1 40.3 48.6 42.7 41.1 32.5 4.9 24.8 0 -25.8 -20 -36.2 -39.2 -51.9 -46.4 -40 -60 -80 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17
Slide 24: Capital expenditure increased in 2018 due to a factory expansion
Capital expenditure increased in 2018 due to a factory expansion Depreciation, amortization and impairment, EUR million Capex, EUR million 50 50 46.2 45 42.8 43.8 45 40 38.8 40 37.6 37.4 35.0 35 35 32.4 32.8 30 28.5 Depreciation 30 increased as a 4.6% 25 result of IFRS 16 25 4.1% 20 20 2.9% 3.1% 14.
Slide 25: IFRS 16 impacting balance sheet
IFRS 16 impacting balance sheet Excluding Net debt, EUR million Net gearing and equity ratio impact from IFRS 16: 350 80% 26% 19% 322 69% 69% 70% 70% 68% 300 IFRS 16- 65% 70% impact EUR 117 60% 250 18% 226 million 50% 200 152 40% 12% 12% 148 11% 150 135 30% 100 20% 50 10% 0 0% 2016 2017 2018 Q1 18 Q
Slide 26: Long-term financial targets
Long-term financial targets Growth Profitability Capital Dividend The average annual net structure Fiskars aims to EBITA margin sales growth to exceed to reach 12% distribute a stable, over Net gearing* below 100% 5%, through a combination time increasing dividend, of organic growth and to be paid b
Slide 27: Outlook for 2019 (updated 17.5.2019)
Outlook for 2019 (updated 17.5.2019) In 2019, Fiskars expects the Group's comparable net sales to be at the same level as in 2018 (unchanged) and comparable EBITA to be below the previous year’s level (previously: at the same level). The outlook is influenced by the company’s investments in growth i
Slide 28: Proposed Wärtsilä share distribution would change the baseline for dividend growth
Proposed Wärtsilä share distribution would change the baseline for dividend growth We aim to distribute a stable, Dividend per share (DPS) history 2009–2018 over time increasing dividend, Wärtsilä EUR share to be paid biannually distribution 1.60 2.60 1.40 1.30 1.20 1.00 0.80 0.75 0.70 0.71 0.72 0.6
Slide 29: 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 assura
Slide 30: Making the everyday extraordinary
Making the everyday extraordinary 30