Fiskars Oyj Abp · OMXHEX:FSKRS
Fiskars Oyj Abp — Fiskars Group — FY2018 Earnings Presentation
24 slides from Fiskars Oyj Abp's earnings presentation, February 2019
Slide 1: Financial statement release January–December 2018
Financial statement release January–December 2018
Slide 2: Today’s speakers
Today’s speakers Jaana Tuominen Sari Pohjonen President & CEO CFO Interim President, Deputy to the CEO SBU Functional ⓒ Fiskars Group 2019 Q4/2018 2
Slide 3: 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 4: Key takeaways for Q1–Q4 2018
Key takeaways for Q1–Q4 2018 • Comparable EBITA increased despite a decrease in comparable net sales • Profitability improved clearly in the Functional segment, as comparable EBITA increased with comparable net sales remaining at the previous year’s level • Challenging year for the Living segment, a
Slide 5: Q1-Q4 2018
Q1-Q4 2018 Net sales Comparable EBITA** Cash flow from operating activities*** Earnings per share EUR million (Q4 2017: 319.2) EUR million (35.4) EUR million (103.5) EUR (0.21)**** Q4 324.1 48.8 92.2 0.33 YoY 1.5% YoY 38% Comparable* change 1.1% EUR million (2017: 1,185.5) EUR million (119.0) EUR mi
Slide 6: Fiskars Group in Q4 2018
Fiskars Group in Q4 2018 Net sales and comparable EBITA %, EUR million Comparable EBITA, EUR million 38% Comparable change* 1.1% 1.5% 48.8 400 50 334 324 319 40 36.3 306 35.4 300 290 32.0 270 266 273 256 29.1 30 27.0 22.4 23.6 22.3 15.1 200 20 10.9 10.5 10.8 11.1 10.6 8.9 8.2 10 7.7 100 0 -1.1 -1.1
Slide 7: Net sales bridge Q4 2018
Net sales bridge Q4 2018 Net sales, EUR million Comparable change 1.1% 6.7 -3.1 0.1 324.1 1.1 0.2 319.2 Q4 2017 FX rate Divestments SBU SBU Living Other Q4 2018 Functional ⓒ Fiskars Group 2019 Q4/2018 7
Slide 8: Transformation program in the Living business
Transformation program in the Living business The Transformation program focuses primarily on: Targeted annual cost savings app. EUR 17 million • The English & Crystal Living business, to improve its • Subject to the full implementation of the program profitability • Targeted cost savings would be a
Slide 9: Living marketing highlights in Q4 2018
Living marketing highlights in Q4 2018 Iittala launched Raami, a new tableware series designed by Jasper Morrison. The pieces are made of ceramics, glass and wood, intended to combine and promote a good atmosphere at the table. In December, Iittala opened a new store in Berlin city center Waterford
Slide 10: Functional marketing highlights in Q4 2018
Functional marketing highlights in Q4 2018 Fiskars introduced stainless steel pots, pans and casseroles for the Norden premium cooking range. Norden Steel are also the first stainless steel products to feature ThermiumTM, Fiskars' new innovation for mineral treatment for non-stick frying. The series
Slide 11: Q4 2018
Q4 2018 ⓒ Fiskars Group 2019 11
Slide 12: Living in Q4 2018
Living in Q4 2018 EUR million Q4 2018 Q4 2017 Change 2018 2017 Change Comparable change* Net sales* 184.7 187.8 -1.6% 529.6 573.9 -7.7% -1.6% Comparable EBITA 42.5 38.3 11% 57.0 70.7 -19% Capital expenditure 7.4 4.9 51% 23.8 14.0 71% 188 185 23.0% *Using comparable exchange rates, net sales in the L
Slide 13: Functional in Q4 2018
Functional in Q4 2018 EUR million Q4 2018 Q4 2017 Change 2018 2017 Change Comparable change* Net sales* 138.4 130.4 6.1% 585.2 607.8 -3.7% 5.1% Comparable EBITA 9.2 1.0 75.5 59.7 27% Capital expenditure 5.7 6.6 -13.6% 18.9 19.4 -2.6% 153 159 *Using comparable exchange rates and excluding the net sal
Slide 14: Net sales by geography in Q4 2018
Net sales by geography in Q4 2018 Comparable Comparable EUR million Q4 2018 Q4 2017 Change 2018 2017 Change change change Europe 162.1 165.9 -2.3% -1.2% 531.2 568.5 -6.6% -5.0% Americas 112.0 107.2 4.5% 1.6% 444.4 463.0 -4.0% 1.3% Asia-Pacific 48.7 46.4 4.9% 5.0% 141.7 152.8 -7.3% -3.2% Unallocated*
Slide 15: Other segment
Other segment The Other segment contains the Group’s investment portfolio, the real estate unit, corporate headquarters and shared services At the end of Q4 2018, Fiskars owned 32,645,343 shares in Wärtsilä, representing 5.52% of Wärtsilä’s share capital The shares in Wärtsilä were valued at EUR 453
Slide 16: SKU efficiency improvement continued
SKU efficiency improvement continued 40000 80000 35000 70000 30000 60000 25000 50000 20000 40000 15000 30000 10000 20000 5000 10000 0 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Number of Stock Keeping Units (SKU) (LHS) Sales / SKU, EUR (RHS) ⓒ Fiskars Group 2019 Q4/2018 16
Slide 17: Earnings per share increased in Q4 2018
Earnings per share increased in Q4 2018 Full year EPS increased to EUR 1.00 from 0.98 in 2017 0.34 0.34 0.33 0.28 0.23 0.21 0.20 0.14 0.13 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 EPS Op. EPS EPS (for Q4 2016 to Q4 2017 restated to current accounting practice) Operativ
Slide 18: Cash flow improved in 2018, working capital at previous year’s level
Cash flow improved in 2018, working capital at previous year’s level Cash flow from operating activities before financial Working capital, EUR million items and taxes, EUR million 300 150 137 131 258 121 252 250 232 232 227 218 218 100 196 197 200 50 104 150 92 78 49 43 41 100 25 0 -39 50 -46 -50 0
Slide 19: Net debt decreased in Q4
Net debt decreased in Q4 Net debt, EUR million Equity ratio and net gearing 300 80% 257 69% 69% 69% 68% 68% 69% 70% 70% 66% 67% 250 228 226 226 207 60% 21% 204 19% 200 18% 50% 17% 17% 16% 152 148 150 135 40% 12% 12% 11% 30% 100 20% 50 10% 0 0% Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 20
Slide 20: Outlook for 2019 issued
Outlook for 2019 issued In 2019, Fiskars Group expects the comparable net sales and comparable EBITA to be at the same level as in 2018 The outlook is influenced by the company’s investments in growth initiatives that are expected to add sustainable value in the long-term. In addition, there are mat
Slide 21: 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 22: Dividend proposal
Dividend proposal Dividend proposal: Long-term financial targets intact: • Cash dividend of EUR 0.27 per share in March and an After the potential distribution of the Wärtsilä shares to authorization to distribute an additional EUR 0.27 per shareholders, Fiskars would cease to receive dividend share
Slide 23: Dividend track
Dividend track Proposed Wärtsilä share distribution 2.60 1.60 1.40 1.30 1.20 1.00 0.80 0.75 0.72 0.68 0.70 0.71 0.65 0.67 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 2012 2013 2014 2015 2016 2017 2018* Base Dividend First dividend *Proposal Extra Dividend Second d
Slide 24: Making the everyday extraordinary
Making the everyday extraordinary ⓒ Fiskars Group 2019 Q4/2018 24