Fiskars Oyj Abp · OMXHEX:FSKRS

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

45 slides from Fiskars Oyj Abp's investor presentation, September 2019

  1. Slide 1: Investor presentation August-September 2019

    Investor presentation August-September 2019

  2. Slide 2: Agenda

    Agenda • Fiskars Group in brief • Strategy • Segments • Financials • Appendices ⓒ Fiskars Group 2019 Aug-Sep 2019 2

  3. Slide 3: Fiskars Group in brief

    Fiskars Group in brief ⓒ Fiskars Group 2019

  4. Slide 4: Making the everyday extraordinary

    Our purpose: Making the everyday extraordinary Established in Finland 1649 Globally recognized brands Products sold in more than 100 countries Nearly 400 own stores Net sales in 2018 EUR 1,119 million 7,600 employees in over 30 countries ⓒ Fiskars Group 2019 Aug-Sep 2019 4

  5. Slide 5: Fiskars Group in 2018

    Fiskars Group in 2018 NET SALES SPLIT BY BRAND NET SALES SPLIT BY GEOGRAPHY 13% 25% 34% 47% 7% 40% 8% 9% 8% 9% Fiskars Royal Copenhagen Europe Americas Asia-Pacific Waterford Iittala Gerber Wedgwood Others ⓒ Fiskars Group 2019 Aug-Sep 2019 5

  6. Slide 6: Net sales by segment

    Net sales by segment Key categories FUNCTIONAL LIVING FUNCTIONAL LIVING €585.2m €529.6m Gardening School, office Outdoor Dinnerware Drinkware 52% 48% & craft Watering Cooking Fixing Interior Other ⓒ Fiskars Group 2019 Aug-Sep 2019 6

  7. Slide 7: Strong brand portfolio

    Strong brand portfolio ⓒ Fiskars Group 2019 Aug-Sep 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 2019 8

  9. Slide 9: Our locations

    Our locations Manufacturing locations Distribution centers ⓒ Fiskars Group 2019 Aug-Sep 2019 9

  10. Slide 10: Our strategic priorities

    Our strategic priorities ⓒ Fiskars Group 2019 Aug-Sep 2019 10

  11. Slide 11: Strategy

    Strategy ⓒ Fiskars Group 2019

  12. Slide 12: Megatrends impacting our business

    Megatrends impacting our business Conscious society Demographic shifts Quest for convenience ⓒ Fiskars Group 2019 Aug-Sep 2019 12

  13. Slide 13: Fiskars Group vision

    Fiskars Group vision Creating a positive, lasting impact on our quality of life ⓒ Fiskars Group 2019 Aug-Sep 2019 13

  14. Slide 14: Fiskars Group values

    Fiskars Group values We are making the everyday extraordinary by… creating celebrating growing with change the everyday compassion ⓒ Fiskars Group 2019 Aug-Sep 2019 14

  15. Slide 15: Our strategic priorities

    Our strategic priorities Growing Exciting business consumers Inspiring Improving people performance ⓒ Fiskars Group 2019 Aug-Sep 2019 15

  16. Slide 16: 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

  17. Slide 17: SBU Functional

    SBU Functional ⓒ Fiskars Group 2019

  18. Slide 18: Strategic business unit Functional

    Strategic business unit Functional 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% 159.4 163.0 157.2 20% 150 138.4 134.6 16.5% 14.6% 14.2% 15% 12.7% 100 10% 6.6% 50 5% 0 0% Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 ⓒ Fiskars Group 2019 Aug-Sep 2019 18

  19. Slide 19: SBU Functional – Well balanced footprint

    SBU Functional – Well balanced footprint 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 Aug-Sep 2019 19

  20. Slide 20: SBU Functional – Category split

    SBU Functional – Category split 13% Outdoor 18% School, office & craft (SOC) 2% Fixing 13% Watering 45% Gardening 10% Cooking *Functional 2017 net sales by category ⓒ Fiskars Group 2019 Aug-Sep 2019 20

  21. Slide 21: SBU Functional – Sales channels

    SBU 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

  22. Slide 22: SBU Living

    SBU Living ⓒ Fiskars Group 2019 Aug-Sep 2019 22

  23. Slide 23: Strategic business unit Living

    Strategic business unit Living OUR BRANDS NET SALES, EUR MILLION COMPARABLE EBITA, % English and Crystal Living 200 30% 184.7 23.0% 25% 150 20% 120 112.4 110.5 101.3 15% Scandinavian Living 100 7.3% 10% 2.1% 2.9% 5% 50 -0.5% 0% 0 -5% Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 ⓒ Fiskars Group 2019 Aug-S

  24. Slide 24: SBU Living – Well balanced footprint

    SBU 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. Risto Gaggl 12.6.2019 Aug-Sep 2019 24 24

  25. Slide 25: 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 ⓒ Fiskars Group 2019 Aug-Sep 2019 25

  26. Slide 26: SBU Living – Sales channels

    SBU Living – Sales channels 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 operating on o

  27. Slide 27: New business models

    New business models Circular economy is part of Fiskars Group’s sustainability program, and the aim is to find new business opportunities based on it. Circular economy means a new way of thinking in which consumption is based on sharing, renting, recycling, and using services, instead of owning prod

  28. Slide 28: Financials

    Financials ⓒ Fiskars Group 2019

  29. Slide 29: 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

  30. Slide 30: Comparable EBITA increased in 2018

    Comparable EBITA increased in 2018 COMPARABLE EBITA 140 14% 119.0 121.7 120 12% 107.1 100 10.9% 10% 10.0% 80 75.7 8.9% 8% 8.5% 7.9% 60 6.8% 6% 45.9 42.1 40 4% 20 2% 0 0% 2015 2016 2017 2018 H1 18 H1 19 Comparable EBITA, EUR million Comparable EBITA margin Aug-Sep 2019 30

  31. Slide 31: 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

  32. Slide 32: SKU reduction ongoing

    SKU reduction ongoing Number of Stock Sales / SKU, EUR Keeping Units (SKU) 45,000 80,000 Targeting to reach the previous high in 40,000 sales / SKU 70,000 35,000 60,000 30,000 50,000 25,000 40,000 20,000 30,000 15,000 20,000 10,000 5,000 10,000 0 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2

  33. Slide 33: 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 40.3 48.6 42.7 41.1 48.1 50 32.5 39.1 24.8 4.9 0 -50 -25.8 -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 17 Q1

  34. Slide 34: 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 46.2 14% 45 42.8 43.8 45 40 38.8 Depreciation 12% 37.4 40 37.6 increased as a 35.0 35 result of IFRS 16 35 32.4 32.8 10% 28.5 29.4 30 30 8% 25 25 19.8 18.5

  35. Slide 35: 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: 71% EUR 104 million Net gearing 14% 300 278.0 80% 40% 69% 69% 70% 68% 70% 37% 35% 250 206.6 60% 56% 30% 200 50% 25% 152.0 14

  36. Slide 36: 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

  37. Slide 37: Outlook for 2019

    Outlook for 2019 (updated on May 17, 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 gr

  38. Slide 38: 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

  39. Slide 39: Appendices

    Appendices ⓒ Fiskars Group 2019 Aug-Sep 2019 39

  40. Slide 40: Largest shareholders as of July 31, 2019

    Largest shareholders as of July 31, 2019 # Shareholder name Number of shares % of shares and votes 1 Virala Oy Ab 12,650,000 15.44 2 Holdix Oy Ab 10,165,537 12.41 3 Turret Oy Ab 9,330,961 11.39 4 Bergsrådinnan Sophie von Julins Foundation 2,556,000 3.12 5 Oy Julius Tallberg Ab 2,554,350 3.12 6 Varma

  41. Slide 41: Shareholder structure as of July 31, 2019

    Shareholder structure as of July 31, 2019 2.8% 12.4% Private companies 32.7% Households 14.8% Financial and insurance institutions Public sector and non-profit organizations Nominee registered and non- Finnish holders 37.3% Number of % of total Number of % of shares Sector shareholders shareholders

  42. Slide 42: Fiskars Group Leadership Team

    Fiskars Group Leadership Team Jaana Tuominen Sari Pohjonen Risto Gaggl Michael Halak President & CEO Chief Financial Officer Chief Supply Chain Officer President, SBU Functional Interim President, SBU Living Deputy to the CEO Tuomas Hyyryläinen Niklas Lindholm Maija Taimi Päivi Timonen Chief Growth

  43. Slide 43: 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 Aug-Sep 2019 43

  44. Slide 44: 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

  45. Slide 45: Making the everyday extraordinary

    Making the everyday extraordinary ⓒ Fiskars Group 2019 Aug-Sep 2019 45

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