Slide 1: Investor presentation
Investor presentation UPDATED JULY 5, 2023
Slide 2: Content
Content Fiskars Group in brief Strategy Business Areas Financials Q1 2023 Appendices 2 MAY-JULY 2023 FISKARS GROUP
Slide 3: Our purpose: Pioneering design to make the everyday extraordinary
OU R PU RPOSE Pioneering design to make the everyday extraordinary THE GLOBAL HOME OF DESIGN-DRIVEN BRANDS FOR INDOOR AND OUTDOOR LIVING 3 MAY-JULY 2023 FISKARS GROUP
Slide 4: Strong brand portfolio
Strong brand portfolio 4 MAY-JULY 2023 FISKARS GROUP
Slide 5: Fiskars Group key figures 2022
Fiskars Group key figures 2022 Net sales Comparable EBIT EUR million EUR million 1,248.4 151.0 Earnings per share Cash flow from EUR operating activities 1.21 before financial items and taxes EUR million Personnel -24.9 Dec 31, 2022 6,595 5 MAY-JULY 2023 FISKARS GROUP
Slide 6: Business Areas and key categories
Business Areas and key categories VITA TERRA CREA BUSINESS AREAS & KEY CATEGORIES Scissors Tableware Drinkware Interior Gardening Outdoor Watering & creating Cooking KEY BRANDS BA SHARE OF NET SALES 45% 41% 14% 6 MAY-JULY 2023 FISKARS GROUP
Slide 7: Fiskars is the largest brand – 2022 sales splits
Fiskars is the largest brand – 2022 sales splits SALES SPLIT BY BRAND SALES SPLIT BY GEOGRAPHY SALES SPLIT BY CATEGORY Cooking Watering Other Asia-Pacific Creating 5% 1% 14% Scissors 2% 17% 7% Tableware Moomin 3% 29% Waterford Outdoor 6% Fiskars 9% 43% 48% Europe Gerber 8% 35% 8% 8% Drinkware Americ
Slide 8: Our global presence
Our global presence Our brands are present in over 100 countries We have ~350 own stores Close to 7,000 employees globally 11 own manufacturing units 8 MAY-JULY 2023 FISKARS GROUP
Slide 9: Strategy
Content Fiskars Group in brief Strategy Business Areas Financials Q1 2023 Appendices 9 MAY-JULY 2023 FISKARS GROUP
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 INNOVATION ENABLERS PEOPLE DIGITAL SUSTAINABILITY & DESIGN 10 MAY-JULY 2023 FISKARS GROUP
Slide 11: We focus on winning brands, enabled through clear roles across our portfolio
WINNING BRANDS We focus on winning brands, enabled through clear roles across our portfolio WINNING BRANDS TURNAROUND BRANDS 11 MAY-JULY 2023 FISKARS GROUP
Slide 12: Driving Fiskars as our #1 brand
Driving Fiskars WINNING BRANDS as our #1 brand Global brand with strong recognition Strong historical performance • >40% of Fiskars Group net sales • Approx. 7% comp. net sales CAGR 2017 Further room to utilize brand stretch and surround the consumer • Product portfolio across key markets • Clothing
Slide 13: We are building winning brands through new ways of thinking
We are building WINNING BRANDS winning brands through new ways of thinking Case Moomin • Story telling translated into collectibles • Currently net sales close to EUR 40 million • Fiskars Group minority shareholder in Rights & Brands since Sept ‘21 Strategic partnership enables global growth beyond
Slide 14: Strengthening our DTC to address the needs of the modern consumer
Strengthening our WINNING BRANDS DTC to address the needs of the modern consumer • 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 China
Slide 15: The direct channel (DTC) increasingly important – already 21% of group net sales
WINNING CHANNELS The direct channel (DTC) increasingly important – already 21% of group net sales GROUP NET SALES BY CHANNEL IN 202 2 NUMBER OF STORES IN 202 2 TOTAL NUMBER OF STORES: ~350 Direct, stores 14% Store Outlet 12% Direct, e-commerce 19% 6% Europe 32% 8% Indirect, e-commerce <1% 68% Americ
Slide 16: Commercial excellence drives our performance improvement across all channels
Commercial excellence WINNING CHANNELS drives our performance improvement across all channels Our Commercial Excellence, examples • Win with the Winners • Value-based pricing • In-store and online excellence • Distribution and product coverage 16 MAY-JULY 2023 FISKARS GROUP
Slide 17: U.S. continues to deliver a majority of our growth
U.S. continues to WINNING COUNTRIES deliver a majority of our growth • 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 NET SALES IN CHINA (EURm) WINNING COUNTRIES start in China with significant growth opportunities ahead CAGR: Currency neutral +54% growth +36% 44 • Strong market demand • Solid foundation, impressive track -record 29 − Capable local team in place − >50% net sales CAGR during past fe
Slide 19: 3/4 of transformation levers are delivering results
3/4 of transformation levers are delivering results Q1 2023 FY 2022 • Gross margin +90 bps (-20 bps organically) • Cost increases compensated by mitigation Commercial driven by successful actions to actions, gross margin +160 bps excellence mitigate cost inflation (+60 bps organically) Direct to • D
Slide 20: Our enablers for the future
Our enablers for the future PEOPLE DIGITAL INNOVATION & SUSTAINABILITY DESIGN We are committed to We want to be We are on a mission for building an inclusive data-driven, and are We are known for our the lasting wellbeing of culture. We want to investing significantly design, and want to people and
Slide 21: We are making good progress in our ESG targets
We are making good progress in our ESG targets Environmental: Pioneering design against throwaway culture Social: Making the everyday extraordinary 1 2 3 1 2 Circular Our own emissions Our suppliers' Safe Inclusive economy emissions workplace workplace GHG (greenhouse gas) emissions Q1 2023 Target E
Slide 22: Concrete actions towards our sustainability targets
Concrete actions towards our sustainability targets Approximately EUR 10 million energy efficiency investment in our Iittala factory in Finland • Natural gas powered furnaces replaced with electricity- powered furnaces • With this investment, Fiskars Group’s annual direct carbon dioxide emissions (S
Slide 23: Business Areas
Content Fiskars Group in brief Strategy Business Areas Financials Q1 2023 Appendices 23 MAY-JULY 2023 FISKARS GROUP
Slide 24: BA Vita
BA Vita NET SALES AND COMPARABLE EBIT MARGIN KEY CATEGORIES EURm % 200 30 187 180 176 171 20.4% 160 18.3% 17.5% 20 17.0% Tableware Drinkware Interior 14.6% 140 140 116 134 127 11.1% 10.6% 121 11.4% 9.8% 108 120 8.9% 10 111 108 7.2% 100 94 KEY BRANDS 81 80 0 60 -6.5% 40 -10 -15.4% 20 0 -20 Q1 20 Q2 2
Slide 25: BA Vita – Markets and channels
BA Vita – Markets and channels KEY MARKETS DISTRIBUTION CHANNELS • Nordics • UK D i r e ct R e tai l e rs; c o n su m er • U.S. S to r e s & sal e s; Bto B • China e - c o mm sto r e s & e - c o mm • Japan 25 MAY-JULY 2023 FISKARS GROUP
Slide 26: BA Vita – net sales splits (2022)
BA Vita – net sales splits (2022) SALES SPLIT BY BRAND SALES SPLIT BY CHANNEL SALES SPLIT BY GEOGRAPHY Royal Americas Others Copenhagen 16% 22% 21% Direct 42% Moomin 7% 51% Europe 19% 58% Indirect Wedgwood 34% 14% Asia-Pacific Waterford 18% Iittala 26 MAY-JULY 2023 FISKARS GROUP
Slide 27: BA Terra
BA Terra NET SALES AND COMPARABLE EBIT MARGIN KEY CATEGORIES EURm % 180 173 30 160 154 157 149 19.9% 20.5% 139 140 130 129 20 Gardening Outdoor Watering 17.0% 17.6% 120 118 14.5% 113 112 108 98 11.7% 100 11.0% 10.7% 87 10 KEY BRANDS 80 7.0% 5.6% 4.8% 60 0 40 -2.8% 20 -8.4% 0 -10 Q1 20 Q2 20 Q3 20 Q4
Slide 28: BA Terra – Markets and channels
BA Terra – Markets and channels KEY MARKETS DISTRIBUTION CHANNELS • U.S. • North & D i r e ct Central R e tai l e rs; c o n su m er Europe S to r e s & Bto B sal e s; sto r e s e - c o mm & e - c omm 28 MAY-JULY 2023 FISKARS GROUP
Slide 29: BA Terra – net sales splits (2022)
BA Terra – net sales splits (2022) SALES SPLIT BY CATEGORY SALES SPLIT BY CHANNEL SALES SPLIT BY GEOGRAPHY Watering Direct 4% 1% Outdoor 21% Europe 44% 52% Americas 75% Gardening 99% 4% Asia-Pacific Indirect 29 MAY-JULY 2023 FISKARS GROUP
Slide 30: BA Crea
BA Crea NET SALES AND COMPARABLE EBIT MARGIN KEY CATEGORIES EURm % 55 40 52 50 33.5% 47 45 46 45 44 43 42 42 40 30 Scissors Cooking 40 38 26.8% 37 & creating 25.9% 36 25.0% 35 32 22.5% 22.5% 23.2% 21.3% 21.0% 30 19.0% 20 KEY BRANDS 25 16.2% 20 12.3% 11.1% 15 10 10 5 0 0 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21
Slide 31: BA Crea – Markets and channels
BA Crea – Markets and channels KEY MARKETS DISTRIBUTION CHANNELS • U.S. • North & D i r e ct Central R e tai l e rs; c o n su m er Europe S to r e s & Bto B sal e s; sto r e s e - c o mm & e - c omm 31 MAY-JULY 2023 FISKARS GROUP
Slide 32: BA Crea – net sales splits (2022)
BA Crea – net sales splits (2022) SALES SPLIT BY CATEGORY SALES SPLIT BY CHANNEL SALES SPLIT BY GEOGRAPHY Direct Asia-Pacific Creating 2% 17% 6% 47% Scissors 48% 50% 35% Cooking 94% Americas Europe Indirect 32 MAY-JULY 2023 FISKARS GROUP
Slide 33: Seasonality is balanced by portfolio
Seasonality is balanced by portfolio Net Sales and EBIT – Quarterly Split (2019-2022) Seasonal features by Business Area 0% 25% 50% 75% 100% Vita • Highest season in year-end holiday period Vita • Seasonal pre-orders approx. one-third of the business; the rest from replenishment and DTC NET SALES Te
Slide 34: Financials
Content Fiskars Group in brief Strategy Business Areas Financials Q1 2023 Appendices 34 MAY-JULY 2023 FISKARS GROUP
Slide 35: Group net sales and gross margin development
Group net sales and gross margin development EURm % 1,400 30 1,254 1,248 1,205 1,186 1,200 1,107 1,119 1,116 1,090 1,000 20 800 600 43.0% 44.9% 42.5% 43.2% 43.4% 38.7% 41.0% 40.5% 10 400 200 0 0 2015 2016 2017 2018 2019 2020 2021 2022 Net sales Gross margin 35 MAY-JULY 2023 FISKARS GROUP
Slide 36: Profitability has improved
Profitability has improved EURm % 160 154 151 14 12.3% 12.1% 140 12 9.8% 120 109 109 10 100 7.1% 9.8% 8 80 78 6 60 4 40 20 2 0 0 2018 2019 2020 2021 2022 Comparable EBIT margin Comparable EBIT 36 MAY-JULY 2023 FISKARS GROUP
Slide 37: Quarterly development – last 3 years
Quarterly development – last 3 years NET SALES, EUR MILLION COMPARABLE EBIT (EUR MILLION) AND EBIT MARGIN (%) 400 60 18 353 52 16 333 313 319 50 47 302 307 304 14 300 292 293 280 275 41 267 256 40 12 36 36 36 34 33 32 31 10 30 200 30 8 22 20 6 15 100 4 10 2 0 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 38: Challenging operating environment is reflected in progress towards financial targets
Challenging operating environment is reflected in the progress towards our financial targets FINANCIAL TARGETS TRACKING FY FY LTM MARCH KPI TARGET 2021 2022 2023 NET SALES Organic, FX neutral Mid-Single-Digit growth 14.2% 1.7% -4.7% EBIT Mid-teen EBIT margin (excl. IAC) by end of 2025 12.3% z 12.1%
Slide 39: The Growth Strategy addresses all value creation levers
The Growth Strategy addresses all value creation levers TSR DRIVERS • We secure profit growth through increased focus on Gross Margin improvement PROFIT GROWTH • OPEX fluidity to ensure funding of the strategic growth investments • We manage both short- and long-term profit improvement thru our tigh
Slide 40: Net Sales │Winning brands, countries and channels share of Net Sales
Net Sales │Winning brands, countries and channels share of Net Sales and contribution to Net Sales growth Net Sales structure by Winning brands, … and their contribution to the 2022 growth vs. countries and channels… expected contribution to the MSD growth target MSD MSD 1,248 1,248 1,248 1.7% targe
Slide 41: OPEX │Investments in growth building blocks are funded through fluidity
OPEX │Investments in growth building blocks are funded through fluidity and Gross Profit improvement OPEX components, % of Net Sales OPEX Logic 35 30 25 20 15 10 5 0 2016-2019 2020 2021 2022 Target Growth driven Investment Admin 41 MAY-JULY 2023 FISKARS GROUP
Slide 42: Capital Expenditure │Fund allocation follows the strategic acceleration
Capital Expenditure │Fund allocation follows the strategic acceleration – DTC and Digital share to increase CAPEX Development 2018-2022 Target 4.1 % of 3.6 % of 2.6 % of 2.7 % of 3.8 % of ~ 4 % of Net sales Net sales Net sales Net sales Net sales Net sales 20% Supply Chain 31% 27% 31% 8% 25% DTC 15%
Slide 43: Free Cash Flow │Sources and Uses
Free Cash Flow │Sources and Uses 2018 2019 2020 2021 2022 137 137 118 118 224 224 221 221 285 285 13 3 29 46 57 46 39 20 101 33 209 26 18 36 114 124 178 175 184 64 60 95 47 29 Sources Uses Sources Uses Sources Uses Sources Uses Sources Uses Cash Flow from Operation Change in NWC CAPEX Cash Taxes Fre
Slide 44: Balance Sheet Structure│Balance Sheet remains strong
Balance Sheet Structure│Balance Sheet remains strong Net Debt (EURm), Net Debt / EBITDA Capital Structure (EURm), Net Debt / Equity (%) 400 2.5X 1,400 40 1,200 35 2.0X 300 1,000 30 835.6 800 25 1.5X 764.5 200 600 761.6 816.3 20 325.3 1.0X 400 15 262.0 325.6 100 200 160.1 10 0.5X 112.4 65.1 144.4 145
Slide 45: Financing│Interest expenses increased mainly due to higher leverage
Financing│Interest expenses increased mainly due to higher leverage. Average interest rate 2.9% Financial Items (EURm) Debt Maturity Profile (EURm) 218.0 220 2018 2019 2020 2021 2022 Dividends 15.0 7.8 - - 0.3 200 Interest income - - - - 2.8 180 FV change of investments 3.4 3.8 - 6.4 - FX gains - he
Slide 46: Aiming to distribute a stable, over time increasing dividend
Aiming to distribute a stable, over time increasing dividend DIVIDEND PER SHARE, EUR Wärtsilä share distribution DIVIDEND IN 2022: 5.85 3.27 • Payout ratio: 66%* 1.90 (2021: 71.5%) • Dividend yield: 5.2%* 1.37 (3.3%) 2.60 5.31 1.30 1.06 • Dividend growth: 5.3%* 0.75 0.35 0.76 0.80 0.68 0.70 0.72 0.6
Slide 47: Q1 2023
Content Fiskars Group in brief Strategy Business Areas Financials Q1 2023 Appendices 47 MAY-JULY 2023 FISKARS GROUP
Slide 48: Highlights of Q1 2023
Highlights of Q1 2023 FO C U S O N S A LE S D E C LI N E D D T C O U T G R EW 2 0 2 3 G U I D AN CE C A S H FLO W D U E T O LO W O TH E R C H A N NE LS R E I TE R A TED : A N D PR O FI T C O N S U M ER – S T R A T E GI C PR O T E C T I ON C O N FI DEN CE A N D FO C U S PA Y S O FF C O M PA RABLE D E
Slide 49: Q1 2023 Group key figures
Q1 2023 Group key figures GROSS MARGIN % NET SALES, EUR MILLION COMPARABLE EBIT (EUR MILLION) -17.4% -13.4%* AND EBIT MARGIN (%) 46.4 Q1/2022: 45.6, like-for-like 46.6 333 60 20 15.4% 51.8 302 15.6% 15 275 50 46.6 11.4% FREE CASH FLOW 269 256 8.5% 10 EUR MILLION 6.0% 12.9 40 5 31.2 30 0 22.7 Q1/2022
Slide 50: Q1 2023 Net sales decline driven by the U.S. and Terra
Q1 2023 Net sales decline driven by the U.S. and Terra Q1 2023 NET SALES BRIDGE BY BUSINESS AREAS, Q1 2023 NET SALES BRIDGE BY GEOGRAPHICAL EUR MILLION AREAS, EUR MILLION -17.4% -13.4%* -17.4% -13.4%* 340 340 332.6 -15.3 332.6 -15.3 330 330 320 +0.2 317.5 -10.5 320 +0.2 317.5 -14.6 310 -30.8 310 -24
Slide 51: Q1 2023 Comparable EBIT declined due to volumes
Q1 2023 Comparable EBIT declined due to volumes, like-for-like gross margin stable Q1 2023 EBIT BRIDGE BY BUSINESS AREAS, Q1 2023 EBIT BRIDGE BY COMPONENTS, EUR MILLION EUR MILLION -20.5 -18.9 -20.5 -18.9 55 55 51.8 -1.9 51.8 -1.9 +0.3 50.2 -2.5 +0.3 50.2 50 50 -11.3 45 45 40 40 -0.4 -4.7 35 35 31.2
Slide 52: Q1 2023 Cash flow improved significantly
Q1 2023 Cash flow improved significantly driven by actions taken to decrease inventories EUR MILLION EUR MILLION 99 100 250 75 200 75 68 49 150 50 +83 36 39 36 34 100 24 25 13 50 0 0 0 -3 -3 -50 -25 -100 -50 -44 -49 -150 -75 -64 -70 -200 -100 -250 Q1-22 Q1-23 Q1-19 Q2-19 Q2-22 Q3-19 Q4-19 Q3-22 Q4-2
Slide 53: Trade working capital reduced by EUR 10 million vs. year-end
Trade working capital reduced by EUR 10 million vs. year-end driven by Terra inventories EUR MILLION % 40% 600 37% 38% 40 550 34% 34% 34% 514 33% 32% 33% 35 500 31% 31% 466 29% 29% 30% 456 450 29% 28% 426 439 30 26% 400 367 358 361 366 373 373 346 336 349 25 350 313 310 300 291 20 250 15 200 150 10
Slide 54: Vita Q1 2023
Vita Q1 2023: Sales decreased in the retailer channel, own e-commerce continued to develop positively NET SALES, EUR MILLION COMPARABLE EBIT (EUR MILLION) AND COMPARABLE EBIT MARGIN, % -10.8% 140 -8.9%* 12 15 • E-commerce developed 10.6 10.7 positively in several key 121 9.8% 7.8 120 110 8.8% 7.2% 1
Slide 55: Terra Q1 2023
Terra Q1 2023: Clearly lower shipments at the start of the gardening season NET SALES, EUR MILLION COMPARABLE EBIT (EUR MILLION) AND -25.2% COMPARABLE EBIT MARGIN, % -19.2%* 180 173 40 35.5 25 • Clearly lower shipments at the 157 19.9% 20.5% start of the gardening season 160 17.6% 20 16.3% 31.2 due
Slide 56: Crea Q1 2023
Crea Q1 2023: Rather stable development supported by timing of shipments in the U.S. NET SALES, EUR MILLION COMPARABLE EBIT (EUR MILLION) AND -2.1% COMPARABLE EBIT MARGIN, % -2.8%* 40 10 22.5% 25 • In the U.S., the Creating 38 37 21.2% 36 21.0% category was supported by 35 20 32 16.2% 8.1 8.1 7.8 ti
Slide 57: Guidance for 2023
Guidance for 2023 Assumptions behind the guidance (updated July 5, 2023) - expected continued + savings from the volatility of the market targeted organizational environment and changes from H2 onwards Fiskars expects comparable EBIT weaker demand and prudent cost management to be in the range of 12
Slide 58: Appendices
Content Fiskars Group in brief Strategy Business Areas Financials Q1 2023 Appendices 58 MAY-JULY 2023 FISKARS GROUP
Slide 59: Largest shareholders as of April 30, 2023
Largest shareholders as of April 30, 2023 NUMBER OF % OF SHARES AND # SHAREHOLDER NAME SHARES VOTES 1 Virala Oy Ab 12,740,000 15.73 2 Turret Oy Ab 11,430,961 14.11 3 Holdix Oy Ab 10,165,537 12.55 4 Sophie Von Julins Stiftelse 2,556,000 3.16 5 Julius Tallberg Corp. 2,554,350 3.15 6 Gripenberg Gerda M
Slide 60: Shareholder structure as of April, 2023
Shareholder structure as of April, 2023 Financial and NU MBER OF % OF SHARES 5.0% 1.7% insurance SECTOR SHARES AND VOTES 16.4% 7.4% corporations Financial and insurance Households corporations 13,312,248 16.43 Households 27,246,771 33.64 Non-financial corporations Non-financial corporations 29,043,9
Slide 61: Leadership Team
Leadership Team Nathalie Ahlström Jussi Siitonen Christian Bachler Charlene Zappa Bengt Erlandsson CEO CFO Executive Vice President, Executive Vice President, Chief Supply Chain Officer Employed 2020 Employed 2021 Business Area Vita, Business Area Terra (Interim) Employed 2010 Employed 2022 Employed
Slide 62: Board of Directors
Board of Directors 62 MAY-JULY 2023 FISKARS GROUP
Slide 63: Cost of Goods
Cost of Goods COGS TOTAL OWN PRODUCTION DIRECT MATERIALS 100% 100% 100% Logistics & Warehousing Plastics Direct materials 75% 75% 75% Steel Sourcing Aluminium 50% 50% Direct labour 50% Packaging Indirect labour 25% 25% 25% Components Energy Own Production Maintenance mtrl Depreciation Other Other ov
Slide 64: Calculation of financial indicators
Calculation of financial indicators INDICATOR DEFINITION EBIT Operating profit Comparable EBIT Operating profit (EBIT) +/- items affecting comparability EBITDA + change in provisions + non-cash adjustments – capital expenditure +/- change Free Cash Flow in inventories, trade receivables and trade pa
Slide 65: 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 66: Thank you!
Thank you!