Slide 1: Investor presentation
Investor presentation UPDATED OCTOBER 28, 2024
Slide 2: Content
Content Fiskars Group in brief Strategy Business Areas Financials Q3 2024 Appendices 2 OCTOBER 2024 Ⓒ FISKARS GROUP I INVESTOR PRESENTATION
Slide 3: Pioneering design to make the everyday extraordinary
375 years of Pioneering design to make the everyday extraordinary
Slide 4: Fiskars Group key figures 2023
Fiskars Group key figures 2023 Net sales Comparable EBIT EUR million EUR million 1,129.8 110.3 Comparable earnings Cash flow from per share operating activities EUR before financial 0.99 items and taxes EUR million Personnel 247.5 Dec 31, 2023 7,162 4 OCTOBER 2024 Ⓒ FISKARS GROUP I INVESTOR PRESENTA
Slide 5: Business Areas and key categories
Business Areas and key categories VITA FISKARS BUSINESS AREAS & KEY CATEGORIES Tableware Drinkware Interior Jewelry Gardening Outdoor Cooking Scissors & creating KEY BRANDS BA SHARE OF NET SALES 49% 51% 5 OCTOBER 2024 Ⓒ FISKARS GROUP I INVESTOR PRESENTATION
Slide 6: Fiskars is the largest brand – 2023 sales splits
Fiskars is the largest brand – 2023 sales splits SALES SPLIT BY BRAND SALES SPLIT BY GEOGRAPHY SALES SPLIT BY CATEGORY Royal Copenhagen Other 10% Asia-Pacific Jewelry 8% Tableware Wedgwood 19% 5% Cooking 24% 9% 4% Creating Fiskars 2% 41% Scissors 4% 8% Iittala 49% Europe Outdoor 7% 6% Drinkware 8% G
Slide 7: Direct-to-Consumer increasingly important – close to 450 own stores
Direct-to-Consumer increasingly important – Fiskars Group had close to 450 own stores in 2023 GROUP SALES BY CHANNEL STORES BY GEOGRAPHY STORES BY TYPE Direct, e-commerce 8% Stores Direct, stores Europe 18% 17% 26% Outlets 15% 67% 74% Concessions Asia-Pacific 75% Indirect 7 OCTOBER 2024 Ⓒ FISKARS GR
Slide 8: Our global presence
Our global presence EUROPE Sales*: 552.2 EURm AMERICAS Sales*: 362.4 EURm In 2023, our brands were present in over 100 countries We had close to 450 own stores APAC Approximately 7,000 employees Sales*: 211.3 EURm globally 13 own manufacturing units *Net sales 2023 Own manufacturing units 8 OCTOBER
Slide 9: Strategy
Content Fiskars Group in brief Strategy Business Areas Financials Q3 2024 Appendices 9 OCTOBER 2024 Ⓒ FISKARS GROUP I INVESTOR PRESENTATION
Slide 10: Long-term market dynamics remain attractive
Long-term market dynamics remain attractive POWERFUL STRENGTH OF IMPORTANCE OF LUXURY IS SUSTAINABILITY BRANDS THAT INNOVATION & DIRECT-TO- ATTRACTIVE IS KEY SURROUND THE DESIGN CONSUMER LONG-TERM CONSUMER Truly innovative Integral to buyer’s 6-8% CAGR 58% of consumers 50% of consumers consumer prod
Slide 11: Our clear Growth Strategy sets the framework for our choices
Our clear Growth Strategy sets the framework for the choices we make – we are increasingly value-driven WE FOCUS ON WINNING: LOGIC Transformation Brands Channels Countries levers making our foundation stronger Commercial excellence Direct-to-Consumer Sharpened portfolio TRANSFORMATION LEVERS logic –
Slide 12: Commercial Excellence: Focused actions to take our brands where they deserve to be
Commercial Excellence: Focused actions to take our brands where they deserve to be • Executing channel GROSS MARGIN HAS IMPROVED CLEARLY – WE ARE RAISING OUR AMBITIONS strategy: • Prioritize own channels 50 >49% • Win with the winning partners 48 46.8% • Leave unhealthy business behind 46 44.9% • Ut
Slide 13: Direct-to-Consumer: We continue to grow in DTC
Direct-to-Consumer: We continue to grow in DTC – consumer appetite for our brands is strong SHARE OF DTC SALES HAS GROWN STEADILY • Leveraging central e- commerce capabilities Share of Group net sales Share of Vita net sales • Continuing systematic roll- 60 out of digital and analytics >50% capabili
Slide 14: China: Strong growth through a repeatable model
China: Strong growth through a repeatable model is strengthening our #1 position • Benefiting from brand heat – CHINA NET SALES HAVE MORE THAN TRIPLED FROM 2020 Wedgwood clear #1 in its EURm category 70 • Leveraging our platform: Strong 60 CAGR +48% 56 local team with impressive track record and cap
Slide 15: U.S.: Adverse development driven by retailers' inventory management
U.S.: Adverse development driven by retailers’ focus on inventory management • Tough market environment – U.S. NET SALES DECLINED IN 2023* EURm retailers’ focus on inventory management continues CAGR -4% • Gross margin has improved 450 404 driven by our channel strategy 400 375 374 and price increas
Slide 16: Sharpened portfolio logic accelerating Group profile improvement
Sharpened portfolio logic accelerating Group profile improvement SHARPENED PORTFOLIO LOGIC OUTCOME: ACCELERATED GROUP PROFILE IMPROVEMENT Increase focus on brands which can: • Move the needle – make the big brands bigger and more powerful • Surround the consumer through category expansion Faster gro
Slide 17: Clear portfolio roles for each brand
Clear portfolio roles for each brand with investments and resources allocated accordingly Maximise Accelerate potential MAKE THE BIG BRANDS BIGGER • Accelerate: Over-invest to grow Winning DTC first, across key cities & Three large categories luxury brands • Anchor: Unlock Fiskars brand Utilize pote
Slide 18: Georg Jensen acquisition – example of a strong portfolio fit
Georg Jensen acquisition – example of a strong portfolio fit • Georg Jensen acquired in 2023: renowned Danish luxury lifestyle brand offering Home and Jewelry products • Strong portfolio fit: big brand that moves the needle, offers high -end positioning with a combination of luxury & lifestyle, DTC
Slide 19: Next step of transformation: separating Business Areas into independent companies
Next step of transformation journey: Completing “brands first” approach by separating Business Areas into independent companies 2020: TODAY: APRIL 1, 2025: BAs as product owner, part of BAs as business owner, BAs as operationally independent Group-wide matrix organization P&L accountable companies w
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 committed to building an inclusive data-driven, and are We are known for our designing and delivering culture. We want to investing significantly design, and want to sustainable gro
Slide 21: Continued good progress in our ESG strategy
Continued good progress in our ESG strategy ENVIRONMENTAL SOCIAL Target May 1-9/2024 Target 2024 2023 At the end 2.8 0 81 1-9/2024 1-9/2024 -46% * of 09/2024 77 24% -54% 61% Base year 2021 50% Base year 2017 -60% Base year 2018 -30% Target set 2020 60% in 2030 in 2030 in 2030 in 2024 Measured in con
Slide 22: Fiskars Group sets a long-term net-zero target
Fiskars Group sets a long-term net-zero target I Our plan is to reduce climate emissions to net zero by 2049, which also marks the Group’s 400th anniversary year.
Slide 23: Business Areas
Content Fiskars Group in brief Strategy Business Areas Financials Q3 2024 Appendices 23 OCTOBER 2024 Ⓒ FISKARS GROUP I INVESTOR PRESENTATION
Slide 24: Business Area Vita
Business Area Vita NET SALES AND COMPARABLE EBIT MARGIN Net sales Comp. EBIT % KEY CATEGORIES EURm % 220 215 30 200 187 180 176 Tableware Drinkware Interior 160 20.4% 134 20 18.3% 140 140 17.5% 130 17.0% 127 126 121 119 16.2% KEY BRANDS 120 116 114 108 14.1% 100 11.4% 10.6% 80 8.9% 10 60 7.2% 40 2.6
Slide 25: Business Area Vita – Markets and channels
Business Area Vita – Markets and channels KEY MARKETS DISTRIBUTION CHANNELS • Nordics • UK D i r e ct • U.S. R e tai l e rs; c o n su m er • China S to r e s & sal e s; Bto B e - c o mm sto r e s & • Japan e - c o mm • Australia 25 OCTOBER 2024 Ⓒ FISKARS GROUP I INVESTOR PRESENTATION
Slide 26: Business Area Vita – Net sales splits (2023)
Business Area Vita – Net sales splits (2023)* SALES SPLIT BY BRAND SALES SPLIT BY CHANNEL SALES SPLIT BY GEOGRAPHY Royal Americas Others Copenhagen 12% 19% 19% Georg Jensen 10% 47% Direct Indirect 53% 53% Europe 18% Wedgwood 35% 7% Asia-Pacific Moomin Arabia 11% 15% Waterford Iittala *Georg Jensen f
Slide 27: Business Area Fiskars
Business Area Fiskars NET SALES AND COMPARABLE EBIT MARGIN * KEY CATEGORIES EURm % 220 Net sales 30 211 Comp. EBIT % 200 191 191 Gardening Outdoor Watering 180 20.6% 165 167 156 157 18.3% 18.9% 20 160 151 153 150 16.1% 15.1% 14.8% 140 14.0% 130 127 Cooking 11.2% 121 Scissors & creating 120 10.1% 9.1
Slide 28: Business Area Fiskars – Markets and channels
Business Area Fiskars – 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 OCTOBER 2024 Ⓒ FISKARS GROUP I INVESTOR PRESENTATION
Slide 29: Business Area Fiskars – net sales splits (2023)
Business Area Fiskars – net sales splits (2023) SALES SPLIT BY CATEGORY SALES SPLIT BY CHANNEL SALES SPLIT BY GEOGRAPHY Direct Creating Watering 3% Cooking 5% 1% 9% Scissors 13% Europe 45% 52% Americas 55% Gardening 16% Outdoor 97% 3% Indirect Asia-Pacific 29 OCTOBER 2024 Ⓒ FISKARS GROUP I INVESTOR
Slide 30: Seasonal volatility: BA Fiskars H1, BA Vita H2 focused
Seasonal volatility: BA Fiskars H1, BA Vita H2 focused – Group net sales and EBIT evenly split between quarters QUARTERLY NET SALES BY BA QUARTERLY NET SALES SPLIT BY BA 22% 28% Q4 35% Vita+GJ 43% 42% 52% 50% Net 23% 62% 23% Q3 Sales 24% 28% 24% Q2 20% Fiskars 57% 58% 48% 50% 38% 21% 28% 24% Q1 Vita
Slide 31: Financials
Content Fiskars Group in brief Strategy Business Areas Financials Q3 2024 Appendices 31 OCTOBER 2024 Ⓒ FISKARS GROUP I INVESTOR PRESENTATION
Slide 32: 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 1,119 1,116 1,129 1,107 1,090 1,000 20 800 600 43.3% 44.9% 46.8% 42.5% 43.2% 43.4% 38.7% 41.0% 40.9% 10 400 200 0 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 Net sales Gross margin 32 OCTOBER 2024 Ⓒ FISKARS
Slide 33: Profitability development
Profitability development EURm % 160 154 151 14 12.3% 12.1% 140 12 9.8% 110 120 109 9.8% 109 10 100 7.1% 9.8% 8 80 78 6 60 4 40 20 2 0 0 2018 2019 2020 2021 2022 2023 Comparable EBIT margin Comparable EBIT 33 OCTOBER 2024 Ⓒ FISKARS GROUP I INVESTOR PRESENTATION
Slide 34: Quarterly development – last 3 years
Quarterly development – last 3 years NET SALES, EUR MILLION COMPARABLE EBIT (EUR MILLION) AND EBIT MARGIN (%) 400 60 18 353 346 52 16 333 319 50 304 14 300 292 293 275 268 283 281 41 256 40 38 12 241 36 34 33 32 31 10 30 200 30 25 24 8 23 20 19 6 18 100 4 10 2 0 0 0 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 35: Challenging operating environment reflected in sales and EBIT targets
Challenging operating environment reflected in sales and EBIT targets F I N AN C I AL TAR G E T S T R AC K I N G LTM LAST KPI TARGET 2021 2022 2023 Q3 2024 3 YEARS NET Organic, FX neutral Mid-Single- CAGR. SALES Digit growth +14.2% +1.7% -9.7% -4.4% -3.2% Mid-teen EBIT margin (excl. EBIT IAC) by end
Slide 36: Net sales: Four brands expected to deliver solid growth
Net sales: Four brands (70% of net sales) are expected to deliver solid growth in the next two years NET SALES, FY 2023* ANNUAL GROWTH LAST 2YRS GROWTH RATIONALE FOR THE NEXT 2YRS • Over-invest to grow DTC first, Accelerate 31% Accelerate +6% across key cities & categories • Unlock Fiskars brand pot
Slide 37: Profitability: Further gross margin improvement
Profitability: Further gross margin improvement through investments in growth drivers and supply chain efficiency gains GM CONTRIBUTION (PP), LAST 2YRS ENHANCED GROSS MARGIN DRIVERS COST OF GOODS POTENTIAL FOR GROSS MARGIN IMPROVEMENT 100% • Warehouse footprint vs. Logistics & strategic channel mix
Slide 38: Profitability: Further SG&A leverage through ongoing programs
Profitability: Further SG&A leverage through the ongoing programs SG&A STRUCTURE ONGOING PROGRAMS 2023 (%) Program Target and main levers Related one-offs Status January • Savings of EUR 30m, half of which in • EUR 6m • 100 roles reduced 2023 H2 2023. • Fully recorded in YTD • External services • Ne
Slide 39: Growth investments' share of CAPEX allocation will increase
Growth investments’ share of CAPEX allocation will increase COMMENT NEXT 2YRS FISKARS VITA • CAPEX 4-5% of • 60% Expansion Net Sales Retail 7% • 40% Renovation/maintenance (earlier approx. 4%) Functions 12% • Growth investments’ Product Development 12% share in Retail, Supply Chain and Digital will
Slide 40: Towards mid-teen EBIT% – gross margin and cost efficiency
Towards mid-teen EBIT% – balanced improvement boosted through gross margin & announced cost efficiency programs • Gross margin improvement EBIT MARGIN BRIDGE 2021-2023-2025 (%) expected to continue 20 supported by the Georg Jensen acquisition +3.4% -0.8% Mid- -5.2% teen • SG&A efficiency mainly rang
Slide 41: Free cash flow (FCF) and net debt
Free cash flow (FCF) and net debt 231% FY FREE CASH FLOW, EURM AND FREE CASH FLOW / LTM NET PROFIT (EXCL. NET DEBT, EURM (31.12.) AND NET DEBT / LTM EBITDA (EXCL. IAC) IAC) 92% (L3yrs) Cash conversion rate 109% Negative 231% 0.71X 1.55X 2.54X 185 447 2.5X 325 95 1.3X (L3yrs) 296 Senior net debt Net
Slide 42: Strong balance sheet has enabled steady investments and shareholder returns
Strong balance sheet has enabled steady investments and increasing shareholder returns despite recent cash flow volatility NET DEBT / EQUITY AT QUARTER- CASH FLOW FROM OPERATIONS (CFO), CAPEX AND CASH RETURNS TO END AND LONG-TERM AVERAGE SHAREHOLDERS 80 236 (%) EURm 70 250 203 60 Net Debt / 50 Equit
Slide 43: Principles for capital allocation prioritization
Principles for capital allocation prioritization 2024 2025 Deleverage balance sheet back to the target level Priority Maintain Secure funding for organic growth investment Maintain Maintain Ensure stable, sustainably increasing cash dividend Priority Priority Maintain financial flexibility for futur
Slide 44: Solid history of returns to shareholders
Solid history of returns to shareholders: a foundation for resilient and sustainably growing dividends EPS (EXCL IAC) AND DPS 2019-2023 CEPS AND DPS 2019-2023 2.5% EUR EUR Dividend growth 2.68 2022-2023 1.37 2.46 1.19 1.16 4.6% 0.87 0.99 1.51 Dividend yield 0.80 0.82 0.76 1.21 0.56 0.60 83% 0.56 0.6
Slide 45: Q3 2024
Content Fiskars Group in brief Strategy Business Areas Financials Q3 2024 Appendices 45 OCTOBER 2024 Ⓒ FISKARS GROUP I INVESTOR PRESENTATION
Slide 46: Q3 2024 Group key figures
Q3 2024 Group key figures: Improved profitability GROSS MARGIN despite lower volumes, all-time high Q3 gross margin % 48.1 Q3/2023: 47.2 R E P O R T E D N E T S AL E S , E U R m C O M PAR AB L E E B I T ( E U R m ) AN D C O M PAR AB L E E B I T M AR G I N , % FREE CASH FLOW EURm -16.9 +6.1% EURm % *
Slide 47: Q3 comparable EBIT improved to EUR 24.3m
Q3 comparable EBIT improved to EUR 24.3m. YTD secured through strong performance management; savings of over EUR 30m offset by low volumes Q 3 AN D Y T D S E P Y T D S E P 2 0 2 4 E B I T E X C L . I AC B R I D G E , E U R m C O M PAR AB L E E B I T, E U R m -4.1 -4.1 (-6%) 80 -6.9 72.6 72.6 -1.1 71
Slide 48: BA Vita Q3: Comparable net sales decreased
BA Vita Q3: Comparable net sales decreased, Royal Copenhagen and Moomin Arabia delivering growth REPORTED NET SALES, +16.5% COMPARABLE EBIT (EURm) AND EURm COMPARABLE EBIT MARGIN, % • Reported net sales increased *-10.1% through the acquisition of Georg EURm % Jensen 140 139 24.5 24.6 140 134 25 18.
Slide 49: BA Fiskars Q3: Comparable EBIT increased despite lower volumes
BA Fiskars Q3: Comparable EBIT increased despite lower volumes, growth in Germany and the Nordics REPORTED NET SALES, COMPARABLE EBIT (EURm) AND • Comparable net sales decreased due EURm COMPARABLE EBIT MARGIN, % to softness in sell-out EURm % • Growth in Germany driven by 160 155 157 -4.5% 30 20 st
Slide 50: Q3 Free Cash Flow EUR -16.9 million
Q3 Free Cash Flow EUR -16.9 million mainly due to phasing of trade payables Quarterly Free Cash Flow (EURm) Q3 Free Cash Flow (EURm) EURm EURm 2024 vs. LY 100 -70 200 EBITDA 20.1 - 9.8 78 75 150 Non-cash adjustments 7.5 + 7.5 53 49 100 Cash Flow from operations 27.6 - 2.4 50 39 42 Change in inventor
Slide 51: Net Debt / EBITDA slightly up to 2.8x
Net Debt / EBITDA slightly up to 2.8x ahead of seasonally strongest cash flow quarter Capital Employed (EURm) Financing (EURm) Sep-24 Sep-23 Dec-23 Sep-24 Sep-23 Dec-23 GW and other intangible 594 506 592 Equity 751 802 824 PPE and biological assets 220 1 98 21 4 Interest-bearing debt 430 386 423 Ca
Slide 52: SG&A efficiency programs completed; new structure to drive further efficiency
SG&A efficiency programs announced in 2023 completed; further Supply Chain savings still expected. New structure to drive further efficiency Efficiency improvement programs The new structure enables further saving announced in Jan and Sept 2023 completed: through simplification: • YTD savings over E
Slide 53: Guidance for 2024 (unchanged)
Guidance for 2024 Assumptions and actions behind the guidance (unchanged) - The operating environment expected to + Savings from the completed efficiency remain challenging and programs expected to impact demand also in Q4 support EBIT Fiskars Corporation expects - Wage inflation to remain comparabl
Slide 54: Celebrating Fiskars' 375-year anniversary
Celebrating Fiskars’ 375-year anniversary on October 31, 2024
Slide 55: Appendices
Content Fiskars Group in brief Strategy Business Areas Financials Q3 2024 Appendices 55 OCTOBER 2024 Ⓒ FISKARS GROUP I INVESTOR PRESENTATION
Slide 56: Largest shareholders as of September 30, 2024
Largest shareholders as of September 30, 2024 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 Ger
Slide 57: Shareholder structure as of September 30, 2024
Shareholder structure as of September 30, 2024 NU MBER OF % OF SHARES SECTOR 5,3% Financial and SHARES AND VOTES 7,1% 1,6% 17,1% insurance Financial and insurance corporations corporations 13,898,380 17.16 Households Households 26,713,405 32.98 Non-financial corporations Non-financial corporations 2
Slide 58: Leadership Team, as of November 1, 2024
Leadership Team, as of November 1, 2024 Nathalie Ahlström Jussi Siitonen Dr. Steffen Hahn President & CEO CFO CEO of Fiskars CEO of Vita (Interim) Employed 2021 Employed 2024 Employed 2020 Anna Mindelöf Aamir Shaukat Chief People Officer Executive Vice President, Group Employed 2022 Operations and S
Slide 59: Board of Directors
Board of Directors Paul Ehrnrooth Jyri Luomakoski Albert Ehrnrooth Louise Fromond Julia Goldin Carl-Martin Lindahl Volker Lixfeld Susan Repo 59 OCTOBER 2024 Ⓒ FISKARS GROUP I INVESTOR PRESENTATION
Slide 60: Cost of Goods Sold
Cost of Goods Sold COGS TOTAL OWN PRODUCTION DIRECT MATERIALS 100% 100% 100% Plastics Logistics & Warehousing Steel Direct materials 75% 75% 75% Aluminium Packaging Sourcing 50% 50% Direct labour 50% Components Indirect labour 25% Own 25% 25% Production Energy Maintenance material Other Depreciation
Slide 61: Calculation of financial indicators
Calculation of financial indicators INDICATOR DEFINITION EBIT Operating profit Comparable EBIT Operating profit (EBIT) +/- items affecting comparability Items such as restructuring costs, impairment or provision charges and releases, acquisition related Items affecting comparability costs, and gains
Slide 62: 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 63: Thank you!
Thank you!