Fiskars Oyj Abp · OMXHEX:FSKRS

Fiskars Oyj Abp — Fiskars Group — Q1 2020 Earnings Presentation

24 slides from Fiskars Oyj Abp's earnings presentation, May 6, 2020

  1. Slide 1: Interim Report January–March 2020

    Interim Report January–March 2020 Positive start to the year reversed by the COVID-19 pandemic, several measures ongoing to lessen the negative impacts on profitability ⓒ Fiskars Group

  2. Slide 2: 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 a

  3. Slide 3: Highlights from the quarter – financial performance

    Highlights from the quarter – financial performance STRONG START GUIDANCE FOR SEVERAL MEASURES NET SALES COVID-19 HAD TO THE YEAR 2020 WITHDRAWN ONGOING TO INCREASED IN A SIGNIFICANT PRIOR TO THE ON MARCH 19 LESSEN THE THE TERRA NEGATIVE COVID-19 NEGATIVE IMPACTS AND CREA IMPACT ON THE PANDEMIC ON P

  4. Slide 4: Summary of the implications of COVID-19 on Fiskars Group

    Summary of the implications of COVID-19 on Fiskars Group Impact so far Actions taken Key risks going forward Balance sheet and liquidity • Consumer confidence and • Temporary layoffs or similar • Visibility is low due to, amongst • Healthy balance sheet (end of Q1) demand decreased in all markets me

  5. Slide 5: Events after the reporting period

    Events after the reporting period NEW JAANA TUOMINEN ORGANIZATIONAL RESIGNED AS CEO, STRUCTURE IN SARI POHJONEN PLACE APPOINTED INTERIM CEO ⓒ Fiskars Group 6.5.2020 5

  6. Slide 6: Fiskars Group Leadership Team

    Fiskars Group Leadership Team SARI POHJONEN TINA ANDERSSON CHRISTI AN BACHLER JAMES BROUILLARD RISTO GAGGL Interim CEO & Chief Consumer Officer Executive Vice President, Executive Vice President, Chief Supply Chain Officer Chief Financial Officer BA Vita BA Terra JOHAN HEDBERG TUOMAS HYYRYLÄI NEN NI

  7. Slide 7: Fiskars Group comparable net sales in Q1 2020

    Fiskars Group comparable net sales in Q1 2020 NET SALES, EUR MILLION NET SALES BRIDGE, EUR MILLION Comparable change* -4.7% 400 Change -4.6% 4.1 -3.8 268.6 -17.9 324 308 1.9 0.1 256.2 300 3.3 266 273 269 265 256 249 256 200 100 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 FX Divest- BA BA BA Other Q1 2018 2018 2

  8. Slide 8: Fiskars Group comparable EBITA in Q1 2020

    Fiskars Group comparable EBITA in Q1 2020 COMPARABLE EBITA, EUR MILLION COMPARABLE EBITA MARGIN Comparable EBITA* -27% 48.8 EBITA -41% 50 40 35.1 30 27.0 25.9 23.6 22.3 18.9 20 16.1 13.4 10 0 -1.6 -2.1 -0.3 -5.2 -5.8 -2.6 -6.2 -3.1 -7.0 -10 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2018 2018 2018 2018 2019 2019 20

  9. Slide 9: Vita in Q1 2020

    Vita in Q1 2020 Comparable change* EUR million Q1 2020 Q1 2019 Change 2019 -16.1% Net sales 93.6 110.2 -15.0% 500.8 171.6 Comparable EBITA -3.6 3.0 38.8 Capital expenditure 2.0 4.0 -48.9% 18.3 110.2 117.6 101.3 93.6 Comparable net sales decreased • Decrease in all channels, except the direct e-comme

  10. Slide 10: Terra in Q1 2020

    Terra in Q1 2020 Comparable change* EUR million Q1 2020 Q1 2019 Change 2019 2.6% Net sales 129.3 127.5 1.4% 442.9 Comparable EBITA 19.3 21.9 -11.7% 36.2 Capital expenditure 2.1 2.9 -25.4% 16.6 127.5 124.5 129.3 95.1 95.7 Overall, the pandemic started to have a negative impact on net sales in March •

  11. Slide 11: Crea in Q1 2020

    Crea in Q1 2020 Comparable change* EUR million Q1 2020 Q1 2019 Change 2019 6.2% Net sales 32.3 29.9 7.8% 142.9 Comparable EBITA 5.6 4.3 30.8% 28.0 38.5 39.5 35.0 32.3 Capital expenditure 0.2 0.2 9.8% 0.9 29.9 Overall, the net sales performance was positive in January-February both in our own stores

  12. Slide 12: Net sales by geography in Q1 2020

    Net sales by geography in Q1 2020 Comparable net sales in Europe decreased EUR million Q1 2020 Q1 2019 Change Comparable 2019 • Increased particularly in Germany and change* Sweden (as a result of good demand in the Europe 119.0 130.1 -8.5% -5.7% 518.9 Vita segment) Americas 108.0 104.4 3.4% 0.0% 42

  13. Slide 13: Our sustainability commitments

    Our sustainability commitments CIRCULAR PRODUCTS CARBON NEUTRAL POSITIVE IMPACT AND SERVICES BUSINESS • Inspire people through • Design for sustainability • Improve our energy efficiency leadership • Create zero waste • Invest in renewable energy • Champion safety, diversity and sources inclusion •

  14. Slide 14: Improved score of A- in CDP climate ranking

    During the quarter, Fiskars Group received an improved score of A- in CDP:s ranking of climate-related performance. This puts Fiskars Group in the leadership level, where companies are seen as implementing current best practices. ⓒ Fiskars Group 6.5.2020 14

  15. Slide 15: Marketing highlights in Q1 2020

    Marketing highlights in Q1 2020 The redefinition of the Wedgwood and Royal Doulton brands was completed during the first quarter of 2020. The target is to re-position the brands and to broaden their appeal to a wider audience. Iittala's newest home collection, Kuru by Phillippe Malouin, has been rec

  16. Slide 16: Q1 2020

    Q1 2020 ⓒ Fiskars Group 6.5.2020 16

  17. Slide 17: Consolidated income statement

    Consolidated income statement EUR million Q1 2020 Q1 2019 Change, 2019 Gross profit margin decreased % • Decreased volumes in Vita Net sales 256.2 268.6 -5 1,090.4 • Mix in Terra Cost of goods sold 151.6 156.4 3 643.1 Gross profit 104.7 112.2 -7 447.3 IAC Gross profit margin 40.8% 41.8% 41.0% • Main

  18. Slide 18: Update on programs

    Update on programs Transformation program, targeted annual Restructuring program, targeted annual cost savings approx. EUR 17 million cost savings approx. EUR 20 million • Subject to the full implementation of the program • Subject to the full implementation of the program • Targeted cost savings wo

  19. Slide 19: Earnings per share in Q1 2020

    Earnings per share in Q1 2020 0.34 0.33 0.26 0.21 0.20 0.13 0.12 0.06 0.04 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 ⓒ Fiskars Group 6.5.2020 19

  20. Slide 20: Cash flow decreased from previous year’s level

    Cash flow decreased from previous year’s level CASH FLOW FROM OPERATING ACTIVITIES BEFORE WORKING CAPITAL, EUR MILLION FINANCIAL ITEMS AND TAXES, EUR MILLION 300 150 258 264 250 242 227 232 226 218 100 197 194 200 150 50 92 85 43 41 48 100 0 11 -26 50 -39 -38 -50 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q

  21. Slide 21: Balance sheet

    Balance sheet EUR million Q1 2020 Q1 2019 2019 Decrease in net sales visible Goodwill and other intagible assets 506.9 503.4 508.2 • Inventories increased somewhat Other non-current assets 370.1 384.0 382.5 • Trade receivables decreased Inventories 241.1 234.2 232.1 Production and sourcing accommoda

  22. Slide 22: Net debt increased somewhat

    Net debt increased somewhat NET DEBT, EUR MILLION EQUITY RATIO AND NET GEARING 350 331 322 317 80% 300 69 % 70 % 278 70% 68 % 68 % 65 % 261 250 226 60% 56 % 55 % 56 % 207 204 51 % 200 50% 44 % 42 % 40% 37 % 135 34 % 150 30% 26 % 100 18 % 17 % 20% 16 % 11 % 50 10% 0 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q

  23. Slide 23: Long-term financial targets unchanged

    Long-term financial targets unchanged 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 dividend, to be

  24. Slide 24: Making the everyday extraordinary

    Making the everyday extraordinary ⓒ Fiskars Group 6.5.2020 24

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