Fiskars Oyj Abp · OMXHEX:FSKRS
Fiskars Oyj Abp — Q4 2023 Earnings Presentation
31 slides from Fiskars Oyj Abp's earnings presentation, Feb 8, 2024
Slide 1: Financial Statement Release 2023
Financial Statement Release 2023 ALL-TIME HIGH CASH FLOW DESPITE A YEAR OF CHALLENGING JANU ARY – DECEM BE R 2023 MARKET CONDITIONS - SALES AND EBIT DECLINED
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 as
Slide 3: Highlights of Q4 and FY 2023
Highlights of Q4 and FY 2023 2023 CASH FLOW THE BOARD GUIDANCE FOR ALL-TIME HIGH – TRANSFORMATION PROPOSES AN 2024: SALES AND EBIT DELIVERING: INCREASING DECLINED DIVIDEND: COMEX, DTC, CHINA C O M P A R A BL E E B I T EXPECTED TO BE Q4 AS EXPECTED GEORG JENSEN SLIGHTLY ABOVE WITH STABLE INTEGRATION
Slide 4: Q4 2023 Group key figures
Q4 2023 Group key figures GROSS MARGIN % 46.8 Q4/2022: 45.6 NET SALES, EURm COMPARABLE EBIT (EUR m) AND EBIT MARGIN (%) FREE CASH FLOW +13.7% EURm 77.5 *+0.1% 353 40 37.7 15 346 36.0 313 Q4/2022: 35.7 308 304 32.2 31.6 29.7 30 10 COMPARABLE EPS EUR 20 5 0.40 Q4/2022: 0.19 10 CASH EARNINGS 0 0 PER SH
Slide 5: FY 2023 Group key figures
FY 2023 Group key figures GROSS MARGIN % 46.8 2022: 44.9 NET SALES, EURm COMPARABLE EBIT (EUR m) AND EBIT MARGIN (%) FREE CASH FLOW -9.5% EURm 184.9 *-9.7% 1,254 1,248 160 154.2 151.0 15 1,116 1,130 140 2022: -100.7 1,090 120 109.0 110.3 10 COMPARABLE EPS 100 EUR 0.99 77.7 80 60 5 2022: 1.37 40 20 C
Slide 6: Strong cash position enables an increasing dividend: Board's proposal EUR 0.82 per share
Strong cash position enables an increasing dividend: Board’s proposal EUR 0.82 per share 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 0.60 0.76 0.8
Slide 7: BA Vita Q4: Own e-commerce continued to develop positively, overall comparable net sales decreased
BA Vita Q4: Own e-commerce continued to develop positively, overall comparable net sales decreased NET SALES, EURm COMPARABLE EBIT (EURm) AND +21.9% COMPARABLE EBIT MARGIN, % *-4.5% 220 215 40 25 • Comparable net sales 35.9 decreased due to lower 200 187 34.7 35 20.4% demand in the retailer 180 172
Slide 8: BA Fiskars Q4: Net sales increased against soft comparison period
BA Fiskars Q4: Net sales increased against soft comparison period, boost from customer phasing & snow NET SALES, EURm COMPARABLE EBIT (EURm) AND COMPARABLE EBIT MARGIN, % 180 20 15 • Net sales increased driven by 2.4% 165 *6.4% the U.S., where a softer 160 15.1 141 10.7% comparison period and 140 13
Slide 9: Our Growth Strategy – we are becoming sharper and increasingly value driven
Our Growth Strategy – we are becoming sharper and increasingly value driven Sharpened logic WE FOCUS ON WINNING: with active LOGIC portfolio Brands Channels Countries management Commercial excellence Direct-to-Consumer TRANSFORMATION Transformation LEVERS levers that deliver U.S. China INNOVATION Si
Slide 10: 3/4 of transformation levers delivering
3/4 of transformation levers delivering Q4 2023 1-12/2023 Commercial • Gross margin +120 bps • Gross margin +190 bps excellence demonstrating power of the brands Direct to • Comparable DTC stable: e-commerce +5%, • Comparable DTC+4% growth: e-commerce own retail network -3% +14%, own retail network
Slide 11: Continued good progress in our ESG strategy
Continued good progress in our ESG strategy ENVIRONMENTAL SOCIAL 2023 Target 2023 Target 2023 2023 2023 2023 4.2 0 70 80 14% -56% -46% * 45% 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 connection to the employee engagemen
Slide 12: Other highlights of the fourth quarter
Other highlights of the fourth quarter Georg Jensen Strong BAs with true 13% of all employees The first product from acquisition completed P&L ownership and 32% of office FiskarsLAB fast-track and Q4 fully New Fiskars BA and employees have signed innovation platform consolidated supply chain up to M
Slide 13: Guidance for 2024
Guidance for 2024 Assumptions behind the guidance - The operating + Savings from the environment is expected completed to remain challenging and organizational changes Fiskars Corporation expects impact demand, are expected to comparable EBIT to be slightly especially in the first half support EBIT
Slide 14: Q4 2023 Financials
Q4 2023 Financials FEBRUARY 8, 2024
Slide 15: Q4 Comparable net sales stable compared to a low comparison period
Q4 Comparable net sales stable compared to a low comparison period, BA Fiskars’ sales increased Q4 2023 NET SALES BRIDGE, EURm Q4 2023 COMPARABLE NET SALES BY BUSINESS AREA, EURm +13.7% 350 +53.8 345.8 BA Vita (Org) 160.7 -4.5% 340 330 BA Fiskars 130.0 +6.4% 320 Other 1.2 310 304.1 -12.5 +0.1% 300 +
Slide 16: Q4 EBIT increased driven by EBIT contribution from Georg Jensen
Q4 EBIT increased driven by EBIT contribution from Georg Jensen, BA Fiskars’ EBIT also improved Q4 2023 EBIT BRIDGE BY BUSINESS AREAS, EURm Q4 2023 EBIT BRIDGE BY COMPONENTS, EURm +8.0 +8.0 40 40 12.2 37.7 12.2 37.7 35 35 29.7 -1.7 29.7 -1.7 30 30 27.2 27.2 25.5 25.5 25 25 20 20 15 15 10 10 5 5 0 0
Slide 17: Q4 Cash flow continued to improve, full-year free cash flow all-time high
Q4 Cash flow continued to improve, full-year free cash flow all-time high EURm EURm 100 +42 250 +42 75 78 75 200 53 150 50 39 42 EURm compared 34 36 100 25 24 to Q4 2022 13 50 +286 0 0 -3 -3 -25 -50 -100 EURm compared -50 -150 to 1-12/2022 -75 -64 -70 -200 -100 -250 Q4-20 Q2-22 Q3-22 Q3-21 Q1-23 Q4-
Slide 18: Continued reduction in Trade Working Capital driven by inventories
Continued reduction in Trade Working Capital driven by inventories EURm % 39% 40% (30%) 600 38% 38% 40 36% 36% 550 -12 33% 34% 514 35 500 31% 29% 30% 451 456 450 29% 426 439 428 439 30 26% 393 400 373 373 EURm compared 349 115 25 350 336 to 31.12.2022 300 291 20 250 200 150 324 15 10 -127 100 EURm c
Slide 19: Acquisition impact on leverage offset by strong free cash flow
Acquisition impact on leverage offset by strong free cash flow, target leverage achieved well in advance of the original schedule FULL-YEAR FREE CASH FLOW, EURm CHANGE IN NET DEBT, EURm AND NET DEBT / LTM EBITDA (EXCL. IAC) 1.55X 2.54X +111.0 -50.8 250 +121.4 +42.4 -3.3 446.7 450 -11.9 +186.9 200 +1
Slide 20: Organic capital employed down EUR 88 million
Organic capital employed down EUR 88 million – asset efficiency decreased temporarily due to the Georg Jensen acquisition Capital Employed (EURm) Financing (EURm) Dec-22 GJ Impact Organic Dec-23 Dec-22 GJ Impact Organic Dec-23 GW and other intangible 499.8 85.9 6.1 591.8 Equity 823.8 25.4 -25.6 823.
Slide 21: Focus on cash flow has delivered, challenging operating environment
Focus on cash flow has delivered, challenging operating environment reflected in progress in sales and EBIT FINANCIAL TARGETS TRACKING LAST KPI TARGET 2020 2021 2022 2023 3 YEARS NET Organic, FX neutral Mid- CAGR SALES Single-Digit growth z +3.4% +14.2% +1.7% -9.7% +1.4% Mid-teen EBIT margin (excl.
Slide 22: Highlights of Q4 and FY 2023
Highlights of Q4 and FY 2023 2023 CASH FLOW THE BOARD GUIDANCE FOR ALL-TIME HIGH – TRANSFORMATION PROPOSES AN 2024: SALES AND EBIT DELIVERING: INCREASING DECLINED DIVIDEND: COMEX, DTC, CHINA C O M P A R A BL E E B I T EXPECTED TO BE Q4 AS EXPECTED GEORG JENSEN SLIGHTLY ABOVE WITH STABLE INTEGRATION
Slide 23: Sse
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Slide 24: Thank you!
Thank you! FEBRUARY 8, 2024
Slide 25: Appendix
FISKARS ss. GROUP 0 Appendix
Slide 26: Consolidated Q4 and FY-23 Key Figures
Consolidated Q4 and FY-23 Key Figures Q4 and FY P&L KEY FIGURES, EURm Q4 and FY PER SHARE KEY FIGURES, EUR Q4 Full Year Q4 Full Year 2023 2022 2023 2022 2023 2022 2023 2022 Net sales 345.8 304.1 1,129.8 1,248.4 Comparable Earnings per Share 0.40 0.19 0.99 1.37 Comparable gross profit 161.8 138.8 528
Slide 27: Q4 and FY-23 Cash flow
Q4 and FY-23 Cash flow Q2 Q4 and and H1 FYCash CashFlow Flowvs. vs.LY LYand (EURm) Plan (EURm) Q4 and FY Change in Cash vs. LY (EURm) Q4 FY Q4 FY 2023 vs. LY 2023 vs. LY 2023 vs. LY 2023 vs. LY EBITDA 54 + 15 165 - 29 Cash Balance period opening 188 + 134 116 + 84 Non-cash adjustments -33 - 38 -28 -
Slide 28: Fiskars Group's quarterly development – last 3 years
Fiskars Group’s quarterly development – last 3 years NET SALES, EURm COMPARABLE EBIT (EURm) AND EBIT MARGIN, % EURm % 60 20 +13.7% *+0.1% 51.8 18 353 346 50 333 46.6 16 313 319 302 307 292 293 304 41.4 14 275 268 40 37.7 36.0 36.3 241 34.1 33.2 12 32.2 29.7 31.2 30 10 23.4 8 20 17.9 6 4 10 2 0 0 Q4
Slide 29: BA Vita's quarterly development – last 3 years
BA Vita’s quarterly development – last 3 years NET SALES, EURm COMPARABLE EBIT (EURm) AND EBIT MARGIN, % +21.9% EURm % 250 *-4.5% 40 25 35.9 34.7 215 20 31.9 200 187 15 171 176 30 24.9 24.5 24.6 10 150 134 140 121 127 5 119 108 116 108 114 20 16.9 0 100 14.4 12.2 -5 10.6 10.7 10 7.8 -10 50 3.0 -15 0
Slide 30: BA Fiskars' quarterly development – last 3 years
BA Fiskars’ quarterly development – last 3 years NET SALES, EURm COMPARABLE EBIT (EURm) AND EBIT MARGIN, % EURm % 220 211 +2.4% 50 25 200 193 191 191 *+6.4% 43.5 39.3 180 40 20 165 167 157 151 153 160 30.6 141 30 28.7 15 140 130 26.7 127 121 24.7 120 20 17.7 10 100 15.1 15.2 11.1 80 10 7.4 5 60 2.4
Slide 31: Georg Jensen Purchase Price Allocation (PPA) breakdown
Georg Jensen Purchase Price Allocation (“PPA”) breakdown PPA EURm P&L Impacts of PPA (EURm) Comment Purchase Price, Equity (A) 124.7 Net Assets at Book Value 45.4 Q4-23 YTD 9/24 Q4-24 FY-25 => Fair Value adjs - Brand (trademark) + 61.0 - - - - Fair Value adjs - Customer relationships + 20.0 - 0.3 -