Slide 1: Investor presentation
Investor presentation UPDATED MARCH 8, 2024
Slide 2: Content
Content Fiskars Group in brief Strategy Business Areas Financials Q4 2023 Appendices 2 FEBRUARY 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 FEBRUARY 2024 Ⓒ FISKARS GROUP I INVESTOR PRESENT
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 FEBRUARY 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
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 FEBRUARY 2024 Ⓒ FISKARS G
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 FEBRUARY
Slide 9: Strategy
Content Fiskars Group in brief Strategy Business Areas Financials Q4 2023 Appendices 9 FEBRUARY 2024 Ⓒ FISKARS GROUP I INVESTOR PRESENTATION
Slide 10: Long-term market dynamics remain attractive
Long-term market dynamics remain attractive POWERFUL BRANDS IMPORTANCE OF LUXURY SUSTAINABILITY THAT SURROUND DIRECT-TO- IS RESILIENT IS KEY THE CONSUMER CONSUMER 50% of consumers Integral to buyer’s 6-8% CAGR forecast 58% of consumers feel globally willing to journey – storytelling, for the global
Slide 11: 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 11 FEBRUARY 2024 Ⓒ FISKARS GROUP I INVESTOR
Slide 12: 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 13: 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 14: 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 15: 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% • U
Slide 16: 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 17: 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 18: U.S.: Adverse development driven by retailers' focus on 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 19: 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 20: 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 21: Business Areas
Content Fiskars Group in brief Strategy Business Areas Financials Q4 2023 Appendices 21 FEBRUARY 2024 Ⓒ FISKARS GROUP I INVESTOR PRESENTATION
Slide 22: Business Area Vita
Business Area Vita NET SALES AND COMPARABLE EBIT MARGIN Net sales Georg Jensen’s net sales KEY CATEGORIES EURm Comp. EBIT % % 220 215 30 200 187 54 180 176 171 Tableware Drinkware Interior 160 20.4% 134 20 18.3% 140 140 17.5% 17.0% 127 121 119 16.2% KEY BRANDS 120 116 114 14.6% 108 108 14.1% 100 11.
Slide 23: 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 23 FEBRUARY 2024 Ⓒ FISKARS GROUP I INVESTOR PRESENTATION
Slide 24: 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 25: Business Area Fiskars
Business Area Fiskars NET SALES AND COMPARABLE EBIT MARGIN * KEY CATEGORIES EURm % 220 Net sales 30 211 Comp. EBIT % 200 193 191 191 Gardening Outdoor Watering 180 20.6% 20.4% 165 167 157 18.3% 20 160 151 153 16.1% 141 15.1% 140 14.0% 130 127 Cooking 11.2% 121 Scissors & creating 120 10.7% 10.1% 9.1
Slide 26: 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; 26 FEBRUARY 2024 Ⓒ FISKARS GROUP I INVESTOR PRESENTATION
Slide 27: 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 27 FEBRUARY 2024 Ⓒ FISKARS GROUP I INVESTOR
Slide 28: 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 29: Financials
Content Fiskars Group in brief Strategy Business Areas Financials Q4 2023 Appendices 29 FEBRUARY 2024 Ⓒ FISKARS GROUP I INVESTOR PRESENTATION
Slide 30: 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 30 FEBRUARY 2024 Ⓒ FISKAR
Slide 31: 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 31 FEBRUARY 2024 Ⓒ FISKARS GROUP I INVESTOR PRESENTATION
Slide 32: 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 16 333 313 319 50 47 302 307 304 14 300 292 293 275 268 41 40 38 12 241 36 36 34 33 32 31 10 30 200 30 8 23 20 18 6 100 4 10 2 0 0 0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 33: Focus on cash flow has delivered; financial targets tracking
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 34: 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 35: 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 36: 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 37: 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 38: Towards mid-teen EBIT%
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 39: 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 40: 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 41: 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 42: 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 43: Strong cash position enables an increasing dividend
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 44: Q4 2023
Content Fiskars Group in brief Strategy Business Areas Financials Q4 2023 Appendices 44 FEBRUARY 2024 Ⓒ FISKARS GROUP I INVESTOR PRESENTATION
Slide 45: 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 46: 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 47: Q4 comparable net sales stable, BA Fiskars' sales increased
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% +0.1%
Slide 48: Q4 EBIT increased driven by 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 12.2 37.7 40 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 49: BA Vita Q4
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 50: BA Fiskars Q4
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 51: 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 Q1-23 Q4-23 Q3-
Slide 52: 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 53: 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 54: 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 55: Sse
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Slide 56: Appendices
Content Fiskars Group in brief Strategy Business Areas Financials Q4 2023 Appendices 56 FEBRUARY 2024 Ⓒ FISKARS GROUP I INVESTOR PRESENTATION
Slide 57: Largest shareholders as of December 31, 2023
Largest shareholders as of December 31, 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 Gerd
Slide 58: Shareholder structure as of December 31, 2023
Shareholder structure as of December 31, 2023 Financial and NU MBER OF % OF SHARES 5,1% 1,6% insurance SECTOR SHARES AND VOTES 16,8% corporations 7,1% Financial and insurance Households corporations 13,583,085 16.77 Households 27,005,335 33.34 Non-financial corporations Non-financial corporations 29
Slide 59: Leadership Team
Leadership Team Nathalie Ahlström Jussi Siitonen Dr. Steffen Hahn Christian Bachler CEO CFO Executive Vice President, Executive Vice President, Employed 2020 Employed 2021 Business Area Fiskars, Business Area Vita, Employed 2024 Employed 2010 Peter Cabello Holmberg Anna Mindelöf Aamir Shaukat Chief
Slide 60: Board of Directors
Board of Directors 60 FEBRUARY 2024 Ⓒ FISKARS GROUP I INVESTOR PRESENTATION
Slide 61: 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 62: 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 63: 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 64: Thank you!
Thank you!