Fiskars Group Q4 and full year 2016 February 8, 2017 – Helsinki, Finland
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 believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. Accordingly, results could differ materially from those set out in the forward-looking statements as a result of various factors. • Important factors that may cause such a difference for Fiskars include, but are not limited to: (i) the macroeconomic development and consumer confidence in the key markets, (ii) change in the competitive climate, (iii) change in the regulatory environment and other government actions (iv) change in interest rate and foreign exchange rate levels and (v) internal operating factors. • This presentation does not imply that Fiskars has undertaken to revise these forward-looking statements, beyond what is required by applicable law or applicable stock exchange regulations if and when circumstances arise that will lead to changes compared to the date when these statements were provided. 2 Fiskars Q4 and FY 2016
Key takeaways Turnaround of the watering Significant increase in net sales business has progressed faster and operating profit despite than originally planned and the ongoing business integrations business contributed positively to our earnings already in 2016 Fiskars is focusing on building Strong Q4 driven by global businesses and brands, Scandinavian Living and and in line with this, we have Functional businesses divested businesses that do not fit our strategy 3 Fiskars Q4 and FY 2016
Fiskars Q4 2016 Net sales Adjusted Cash flow from operating profit** operating activities*** MEUR 334.1 MEUR 33.0 MEUR 77.5 Comparable net sales +5.1%* +96% +20% Operative EPS Reported EPS Q4 EUR 0.51 EUR 0.23 (0.76) (0.05) * Using comparable exchange rates, excluding the divested boats business, the U.S. container gardening business and Spring USA ** Adjustments include items such as restructuring costs, impairment or provisions charges and releases, integration related costs, and profit/loss impact from the sale of businesses *** Before financial items and taxes 4 Fiskars Q4 and FY 2016
Fiskars journey continued in Q4 FUNCTIONAL SIMPLIFYING PRODUCTS STRUCTURES BUILDING COMMON LIVING PLATFORMS PRODUCTS FOCUSING ON OUTDOOR CORE BUSINESSES PRODUCTS • Fiskars is on a journey to become an integrated consumer goods company with a family of iconic lifestyle brands • Completed divestment of Ebertsankey container gardening business in Europe to increase focus on core businesses • Completed the Investment program in Europe. The entire business volume targeted by the program is now running through common systems and processes • Launched Alignment program focusing on structural changes and the full integration of the English & Crystal Living Business 5 Fiskars Q4 and FY 2016
New organizational structure As of January 1, 2017 P R E S I D E N T & C E O S B U L I V I N G * S B U F U N C T I O N A L * Americas English & Crystal Living EMEA Scandinavian Living Outdoor S U P P L Y C H A I N S U P P O R T F U N C T I O N S O T H E R * * Primary reporting segments 6 Fiskars Q4 and FY 2016
Fiskars Group FY 2016
Fiskars FY 2016: Significant increase in net sales and operating profit Net sales Adjusted operating profit** Cash flow from operating activities*** MEUR 120.7 MEUR 1,204.6 MEUR 93.8 Comparable net sales +1.6%* +44% +141% Operative EPS Dividend proposal Outlook 2017 by the Board EUR 0.56 (0.16) Net sales (excl. 2016 divestments) EUR 0.71 and 0.35 and adjusted EBITA to Reported EPS increase from previous per share year EUR 0.78 (1.04) To be paid in March and September 2017 respectively * Using comparable exchange rates, excluding the divested boats business, the U.S. container gardening business and Spring USA ** Adjustments include items such as restructuring costs, impairment or provisions charges and releases, integration related costs, and profit/loss impact from the sale of businesses *** Before financial items and taxes 8 Fiskars Q4 and FY 2016
Net sales and profitability development EUR million 1400 50% +9.0%* 42.5% 1200 41.0% 40.7% 38.6% 40% 36.7% 35.4% 35.0% 1000 33.5% 30% 800 600 20% 400 9.2% 8.4% 8.4% 8.4% 10% 7.8% 7.8% 6.1% 5.9% 200 0 0% 2009 2010 2011 2012 2013 2014 2015 2016 Adjusted gross profit, % Net sales * Net sales CAGR Adjusted operating profit % 9 Fiskars Q4 and FY 2016
Development by geographic segment Net sales and profitability MEUR, % Europe & Asia-Pacific Americas 800 24% 800 24% 769 +7.9% 700 700 661 20% 20% +12.2% 600 600 564 517 507 16% 16% 502 502 489 500 500 13.6% 13.6% 452 451 12.8% 12.6% 11.8% 11.2% 10.9% 400 12% 400 12% 9.3% 8.0% 8.8% 8.5% 8.3% 8.0% 300 300 250 6.9% 245 8% 8% 235 233 223 218 6.0% 5.9% 200 200 4% 4% 100 100 0 0% 0 0% 2009 2010 2011 2012 2013 2014 2015 2016 2009 2010 2011 2012 2013 2014 2015 2016 Adjusted operating profit Net sales 10 Fiskars Q4 and FY 2016
Building growth through unified offering Continually improving SKU efficiency Number of Stock Keeping Units (SKU)* Sales / SKU, EUR 40 000 80 000 42.5% 41.0% 40.7% 38.6% 36.7% 35.0% 35.4% 33.5% 30 000 60 000 32.1% 30.6% 158% 20 000 40 000 10 000 20 000 0 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Adjusted Gross Profit Number of SKUs Sales / SKU Note: *SKU exists until out of warehouse including inactive and delisted products 11 Fiskars Q4 and FY 2016
Fiskars Group Q4 2016
Fiskars Group Q4 2016 Net sales and adjusted operating profit % Adjusted operating profit Comparable +5.1% growth * 0% 334 334 +96% 296 293 281 33.0 21.9 21.6 17.3 16.8 9.9% 7.7% 7.4% 5.9% 1.8 5.0% -1.5 -2.5 -3.8 -8.9 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Net sales Adjusted operating profit Adjusted operating profit % Adjustments to operating profit * Comparable growth = Currency neutral and excluding divested businesses 13 Fiskars Q4 and FY 2016
Net sales bridge Q4 2016 MEUR Comparable Comparable Comparable Comparable growth growth growth growth +2.0% +11.1% +2.4% +5.1% 0.6 -7.5 0.5 6.6 334.1 333.8 Q4 2015 Functional Living Outdoor Other Q4 2016 14 Fiskars Q4 and FY 2016
Europe & Asia-Pacific in Q4 2016 Comparable +3.3% growth EUR million Q4 2016 Q4 2015 Change 2016 2015 Change +2% Net sales 230.5 225.4 2.2%* 769.4 663.6 15.9%** 230 225 Operating profit (EBIT) 18.3 14.7 25% 37.4 34.9 7% 25 183 178 177 Adjusted operating profit 25.5 17.7 44% 46.1 45.3 2% Capital expenditure 6.6 4.6 46% 21.9 20.2 8% 18 Personnel (FTE), average 6,541 6,642 -2% 6,603 4,923 34% 6 11 3 Europe & Asia-Pacific Q4 highlights Q4 Q1 Q2 Q3 Q4 • The economic situation in Europe improved slightly from the previous quarter 2015 2016 2016 2016 2016 • Consumer confidence remained stable in Europe, with more optimistic expectations Net sales Meur balanced by concerns about unemployment Adjusted operating profit Meur • The challenging department store and distributor environment persisted in Japan, partly balanced by increased levels of tourism in Asia • Net sales for the region increased driven by the Functional and Scandinavian Living businesses, supported by Fiskars, Iittala and Royal Copenhagen branded products • Black Friday sales activities, a successful Christmas season, and the launch of Finland 100 anniversary products contributed to the increase in net sales during the quarter • The adjusted operating profit for the segment increased year-on-year driven by the Scandinavian Living and Functional businesses as well as increased efficiencies * Using comparable exchange rates net sales in the Europe & Asia-Pacific segment increased by 3.3% in Q4 2016 ** Using comparable exchange rates and excluding the acquired English & Crystal Living business in the first half of 2016 net sales in the Europe & Asia-Pacific segment increased by 0.5% in 2016 15 Fiskars Q4 and FY 2016
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