Fiskars Group Q2 2015 1.1. 30.6.2015 Helsinki, July 29, 2015
: Steady sales performance, major step taken in growth strategy execution Q2 Net Sales MEUR 253.4, +26% Comparable net sales (CN and excluding watering business), +2% EBIT excl. NRI MEUR 20.8, +8% Cash flow from operating activities MEUR 11.6 Outlook for 2015 updated: Earnings per share EUR 0.17 (0.26) Net sales expected to increase from 2014 levels EBIT excl. NRI to be at 2014 levels 2
AMERICAS EUROPE & ASIA-PACIFIC 4
Q2 2015 Europe & Asia-Pacific 5
Europe & Asia-Pacific in Q2 2015 Europe Strong performance by Living Products Iittala opens store in Reykjavik, Iceland and shop-in-shop in Dubai Mall, United Arab Emirates Functional Products had a tough quarter due to a late spring but managed to gain market share in key European markets 6
Europe & Asia-Pacific in Q2 2015 Asia-Pacific Living Products performed well despite Japan being slow Six store openings in the region Iittala Ruutu launched in Taiwan Several successful PR events in Korea and Japan 7
Q2 2015 Americas 8
Americas in Q2 2015 Fiskars Americas Functional Products performed well, supported by the watering business and pottery sales as well as favorable currency rates Sales of school, office and craft products increased compared to previous year s levels 9
Americas in Q2 2015 Gerber Americas Net sales declined but an improved product mix started having a positive impact on profitability New additions to the Freescape series were well received and the series was supported by a strong advertising campaign 10
Q2 2015 Group performance 11
Net sales and EBIT in Q2 2015 Fiskars Group Net sales by quarter, MEUR 26.0% * EBIT by quarter, MEUR 280 240 200 160 120 80 40 201.0 178.4 203.9 230.0 253.4 12,0% 10,0% 8,0% 6,0% 4,0% 2,0% 25 20 15 10 5 0-5 -10 19.4-0.9 16.8-3.1 10.7-8.4 17.0 20.8-1.3-1.4 0 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 *Excl. watering 2015 Q2 net sales 222.8 MEUR, change +10.8% (CN +2.5 %) Cn 16,6% 0,0% -15 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 EBIT excluding non-recurring items Non-recurring items EBIT excl. NRI % 9.6% 9.4% 5.2% 7.4% 8.2% 12
Europe & Asia Pacific and Americas in Q2 2015 Europe & Asia Pacific Net sales in Q2 122,2 MEUR, -1.4%, cn -1.6 %. EBIT excl. NRI 7.8 MEUR, -19.3 % Net sales growth: Living Products net sales increased Functional Products net sales decreased 200 160 120 80 40 0 Net sales and EBIT% 124.0 117.5 140.6 127.3 122.2 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 EBIT % excl. NRI 7.8% 9.9% 9.3% 6.7% 6.4% 20,0% 16,0% 12,0% 8,0% 4,0% 0,0% Americas Net sales 119.1 MEUR, 76.3%, cn +42.1% Excl. watering 88.5 MEUR, +31.0 %, cn +5.6% EBIT excl. NRI 17.0 MEUR,+46.4% Solid performance supported by the watering business. 200 160 120 80 40 67.5 Net sales and EBIT % 57.6 59.1 95.0 119.1 20,0% 16,0% 12,0% 8,0% 4,0% 0 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 EBIT % excl. NRI 17.2% 11.4% 4.8% 11.4% 14.3% 0,0% 13
Development from ACT Q2 2014 to ACT Q2 2015 Net sales bridge MEUR 31.5-2.9 2.6 253.4 16.4 4.8 201.0 ACT Q214 Exchange rate effect Living Functional* Outdoor Other ACT Q215 *Functional including watering business 14
Cash flow and debt Q2 2015, MEUR 60 Cash flow from operating activities 200 Working capital 18,0 Capital expenditure 270 Net debt* 50 40 30 20 10 0 6 26 48 12 180 160 140 120 100 80 60 40 20 0 121 124 93 179 178 16,0 14,0 12,0 10,0 8,0 6,0 4,0 2,0 0,0 6.6 15.7 7.4 5.7 6.2 220 170 120 70 20 208 195 121 218-10 -30-20 -14-80 -79 * 101,2 MEUR investments into short term interest rate fund not included in net debt ratio 15
Key ratios Q2 2015 EPS* Equity per share Equity ratio, % Gearing, % 0,60 0,50 0.54 16,0 14,0 12,0 14.56 14.06 14.46 80 70 60 58 60 73 71 66 40 35 30 34 30 0,40 10,0 50 25 0,30 0.26 0.27 8,0 7.46 7.84 40 20 18 0,20 6,0 30 15 11 0,10 0.09 0.08 4,0 2,0 20 10 10 5 0,00 0,0 0 0-5 * EPS from operating activities Wärtsilä treated as associated company until Q3 2014-10 -7 16
Other segment in Q2 2015 During the second quarter the company sold EUR 300.4 million worth of investments in short term interest rate funds to fund the acquisition of WWRD. At the end of the period, the market value of Fiskars active investments was EUR 522.6 million, consisting of shares in Wärtsilä (EUR 421.4 million) and investments into short term interest rate funds (EUR 101.2 million) 17
Share of business operations increased Implied value calculated from Market Cap 1 800 1 600 1 400 1 200 1 000 800 600 - Financial investments Fiskars Operations Operations / Mkt cap 100% 90% 80% 70% 60% 50% 40% 400 30% 20% 200 10% 0 1 2013 4 2013 7 2013 10 2013 1 2014 4 2014 7 2014 10 2014 1 2015 4 2015 7 2015 18
Outlook for 2015 Outlook for 2015 was updated on July 27, 2015 Full-year net sales are expected to increase from 2014 levels and operating profit excluding non-recurring items to be at 2014 levels, despite the increased costs related to investments into growth initiatives. (Previously: full-year net sales were expected to increase from 2014 levels and operating profit excluding non-recurring items to be below 2014 levels) 19
Growing Fiskars Living business through acquisitions 2007 Iittala Group Ltd. 2013 Royal Copenhagen A/S 2015 WWRD
Licensing Partnerships Inspirational Patterns Luxury Hospitality Licensing partnerships and collaborations with leading designers and world-renowned celebrities A unique and exhaustive archive of inspirational patterns and designs built up over centuries Brands featured in leading luxury hotels, restaurants, airlines and cruise ships around the world 22
Tabletop Gifting Interior décor Beautiful assortment of luxury tabletop series under coveted brands Beautiful and innovatively packaged luxurious gifts and merchandising Exquisite and expressive Interior décor objects 23
World class crystal and ceramics House of Waterford, Ireland High-end prestige production of the highest quality hand cut crystal in the world Wedgwood Estate, England Prestige production of the highest quality ceramic in the world Steklarna Rogaška, Slovenia The world s largest production facility for hand-cut and blown crystal PTD, Indonesia The world s leading high quality ceramic production facility 24
Fiskars Living A global leader in premium and luxury tabletop and gifting 25
Fiskars Living A global leader in premium and luxury tabletop and gifting #1 After the WWRD acquisition Fiskars Group is the largest company within the premium Living category globally* #1 Today Fiskars is among the top 5 largest companies in total, in Living category (incl. premium and mass channels) #1 Waterford and Wedgwood are well positioned among the top 10 premium Living brands *Based on Fiskars own estimate 26
Celebrating centuries of pride, passion and design. Every day.