Fiskars Oyj Abp — Annual Report 2010

Feb 23, 2011

annual report 2010

2–13

COMPANY 2010 in brief 2 President's review 4 Strategy 6 Brands 10 Business environment 12

SUSTAINABILITY Responsibility 16 Personnel 20

BUSINESSES Home 24 Garden 26 Outdoor 28 Other 30 Real Estate 30 Associated company Wärtsilä 31

32–43

GOVERNANCE Corporate Governance Statement 34 Board of Directors 40 Executive Board 42 Business Area Management 43

44–101

FINANCIAL STATEMENTS Report by the Board of Directors 46 Consolidated Financial Statements, IFRS 50 Financial indicators 82 Parent Company Financial Statement, FAS 85 Board's proposal for the Annual General Meeting 98 Auditor's report 99 Shares and shareholders 100

102–103

INVESTORS Annual review of information published in 2010 102 For shareholders 103

Net sales in 2010

Solid growth and higher profits

F iskars' net sales in 2010 grew 8% to EUR 715.9 million, boosted by strong development in the Garden business area and an improvement in the Home business area.

We have succeeded in strengthening our competitiveness and enhancing our effectiveness, which resulted in a significant increase in operating profit in 2010. Operating profit, excluding non-recurring items, totaled EUR 60.4 million in 2010, which was a record for the company.

Solid cash flow, together with our strong financial position, will give us a good foundation for future operations.

In EMEA, all businesses grew and improved their operating profit. In the Americas, we were able to keep net sales at 2009 levels and clearly increase our profit although the general market situation remained cautious in 2010 and despite some divestments we made in 2009.

Group key figures	2010	2009
Net sales, EUR million	715.9	660.3 ***
Operating profit excl. non-recurring items, EUR million	60.4	40.0
Operating profit (EBIT), EUR million	49.1	39.5
Share of profit from associate Wärtsilä, EUR million	65.9	66.5
Profit for the period, EUR million	94.3	83.5
Balance Sheet total, EUR million	979.0	973.3
Equity ratio, %	57	52
Net gearing, %	36	47
Cash flow from operating activities*, EUR million	63.1	95.7
Earnings per share, EUR	1.15	1.05
Equity per share, EUR	6.76	6.16
Dividend per share, EUR	0.60 **	0.52
Personnel (FTE), in average****	3,612	3,867

* Excluding dividends from associate Wärtsilä ** Board's proposal *** The figures for 2009 include changes due to the reclassification of certain accounts. **** Fulltime equivalent number of employees

Fiskars' transformation into an integrated consumer goods company is well on its way.

716 Net sales totaled EUR 716 million and Fiskars had a year of solid performance.

Net sales by segment, EUR million* ²²³

EMEA Americas Other

* Including intersegment net sales EUR 15.8 million

60.4		52.2			60.4
Operating profit excluding non recurring items was a record-high	32.8		40.9	40.0
EUR 60.4 million.	06	07	08	09	10

Net sales by business area, EUR million

Home Garden Outdoor Other

Personnel (FTE), in average by segment

EMEA Americas Other

1.15 Earnings per share

were EUR 1.15 and the Board will propose a dividend

3

The new strategy starts to pay off

F iskars' transformation into a branded consumer goods company is well on its way. We started out on this journey in 2008 when we launched our new strategy and appointed a new corporate management team. Since then, we have taken a number of measures to simplify our structure and increase our focus on selected businesses and brands.

2010 saw a clear improvement in Fiskars' operating environment in EMEA, where both trade and consumer demand developed positively. In the Americas, consumer confidence started to improve towards the end of the year. Market conditions remained challenging, however, as the trade continued to purchase cautiously and focus on working capital.

In 2010, Fiskars' net sales totaled EUR 715.9 million, a growth of 8% compared to 2009. Operating profit excluding non-recurring items reached EUR 60.4 million, which is EUR 20.4 million more than in the previous year and a new record for the company. This strong growth in sales and operating profit, in particular, proves that our efforts have paid off.

All business areas improved in Europe

Fiskars had a successful year in all business areas in 2010. Our Garden business in Europe, in particular, increased its net sales and operating profit significantly. We have gained market share in major Central European markets, such as Germany and France, where we started promoting the Fiskars brand. Even the weather was on our side this year: two snowy winters in a row boosted sales of snow tools to record levels.

The Home business area also performed well in 2010.

The Buster boat brand remained the market leader in Finland. Fiskars Boats also launched a new brand, Drive Boats.

Net sales in EMEA increased as a whole by 11% in 2010. We also succeeded in improving the efficiency of our supply chain in the region, which was reflected in the higher operating profit margin.

Good performance continued in the Americas

Fiskars entered the US already in 1970s, and Fiskars Americas is an important and profitable part of the company today. Although the general market situation in the Americas remained cautious in 2010 and despite some divestments we made in 2009, we were able to keep net sales at 2009 levels and increase our operating profit – helped by various structural changes that we have made in recent years. Currency rate developments provided a further boost at Group level.

The launch of new Garden product categories and a more focused offering in the school, office, and craft business improved sales and strengthened the position of the Fiskars brand. Gerber launched some exciting new products, which have further consolidated the brand's market presence.

Strong financial position enables future growth

Our increased operating profit, together with significant revenue from Fiskars' associated company, Wärtsilä, resulted in EUR 1.15 earnings per share in 2010. This good result,

together with our strong financial position, will provide us with a solid foundation for further developing the company.

We have already started simplifying our operating model and building common processes and platforms to further increase our operational efficiency. At the end of 2010, we launched a five-year investment program in EMEA to create a more streamlined supply chain and improve business transparency.

In 2011, we will continue simplifying our operations and building common processes and platforms to further increase efficiency. We will also continue to invest in brand building and product development, as these areas will be central in helping secure future growth and building our success.

Responsibility in environmental issues is important for Fiskars. In 2010, we calculated our Carbon Footprint to further develop and monitor our environmental sustainability.

Although some uncertainty may linger in parts of our business environment in 2011, we expect consumer trends to support our business, and Fiskars is in a good position to continue expanding its business.

I would like to thank all our customers – both retailers and consumers – for their support and enthusiasm for our innovative products during 2010. I would also like to thank Fiskars' own people around the world for their excellent contribution and commitment, and our shareholders for their continued trust in Fiskars.

Helsinki, February 2011

Kari Kauniskangas President and CEO

FISKARS' STRATEGY

Focus, efficiency, and growth are the success factors behind our strategy. We have concentrated on the first two of these so far and are now shifting our attention to growth.

During 2010, we defined the future operating model that will enable us to achieve our strategic objective. Our success is based on the ability of our business areas to create must-have products for consumers and retailers. Consumers trust strong specialist brand products and are willing to pay a premium for them. We believe that the number of quality-conscious consumers is increasing, and that our specialist brands can cater to the future expectations of these consumers. Focusing on the needs of end-users supports our new product development work. Retailers also need specialist brands, as they offer customers greater choice, variety, and new features, and provide retailers with a higher return. Only through unified offerings we will achieve the scale we need to ensure our competitiveness and maintain our competitive advantage – and

become the number-one specialist company in our businesses.

Strong brands and exciting products

We are committed to continuously investing in our brands and product development to ensure a continuous flow of new products. Our Offer Management and New Product Development processes help us manage our product portfolio and product lifecycle systematically to ensure that we provide consumers with an exciting offering. Fiskars' Offer Management process generates functional and aesthetic products that make the most of the commercial potential of our brands. Our goal is that all new products should always meet or exceed consumer and customer expectations.

Valuable partnerships

Commercial success is built on successful partnerships. Understanding trade customers and consumers and

WE STRIVE TO GET OUR BEST PRODUCTS INTO THE HOMES, GARDENS, AND BACK-PACKS OF ENGAGED CONSUMERS AROUND THE WORLD.

their needs and behaviors provides us with the knowledge we need to turn into actions for developing and strengthen ing our competitive advantage.

By developing our partnerships, we aim to optimize current trade relations and build new ones. Fiskars creates added value for its trade custom ers through its specialist brands and by offering innovative products at a variety of price points that deliver attractive margins and fast turn-over, together with excellent services.

Operational excellence

By managing our supply chain effici ently, we can meet customer demand with the right products at the right time and at an optimized cost level. Our aim is to harmonize our offerings and product ranges across countries within our focused business areas and brands. With a more unified, global offering, Fiskars will be able to achieve the scale needed to ensure competi tiveness in today's marketplace.

Problem-solving approach

Our values are innovation, teamwork, accountability, and integrity. Consumer and customer insight

and commercial thinking lie at the core of our success. We want to help solve the challenges faced by our custom ers and bring new, truly innovative products to market. We believe that everything, even the smallest detail, can be improved.

Fiskars employs some 3,600 people in 20 different countries. We believe in teamwork and in shared best practices that makes us stronger together. A c countability means that everyone can make a difference and that everyone has a role to play in our joint journey towards our vision of becoming the number-one consumer goods compa ny. Fiskars is a good corporate citizen and we expect integrity from all our employees and partners.

s o f Fiskar s ' strategy

Focu s

• Strong business area focus
• Premium brand portfolio
• Optimized product range in selected categories

Effi c iency

• Simplified structure
• Integrated business processes to achieve scale and synergies
• Demand-driven supply chain

Growth

• Consumer-focused product development
• Innovative R & D
• Commercial expansion: new

From broad definition to determined implementation

The successful implementation of our new strategy is taking us towards our vision to become the number-one specialist company for the home, garden, and outdoors.

F ollowing the introduction of a new integrated company strategy in 2008, Fiskars launched a Group-wide 360º Integration Program in 2009 to implement it. The first phase of the program focused primarily on defining how we should operate as one company, and a number of projects in this area were completed during 2010. As part of efforts to put our strategy into action, the Group's management has been working on the new business model for the company: defining how we want to manage our brands and product portfolio and how we want to organize sales and marketing across our organization.

Fiskars' new business model is very much about driving future growth and delivering on the promise of making us a truly international consumer goods company. In the past, Fiskars was organized as a group of independent companies. The new strategy is based on a Group-level management commitment to making Fiskars an integrated company, with strong business areas sharing an integrated operating model. The country-driven operating model has been replaced by a business area-driven one, in which business areas are responsible for product offerings and the brand portfolio and defining the marketing strategy.

The new business model is designed to enable Fiskars grow faster. Closer cooperation between business areas and country organizations will be essential for this change. The target is

Fiskars' new business model

offering × brand

• Premium consumer brands that lead the field in functionality, innovation, and design
• International best-sellers
• New innovative products
• Unified offering with a reduced number of products will provide the necessary benefits of scale

Channel × Market

• • Distribution power ensures effective channel and market penetration
• Excellence in international sales execution
• One sales unit per country in EMEA handling sales for the entire Fiskars portfolio

= Growth in sales

• Increased sales and market penetration
• Number-one specialist company in selected categories
• Organic growth

to ensure future growth through unified offerings that give the scale necessary to broaden our market penetration and increase volumes for selected brands and products. In the future, our new integrated business model will enable us to increase sales by using the best sales channels to promote our entire brand offering. In addition, sales and operations planning processes across the Group are being harmonized to ensure that we can take advantage of best practices in terms of balancing the demand and supply of products and making the most of shared logistics.

Investments in new product development

We believe that innovative product development will be central to accelerating our growth and building greater commercial success. New product development draws inspiration from consumer insight and customer feedback, and evaluates the commercial potential of new ideas and concepts carefully. Fiskars' operations in 20 countries provide a valuable source of consumer insight and other input for developing new products.

Fiskars Garden new product development has been reorganized, and the team has been strengthened with new skills and ways of working. Outdoor has refined its new product development processes and introduced a stronger focus on consumer insight and end-user research. Focusing on our specialist skills in new product development will also be increasingly

Turning our new integrated strategy into reality and investing in future growth.

important for Fiskars Home, with its extensive knowledge in areas such as porcelain colors and materials.

Focus, efficiency, and growth

Focus, efficiency, and growth are central to Fiskars' strategy and success. During 2010, we focused on our brand portfolio and streamlined it in some areas, reducing the number of products.

The fact that all EMEA business management is now located at the Fiskars Campus in Helsinki, on the same site as the Arabia factory, underlines our belief in the importance of a one company strategy; the Campus brings together a total of over 400 employees under the same roof.

The achievements that we have made in improving efficiency are reflected in our new business and operating models. Going forward, our emphasis will shift towards the third element of our strategy – growth – now that we have set the goal for the future Fiskars.

Investing in future growth

Having defined how we should operate as one company and how the underlying 'engine' works to support the business model, Fiskars decided at the end of 2010 to launch a five-year investment program to facilitate further growth by implementing a new business model in EMEA. With this program, the company will create a more streamlined supply chain and improve transparency through common processes and IT systems, including a new common enterprise resource planning (ERP) system. After an initial implementation period, the investment program is expected to further enhance the efficiency of Fiskars' operations and gradually improve cash flow.

BRANDS

A portfolio based on clearly defined brands

F iskars has a unique portfolio of trusted brands, each with a clearly defined role in the Group's business and corporate strategy. We are committed to investing in our brands and developing them over the long term to build brand equity.

Our leading brands are Fiskars, Iittala, and Gerber, which we invest in internationally and which we believe have the highest potential for growth

in the international marketplace.

Regional brands – Arabia, Buster, Hackman, and Silva – have leading position on their home markets in the Nordic countries. Our other brands are either leaders in a single market or have a more tactical role, such as extending the Group's market share or serving a different price point.

Innovation is a key Fiskars value and underlines our belief that we can help consumers enjoy their everyday

activities. Our specialist brands are committed to leading the field with new innovations. Functionality is a cornerstone of our products, as is aesthetics. The look and feel of our products is central to their quality and their competitiveness. We have numerous iconic designs in our portfolio and are very proud of our design heritage, which we honor and want to keep dynamic through exciting new products. Our strong brands will be the engine of our future growth.

Key international brands

Leading global brand for scissors and garden tools

Internationally renowned design brand

Essential equipment for outdoor activities

Leading regional brands

Finland's most popular motor boats

Products for outdoor and wellness

Finnish design for the home for over 135 years

Nordic expert in cookware & cutlery

Local and tactical brands

BodaNova Drive Boats Ebert

Gingher Höganäs Keramik Høyang-Polaris

Kaimano Kitchen Devils Leborgne Montana

Raadvad Rörstrand Sankey Zinck-Lysbro

Enriching people's everyday lives

Fiskars makes products that people use in their everyday life, at home, in the garden, and outdoors. Current trends, such as people's growing environmental awareness and appreciation of lasting design and functionality, support our business.

P eople today value an active life and are investing more time and money in the home and spending more time outdoors. We believe that this trend will support our development and help ensure the growth of our businesses for many years to come.

Green gardening

Gardens are increasingly seen as second living rooms, as places where people can spend quality time with family and friends. People's greater ecological and environmental awareness means that they are more interested in knowing where their food comes from, which is being reflected in the increasing popularity of grow-it yourself. Eco-friendly garden products – such as the Fiskars weeder, a herbicide-free way of keeping weeds under control, and the new Fiskars reel mower, which needs neither fuel or electricity – are very much to the fore.

Quality time at home

Green values are also being increasingly reflected in the home. Trends like cocooning and dining-in are transforming homes into entertainment venues for family and friends. The traditional division between kitchens and living rooms is disappearing, and homeware is being seen as an integral part of interiors. Fiskars Home products for preparing and serving food, together with new interior products, combine functionality with design and meet the expectations of even the most demanding consumers.

Outdoor activities

People are paying more attention to their personal wellbeing and health, and outdoor activities that are easy to access and easy to learn are growing in popularity. Camping is becoming more popular in both the Americas

and Europe, and Gerber and Silva are making the most of this trend with their multitools and headlamps.

Retail trends

Most of Fiskars' sales are third-party sales. Direct consumer sales take place through Iittala stores and outlets. The market is seeing a greater polarization between premium brands and private labels, with 'in-between' brands losing market share. Our ability to operate our supply chain effectively is crucial to managing our working capital and helping our trade partners manage their inventories.

Actions and position

Fiskars' vision is to become the number-one specialist company through premium brands that lead the field in functionality, innovation, and design – and a lot of work was done during 2010 to advance this vision.

The European housewares market is fragmented across many small local competitors. Local brands dominate the market in the Nordic countries in particular. Regional and local brands such as Arabia, Hackman, and Raadvad complement our offering locally, alongside our international brands: Fiskars and Iittala. Fiskars is the leading global scissors brand, and the introduction of colorful new handle decorations helped further boost sales in 2010. Iittala has expanded its range with new interior design products, such as its Vitriini boxes.

In the Garden business, Fiskars is the leading brand in digging and stick tools and axes in Europe, and the number-two in cutting tools; and the number-one in pruning tools and water harvesting in the Americas. Investments in the Fiskars brand, such as TV campaigns profiling axes and garden tools in Germany

and France, resulted in a strong improvement in sales in 2010.

In the Outdoors area, Gerber is the leading global brand in knives and multitools, and the company's focus on consumer insight has resulted in several new products that have been well-received in the marketplace, such as the co-branded Gerber Bear Grylls Survival Series. Silva's investments in lighting products have also delivered good results. Buster's market share rose to a record high in 2010, driven by the introduction of seven new models and the new Drive Boats range.

Our premium specialist brands aim to meet the expectations of today's trends and markets.

FUNCT

IONAlITYFor a product to become a classic, it needs to serve its purpose better than other products. The designer of Iittala's Teema range, Kaj Franck, said back in the 1950s that products should always be appropriate, durable, and functional. Which is why we are committed to products that make a positive contribution to users' lives.

Lasting design S

Fiskars sees the entire life-cycle of its products and its commitment to lasting design and product durability as fundamental to its approach to sustainability.

ustainable development represents a central foundation of Fiskars' operations and the company's 361-year heritage. Good economic performance and financial responsibility are central to sustainability, and enable environmental issues, social responsibility for personnel, and cooperation with society as a whole to be given the attention they deserve. Fiskars gives particular priority to safeguarding and developing the cultural heritage associated with its birthplace, Fiskars Village. The company's mission – Lasting everyday design, since 1649 – forms part of the same continuum.

The principles underlying Fiskars' approach to corporate responsibility are defined in its Code of Conduct, which was approved by the Board of Directors at the end of 2008. All employees have taken part in training on these principles. Fiskars abides by the local laws and regulations of all the countries in which it operates and is committed to being a good and ethically responsible corporate citizen.

Fiskars' corporate responsibility principles are included in its Code of Conduct.

Developing production

Fiskars' supply chain, which extends

from in-house manufacturing to procurement, logistics, and distribution, is based on sustainable principles. Fiskars has almost 20 production sites that concentrate on its specialist areas of expertise. These sites are developed on a continuous basis to meet the latest standards of health, safety, environmental impact, and sustainable energy use.

A Safety Navigator audit covering occupational health and safety was carried out at all plants in Finland during 2010, and resulted in a set of action plans for improving health and safety performance and for managing these issues at unit level.

Additional occupational safety training has taken place at plants, which are preparing for OHSAS 18001 certification during 2012.

Fiskars Home Operations received an ISO 14001 certificate covering all its plants in Finland in 2010.

Fiskars has been involved in an industry-wide energy efficiency project since 2008, committing the company to a 10% reduction in energy usage at its plants in Finland by 2016. Manufacturing processes are continuously developed to minimize the use of raw materials and the emissions and waste they generate. At Arabia, for example, work started on modernizing the entire

raw materials and glaze process in 2010 with major investments in the latest technology, and the new process will be started up in 2011.

Supply chain management processes, together with process development work on them, are designed to ensure that sales needs can be anticipated accurately and that production can respond flexibly to demand. Ensuring that production capacity meets demand as closely as possible helps avoid surplus production. Streamlined logistics also play an important part in reducing Fiskars' environmental footprint, and the aim is to eliminate unnecessary intermediate stages throughout the logistics chain, by things such as consolidating inbound shipments, eliminating airfreight, and streamlining the overall logistics structure.

Extended responsibility

To complement in-house manufacturing, Fiskars has developed a network of external suppliers. These are seen as long-term partners and are selected on the basis of their capability to support Fiskars' quality, supply chain, cost, and technical targets with flexibility. Fiskars personnel from local sourcing offices and business areas work in close cooperation with our suppliers.

Fiskars requires its partners to commit to principles covering labor and human rights, health and safety, environmental impact, and business ethics. Extensive supplier audits have been carried out since 2009, and audit criteria were updated in 2010 based on the latest trade requirements, international standards, and industry practices. Suppliers are required to follow a code of conduct document, and audits are carried out to verify compliance. The Fiskars Supplier Code of Conduct has concrete implications regarding audit procedures in Asia and Europe. Audits will cover around 170 individual requirements, and suppliers' performance in corporate responsibility is enhanced by a systematic development program together with Fiskars. Suppliers' performance in corporate responsibility is scored and graded, and results have a concrete impact on commercial decision-making. Fiskars ceased business with one supplier in 2010 due to a lack of required safety measures.

Responsibility for personnel

Personnel is one of our most important assets, and motivated personnel are seen as a key factor in our business

Sustainable development represents a central foundation of Fiskars' operations.

success. Fiskars conducted its first global employee engagement survey in 2010 and local action plans drawn up subsequently will help make Fiskars an even better place to work. The company is committed to treating all its people fairly and equally and to supporting them in developing their skills and competences.

Supporting charity and culture

Fiskars has worked with various cancer foundations since 2005, and continued to do so in 2010, donating part of sales revenue from its pink garden and home products to the Pink Ribbon campaign. Fiskars also supports local organizations in the communities where its plants are located, together with a small number of carefully selected national charities, through donations. Cooperation with the Finnish Design Museum, the Arabia Art Department Society, and the Cooperative of Artisans, Designers and Artists in Fiskars forms an important part of Fiskars' cultural responsibility.

The carbon footprint of a liter of milk is higher than that of a pair of Fiskars scissors

The Carbon Footprint and Inventory Analysis that we conducted in 2010 represented one of the year's most important inputs in further developing our environmental sustainability.

We used the WBCSD GHG Protocol, the leading standard for defining and calculating corporate carbon inventories, for the analysis. This employs carbon dioxide equivalents (CO2 -e) to quantify the amount of direct and indirect CO2 released into the atmosphere and denote the impact of greenhouse gases in raising temperatures.

The Carbon Footprint Inventory produced baseline information for Fiskars' energy efficiency programs, target-setting, and performance monitoring, and will provide the foundation for further developing and monitoring the Group's environmental sustainability. The inventory covered all of Fiskars' production operations, sales offices, and distribution centers, as well as outsourced transportation.

In line with our mission – Lasting everyday design, since 1649 – we believe in high-quality products featuring outstanding design. Our products are designed to stand the test of time and please both the hand and the eye. One of our most iconic products is, of course, our orange-handled Classic scissors, first produced in 1967. The revolutionary process used to manufacture them, together with their excellent cutting quality and ergonomics, soon made them a major success story; and over one billion pairs have been produced to date.

The Carbon Inventory included a detailed carbon footprint analysis covering the entire life-cycle of the Classic and showed that the carbon footprint of a pair of Classic scissors is about 0.3 kg CO2 -e, or less than half that of a liter of milk. This low level is achieved through things such as re-use and recycling, which starts in production, where all waste material is collected, and in packaging, which makes use of recycled materials.

We emphasize the importance of sustainable development and the inventory will give us a good startingpoint to further develop our processes and practices.

Developing personnel

Motivated people are a key factor in our business success. By developing outstanding management practices, we want to ensure maximum employee engagement.

F iskars employes some 3,600 people internationally. With operations in more than 20 countries in three business areas, we have a diverse employee base. This international presence gives Fiskars a unique insight on how consumers and customers think in different markets.

Fiskars' operations are based on its corporate values: innovation, accountability, teamwork, and integrity. These provide the foundation for setting our expectations in terms of leadership practices and employee behavior.

Collaboration is one of our key drivers. Increased collaboration is beginning to make itself felt in all areas of our activities, from new IT tools to English-language training throughout the company to provide us with a common language. We believe that greater collaboration will lead to

better results across our businesses. To promote collaboration, the transfer of innovations, and networking, we will encourage employee rotation between different business areas and regions. The common internal job market will be extended to all Fiskars employees in 2011.

Prioritizing outstanding leadership

Fiskars' people strategy expects a lot of the Group's leaders. We believe that we can make a difference through our people, and front-line leaders are responsible for helping make this happen by driving employee engagement and satisfaction.

Outstanding leadership does not happen by accident. It requires skills, tools, and processes to ensure the highest standards of leadership. To support managers and to drive Fiskars' strategy, we have created

EMPLOYEE ENGAGEMENT AND SATISFACTION are AT THE HEART OF OUR PEOPLE STRATEGY.

a common performance management process for employee target-setting and developmental planning. The aim is that all Fiskars employees should have a clear understanding of what is expected of them and how they are progressing in terms of expectations, and that they should be rewarded for excellent performance.

Simply setting expectations is not enough, we also need to develop our people. To ensure that employees at all levels and in all positions have the skills and competences they need to perform at their best, we have established a process for identifying the development needs of all employees and begun creating a learning solution portfolio.

Employee satisfaction and engagement

Employee engagement and satisfaction is crucial for all businesses, and Fiskars is no different. To provide a

holistic picture of how employees experience Fiskars as an employer, we recently conducted our first-ever global employee engagement survey. The response to this was very positive and our people provided us with valuable feedback.

All countries, entities, and business areas are committed to following up on the results of the survey, and actions will be taken at every site to ensure that we respond to the employee feedback that we have received.

Modern craftsmen

A commitment to modern craftsmanship, together with artisan skills, has been at the core of Fiskars' operations throughout the company's history – and 2010 was no different. We see our unique competences as a very valuable asset, and we are committed to ensuring that we retain these people skills and our expertise in core materials, such as glass, to further

develop the Fiskars of the future.

Together with our employees, we want to set an example in promoting wellbeing in the workplace, and have increased our efforts in this area. Through a unique combination of sophisticated methods for measuring employees' wellbeing, early involvement and follow-up in the case of challenging situations, voluntary sports and recreational activities, close collaboration with occupational health providers, and managerial training, we believe that we will be able to make a real difference in promoting a satisfied and enthusiastic workforce.

Personnel in 2010

Fiskars employed an average of 3,612 people (3,867) in 2010. The number of personnel was 3,944 (3,742) as of the end of the year, of which 3,209 (2,959) were employed in the EMEA region, 570 (667) in the Americas, and 165 (116) by segment Other.

inno vat

ionInnovation lies at the core of our brands. Successful new product innovations are essential for the future growth and success of our business. Our commitment to innovation and our wide-ranging understanding of consumers help us develop solutions that offer more and are easy to use.

• 24 Home
• 26 Garden
• 28 Outdoor
• 30 Other
• 30 Real Estate
• 31 Associated company
• Wärtsilä

AO F.A.S.T. 3.0 knife, Gerber; Rotisseur frying pan, Hackman; Sport Console 56, Drive Boats.

New innovations for the home

The Iittala and Fiskars brands are spearheading Fiskars Home's international growth.

T he Fiskars Group is the leader in homeware products in the Nordic region, with a broad portfolio of respected brands such as Iittala, Fiskars, Arabia, and Hackman. In the Americas, the business is currently focused on scissors and other cutting tools for school, office, and craft use, and Iittala home products.

Net sales in the Home business area in 2010 rose 4%, to EUR 309 million. Sales of homeware products increased in Finland and Sweden in particular. Craft product sales remained at 2009 levels, despite the divestment of the craft consumables business in June 2009.

Fiskars' Home products are sold through major retail chains, department stores, and specialist shops.

Iittala shops, Iittala outlets and our own webstore together with Iittala's shop-in-shop concept provide an important addition to the distribution network. At the end of 2010, the number of Iittala stores, outlets and shop-in-shops stood at a total of 89. The Myiittala online community attracts loyal customers worldwide.

Expanding into interior design

All of Fiskars' homeware brands have focused on their product development processes and introduced new commercial innovations over the last couple of years. Iittala, in particular, has expanded its offering into interior design. An example of this is the innovative new Vitriini range of boxes for storing and showcasing little things, designed by Anu Penttinen

business area home

Modern Scandinavian design products for the kitchen, table, and the rest of the home

Main products: tableware, glassware, interior design products, cutlery, scissors, sauce- and frying pans, kitchen knives and other kitchen utensils, and craft products

and launched in early 2010.

The company also celebrated Oiva Toikka's fiftieth year as an Iittala designer during 2010. Toikka designed a unique Art Works collection and added a glass bird to his collection. A selection of the Kastehelmi range of glassware that Toikka originally designed in 1964 was also relaunched.

The Fiskars brand introduced various new innovations for the kitchen and crafting use. Fiskars' ergonomic Rolling Pin won a red dot design award, while the new Everywhere Punch™, has been a hit among scrap-bookers.

The Hackman cookware and cutlery brand celebrated its 220th anniversary and the Arabia brand introduced several new products.

A whole new look to scissors

Scissors are Fiskars' most well-known product across the globe, and their classic ergonomic handles received a makeover in 2010 with the launch of a series of colorful patterns that draw on nature for their inspiration.

The new look is produced by a special technique that ensures that the embedded design will not wear off even with heavy use. Thanks to the new designs, Fiskars scissors look set to become an even more attractive element in the home and the kitchen.

Read more at www.fiskarsgroup.com

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Reinventing gardening

Fiskars Garden focuses on functional, easyto-use tools that make the gardening experience more enjoyable.

F iskars is the world's leading garden cutting tool brand and its products are sold widely across Europe, North America, and Australia. Net sales in the Garden business area rose by 19% in 2010, to EUR 275 million. Sales were up in both the Americas and Europe, particularly in the Nordic countries, Germany, and France. Sales of Fiskars-branded products improved in all key categories. Heavy snow at the beginning and the end of 2010 boosted sales of snow tools to record-high numbers.

Focusing on the Fiskars brand

The Garden business is focusing its brand development efforts on the Fiskars brand, and has continued investing heavily in marketing in

Central Europe. National TV campaigns launched in Germany in 2009 continued during 2010 and were extended to the French market. Sales of Fiskarsbranded garden tools have grown significantly on both these markets. Increased marketing investments have also been allocated to the Russian market with good success. In the UK, products have been shifted from the licensed brand to the Fiskars brand, and this has seen Fiskars gain market share among British consumers.

Gardening is an increasingly popular leisure time activity that complements people's desire for a healthy and sustainable lifestyle. Sustainability is a key feature of the majority of Fiskars' garden hand tools, which are made to last a lifetime. Ecological factors have inspired a number of new

business area Garden

Ergonomically designed tools for the garden

Main products: pruners, loppers, shears, axes, weeders, spades and shovels, planters and rainwater collectors, and construction tools

€275	million of net sales in 2010 (2009: €231 million)
38%	of consolidated net sales
1.383	personnel (FTE), average in 2010 (2009: 1.463)
Brands

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product innovations, such as Fiskars' rainwater collection systems, weed pullers, and hand-powered reel mowers.

Functionality, combined with ergonomic and distinctive design, is a central feature of Fiskars products. This aspect of Fiskars products has been recognized through many awards over the years, and 2010 was no exception. Fiskars' biggest new product launch in 2010, its new axe range, won the red dot Best of the Best award. Two other products received red dot recognition: the Fiskars ErgoPlus™+ spade, which features a unique orange gel-padded handle, and QuikFit™ stick tools, which incorporate an innovative mechanism that makes switching over heads a snap.

New reel-mower a hit with customers

Environmentally friendly products are growing in popularity among gardeners. Fiskars launched a hand-powered grass cutter in the US in early 2010. This new reelmower is perfect for lawns, does not require fuel or electricity, cuts the grass instead of ripping it, is silent, and keeps users fit as well – all of which has helped make it a big success and seen it featured on a number of TV shows and in many newspapers.

Read more at www.fiskarsgroup.com

Equipment for people on the move

Fiskars Outdoor offers a wide range of innovative, essential, and reliable gear through its three premium brands: Gerber, Silva, and Buster.

F iskars' Outdoor business focuses on the Gerber brand in North America. This leading knife and multi-tool brand enjoys a strong reputation among both outdoor enthusiasts and professionals. In the Nordic region, Buster is the most popular aluminum boat in Finland, Sweden, and Norway; while Silva's offering includes compasses, pedometers, and headlamps for everyone who loves the big outdoors.

Net sales at the Outdoor business area in 2010 were at previous year's level, EUR 128 million. Sales in the Americas were slightly below 2009 levels, affected by the sale of the Brunton camping equipment business. In EMEA, the boat market recovered during the year. Fiskars' boat sales grew significantly and Buster remains Finlands's most-popular leisure boat brand. Sales of Silva outdoor equipment were above 2009 levels, primarily driven by the mobile light category.

Strong product development

The Gerber business is closely focused on the needs of outdoor enthusiasts and professional users, and regularly launches new easyto-use, functional tools serving the needs of these segments. Close cooperation with end-users continues to make an important contribution here.

Fiskars Outdoor' retail presence in the Americas ranges from major retailers to specialist stores, supple-

business area outdoor

Innovative, essential products for an active lifestyle and durable leisure boats

Main products: multi-function tools, sporting and tactical knives, flashlights and headlamps, pedometers and compasses, and aluminum boats

€128	million of net sales in 2010 (2009: €128 million)
18%	of consolidated net sales
575	personnel (FTE), average in 2010 (2009: 653)

Brands

mented by a growing online business. The new Gerber / Bear Grylls line has been particularly wellreceived and is extending Gerber's customer and consumer base.

In the boat business, a lot of work has been put into product development, and the Buster brand introduced seven new models in 2010. Fiskars Boats also launched a completely new boat brand, Drive Boats.

Silva expanded its headlamp offering with several new models. One of these, the X-Trail headlamp, won the ispo Outdoor Award 2010 thanks to its innovative design, which offers a high degree of additional function and safety, without compromising on weight or ease of use.

Extreme gear for survivors

Gerber launched a new partnership initiative with Bear Grylls, an expert survivor and world-famous adventurer, in 2010. The co-branded Gerber Bear Grylls Survival Series offers a one-ofa-kind line of knives, tools, and other gear, drawing on Gerber's over 70 years of expertise and Bear Grylls' extensive outdoor experience.

Read more at www.fiskarsgroup.com

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Developing our assets

Fiskars' other functions cover the Real Estate business, corporate headquarter functions, and shared services.

Real Estate is responsible for managing properties in Fiskars Village and other locations, including the Group's production sites in Finland. The unit also develops Fiskars' 15,000 hectares of land and 3,700 hectares of water, the majority of which are located in and around Fiskars Village and on the Hankoniemi peninsula in southern Finland.

Long-term approach to forestry

Fiskars' forests include both productive stands of timber and various protected habitats. Changes in the fair value of the company's standing timber are based on a three-year rolling average of timber prices, and are presented as a separate entry in the income statement under operating profit.

Forest management practices are based on a long-term, sustainable

approach, and all 11,000 hectares of commercial forest are certified under the PEFC system. Fiskars has also been involved in developing the FSC forest certification system.

Developing Fiskars Village as an attractive place to live and visit Fiskars Village, the company's birthplace, is easily the most well-known part of the Real Estate portfolio – and has become an internationally renowned center of Finnish design and art, attracting around 150,000 visitors a year.

Real Estate is also actively involved in the development of the Raseborg area, where one of the most important projects recently has been a new land use plan for Fiskars Village, developed together with the local municipality. The plan will release additional building plots for leasing and sale in Fiskars Village, and should help encourage

positive further growth and development in the area, which has become a dynamic community and source of employment for local people.

Living heritage

Founded in 1649, Fiskars Village has experienced many different phases in its history, since its early days as a center of iron-making. Fiskars' very first orange-handled scissors were made in the old copper smithy there in 1967, which today houses art and design exhibitions. Fiskars Village is a unique center for art and design, and over 100 artists, designers, and craftsmen are based there today.

Like the company which it gave birth to, Fiskars Village has developed a strong identity all its own, rooted in the local heritage while looking forward to the future and promoting positive future development.

ASSOCIATED COMPANY Wärtsilä

Wärtsilä Corporation represents part of Fiskars' portfolio as an associated company. Fiskars continued to be the company's largest single shareholder in 2010 with 17.1% of Wärtsilä's shares and votes.

Wärtsilä forms one of Fiskars' reported operating segments and is treated as an associated company, as Fiskars considers that it has a significant holding in the company under the provisions of IAS 28. Wärtsilä's performance has a major impact on Fiskars' result and cash flow from operating activities. The share of profit is reported as a separate item below the consolidated operating profit of Fiskars.

Wärtsilä Corporation is a global supplier of marine and energy systems, solutions, and services, and is listed on the NASDAQ OMX Helsinki (HEX: WRT1V).

Wärtsilä recorded net sales of €4,553 million in 2010 (2009: €5,260 million). Its operating profit was €412 million (592) and earnings per share €3.91 (3.94). It employed 17,528 (18,541) people as of the end of the year.

17.1%	Fiskars' share of Wärtsilä shares
€65.9	million was Fiskars' share of profit in 2010 (2009: 66.5 million)
€29.5	million was paid in dividends to Fiskars in 2010 (2009: 25.3 million)
€961.9	million was the market value of Fiskars' holding in Wärtsilä at the end of 2010 (2009: 472.9 million)

For more information about Wärtsilä, see the Report by the Board of Directors, page 46. Details as of December 31, 2010.

D

esignGreat design combines beauty, form, and function. Our products are renowned for their modern aesthetics and unique and memorable look. Lasting everyday design, since 1649.

32–43 GOVERNANCE

• 34 Corporate Governance Statement
• 40 Board of Directors
• 42 Executive Board
• 43 Business Area Management

Pino candle holders, Arabia; PowerStep™ pruner, Fiskars; Birds by Klenell, Harakka Mommy, Iittala.

Corporate Governance Statement for 2010

Corporate governance at Fiskars Corporation is based on the Company's Articles of Association, Finland's Companies Act and the rules and regulations concerning companies listed on NASDAQ OMX Helsinki Ltd. Fiskars also complies, without exception, with the Finnish Corporate Governance Code approved by the Securities Market Association, which came into force on October 1, 2010 and can be consulted at www.cgfinland.fi. This Corporate Governance Statement was published as a separate report from the Report by the Board of Directors on the company's website www.fiskarsgroup.com on February 9, 2011.

Ultimate decision-making power is vested in Fiskars Corporation's shareholders at the General Meeting of Shareholders. Fiskars' Board of Directors is responsible for the management and proper arrangement of the operations of the Company. The Managing Director is responsible for the day-to-day management of the Company under the instructions and orders of the Board of Directors.

Annual General Meeting of Shareholders

An Annual General Meeting shall be held annually before the end of June, either in Raseborg or Helsinki. The Annual General Meeting decides on matters stipulated in the Companies Act and the Articles of Association, such as the approval of the financial statements, the distribution of profits, discharging the members of the Board of Directors and the CEO from liability, and the election of the members of the Board of Directors and the Company's Auditors and their remuneration.

Under the Articles of Association, notices to Shareholders' Meetings shall be published on the company's website and in another manner possibly decided by the Board of Directors.

Annual General Meeting for 2010

Fiskars held its Annual General Meeting for 2010 on March 16, 2010. The Meeting approved the financial statements, discharged the members of the Board and the CEO from liability, and decided the dividend to be paid for 2009. The Meeting

also decided the remuneration to be paid to the Board and elected the members until the end of the Annual General Meeting in 2011. The Company's Auditors were also elected, and their remuneration was decided. The Meeting authorized the Board to acquire Fiskars shares and decide on conveying them in accordance with separately agreed conditions.

Board of Directors

Under the Articles of Association, the Board of Directors shall consist of a minimum of five and a maximum of nine members. The terms of office of all members will run from their election to the end of the following Annual General Meeting. The Board is responsible for electing a Chairman from among its members.

Responsibilities and Charter of the Board

Fiskars' Board of Directors is responsible for managing the Company in accordance with the law, official regulations, the Articles of Association, and decisions taken by the Annual General Meeting of Shareholders.

Under the Charter approved by the Board of Directors, the Board is responsible for the management and appropriate arrangement of the Company's operations and for confirming the Company's business strategy and budget. In addition, the Board oversees the solidity, profitability, and liquidity of the Company, as well as Company management. The Board is responsible for approving the risk management principles followed by the Company, drafting financial statements, confirming financial policy, and deciding on measures that are exceptional or far-reaching, taking the scope and nature of the Company's operations into account, unless these matters come within the responsibilities of the General Meeting of Shareholders.

The Board shall appoint the CEO and confirm the terms of his employment and other compensation. The Board is also responsible for appointing the members of the Executive Board, other senior managers, and the internal audit manager, approving their terms of employment and other compensation, and deciding the principles for the Group's compensation

systems and other long-term personnel issues. The Board also considers matters related to the appointment of the members of the Boards of Directors of subsidiaries. The Board is also responsible for appointing Board Committees and their members. These Committees are responsible for preparing matters within their specific area of competence to be put before the Board. The Board shall evaluate its work and cooperation with management on a regular basis.

Board of Directors in 2010

Until the Annual General Meeting held on March 16, 2010 the Board of Directors consisted of nine members: Mr. Kaj-Gustaf Bergh, Chairman, Mr. Alexander Ehrnrooth and Mr. Paul Ehrnrooth (Vice Chairmen) and the following members: Mr. Ralf Böer, Ms. Ilona Ervasti-Vaintola, Mr. Gustaf Gripenberg, Mr. Karl Grotenfelt, Mr. Karsten Slotte and Mr. Jukka Suominen.

The Annual General Meeting held on March 16, 2010 appointed nine members:

• Chairman of the Board: Mr. Kaj-Gustaf Bergh (B.Sc, LL.M, b. 1955. Managing Director of Föreningen Konstsamfundet r.f.)
• Vice Chairman: Mr. Alexander Ehrnrooth (M.Sc., Econ., MBA, b. 1974. CEO of Virala Ltd.)
• Vice Chairman: Mr. Paul Ehrnrooth (M.Sc. Econ., b. 1965. Managing Director of Turret Oy Ab)
• Mr. Ralf Böer (Juris Doctor, b. 1948. Chairman, CEO and Partner in Foley & Lardner LLP)
• Ms. Louise Fromond (LL.M., b.1979)
• Mr. Gustaf Gripenberg (D. Eng, b. 1952. Professor, Aalto University)
• Ms. Ingrid Jonasson Blank (M.Sc., b. 1962)
• Mr. Karsten Slotte (B.Sc., b. 1953. President and CEO of Fazer Group)

• Mr. Jukka Suominen (M.Sc., b. 1947). None of the members are employed by the Company. Details of the current Board of Directors are on pages 40–41 of the Annual Report.

The Board of Directors convened nine times during 2010. The average attendance at Board meetings was 97.5%.

No members of the Board have any affiliations with the Company. Mr. Kaj-Gustaf Bergh, Mr. Ralf Böer, Mr. Gustaf Gripenberg,

Ultimate decisionmaking power is vested in shareholders at the General Meeting of Shareholders.

Ms. Ingrid Jonasson Blank, Mr. Karsten Slotte, and Mr. Jukka Suominen are also independent on shareholders. Mr. Alexander Ehrnrooth, Mr. Paul Ehrnrooth and Ms. Louise Fromond are considered dependent on major shareholders.

The shareholdings of the Board are presented on page 79 of this report.

Board Committees

The Board of Directors appointed three committees in 2010: an Audit Committee, a Compensation Committee, and a Nomination Committee.

1. The Audit Committee is responsible for monitoring the reporting process used for the Company's financial statements, supervising the financial reporting process, monitoring the efficacy of the Company's internal controls, internal auditing, and risk management, reviewing the description of the main features of the internal controls and risk management associated with the financial reporting process provided by the Company's administration and control system, monitoring the statutory auditing of the Company's financial statements and consolidated financial statements, evaluating the independence of the Company's statutory Auditors and the additional services provided by the

latter, and drafting the proposal covering the selection of the Company's Auditors to the Nomination Committee.

The composition of the Audit Committee was as follows until March 16, 2010: The Chairman was Mr. Gustaf Gripenberg, and the members were Mr. Alexander Ehrnrooth, Mr. Paul Ehrnrooth, Ms. Ilona Ervasti-Vaintola and Mr. Karsten Slotte.

After March 16, 2010 the Chairman of the Audit Committee is Mr. Gustaf Gripenberg, and the members are Mr. Alexander Ehrnrooth, Mr. Paul Ehrnrooth, Ms. Louise Fromond, and Mr. Karsten Slotte. The Audit Committee convened four times in 2010 and the attendance of members at meetings was 100%.

1. The Compensation Committee is responsible for preparing matters related to the appointment and remuneration of the President & CEO and Group directors and issues related to the Company's remuneration system.

Until March 16, 2010 the composition of the Compensation Committee was the following: the Chairman was Mr. Kaj-Gustaf Bergh, and the members were Mr. Ralf Böer, Mr. Karl Grotenfelt and Mr. Jukka Suominen.

After March 16, 2010 the Chairman is Mr. Kaj-Gustaf Bergh, and the members are Mr. Ralf Böer, Ms. Ingrid Jonasson Blank, and Mr. Jukka Suominen. The Compensation Committee convened four times in 2010 and the attendance of members at meetings was 100%.

1. The Nomination Committee is responsible for preparing proposals related to the composition of the Board for the General Meeting of Shareholders after consulting major shareholders, and preparing proposals to the General Meeting of Shareholders on the remuneration of Board members. Furthermore, the Nomination Committee is responsible for preparing proposals to the Board regarding the composition of the Board's committees, preparing the proposal on the selection of the Company's Auditors based on the proposal of the Audit Committee, and confirming the criteria and processes to be used for evaluating the Board's work.

The Chairman is Mr. Kaj-Gustaf Bergh, and the members are Mr. Alexander Ehrnrooth and Mr. Paul Ehrnrooth. The Nomination Committee convened twice in 2010 and the attendance of members at meetings was 100%.

President & CEO

The Board of Directors is responsible for appointing and dismissing, if appropriate, the Managing Director, who also acts as the Group's Chief Executive Officer. The CEO is responsible for running the Group's operations and is in charge of its administration in accordance with the Company's Articles of Association, legislation, official regulations, and the instructions and orders of the Board. The CEO is also responsible for ensuring that the Company's accounting is in accordance with legal requirements and that assets are managed reliably. The CEO is assisted in these duties by the Executive Board.

The current President & CEO is Mr. Kari Kauniskangas (M.Sc. Econ., b. 1962). The Company does not have an Executive Vice President responsible for acting as the CEO's deputy. Details of the CEO are presented on page 42.

Other management Executive Board

The management team of Fiskars Corporation consists of the managers responsible for corporate and Group-wide functions. Under the leadership of the CEO, the Executive Board prepares proposals for the Board and discusses the Group's strategy and issues related to Group-wide and corporate functions and their development. The Executive Board's duties also include stakeholder relations.

In 2010, the Executive Board consisted of CFO Teemu Kangas-Kärki, Chief Strategy Officer Max Alfthan, General Counsel Jutta Karlsson and Vice President, Operations Hille Korhonen. Details on the members of the Executive Board are on page 42.

Business Area Management

The Presidents of Fiskars' business areas are responsible for the development of their business areas and for ensuring that their businesses comply with the requirements of local laws and regulations and Fiskars' Code of Conduct principles. They are also responsible for ensuring that the subsidiaries associated with their businesses have the appropriate resources needed for their business.

The Presidents of Fiskars' business areas and the Executive Board form the Executive Team of the Company.

In 2010, the Presidents of Fiskars' business areas were

• Mr. Jaakko Autere, Home
• Mr. Thomas Enckell, Garden EMEA
• Mr. Lars Gullikson, Outdoor EMEA
• Mr. Tomas Landers, Real Estate
• Mr. Jason R. Landmark, Outdoor Americas
• Mr. Juha Lehtola, Boats
• Mr. Paul Tonnesen, Garden & SOC, Americas

Details on the Presidents and their areas of responsibility are presented on page 43.

Internal Control, Risk Management, and Internal Audit

The Board of Directors is responsible for the appropriate management and organization of operations. In practice, it is the responsibility of the CEO, together with management, to put in place and administer accounting and control mechanisms and other similar mechanisms.

The Group's financial performance is reviewed monthly through a reporting system that covers all units and operations. Business areas are run by and through their own management teams. With the support of the Corporation, business areas are responsible for the day-to-day risk management associated with business operations.

Risk Management is responsible for identifying, evaluating, and managing risks that may threaten the achievement of Fiskars' business goals. The targets and principles used in risk management, together with the major risks and uncertainties facing Fiskars, are presented on pages 37–38 of the Annual Report.

Internal Audit is responsible for auditing and reviewing how well internal control systems function, the appropriateness and efficiency of functions, and how well guidelines are observed. Internal Audit also strives to promote the development of risk management practices in the Group's business units. The Parent Company has an internal auditor manager, who is administratively subordinate to the President & CEO, but reports to the Audit Committee.

Insider matters

Fiskars applies the insider regulations of NASDAQ OMX Helsinki that came into force on October 9, 2009. In addition, the Company has its own insider regulations that were last updated on November 3, 2009. The Company's Public Insiders include the members of the Board, the President & CEO, and the Company's Auditors. Other Public Insiders include the members of the Executive Board and business area presidents.

Fiskars also has a company-specific insider register as well as a separate project-based register which is maintained for projects that, on completion, may have an impact on the Company's share value.

Fiskars Corporation's Legal Department maintains lists of insiders on the basis of information they provide. The holdings of Public Insiders can be consulted at Euroclear Finland Ltd. (Urho Kekkosen katu 5 C, 00100 Helsinki, tel. +358 20 770 6000) and the Company's website, www.fiskarsgroup.com.

Audit

The Company's Auditor was KPMG Oy Ab, Authorized Public Accountants, with Mr. Mauri Palvi, APA, as Senior Auditor.

A total of EUR 0.7 million was paid in audit fees to the auditors employed by Group companies in 2010. In addition, a total of EUR 0.4 million was paid to the auditors in fees for other consultancy services. The latter fees were primarily related to tax matters.

Communications

Fiskars' aim is to provide all market parties with accurate, up-to-date, and sufficient information on the Company. Details on the Company's administration and control system can be consulted at the Company's website, where stock exchange releases are published immediately after disclosure, and other key investor material is also available.

Fiskars has adopted a silent period of three weeks prior to the publication of results. During this period comments on the market situation or Company prospects are not made by Fiskars.

The main features of the internal control and risk management systems related to the financial reporting process

The financial reporting process refers to activities that generate financial information used in managing the Company and the financial information published in accordance with the requirements of legislation, standards, and other regulations covering the Company's operations.

Internal control related to the financial reporting process

The role of internal control is to ensure that the Company's management has access to up-to-date, sufficient, and essentially accurate information needed for managing the Company and that the financial reports published by the Company provide an essentially accurate view of the Company's financial position.

Structure

Fiskars has four operational segments and four business areas. The business units that operate under the Group's four business areas comprise the base level of financial reporting. Business units are responsible for organizing their own financial management and for the accuracy of their financial reporting. Finance and financial risk management are centralized in the Group Treasury function under the Chief Financial Officer (CFO).

All business areas have their own financial management. The Parent Company also has a Group-level financial management organization that operates under the leadership of the CFO. The financial management of business areas and the Group as a whole are responsible for monitoring the operations of the finance departments of individual business units. Internal Audit audits and monitors the efficacy of the reporting process and the reliability of financial reporting.

Management

Setting and monitoring financial targets represent an integral part of Fiskars' management responsibilities. Short-term financial targets are set as part of the annual planning cycle, and progress in achieving these targets is monitored on a monthly basis. Business units report actual financial data monthly and file a projection of how financial performance is expected to develop over the remainder of the reporting period.

Information from business units is consolidated and validated by the Group's financial organization and the data used to prepare a monthly report for senior management. Monthly reports contain condensed income statements for Fiskars' operational segments and business areas, key indicators, and an overview of the major events affecting their businesses. Reports also include a consolidated income statement, balance sheet data, cash flows, and a projection of the likely development of the financial situation covering the remainder of the reporting period. The Group's Audit Committee, the Group's Board of Directors, Corporate Management Team, and business area management teams monitor the development of the financial situation and progress on targets on a monthly basis.

Financial IT systems

Business units make use of a number of different accounting and financial reporting software systems. Group-level financial reporting is handled through one, centrally managed system. Business units and business areas are responsible for providing data for the Group's reporting system. Financial management is responsible for maintaining the Group's reporting system and for monitoring that agreed and correct data is fed into the system.

Guidelines

Financial reporting is governed by a set of common principles. The Group applies the international IFRS accounting standards approved within the EU and

has a common Group list of accounts. The Group's financial management has drawn up guidelines for units, covering the content of financial reporting and the dates within which reporting must take place.

Risk management related to the financial reporting process

The task of risk management is to identify potential threats affecting the financial reporting process that, if they were to become reality, could lead to a situation in which management lacked up-to-date, sufficient, and essentially accurate information needed to manage the Company and in which financial reports published by the Company did not provide an essentially accurate picture of the Company's financial position.

Fiskars manages the risks associated with its financial reporting process by a number of means including the following: maintaining and resourcing an appropriate financial management organization, limiting the rights and responsibilities of individual members of staff appropriately, managing the user rights that give access to the Group's reporting system centrally, issuing guidelines on accounting and reporting, maintaining a common Group list of accounts, making effective use of IT tools, providing ongoing training for personnel, and validating the accuracy of information that is reported as part of the reporting process.

Developing the financial reporting process

Fiskars develops all aspects of its operations on an ongoing basis.

The financial reporting process has been streamlined with more standardized stages and automated transfers in the process which strengthen internal controls. Fiskars will further improve transparency through common processes.

RISK MANAGEMENT

Fiskars' risk management function is responsible for identifying, evaluating, and managing risks that may threaten the achievement of the Company's business goals. The aim is to secure personnel, assets, and products intended for customers and protect the company's reputation, brands, and shareholder value from developments or damage that may undermine the company's profitability or adversely affect its assets.

The principles observed in risk management are included in the risk management policy approved by the Board of Directors. The latter's Audit Committee oversees the efficacy of risk management systems. Responsibility for identifying, evaluating, and also managing a large proportion of Fiskars' risks is delegated to business units and support functions. Group Treasury is responsible for developing and maintaining the methods, tools, and reporting associated with risk management. In addition, it carries out risk assessments together with business units and support functions and assists in the preparation of action plans based on the results of these assessments.

Fiskars has taken out extensive insurance for corporate companies to provide cover for the Group's main assets, possible business interruption, transportation, and liabilities. Insurance matters, with the exception of local personal insurance, are managed centrally by Group Treasury.

Group Treasury administers financial risks in accordance with principles approved by the Board of Directors.

A description of how financial risks are managed is included as part of the Financial Statements in the Annual Report.

Principal uncertainties Customer relationships and distribution

As Fiskars produces and sells consumer products, general market conditions and a decline in consumer demand in key market areas in Europe and North America could have a material adverse effect on the Corporation's net sales and profitability.

Fiskars' products are sold through its sales force, agents, and distributors to

wholesalers, retailers, and directly to consumers through its stores. Sales to large individual customers are significant in some businesses. As some major customers decide their product range and suppliers only once annually, the loss of a small number of major customers or disruption in the activities of a specialized distribution channel could have an adverse effect on Fiskars' business and profits. None of Fiskars' customers accounted for more than 10% of sales in 2010.

Supply chain

Fiskars is making increasing use of outsourcing and working with a growing number of contract manufacturers and partners. The proportion of in-house production has declined, and the dependency on the supply chain increased. Supply chain management has become a management and availability risk, as a considerable proportion of sales in respect of some products is of a seasonal nature and an increasing proportion of total corporate purchases will be made in countries distant from the company's main operations. Risk management associated with outsourced production and ensuring product availability is being developed on a continuous basis.

Price and supply of raw materials and commodities contracts

Fiskars products are manufactured from a wide range of materials, primarily steel, aluminum, and plastic. Sudden fluctuations in raw material and energy prices can have an impact on the company's operational result. Fiskars employs long-term contracts with its raw material suppliers to minimize this; and production plants in Finland that use large amounts of electricity employ collective purchasing to hedge their operations against fluctuations in electricity prices.

Innovation

The growth of Fiskars' business depends to a significant extent on its ability to generate and commercialize a stream of new products and product enhancements that meet consumer expectations. The ability to combine design and innovation with technical R&D capabilities forms a solid

basis for rolling out products successfully in a timely manner.

Brands and corporate reputation

Fiskars has a number of global and local brands in its portfolio. Any adverse event affecting consumer confidence or continuity of supply affecting these brands could have a detrimental impact on its business. Fiskars monitors the performance of its leading brands closely, and is committed to taking appropriate action to mitigate any threat to brand value.

Weather and seasonal dependence

Some product groups, particularly garden tools during the spring, can be affected by the weather. Unexpected weather conditions can have a negative impact on sales of these products. Sales of homeware products are heavily geared towards the last quarter of the year, and any negative issues related to product availability or demand during this quarter could affect the full-year result of this business significantly.

Environment

Most of Fiskars' industrial operations involve no significant environmental risks. Production facilities have up-to-date environmental permits that set clear limits on their operations. Changes in environmental directives can affect existing environmental permits. Adapting to such directives may require changes in existing production methods or investments in new equipment. Changes in production capacity or structure at some older facilities may result in additional costs as environmental requirements change.

Pensions and similar obligations

Movements in equity markets, interest rates, and the life expectancy of participants in some pension plans could affect the pension liabilities reported by the company. These liabilities are regarded as small, however, and the risk considered immaterial.

Associated company

Fiskars has a substantial investment in an associated company, Wärtsilä Corporation. Major changes in Wärtsilä's share price, profitability, or ability to pay a dividend would have a material impact on Fiskars.

REMUNERATION

Board's remuneration

The Annual General Meeting determines the remuneration of the Board of Directors. The Board's Nomination Committee is responsible for preparing proposals to the General Meeting of Shareholders on the remuneration of Board members.

In 2010, the Annual General Meeting determined to pay the Chairman of the Board EUR 70,000 per annum, the Vice Chairman EUR 50,000 per annum, and members EUR 35,000 per annum. In addition, the Annual General Meeting determined that Board members will be paid a sum of EUR 600 per Board and Committee meeting, the Chairman of the Board EUR 1,100 per Board and Committee meeting, and the Chairman of the Audit Committee EUR 1,100 per Audit Committee. In addition, members are reimbursed for their travel and other expenses incurred as a result of their activities on behalf of the Company.

Compensation paid to the members of the Board totaled EUR 459,250 in 2010.

The members of the Board are not included in Fiskars' incentive schemes and they are not employed by the Company.

CEO's remuneration

The Board appoints the Managing Director (President & CEO) and confirms the terms of his employment and other compensation. The Board's Compensation Committee is responsible for preparing matters related to the appointment and remuneration of the CEO.

In addition to his basic salary, the CEO is paid an annual bonus designed to provide a target bonus equivalent to 60% of his annual salary. The maximum level of the bonus is 80% of the basic salary. The bonus paid is determined in accordance with the financial targets and other goals set annually by the Board of Directors. In 2010, the financial targets have related to earnings before taxes excluding Wärtsilä and cash flow.

The CEO is also included in a long-term incentive scheme with a target level similar to that of the annual bonus. For more information see 'Long-term incentive scheme'.

When he joined the Company in January

2008, the CEO agreed to purchase Company shares equivalent in value to his signing bonus, a total of 15,397 shares. These shares have a lock-up period until March 1, 2011.

The CEO and the Company shall have a notice period of six months. Remuneration on dismissal by the Company shall be 12 months' basic salary, in addition to salary for the six-month notice period. The Managing Director's agreement shall end when the CEO reaches the age of 60. In addition to his statutory pension, he is provided with a voluntary supplementary contribution-based pension, similar to that used for the Executive Board, under which the Company contributes 20% of his annual salary without bonuses.

The salary, benefits, and bonuses of CEO Kari Kauniskangas in 2010 totaled EUR 684,162. The share of basic salary was EUR 380,211 and the share of bonuses paid for the 2009 result was EUR 303,950.

Executive Board's remuneration

The Board is responsible for appointing the members of the Executive Board, approving their terms of employment and other compensation, and deciding the principles for the Group's compensation systems. The Board's Compensation Committee is responsible for preparing matters related to these topics.

Some members of the Executive Board have an annual bonus scheme, which is designed to provide a target bonus equivalent to 20–40% of their annual salary. The maximum level of the bonus is 30–60% of the basic salary. The bonus paid is determined in accordance with earning criteria set by the Board of Directors, primarily tied to the Group's financial targets and secondarily to personal, function-specific targets. In 2010 the financial targets have mainly related to net sales, EBITDA, and cash flow.

Members of the Executive Board can also be included in a long-term incentive scheme, which corresponds to the annual bonus in its target level. More information can be found in the section 'Long-term incentive scheme'.

The members of the Group's Executive Board also have voluntary, contributionbased additional pension insurance under which the Company contributes 14–20% of their annual salaries excluding bonuses. Their pension age varies between 60 and 68 years.

In 2010, the salaries, benefits, and bonuses paid to the members of the Executive Board (excluding the CEO) totaled EUR 1,011,907. The share of basic salaries was EUR 720,929 and the share of bonuses for the 2009 result was EUR 290,978.

Long-term incentive scheme

Fiskars has a long-term incentive scheme for key personnel; participants are selected by the Board of Directors annually. The Board also decides the earning criteria based on financial targets for the scheme annually.

The earning criteria in 2010 were related to consolidated net sales and cash flow. The earning period is one year, followed by a two-year vesting period. The bonus will be paid during the quarter following the vesting period. A positive change in the value of the Company's share related to its own operations during the vesting period may increase the final payout by up to 50%.

The target level of the long-term incentive scheme corresponds in size to the annual bonus of everyone in the scheme and is 20–60% of their annual salary. The maximum level of the long-term incentive scheme is 150% of the target level.

During the 2010 earning period, bonuses earned through the long-term incentive scheme, excluding any posible increase due to changes in the share value, totaled EUR 546,469 for the CEO and the members of the Executive Board. These bonuses will be paid during the first quarter of 2013.

Fiskars Corporation has no share option programs in place.

Board of Directors

Kaj-Gustaf Bergh (1955)

Chairman, elected to the Board in 2005. B.Sc., LL.M. Managing Director of Föreningen Konstsamfundet r.f. 2006–. SEB Asset Management, Director 1998–2001; Ane Gyllenberg Ab, Chief executive officer 1986–1998.

Chairman of the Board of Finaref Group Ab and KSF Media Holding Ab. Member of the Board of Stockmann Oyj Abp, Ramirent Group, Julius Tallberg Oy Ab and Wärtsilä Corporation.

Independent of the company and significant shareholders.

Board committees: Compensation Committee, Chairman; Nomination Committee, Chairman.

Alexander Ehrnrooth (1974)

Vice Chairman, elected to the Board in 2000. M.Sc. (Econ.), MBA. President and CEO of Virala Oy Ab 1995–.

Member of the Board of Wärtsilä Corporation 2010–.

Independent of the company and dependent on significant shareholders. Board committees: Audit Committee,

member; Nomination Committee, member.

Paul Ehrnrooth (1965)

Vice Chairman, elected to the Board in 2000. M.Sc. (Econ.). Managing Director & Chairman, Turret Oy Ab 2005–.

Chairman of the Board of Savox Oy Ab, Savox S.A. and Finance Lind Ltd. Member of the Board of Wärtsilä Corporation and Ixonos Oyj.

Independent of the company and dependent on significant shareholders.

Board committees: Audit Committee, member; Nomination Committee, member.

Ralf R. Böer (1948)

Elected to the Board in 2007. Juris Doctor. Chairman, CEO and Partner in Foley & Lardner LLP 2002–. Foley & Lardner LLP since 1974, Partner since 1981.

Member of the Board of Plexus Corp. Independent of the company and

significant shareholders.

Board Committees: Compensation Committee, member.

Louise Fromond (1979)

Elected to the Board in 2010. LL.M. University of Helsinki, doctoral student 2005–2008. University of Helsinki, assistant 2004–2005.

Chairman of the Board of Oy Holdix Ab. Member of the Board of Fromille Oy Ab, Tremoko Oy Ab and Bergsrådinnan Sophie von Julins stiftelse.

Independent of the company and dependent on significant shareholders.

Board committees: Audit Committee, member.

From left to right: Kaj-Gustaf Bergh, Louise Fromond, Ralf Böer, Karsten Slotte, Alexander Ehrnrooth, Paul Ehrnrooth, Ingrid Jonasson Blank, Jukka Suominen, and Gustaf Gripenberg. The photo was taken in the new Fiskars Campus in Helsinki, Finland.

Gustaf Gripenberg (1952)

Elected to the Board in 1986. D. (Eng.). Professor, Aalto University. Extensive experience at Aalto University and University of Helsinki.

Independent of the company and significant shareholders.

Board committees: Audit Committee, Chairman.

Ingrid Jonasson Blank (1962)

Elected to the Board in 2010. M.Sc. (Econ.). Executive Vice President ICA Sverige AB 2004–2010.

Member of the Board in TeliaSonera, Bilia AB, ONOFF AB, Forma Publishing Group and ZetaDisplay AB.

Independent of the company and significant shareholders.

Board committees: Compensation Committee, member.

Karsten Slotte (1953)

Elected to the Board in 2008. B.Sc. (Econ.). President and CEO of Fazer Group 2007–. Cloetta Fazer AB (publ.), President 2002–2006. Cloetta Fazer Konfektyr AB, Managing Director 2000–2002. Fazer Confectionery, Managing Director 1997–2000.

Member of the Board of Onninen Oy, Varma Mutual Pension Insurance Company and Finnish-Swedish Chamber of Commerce.

Independent of the company and significant shareholders.

Board committees: Audit Committee, member.

Jukka Suominen (1947)

Elected to the Board in 2008. M.Sc. (Eng.), B.Sc. (Econ.). Group CEO of Silja Oyj Abp 1995–2000.

Member of the Board of Huhtamäki Oyj and Arctia Shipping Ltd., Chairman of the Board of Rederi AB Eckerö and Lamor Group Oy.

Independent of the company and significant shareholders.

Board committees: Compensation Committee, member.

Details as of December 31, 2010. Holdings of Fiskars' shares on page 79.

EXECUTIVE BOARD

Kari Kauniskangas (1962)

President and CEO, employed 2008. M.Sc. (Econ.). Amer Sports Corporation, Head of Winter & Outdoor division 2007. Amer Sports Corporation, SVP, Sales & Distribution 2004–2007. Amer Sports Europe GmbH,

President & GM 1999–2004.

Teemu Kangas-Kärki (1966)

Chief Financial Officer (CFO), employed 2008. M.Sc. (Econ.). Alma Media Corporation, CFO 2003–2008. Kesko Group, Vice President, Corporate Controller 2002–2003. Kesko Group, Corporate Business Controller 2000–2001. Suomen Nestlé Oy, Finance Director 1999–2000.

Max Alfthan (1961)

Chief Strategy Officer (CSO), employed 2008. M.Sc. (Econ.) Amer Sports Corporation, SVP Communications 2001–2008. Lowe & Partners, Managing Director 1998–2001. Oy Sinebrychoff Ab, Marketing Director 1989–1998.

Member of the Board of Nokian Panimo Oy.

Jutta Karlsson (1963)

General Counsel, employed 2006. LL.M.

LMR Attorneys-at-law, Legal Counsel 2004–2006. Council of the Baltic Sea States (Stockholm), Legal Advisor 2002–2004.

Fom left to right: Hille Korhonen, Max Alfthan, Kari Kauniskangas, Teemu Kangas-Kärki, and Jutta Karlsson. The photo was taken in Fiskars Village, in the old Copper Smithy, where the first orange-handled scissors were made in 1967.

Hille Korhonen (1961)

Vice President, Operations, employed 2007. Lic.Tech. Iittala Group, Group Director, Operations 2003–2007. Nokia Corporation, management duties for logistics 1996–2003. Member of the Board of Lassila &

Tikanoja Plc and Nokian Tyres Plc.

Details as of December 31, 2010. Holdings of Fiskars' shares on page 79.

Business Area Management

Jaakko Autere (1963)

President, Home, employed 2010. M.Sc. (Econ.). Orkla Brands, Managing Director 2005–2009. L'Oreal Norway, Managing Director 2005. L'Oreal Sweden, General Manager 2000–2004. Kellogg's, Marketing Manager 1996–1999.

Thomas Enckell (1963)

President, Garden, EMEA, employed 2007. M.Sc. (Econ.).

Iittala Group, Group Director, Wholesale 2007. Iittala Group, Group Director, Iittala brand and international sales and marketing 2003–2007. Iittala Group, Business Area Director 2000–2003. Designor, Business Area Director 1996–2000.

Member of the Board of Stala Oy and Stala Tubes Oy 2008–.

Lars Gullikson (1963)

President, Outdoor, EMEA, employed 2006. B.Sc. (Econ.).

Silva Sweden, President 2000–2006. Silva Production AB, President 1998–2000, Sales and Business Development Manager 1996–1998.

Tomas Landers (1977)

Vice President, Real Estate, employed 2008. M.Sc. (Forestry). Swedish Forest Agency, International coordinator 2007–2008. Bureau of Nordic Family Forestry, Main coordinator 2003–2007.

Member of the Board of Karjaan Puhelin 2009–.

Jason R. Landmark (1967)

President, Outdoor, Americas, employed 2001. B.Sc.

A Newell Rubbermaid Co, National Sales Manager 1997–2001, National Account Sales Manager 1996–1997, Key Accounts Sales Manager 1995–1996.

From left to right: Jaakko Autere, Thomas Enckell, Lars Gullikson, Tomas Landers, Jason R. Landmark, Juha Lehtola, and Paul Tonnesen.

Juha Lehtola (1966)

President, Boats, employed 2009. M.Sc. (Econ.)

Stora Enso Oyj, Senior Vice President, 2007–2009. Stora Enso Oyj, Vice President, New Business Innovations 2003–2007. Stora Enso Oyj, Vice President, New Business Areas 2002–2003. Stora Enso Packaging Sp., Managing Director 1999–2002. Raisio Group Plc., Marketing Manager 1999.

Paul Tonnesen (1964)

President, Garden & SOC, Americas, employed 2007. MBA, B.Sc. (Marketing).

Elmer's Products, Inc., Corporate Officer and Senior VP Global Sales and Customer Service 2005–2007. Spectrum Brands, Corporate Officer and VP Sales 2002–2005. American Safety Razor, Corporate Officer and VP Sales and Category Marketing 1998–2002.

Composition as of December 31, 2010.

We develop products that lead the way in functionality, innovation, and design.

FINANCIAL STATEMENTS 2010

44–81

Report by the Board of Directors 46 Consolidated financial statements, IFRS 50

• Consolidated income statement 50
• Consolidated balance sheet 51
• Consolidated statement of cash flows 52
• Statement of changes in consolidated equity 53
• Notes to the consolidated financial statements 54
• 1. Accounting principles 54
• 1. Segment information 59
• 1. Non-recurring and restructuring costs 61
• 1. Acquisitions and divestments 61
• 1. Other operating income 61
• 1. Total expenses 61
• 1. Employee benefits and number of personnel 62
• 1. Financial income and expenses 62
• 1. Income taxes 62
• 1. Earnings per share 64
• 1. Goodwill 65
• 1. Other intangible assets 66
• 1. Property, plant and equipment 67
• 14.Biological assets 68
• 1. Investment property 68
• 1. Investments in associates 68
• 1. Financial assets 69
• 1. Inventories 69
• 1. Trade and other receivables 69
• 1. Cash and cash equivalents 69
• 21.Share capital 70
• 1. Finance 71
• 1. Employee benefit obligations 76
• 1. Provisions 78
• 1. Trade and other payables 78
• 1. Related party transactions 79
• 27.Subsidiaries and other participations 80

82–84

• Financial indicators 82
• Five years in figures 82
• Share-related figures 83
• Calculation of financial indicators 84

85–97

Parent company financial statements, FAS 85

• Parent company income statement 85
• Parent company balance sheet 86
• Parent company statement of cash flows 88
• Statement of changes in parent company shareholders' equity 89
• Notes to the financial statements of parent company 90

98–101

Board's proposal for the Annual General Meeting 98 Auditor's report 99 Shares and shareholders 100

The consolidated financial statements in this Annual Report have been prepared in accordance with International Financial Reporting Standards (IFRS) adopted by the European Union. Because all figures in the Annual Report are rounded off, the sum in individual sets of figures may differ from the presented total sum.

Report by the Board of Directors for 2010

2010 in brief

Fiskars had a solid year in 2010 and the company recorded the best operating profit excluding non-recurring items in its history. Net sales increased 8% and were EUR 715.9 million (660.3). Operating profit excluding non-recurring items grew 51% to EUR 60.4 million (40.0) and operating profit (EBIT) grew 24% to EUR 49.1 million (39.5).

Cash flow from operating activities was EUR 92.6 million (121.0) and earnings per share were EUR 1.15 (1.05). The Board proposes a dividend of EUR 0,60 per share.

In December 2010 Fiskars launched a significant five year investment program in EMEA to achieve faster growth and increase efficiency.

Group financial performance in 2010

Fiskars' net sales increased by 8% to EUR 715.9 million (660.3) in 2010, boosted by exceptionally strong development in the Garden business area and improvement in the Home business area. Favorable currency rates added to sales at group level, and at comparable currency rates, the sales increase was 5%.

In EMEA, all businesses grew and improved their operating profit. In the Americas Fiskars was able to keep net sales at 2009 levels and clearly increased profit although the general market situation remained cautious in 2010 and despite some divestments we made in 2009.

The Group's operating profit excluding non-recurring items grew 52% to EUR 60.4 million (40.0) or 8% of net sales (6%) and operating profit (EBIT) grew 24% to EUR 49.1 million (39.5), even including EUR -11.3 million of non-recurring impairment cost (-0.5).

Based on the year's impairment testing, Fiskars booked a EUR 11.3 million impairment charge against the goodwill allocated to the Outdoor business area in EMEA during the last quarter of the year.

Cash flow from operations decreased to EUR 92.6 million (121.0). In 2009, cash flow was enhanced by a significant reduction in inventory levels.

Fiskars' share of the profit of associated company Wärtsilä and the change in the fair value of its biological assets (i.e. standing timber) are presented as separate lines below EBIT in the income statement. The

share of profit from associate was EUR 65.9 million (66.5), and the change in the fair value of standing timber was EUR -2.2 million (-0.4).

Net financial costs were EUR -6.1 million (-14.2). Profit before taxes was EUR 106.7 million (91.4). The income taxes for the year totaled EUR -12.4 million (-7.9).

The profit for the period increased to EUR 94.3 million (83.5), and earnings per share were EUR 1.15 (1.05).

The Group employed 3,944 people as of the end of the year (3,742).

Reporting structure

Fiskars' operating segments are EMEA (Europe, Middle East, and Asia-Pacific), Americas, Wärtsilä (associated company), and Other (Real Estate, corporate headquarters and shared services).

The company's business areas are Home (homeware and school, office & craft), Garden and Outdoor (outdoor equipment and boats).

EMEA

2010 saw a clear improvement in Fiskars' operating environment in EMEA, where both the trade and consumer demand developed positively. Favorable performance in currencies such as the Swedish krona compared to the euro also contributed to higher net sales. Net sales in the EMEA segment grew 11% to EUR 502.4 million (451.6). Using comparable exchange rates, growth was 8%.

Net sales in the Home business area's homeware products increased, especially in key markets, and net sales were further boosted by favorable currency rates. Sales of craft products were lower.

In the Garden business area, sales of Fiskars-branded garden tools grew significantly, led by increased sales of snow tools, stick tools and cutting tools. Even sales of construction tools picked up compared to 2009. Two snowy winters in a row saw sales of snow tools rise to record levels both in the first and last quarter of the year. In other product categories the company gained market share in major Central European markets such as Germany and France through marketing campaigns and product launches.

Net sales in the Outdoor business area increased following strong sales increase in the boat business. Sales of outdoor gear increased as well, led by good development in mobile light sales.

Increased sales and efficiency in supply chain continued to have a positive effect on profit, and the segment's operating profit excluding non-recurring items grew 68% to EUR 44.4 million (26.5).

Personnel at the end of the year totaled 3,209 (2,959).

Americas

Net sales for the Americas rose by 2% to EUR 223.1 million (218.2). In USD terms, net sales fell by -3% to USD 294.9 million (302.5), mainly impacted by the divestments made in 2009. In the Americas, consumer confidence started to improve towards the end of the year. Market conditions remained challenging as the trade continued to purchase cautiously and focus on working capital.

Net sales in the Garden business area increased, driven by increased market share in garden tools, rain barrels and newly introduced mowers. Sales developed well with key customers.

Net sales of school, office, and craft (SOC) products in the Home business were down, primarily because of the divestment of consumables products in July 2009.

Net sales in the Outdoor business area decreased in 2010. Sales were impacted by the divestment of Brunton in December 2009 and cautious purchasing by the institutional segment.

Despite the market situation, operating profit in the Americas increased 17% to EUR 28.1 million (23.9) thanks to increased volume in the Garden business area and improved product mix in Garden and Outdoor businesses.

Personnel as of the end of year totaled 570 (667).

Other

Fiskars' Other segment comprises Real Estate, which is responsible for managing the Group's forests and land and for the internal and external leasing of Fiskars' property in Finland, corporate headquarters and shared services.

The segment recorded net sales of EUR 6.2 million (6.1 million), the majority of which comprised revenue from timber sales and rental income from properties. The segment's operating profit was EUR -12.1 million (-10.9 including -0.5 million in non-recurring items). The change in the value of standing timber, reported below EBIT, was EUR -2.2 million (-0.4). Personnel as of the end of year totaled 165 (116).

Wärtsilä

Fiskars owns 17.1% of the shares and votes

of its associated company, Wärtsilä Corporation. Fiskars' share of Wärtsilä's profit totaled EUR 65.9 million (66.5) in 2010.

Wärtsilä's Annual General Meeting was held on March 4, 2010. The Chairman of Fiskars' Board, Mr. Kaj-Gustaf Bergh, was re-elected to Wärtsilä's Board of Directors. Mr. Alexander Ehrnrooth and Mr. Paul Ehrnrooth, both members of Fiskars' Board, were elected to the Board as new members.

The Annual General Meeting decided to pay a dividend of EUR 1.75 per share (EUR 1.50), which gave Fiskars dividend revenue of EUR 29.5 million (25.3).

The market value of Fiskars' Wärtsilä shares was EUR 961.9 million (472.9) or EUR 11.74 (5.76) per Fiskars' share at the end of the year, with a closing price EUR 57.10 (28.07) per Wärtsilä share. The book value of the shares was EUR 341.0 million (316.8).

Financing

Fiskars' cash flow from operations totaled EUR 92.6 million (121.0 million) in 2010. In 2009, cash flow was enhanced by a significant reduction in inventory levels. The cash flow includes dividends paid by associated company Wärtsilä totaling EUR 29.5 million (25.3 million).

Cash flow from investing activities was EUR -18.8 million (-8.7) and cash flow after investing activities was EUR 73.8 million (112.2) in the year.

Working capital was EUR 101.2 million (EUR 102.6) at the end of the year. The equity ratio was 57% (52%) and net gearing 36% (47%).

Cash and deposits at the end of the period were EUR 5.8 million (38.6). Fiskars hedges exchange rate risks associated with future cash flow using currency derivatives. The value of these derivatives increased financing expenses in 2010 by EUR 1.5 million (2009: increased expenses by 4.5 million), as the company does not apply hedge accounting as defined under IAS 39 to its derivatives.

Net interest-bearing debt amounted to EUR 200.0 million (235.7). Short-term borrowings totaled EUR 130.1 million (199.7) and long-term borrowings EUR 76.2 million (74.9). Short-term borrowings are mainly commercial papers issued by Fiskars Corporation. In addition, Fiskars had EUR 405 million (425) in unused, binding long-term credit facilities, mainly with major Nordic banks.

Capital expenditure

Capital expenditure during the 2010 financial year totaled EUR 18.6 million (14.6 million). The EMEA segment accounted for EUR 12.9 million (10.6 million) of the total, the Americas EUR 3.4 million (2.8 million), and Other EUR 2.3 million (1.2 million). Capital expenditure was largely related to production and new product development.

Investment program in EMEA

In line with Fiskars' strategy to achieve faster growth and increased efficiency, the company is in the process of executing a new, integrated operating model. In December 2010, Fiskars launched a

significant investment program to facilitate further growth by implementing a new business model in EMEA.

The approximately EUR 50 million investment over the next five years will be funded by operative cash flow. During these years, the program will increase Fiskars' operating expenses and capital expenditure.

With this program, the company will create a more streamlined supply chain and improve transparency through common processes and IT systems, including a new common enterprise resource planning (ERP) system.

After an initial implementation period, the investment program is expected to further enhance the efficiency of Fiskars' operations and gradually improve cash flow.

New product development

The Group's new product development expenditure totaled EUR 8.5 million (8.9 million), equivalent to 1% (1%) of net sales. During the year, especially Garden EMEA strengthened its product development organization.

Personnel

The Group employed an average of 3,612 people (3,867) in 2010. The number of personnel was 3,944 (3,742) as of the end of the year, of which 3,209 (2,959) were employed in the EMEA region, 570 (667) in the Americas, and 165 (116) by segment Other. Fiskars employed 1,678 (1,598) people in Finland.

Business areas in 2010

Net sales, EUR million	2010		2009 Change
Home	309.4	297.3	4%
Garden	274.5	230.9	19%
Outdoor	128.3	128.4	0%

Americas segment in 2010,

2010		2009 Change
		2%
223.1	230.8	-3%
28.1	23.9	17%
3.4	2.8	21%
597	742	-20%
	223.1	218.2

EMEA segment in 2010,

EUR million	2010		2009 Change
Net sales	502.4	451.6	11%
Net sales, currency neutral	502.4	465.9	8%
Operating profit excluding non-recurring items	44.4	26.5	68%
Operating profit (EBIT)	33.1 *	26.5	25%
Capital expenditure	12.9	10.6	22%
Personnel (FTE), average	2,864	3,006	-5%

Other segment in 2010,

EUR million	2010		2009 Change
Net sales	6.2	6.1	2%
Operating profit (EBIT)	-12.1	-10.9
Capital expenditure	2.3	1.2
Personnel (FTE), average	151	119	27%

* Includes non-recurring costs of EUR 11.3 million.

The wages and salaries for the year totaled EUR 125.1 million (113.4).

Changes in management

Mr. Jaakko Autere took over as President of the Home business area and Managing Director of Iittala Group Ltd. on January 1, 2010. He reports to Fiskars' President and CEO, Kari Kauniskangas.

Corporate Governance

Fiskars complies with the Finnish Corporate Governance Code issued by the Securities Market Association, which came into force on October 1, 2010. Fiskars' Corporate Governance Statement for 2010 in accordance with Recommendation 51 of the Code was issued on February 9, 2011 as a separate report.

Fiskars also complies with the insider regulations of NASDAQ OMX Helsinki latest updated on October 9, 2009, and the company's internal insider guidelines latest updated on November 3, 2009.

Risks and business uncertainties

Fiskars' business, net sales and financial performance may be affected by several uncertainties.

• The principal business uncertainties are related to:
• General market conditions and a decline in consumer demand in Fiskars' significant market areas in Europe and North America
• Loss of or reduced sales of major retail customers, retailers' financial difficulties, and disruptions in the activities of a distribution channel
• Availability of products due to supply chain issues
• Adverse weather conditions particularly in the Garden business area
• Seasonal variations, which can make predicting developments more difficult, especially in the Home business area which is heavily geared towards the end of the year
• Sudden fluctuations in raw material and energy prices; the most important raw materials being steel, aluminum, and plastic
• Changes in currency rates that may affect consolidated sales, profit and balance sheet
• Major changes in the profit of associated company Wärtsilä or its ability to pay dividends

Litigation

The Finnish Competition Authority proposed on April 29, 2010 to the Market Court that a fine of EUR 4 million should be imposed on

Iittala Group Oy Ab due to violation of the Finnish Competition Act by applying resale price maintenance between 2005 and 2007. The Iittala Group, a Fiskars subsidiary, considers the proposal to be unfounded. The Market Court will decide on the matter in due course. No provision has been booked for the proposed fine.

Fiskars is involved in a number of legal actions, claims and other proceedings. The final outcome of these matters cannot be predicted. Taking account all available information to date the outcome is not expected to have material impact on the financial position of the Group.

Environment

In line with its Code of Conduct, Fiskars aims to ensure that its products, services, and production promote sustainable development. During 2010 Fiskars conducted a Carbon Footprint Inventory, which represented an important input in further developing Fiskars' environmental sustainability.

The Carbon Footprint Inventory produced baseline information for Fiskars' energy efficiency programs, target-setting, and performance monitoring, and will provide the foundation for further developing and monitoring the Group's environmental sustainability.

The inventory covered all of Fiskars' production operations, sales offices, and distribution centers, as well as outsourced transportation, and it will give the company a good starting point to further develop its processes and practices.

Fiskars does not monitor environmental costs separately, as they are an integral part of its normal business operations and business development. Most of Fiskars' industrial operations involve no significant environmental risks. Production facilities have up-to-date environmental permits that set clear limits on their operations. Changes in environmental directives can affect existing environmental permits. Adapting to such directives may require changes in existing production methods or investments in new equipment.

Shares

Fiskars Corporation has one series of shares. The total number of shares at the end of the period was 82,023,341, including 112,619 treasury shares. The share capital remained unchanged at EUR 77,510,200.

Fiskars' shares are traded in the Large Cap segment of NASDAQ OMX Helsinki Ltd. At the end of the year, the closing price was EUR 17.33 per share (10.62). The market value of Fiskars, excluding treasury shares, was EUR 1,419.5 million (869.9). The number of shares traded during the year was 6.6 million (4.4).

Treasury shares

The Board of Directors had authorizations to acquire and convey treasury shares during the year. At the end of the period, the authorizations concerned a maximum of 4,000,000 shares. The Board may decide on the conveyance of the shares otherwise than in proportion to the shareholders' preemptive subscription rights. The authorizations will remain in force until the end of the next Annual General Meeting. The authorizations were not used during the year.

As of the end of the year, Fiskars owned 112,619 treasury shares, corresponding to 0.14% of the Corporation's shares and votes.

Shareholders

Fiskars Corporation had 12,213 (11,915) shareholders at the end of the year.

• During the year Fiskars was informed on the following changes among the largest shareholders of the Company:
• On December 13, 2010, Holdix Oy Ab announced that its shareholding in Fiskars had risen above the 10 per cent (1/10) threshold. Holdix Oy Ab now owns 8,229,050 Fiskars shares, which represents 10.03 per cent of Fiskars' share capital and voting rights.
• On December 15, 2010, Holdix Oy Ab decided to commence a share issue which resulted in Elsa Fromond no longer having a controlling interest in Holdix Oy Ab. Elsa Fromond's direct ownership in Fiskars falls below the 5 per cent (1/20) flagging threshold.

Annual General Meeting for 2010

The Annual General Meeting of Shareholders (AGM) was held on March 16, 2010. The AGM approved the financial statements for 2009 and discharged the members of the Board and the President and CEO from liability. It was decided to pay a dividend of EUR 0.52 per share, totaling EUR 42.6 million. The dividend was paid on March 26, 2010.

The number of Board members was set at nine. Mr. Kaj-Gustaf Bergh, Mr. Ralf Böer, Mr. Alexander Ehrnrooth, Mr. Paul Ehrnrooth, Mr. Gustaf Gripenberg, Mr. Karsten Slotte, and Mr. Jukka Suominen were re-elected; and Ms. Louise Fromond and Ms. Ingrid Jonasson Blank were elected as new members. The term of Board members will expire at the end of the Annual General Meeting in 2011.

KPMG Oy Ab was re-elected as company auditor, and nominated Authorized Public Accountant Mr. Mauri Palvi as responsible auditor.

The Annual General Meeting decided to authorize the Board to acquire a maximum of 4,000,000 own shares and convey a maximum of 4,000,000 own shares. The Board may decide on the acquisition and conveyance of shares also in derogation of the pre-emptive right of shareholders to company shares. Both authorizations will remain in force until the end of the next Annual General Meeting.

The AGM further decided to amend Item 7 of the Articles of Association. The amended wording reads as follows: "Shareholders' Meetings (General Meetings) can be held either in Raseborg or Helsinki. Notices to Shareholders' Meetings shall be published on the company's website and in another manner possibly decided by the Board of Directors."

Constitutive meeting of the Board

Convening after the Annual General Meeting, the Board of Directors elected Kaj-Gustaf Bergh as Chairman, and Alexander Ehrnrooth and Paul Ehrnrooth as Vice Chairmen.

The Board appointed Gustaf Gripenberg Chairman of the Audit Committee, and Alexander Ehrnrooth, Paul Ehrnrooth, Louise Fromond, and Karsten Slotte as members. The Board appointed Kaj-Gustaf Bergh Chairman of the Compensation Committee, and Ralf Böer, Ingrid Jonasson Blank, and Jukka Suominen as members. The Board appointed Kaj-Gustaf Bergh Chairman of the Nomination Committee, and Alexander Ehrnrooth and Paul Ehrnrooth as members.

Annual General Meeting 2011

Fiskars Corporation's Annual General Meeting will be held on Tuesday, March 16, 2011 starting at 3 p.m. in the Helsinki Fair Centre. The invitation to the meeting will be published separately.

Board's proposal to the Annual General Meeting

The distributable equity of the Parent Company at the end of the 2010 fiscal year was EUR 435.1 million (429.9).

The Board of Directors proposes to the Annual General Meeting of Shareholders that a dividend of EUR 0,60 per share would be paid for 2010.

The number of shares entitling to a dividend totaled 81,910,722. The proposed distribution of dividend would thus be EUR 49.1 million. This would leave EUR 385.9 million of undistributed profit funds at the Parent Company.

No material changes have taken place

Capital expenditure and depreciation M€

in the financial position of the Company after the end of the fiscal year. The financial standing of the Company is good and according to the Board of Directors' assessment the proposed distribution of dividend will not compromise the Company's solvency.

Outlook for 2011

The general market situation is expected to remain positive in 2011. This assumes, however, that the lingering uncertainty in the financial markets does not turn into renewed economic instability. We expect the trade to continue focusing on their working capital and retailer purchasing is expected to remain cautious.

Fiskars will carry on investing in brand building and new product development. In addition, Fiskars has begun implementing the significant five year investment program to execute its business transformation in EMEA, including a common enterprise resource planning (ERP) system for the company. During these years, the program will increase Fiskars' operating expenses and capital expenditure.

Fiskars' net sales in 2011 are expected to be above 2010 levels. Full year operating profit excluding non-recurring items is expected to remain at a similar level as in 2010.

Associated company Wärtsilä will continue to have a major impact on Fiskars' profit and cash flow in 2011.

Helsinki, Finland, February 8, 2011 Fiskars Corporation

Board of Directors

Operating profit excl. non-recurring items

Earnings per share, Dividend per share

Earnings per share (basic and diluted) Dividend per share

Net gearing

Equity to assets ratio

Persons employed, average

CONSOLIDATED FINANCIAL STATEMENTS, IFRS

CONSOLIDATED INCOME STATEMENT

M€	Note	2010		2009
Net sales	2	715.9		660.3
Cost of goods sold		-462.3		-439.2
Gross profi t		253.6	35%	221.1	33%
Other operating income	5	2.1		1.8
Sales and marketing expenses		-122.4		-114.2
Administration expenses		-64.1		-60.0
Research and development costs		-8.5		-8.7
Other operating expenses	6	-0.3		-0.5
Goodwill impairment	6	-11.3
Operating profi t		49.1	7%	39.5	6%
Change in fair value of biological assets	14	-2.2		-0.4
Share of profi t from associate	16	65.9		66.5
Financial income and expenses	8	-6.1		-14.2
Profi t before taxes		106.7	15%	91.4	14%
Income taxes	9	-12.4		-7.9
Profi t for the period		94.3	13%	83.5	13%
Attributable to:
Equity holders of the parent company		94.3		83.5
Earnings for equity holders of the parent company per share, euro (basic and diluted)	10	1.15		1.05

STATEMENT OF COMPREHENSIVE INCOME

M€	Note	2010	2009
Profi t for the period		94.3	83.5
OTHER COMPREHENSIVE INCOME
Translation differences		10.1	-1.9
Share of other comprehensive income in associate	16	-12.5	12.7
Cash fl ow hedges		-0.1
Equity net investment hedges after tax			1.3
Defi ned benefi t plan actuarial gains (losses), net of tax		-0.5	0.7
Other comprehensive income for the period, net of tax		-3.1	12.8
Total comprehensive income for the period		91.2	96.3
Attributable to:
Equity holders of the parent company		91.2	96.3

CONSOLIDATED BALANCE SHEET

M€	Note	Dec 31, 2010		Dec 31, 2009
ASSETS
NON-CURRENT ASSETS
Goodwill	11	88.6		99.4
Other intangible assets	12	125.4		124.9
Property, plant & equipment	13	95.0		99.5
Biological assets	14	36.7		38.9
Investment property	15	7.6		8.5
Investments in associates	16	341.0		316.8
Financial assets	17	8.3		5.1
Deferred tax assets	9	15.2		17.8
Non-current assets total		717.7	73%	710.9	73%
CURRENT ASSETS
Inventories	18	133.0		119.0
Trade and other receivables	19	119.6		101.9
Income tax receivables		3.0		2.9
Cash and cash equivalents	20	5.8		38.6
Current assets total		261.3	27%	262.4	27%
Assets total		979.0	100%	973.3	100%

EQUITY AND LIABILITIES

EQUITY
Equity attributable to the equity holders of the parent company		553.5		504.8
Equity total	21	553.5	57%	504.8	52%
NON-CURRENT LIABILITIES
Interest bearing debt	22	76.2		74.9
Other liabilities		2.8		0.9
Deferred tax liabilities	9	45.8		47.2
Pension liability	23	8.7		9.4
Provisions	24	5.2		6.7
Non-current liabilities total		138.7	14%	139.1	14%
CURRENT LIABILITIES
Interest bearing debt	22	130.1		199.7
Trade and other payables	25	146.6		121.3
Income tax payable		7.6		6.1
Provisions	24	2.5		2.4
Current liabilities total		286.8	29%	329.4	34%
Equity and liabilities total		979.0	100%	973.3	100%

CONSOLIDATED STATEMENT OF CASH FLOWS

M€	2010	2009
Cash fl ow from operating activities
Profi t before taxes	106.7	91.4
Adjustments for
Depreciation, amortization and impairment	34.9	28.1
Share of profi t from associate	-65.9	-66.5
Investment income	-0.7	0.3
Interest expenses	6.3	14.2
Change in fair value of biological assets	2.2	0.4
Change in provisions and other non-cash items	-6.8	-12.4
Cash fl ow before changes in working capital	76.6	55.6
Changes in working capital
Change in current assets, non-interest bearing	-10.9	-0.7
Change in inventories	-6.4	50.3
Change in current liabilities, non-interest bearing	23.0	4.1
Cash fl ow from operating activities before fi nancial items and taxes	82.3	109.3
Dividends received from associate	29.5	25.3
Financial items paid / received (net)	-10.3	-13.8
Taxes paid	-8.9	0.2
Cash fl ow from operating activities (A)	92.6	121.0
Cash fl ow from investing activities
Acquisitions and investments in fi nancial assets	-3.5	-0.2
Investments in property, plant & equipment	-18.5	-14.5
Proceeds from sale of property, plant & equipment and other investments	3.0	1.6
Cash fl ow from other investments	0.2	4.2
Cash fl ow from investing activities (B)	-18.8	-8.7
Cash fl ow from fi nancing activities
Borrowings of non-current debt	1.5	40.0
Repayment of non-current debt	-15.6	-86.5
Change in current debt	-48.4	2.0
Payment of fi nance lease liabilities	-1.6	-2.5
Cash fl ow from other fi nancing items	-0.4	-0.1
Dividends paid	-42.6	-38.2
Cash fl ow from fi nancing activities (C)	-107.1	-85.4
Change in cash and cash equivalents (A+B+C)	-33.4	26.9
Cash and cash equivalents at beginning of period	38.6	11.3
Translation difference	0.5	0.5
Cash and cash equivalents at end of period	5.8	38.6

STATEMENT OF CHANGES IN CONSOLIDATED EQUITY

	Equity attributable to shareholders of the parent company:
	Share	Treasury	Cumul.	Retained
M€	capital	shares	transl.diff.	earnings	Total
Dec 31, 2008	77.5	-0.8	-16.5	386.5	446.7
Translation differences			-1.9		-1.9
Change in associate recognized directly in
other comprehensive income			4.3	8.4	12.7
Equity net investment hedges after tax			1.3		1.3
Defi ned benefi t plan, actuarial gains (losses), net of tax				0.7	0.7
Other comprehensive income for the period,
net of tax, in total		0.0	3.7	9.1	12.8
Profi t for the period				83.5	83.5
Total comprehensive income for the period		0.0	3.7	92.6	96.3
Dividends paid				-38.2	-38.2
Dec 31, 2009	77.5	-0.8	-12.8	440.9	504.8
Translation differences			10.1		10.1
Change in associate recognized directly in
other comprehensive income			2.4	-14.9	-12.5
Cash fl ow hedges				-0.1	-0.1
Defi ned benefi t plan, actuarial gains (losses), net of tax				-0.5	-0.5
Other comprehensive income for the period,
net of tax, in total		0.0	12.4	-15.5	-3.1
Profi t for the period				94.3	94.3
Total comprehensive income for the period		0.0	12.4	78.8	91.2
Dividends paid				-42.6	-42.6
Dec 31, 2010	77.5	-0.8	-0.3	477.1	553.5

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

1. ACCOUNTING PRINCIPLES FOR THE CONSOLIDATED FINANCIAL STATEMENTS, IFRS

Fiskars Corporation is a Finnish public limited liability company listed on NASDAQ OMX Helsinki and domiciled in Raasepori, Finland. The registered address of Fiskars Corporation is Hämeentie 135 A Helsinki, Finland. Fiskars Corporation is the parent company of the Group. The Group manufactures and markets branded consumer products globally. Fiskars' operating segments are EMEA (Europe, Middle East, and Asia-Pacifi c), Americas, the associated company Wärtsilä and Other. The operations are divided to Business Areas Home, Garden and Outdoor. In addition the Group has Real Estate operations and a strategic shareholding in Wärtsilä Corporation qualifying as an investment in an associate. The Group holds international brands such as Fiskars, Iittala, Gerber, Silva and Buster.

The fi nancial statements are authorized for issue by the Board of Directors of Fiskars Corporation. According to the Finnish Limited Liability Companies' Act, the shareholders have a possibility to approve or reject or make a decision on altering the fi nancial statements in the Annual General Meeting to be held after the publication of the fi nancial statements.

Basis of preparation

The consolidated fi nancial statements of Fiskars Corporation ("Fiskars" or "the Group") are prepared in accordance with International Financial Reporting Standards (IFRS) in force at December 31, 2010 as adopted by the European Union. International Financial Reporting Standards, referred to in the Finnish Accounting Act and in ordinances issued based on the provisions of this Act, are standards and their interpretations adopted in accordance with the procedure laid down in regulation (EC) No 1606/2002 of the European Parliament and of the Council. The notes to the consolidated fi nancial statements also comply with the Finnish accounting and corporate legislation.

The consolidated fi nancial statements are prepared on historical cost basis except for fi nancial assets and fi nancial liabilities which are presented at fair value through profi t or loss, and biological assets as well as assets and liabilities related to defi ned benefi t pension plans that are measured at fair value.

Items included in the fi nancial statements of each of the Group's entity are measured using the currency of the primary economic environment in which the entity operates ('the functional currency'). The consolidated fi nancial statements are presented in euros, which is the parent company's functional currency. The presentation is in millions of euro with one decimal.

The previous year's fi gures include changes due to reclassifi cation of certain accounts. The main impacts of the reclassifi cation for full year 2009 are summarized below:

• net sales EUR -2.6 million
• gross profi t EUR -5.6 million • the operating profi t (EBIT) of 2009 is unchanged.

Additionally, Fiskars has adopted following defi nitions for employee reporting in 2010: Personnel, end of period = active employees in payroll at the end of period. Personnel (FTE), average = full-time equivalent number of employees according to worked volume during the period.

Use of estimates

The preparation of fi nancial statements in conformity with IFRS requires the management to make judgments and assumptions that affect the recognition and measurement of fi nancial statement items. These estimates and associated assumptions are based on historical experience and other justifi ed assumptions that are believed to be reasonable under the circumstances at the end of the reporting period. These estimates form the basis for judgments of the items in the fi nancial statements. Development of markets and general economic situation may affect the variables underlying the estimates and actual results may differ signifi cantly from these estimates. Such estimates mainly relate to the assumptions made in impairment testing, amount of obsolete inventory, recognition of impairment losses on trade receivables, restructuring provisions, determination of defi ned benefi t pension obligations and the probability of deferred tax assets being recovered against future taxable profi ts.

Consolidated fi nancial statements

The consolidated fi nancial statements include the parent company, Fiskars Corporation, and all the subsidiaries in which it holds, directly or indirectly, over 50% of the voting rights or over which it otherwise has control. Acquired or established subsidiaries are included in the consolidated fi nancial statements from the date control commences until the date that control ceases.

Subsidiaries are consolidated using the purchase method of accounting. Intragroup transactions, profi t distribution, receivables, liabilities and unrealized gains between Group companies are eliminated in consolidation. The profi t or loss for the fi nancial year attributable to the owners and minority is presented in the income statement and the total comprehensive income for the fi nancial year attributable to the owners and minority is presented in the statement of comprehensive income. The minority's interest in equity is presented within equity, separately from the equity of the owners of the parent. In 2010 there was no minority's interest.

Investments in associates in which Fiskars has a signifi cant infl uence but not control are accounted for using the equity method. Signifi cant infl uence usually exists when the Group holds over 20% of the voting power of the entity or when the Group otherwise has signifi cant infl uence but not control. Fiskars' most important associate is Wärtsilä Corporation. Fiskars' ownership in Wärtsilä was 17.1% of the shares and the votes. The shares are owned by Fiskars' wholly owned subsidiary Avlis AB. Fiskars is the largest single shareholder with a share of 17.1% and Fiskars has signifi cant infl uence through the number of members in the Board of Directors of Wärtsilä. Thus, Fiskars consolidates Wärtsilä as an associated company in accordance with IAS 28.

Translation of foreign currency items

Transactions in foreign currencies

Foreign currency transactions are translated using the exchange rates prevailing at the dates of the transactions. At the end of the reporting period monetary assets and liabilities are translated using the exchange rate prevailing at the end of the reporting period. Exchange differences arising from translation of monetary assets and liabilities are recognized in the income statement and presented under fi nancial items. Non-monetary items denominated in foreign currencies are translated using the exchange rate at the date of the transaction, except for those items carried at fair value that are translated using at the rates prevailing at the date when the fair value was determined. Exchange differences from non-monetary operating assets and liabilities are recorded in the income statement accounts within operating profi t.

Translation of fi nancial statements of foreign subsidiaries

In the consolidated fi nancial statements income statements, statements of comprehensive income and cash fl ows of foreign subsidiaries are translated into parent company's currency at the average exchange rates for the period. Their balance sheet items are translated at exchange rates prevailing at the end of the reporting period. The resulting exchange differences are recognized in other comprehensive income and presented under translation differences in equity. Exchange differences resulting from the translation of profi t or loss and comprehensive income at the average rate in the income statement and in the statement of comprehensive income, and the balance sheet at the closing rate, are recognized in other comprehensive income and they are included under translation differences in equity. The effective portions of the gains or losses on those fi nancial instruments hedging net investments in foreign operations are recognized similarly. When the Group disposes of all, or part of, that subsidiary, the translation differences accumulated in equity are transferred to profi t or loss as part of the gain or loss on disposal.

Net sales and revenue recognition principles

Net sales are shown net of indirect taxes, rebates, and exchange differences on trade receivables denominated in foreign currencies. Revenue from the sale of goods is recognized when all signifi cant risks and rewards of ownership have been transferred to the buyer, i.e. when a product has been delivered to the client in accordance with the terms of delivery. There are no such long term projects in the Group for which the revenue would be recognized using the percentage-ofcompletion (POC) method.

Pension obligations

Group companies have various pension plans in accordance with local conditions and practices in the countries in which they operate. The plans are classifi ed as either defi ned contribution plans or defi ned benefi t plans. Under a defi ned contribution plan the Group pays fi xed contributions into a separate entity. If the entity does not hold suffi cient assets to pay all employees the benefi ts in question, the Group will have no legal or constructive obligation to pay further contributions. All other plans not meeting the above criteria are classifi ed as defi ned benefi t plans. Most of plans Group companies have are classifi ed as defi ned contribution plans and related contributions are charged to the income statement in the year in which the payment obligation has arisen.

The costs for defi ned benefi t pension plans are calculated and recognized under the terms of the plan based on actuarial calculations. Pension costs are recognized as expenses over the employees' service period. The pension obligation is measured as the present value of the estimated future contributions deducted by the fair value of plan assets at the end of the reporting period. Changes in the estimates in the actuarial calculations may infl uence the reported pension obligations and pension costs.

Fiskars applies the alternative accounting treatment under IAS 19 for the recognition of actuarial gains and losses that allows to record actuarial gains and losses in other comprehensive income.

Operating profi t

IAS 1 Presentation of Financial Statements does not give a defi nition for operating profi t. In Fiskars the operating profi t (EBIT) includes the operating results of Fiskars' operating segments EMEA, Americas, and Others. The share of the profi t or loss of the associate Wärtsilä and the change in the fair value of biological assets are presented as separate line items below the EBIT in the income statement.

Intangible assets

An intangible asset is initially capitalized in the balance sheet at cost if the cost can be measured reliably and it is probable that the expected future economic benefi ts that are attributable to the asset will fl ow to the Group.

Goodwill

Goodwill represents the Group's share of difference between the cost of the acquisition and the fair value of the net identifi able assets, liabilities, and contingent liabilities acquired measured at the acquisition date. Goodwill is stated at historical cost less any accumulated impairment losses. Goodwill is not amortized but is tested for impairment at least annually. For this purpose goodwill has been allocated to cashgenerating units or, in case of an associate, the goodwill is included within the carrying amount of the associate in question. The recoverable amount of the unit is compared annually, or more often if there are indications of impairment, with its carrying amount to determine potential impairment.

The amendments broaden the scope of IFRS 3 and impact, among other things, the amount of goodwill recognised on business combinations and sales results of businesses. Contingent consideration will be measured at fair value and subsequently re-measured through profi t

or loss. All acquisition-related costs, such as experts' fees, will be expensed instead of capitalization. There is a choice on an acquisition-by-acquisition basis to measure the non-controlling interest in the acquiree either at fair value or at the noncontrolling interest's proportionate share of the acquiree's net assets.

Research and development costs

Research and development costs are expensed as they are incurred, except for those development costs that are capitalized if the Group can reliably demonstrate that they will generate probable future economic benefi ts for the Group and also other criteria in IAS 38 are met as the product is regarded technically and commercially feasible. Capitalized development costs consisting of mainly direct labor costs and external services are recognized as intangible assets.

Intangible assets not yet available for use are tested annually for impairment. Subsequent to initial recognition capitalized development costs are measured at cost less accumulated amortization and accumulated impairment losses. They are amortized on a straight-line basis over their useful lives, from 3 to 6 years.

Other intangible assets

Other intangible assets include among other patents, capitalized development costs, software, as well as trademarks and customer relationships acquired in business combinations. Intangible assets are stated at cost less accumulated amortization and any accumulated impairment. Intangible assets in this class are amortized on a straight-line basis over their known or expected useful lives as follows:

• Software 3–10 years
• Customer relationships 5–15 years
• Other 3–10 years

Intangible assets with an indefi nite useful life such as trademarks or brand names acquired in business combinations are not amortized but they are tested at least annually for impairment.

Property, plant, and equipment

Property, plant, and equipment are stated at historical cost less accumulated depreciation and any accumulated impairment losses, if applicable. Those borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset are capitalized as part of the cost of that asset.

Depreciation is charged to the income statement on a straight-line basis over the estimated useful lives of the assets.

Residual values and expected useful lives are reassessed at least at each fi nancial year-end and, if necessary, are adjusted to refl ect changes in the expected future economic benefi ts. The estimated useful lives are as follows:

• Buildings 20–40 years • Machinery and equipment 3–10 years
• Land and water No depreciation

Gains and losses on sales and disposals of items of property, plant, and equipment are presented under other operating income and other operating expenses.

Leases

Leases in terms of which the Group substantially takes over from the lessor all the risks and rewards of ownership are classifi ed as fi nance leases. Assets leased under fi nance leases are recognized under property, plant, and equipment at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments at the commencement of the lease term. The associated obligations are recognized in interest-bearing fi nancial liabilities. The lease payments are divided into fi nance cost and amortization of the lease liability.

Leases in which a signifi cant portion of the risks and rewards of ownership are retained by the lessor are accounted for as operating leases. Lease payments made under an operating lease are recognized as an expense on a straight-line basis over the lease term.

Investment property

The properties that are not used in the Group's operations or which are held to earn rental revenue or increase in value are classifi ed as investment property. These properties are measured at cost less accumulated depreciation and impairment. Investment property is depreciated over 20–40 years.

Impairment of property, plant and equipment and intangible assets

The Group operations have been divided into cash-generating units (CGU) that are smaller than operating segments. The carrying amounts of the assets relating to these CGUs are reviewed for impairment indicators annually at the end of the reporting period. The recoverable amounts of the following assets are also estimated annually irrespective whether there is any indication for impairment: goodwill, intangible assets with indefi nite useful lives and unfi nished intangible assets.

To determine a potential impairment the

carrying amount of the asset is compared or the carrying amounts of the CGU's net assets are compared against the recoverable amount of that asset or CGU. The recoverable amount is the higher of the present value of the discounted future cash fl ows expected to be derived (value in use) and the fair value less costs to sell. An impairment loss is recognized for an asset when its carrying amount exceeds its recoverable amount. An impairment loss previously recognized for items of property, plant, and equipment as well as for intangible assets other than goodwill is reversed subsequently, if there has been a change in the estimates used to determine the asset's recoverable amount. An impairment loss is reversed only to the extent that the asset's carrying amount does not exceed the carrying amount that would have been determined, net of amortization or depreciation, if no impairment loss had been recognized for the asset in prior years. An impairment loss recognized for goodwill is not reversed.

Biological assets

Biological assets consist of standing timber in Group's forests in Finland. These assets are measured at fair value less estimated point-of-sale costs. The fair value resulting from both net growth and change in the market value of standing timber is presented as a separate line item in the income statement after operating profi t (EBIT). The revenue from the sale of standing timber is presented in the income statement within the operating profi t.

For calculating the fair value of standing timber Fiskars applies a three-year rolling average market price multiplied by the estimated volume of standing timber.

Non-current assets held for sale and discontinued operations

A non-current asset (or a disposal group) as well as assets and liabilities associated with a discontinued operation are classifi ed as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. The recognition criteria are regarded to be met when: a sale is highly probable, the asset (or a disposal group) is available for immediate sale in its present condition subject only to terms that are usual and customary, the management is committed to the plan to sell the asset and the sale is expected to take place within one year from the date of classifi cation.

As from classifi cation date a non-current asset (or a disposal group) held for sale is measured at the lower of its carrying amount and fair value less costs to sell,

and it is not depreciated or amortized any more. Assets classifi ed as held for sale, disposal groups, items recognized in other comprehensive income associated with the assets classifi ed as held for sale as well as liabilities included in the disposal group are presented separately in the balance sheet.

A discontinued operation is a component of the Group's business that has been disposed of or will be disposed of in accordance with a coordinated plan. It represents a separate major line of business or geographical area of operations. The profi t or loss of a discontinued operation is reported separately from the continuing operations in the consolidated statement of comprehensive income.

Fiskars had no non-current assets held for sale or discontinued operations in the fi nancial years 2010 nor 2009.

Inventories

Inventories are carried at the lower of cost and net realizable value. Cost is determined using the fi rst-in fi rst-out (FIFO) method. The cost of fi nished goods and work-in-progress comprise direct purchase and manufacturing cost, other direct costs and a proportion of the related production overheads based on normal operating capacity. Net realizable value is the estimated amount that can be realized from the sale in normal course of business less the estimated costs of completion and the estimated costs necessary to make the sale. Inventories are presented net of an impairment loss recognized for obsolete and slow-moving inventories.

Financial instruments

Financial assets

Fiskars classifi es its fi nancial assets in the following categories: fi nancial assets at fair value through profi t or loss, loans and receivables and available-for-sale fi nancial assets. Financial assets are classifi ed at initial recognition based on their purpose of use.For investments not at fair value through profi t or loss, the directly attributable transaction costs are included in the original costs of the fi nancial assets. All purchases or sales of fi nancial assets are recognized or derecognized using trade date accounting. The Group derecognizes fi nancial assets when it has lost its right to receive the cash fl ows or when it has transferred substantially all the risks and rewards to an external party.

Financial assets at fair value through profi t or loss

In this category are classifi ed such fi nancial assets that are held for trading or are designated as fi nancial assets at fair value through profi t or loss upon initial recognition (the fair value option). In Fiskars this category comprises the investments in listed securities and those derivative instruments that do not meet the hedge accounting criteria or for which hedge accounting is not applied.

These fi nancial assets are measured at fair value both at initial recognition and subsequently. The fair values of the listed securities are based on quoted rates at the end of the reporting period. Fair value changes, both realized and unrealized gains and losses are recognized in the income statement under fi nancial items. The fair value measurement principles of the derivative instruments that do not meet the hedge accounting criteria are described below under Derivatives and hedge accounting.

Loans and other receivables

Loans and other receivables are nonderivative fi nancial assets with fi xed or determinable payments that are not quoted in an active market. The Group does not hold them for trading or designate them as available for sale upon initial recognition. This category comprises trade receivables and other receivables under current receivables as well as non-current loan receivables that are presented under the item Other investments in the consolidated balance sheet.

Loans and other receivables are measured at amortized cost. The estimate made for doubtful receivables is based on the risks of individual items. Resulting from this assessment the carrying amounts of receivables are adjusted to measure their probable value. Loans and receivables are included in current or non-current assets based on their nature; in the latter class for maturities greater than 12 months after the end of the reporting period.

Available-for-sale fi nancial assets

Available-for-sale fi nancial assets are non-derivative fi nancial assets that are designated as available-for-sale and that are not classifi ed in any of the categories. In Fiskars this category comprises the investments in unlisted securities. If their fair values cannot be determined reliably, they are measured at cost. Available-forsale fi nancial assets are included in noncurrent assets unless the Group intends to dispose of them within 12 months of the end of the reporting period in which case they are included in current assets.

Cash and cash equivalents

The balance sheet item Cash and cash equivalents includes cash, i.e. cash in

hand and deposits held at call with banks, and cash equivalents. Cash equivalents comprise highly liquid investments that are readily convertible to a known amount of cash and subject to an insignifi cant risk of changes in value. The items included in cash equivalents have original maturities of maximum three months from the date of acquisition. Bank overdrafts are included within current interest-bearing fi nancial liabilities.

Financial liabilities

Fiskars classifi es its fi nancial liabilities in the following categories: fi nancial liabilities at fair value through profi t or loss (includes derivative liabilities) and fi nancial liabilities measured at amortized cost. A fi nancial liability is recognized initially at fair value. For fi nancial liabilities measured at amortized cost, the directly attributable transaction costs are included in the original cost. Subsequently fi nancial liabilities are carried at amortized cost using the effective interest method, except for derivative liabilities that are measured at fair value. Financial liabilities are classifi ed as non-current or current; the latter group comprises all those fi nancial liabilities for which the Group does not have an unconditional right to defer settlement of the liability for at least 12 months after the end of the reporting period. The Group removes a fi nancial liability (or a part of it) from its balance sheet only when it is extinguished, i.e. when the obligation specifi ed in the contract is discharged or cancelled or expires.

Derivatives and hedge accounting

Derivative fi nancial instruments are classifi ed as fi nancial instruments at fair value through profi t and loss. Derivatives are recognized initially at cost and subsequently at fair value determined at the end of each reporting period. The fair value of derivatives is based on prevailing market rates or rates derived from the prevailing market rates at the end of the reporting period. Realized gains and losses as well as fair value changes are recognized as adjustments to sales and purchases or in fi nancial items in depending on the nature of the hedged item. Fiskars has applied hedge accounting to changes in the fair value of derivatives designated, qualifying, and effective as cash fl ow hedges. The changes are recognized in Other comprehensive income.

Hedge accounting has been applied to hedges of net investments in foreign operations. Fiskars has been hedging the most signifi cant net investments in the subsidiaries situated outside the Euro zone against foreign currency exchange rate fl uctuations through foreign currency loans and derivatives. However, the hedging was discontinued during 2009 and there were no net investment hedges outstanding at the end of 2009 nor 2010.

Fair value categories

Level 1 category includes fi nancial assets that are publicly quoted in an active market. This category includes listed shares. Level 2 category includes fi nancial assets and liabilities measured using directly observable market inputs. All interest bearing debts and derivatives fall within this category. Level 3 category includes fi nancial assets and liabilities measured using non-market observable inputs. The asset classes in this category are unlisted equity investments and funds.

Provisions and contingent liabilities

A provision is recognized when the Group as a result of a past event has a present legal or constructive obligation, it is probable that the obligation will be realized and a reliable estimate can be made of the amount of the obligation. A provision for restructuring is recognized when a detailed formal plan has been prepared and when there is a valid expectation relating those affected that the plan will be carried out. The amount recognized as a provision is the best estimate of the expenditure required to settle the present obligation at the end of the reporting period. If it is possible to receive compensation for part of the obligation from a third party, the compensation is recognized as a separate asset, but only when receipt of the compensation is virtually certain.

The Group is party to lawsuits and legal processes concerning Group's business operations. A related provision is recognized in the fi nancial statements when the amount of the expenditure can be estimated reliably and it is more likely than not that they will be realized. Otherwise these contingent liabilities are disclosed in the notes.

Income Taxes

The Group's tax expense comprises current tax based on Group companies' taxable profi t for the period and the change of deferred taxes. The current tax charge is calculated using the tax rate enacted or substantively enacted at the end of the reporting period. Deferred tax liabilities or deferred tax assets are provided for temporary differences between the carrying amounts of assets and liabilities for fi nancial reporting purposes and the amounts used for taxation purposes

using tax rates enacted or substantively enacted at the end of the reporting period. Temporary differences arise, inter alia, from tax loss carry-forwards, depreciation differences, provisions, defi ned benefi t pension plans, fair value measurement of derivative fi nancial instruments, biological assets, eliminated intra-group inventory margins as well as from the fair value adjustments made to assets and liabilities in business combinations. A deferred tax liability is recognized on the undistributed profi ts of subsidiaries and associates if the distribution of profi t is probable and it will result in tax consequences. A deferred tax liability is recorded to its full amount and a deferred tax asset is recognized at the amount of the estimated probable tax benefi t. Income tax is recognized in profi t or loss, unless it relates to items recognized in other comprehensive income. In such case any related tax effects are also recognized similarly.

Dividends

Dividends proposed by the Board of Directors are not recorded in the fi nancial statements until they have been approved by the shareholders at the Annual General Meeting.

Adopted IFRS standards and interpretations 2010

As from 1 January 2010 the Group has applied the following standards, interpretations and their amendments:

• Revised IFRS 3 Business Combinations (effective for fi nancial years beginning on or after 1 July 2009).
• Amended IAS 27 Consolidated and Separate Financial Statements (effective for fi nancial years beginning on or after 1 July 2009).

• Amendment to IAS 39 Financial Instruments: Recognition and Measurement – Eligible Hedged Items (effective for fi nancial years beginning on or after 1 July 2009).

• IFRIC 17 Distributions of Non-cash Assets to Owners (effective for fi nancial years beginning on or after 1 July 2009).

• IFRIC 18 Transfers of Assets from Customers (effective on fi nancial years beginning on or after 1 July 2009).
• Improvements to IFRS (April 2009) (effective mainly on fi nancial years beginning on or after 1 January 2010).
• Amendments to IFRS 2 Share-based Payment – Group Cash-settled Sharebased Payment Transactions (effective on fi nancial years beginning on or after 1 January 2010).

Adoption of new and revised IFRS standards and interpretations

The standards, interpretations and their amendments described below have been issued but the Group has not applied these regulations before their effective dates. The Group will adopt them as of the effective date or, if the date is other than the fi rst day of the fi nancial year, from the beginning of the subsequent fi nancial year. Fiskars is assessing the impacts on the consolidated fi nancial statements of the following standards:

• Amendment to IAS 32 Financial Instruments: Presentation – Classifi cation of Rights Issues (effective on fi nancial years beginning on or after 1 February 2010).
• IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments (effective for fi nancial years beginning on or after 1 July 2010).
• IFRS 9 Financial Instruments (effective for fi nancial years beginning on or after 1 January 2013)

IFRS 9 is part of the IASB's project to replace IAS 39. The new standard deals with measurement categories for fi nancial assets. The guidance in IAS 39 on impairment of fi nancial assets and on hedge accounting continues to apply. Standard is still subject to endorsement by the EU.

• Revised IAS 24 Related Party Disclosures (effective for fi nancial years beginning on or after 1 January 2011).
• Improvements to IFRS (May 2010, mainly effective for fi nancial year beginning on or after 1 July 2010). The amendments have not yet been endorsed by the EU.
• Amendments to IFRS 7 Financial Instruments: Disclosures (effective for fi nancial year beginning or after 1 July 2011). The amendment has not yet been endorsed by the EU.
• Amendments to IAS 12 Deferred Tax: Recovery of Underlying Asset (effective for fi nancial year beginning on or after 1 January 2012). The amendment has not yet been endorsed by the EU.

Fiskars does not expect the adoption of other standards, interpretations and their amendments to have a signifi cant effect on the consolidated fi nancial statements.

2. SEGMENT INFORMATION

Fiskars' operating segments are EMEA (Europe, Middle East, and Asia-Pacifi c), Americas, the associated company Wärtsilä and Other. The operating segments are indentifi ed on the basis of management reporting, which is organized by geographical areas. The operations are divided to business areas.

Operating segments

• EMEA: The revenues comprise of sales of Home, Garden and Outdoor products to retailers in Europe, Middle-East and Asia-Pacifi c. Homeware products are even sold directly to consumers via own stores and outlets.
• Americas: The revenues comprise of sales of Home, Garden and Outdoor products to retailers in USA, Canada and Latin America.
• Other: The revenues consist mainly of rent income and timber sales in Finland. Other covers Real Estate unit, corporate headquarters, and shared services.
• Associate Wärtsilä: Income from the associate is reported as one operating segment.

Business activities between the segments are limited. Inter-segment sales are made on arms length basis. Real Estate owns real estate in Finland and leases it to subsidiaries in Finland e.g. for use as production facilities.

Management monitors the operating results of the segments separately for the purpose of making decisions. Segment assets and liabilities are based on geographical location of the assets. Financial income and costs and income taxes are managed on group basis and accordingly not allocated to operating segments.

Business areas

Business areas are Home, Garden and Outdoor. Net sales for the business areas are reported based on the nature of the sales of the products sold to customers. Sales between the business areas are limited.

Unallocated items

The unallocated items of the Income Statement contain group level costs and income. Unallocated assets comprise items related to group administration, tax receivables, loan receivables and equity instruments. Unallocated liabilities comprise non-current and current debt and tax liabilities.

Changes in operating segments and business area reporting in 2009

Fiskars' operating segment and business area structure was changed as of January 1, 2009. The Inha Works business, which mainly consists of boat production, has been moved from Other to EMEA.

School, offi ce and craft (SOC) is included in the business area Home. Previously SOC was reported as a separate business area as well as Boats (Inha Works) that is now included in Outdoor.

Operating segments
--------------------	--

2010					Unallocated
				Associate	and	Corporate
M€	EMEA	Americas	Other	Wärtsilä	eliminations	total
Net sales, external	493.0	219.1	3.8		0.0	715.9
Net sales, inter-segment	9.4	4.0	2.4		-15.8	0.0
Net sales	502.4	223.1	6.2		-15.8	715.9
Operating profi t excl.non-recurring items	44.4	28.1	-12.1		0.0	60.4
Non-recurring items *)	-11.3	0.0	0.0		0.0	-11.3
Operating profi t	33.1	28.1	-12.1		0.0	49.1
Change in fair value of biological assets			-2.2			-2.2
Share of profi t from associate	0.0			65.9		66.0
Financial income and expenses					-6.1	-6.1
Profi t before taxes						106.7
Income taxes					-12.4	-12.4
Profi t for the period						94.3
Assets	550.0	178.0	180.8	341.0	-270.7	979.0
Liabilities	436.1	62.8	384.0		-457.3	425.5
Capital expenditure	12.9	3.4	2.3		0.0	18.6
Depreciations, amortizations and impairment	27.5 *)	5.6	1.8		0.0	34.9

*) Includes non-recurrings items EUR -11.3 million (refers to BA Outdoor's goodwill impairment).

2009					Unallocated
				Associate	and	Corporate
M€	EMEA	Americas	Other	Wärtsilä	eliminations	total
Net sales, external	443.6	213.0	3.7		0.0	660.3
Net sales, inter-segment	7.9	5.2	2.4		-15.5	0.0
Net sales	451.6	218.2	6.1		-15.5	660.3
Operating profi t	26.5	23.9	-10.9*)		0.0	39.5
Change in fair value of biological assets			-0.4			-0.4
Share of profi t from associate	0.0			66.5		66.5
Financial income and expenses					-14.2	-14.2
Profi t before taxes						91.4
Income taxes					-7.9	-7.9
Profi t for the period						83.5
Assets	538.4	154.1	426.6	316.7	-462.6	973.3
Liabilities	425.7	62.1	424.5		-443.8	468.5
Capital expenditure	10.6	2.8	1.2		0.0	14.6
Depreciations, amortizations and impairment	20.5	7.8	-0.1		0.0	28.1

*) Includes non-recurrings items EUR -0.5 million.

Net sales by business areas

M€	2010	2009
Home	309.4	297.3
Garden	274.5	230.9
Outdoor	128.3	128.4
Other	3.8	3.7
Total	715.9	660.3

Information about geographical areas

M€	2010	2009
Net sales from Finland	166.0	141.6
Net sales from the USA	199.9	196.2
Net sales from other countries	350.0	322.5
Total	715.9	660.3
M€	2010	2009
Assets in Finland *)	574.8	535.4
Assets in other countries *)	127.6	157.8
Total	702.4	693.2

*) Non-current assets other than fi nancial instruments, deferred tax assets and post-employment benefi t assets.

3. NON-RECURRING AND RESTRUCTURING COST

Fiskars has continued restructuring measures to improve the profi tability of the business. However, there were no material restructuring costs in 2010 nor 2009. The restructuring provisions recorded in 2008 have been utilized according to the plan. The non-recurring items reported in 2010 consists of business area Outdoor's goodwill impairment, EUR -11.3 million (year 2009: EUR -0.5 million).

4. ACQUISITIONS AND

DIVESTMENTS

2010

In 2010 there are neither acquisitions nor divestments.

2009

Acquisition of Silva Far East

Fiskars acquired a 30% minority share of Silva Far East Ltd in June 2009. The holding was acquired from Kasinda Holding Limited for EUR 0.2 million. After the minority share acquisition, the manufacturing company in China became a wholly owned subsidiary of Silva Sweden AB.

Divestment of Brunton

Fiskars sold the Brunton business in Wyoming, USA in December 2009 to Fenix Outdoor AB (publ) of Sweden. The transaction did not have a material impact on Fiskars' net sales or operating profi t 2009. Brunton was reported as a part of Fiskars' Outdoor business.

The Brunton's net sales in 2009 were EUR 8.8 million, the operating loss was EUR 2.1 million and the cash fl ow from operations was EUR 0.4 million.

The portion of the disposal consideration that is cash and cash equivalents is reported in the consolidated statement of cash fl ows on line "Cash fl ow from other investments".

Divestment of craft consumables

Fiskars divested its consumables product lines and the related brands Heidi Grace and Cloud9 to Colorbök, Inc in the U.S. in July 2009. Net sales of the business for January–June 2009 amounted to EUR 2.4 million.

5. OTHER OPERATING INCOME

M€	2010	2009
Net gain on disposal of fi xed assets	1.1
Rental income	0.5	0.4
Other	0.5	1.4
Total	2.1	1.8

6. TOTAL EXPENSES

Total expenses by nature

M€	2010	2009
Materials and supplies	377.1	337.0
Change in inventory	-9.7	40.7
Employee benefi ts	172.8	165.3
Depreciation, amortization
and impairment	34.9	28.1
External services	48.2	25.7
Other	45.7	25.9
Total	668.9	622.6

Other operating expenses

M€	2010	2009
Impairment of property, plant
and equipment		1.2
Loss on scrap of fi xed assets	0.3
Other operating costs	0.0	0.7
Total	0.3	1.9

Depreciation, amortization and impairment by asset class

M€	2010	2009
Buildings	2.7	3.8
Machinery and equipment	13.9	18.3
Intangible assets	5.9	6.0
Investment property	1.1
Goodwill impairment	11.3
Total	34.9	28.1

Fees paid to Companies' Auditors

M€	2010	2009
Audit fees	0.7	0.9
Audit related fees	0.0	0.0
Tax consultation	0.3	0.1
Other non-audit fees	0.1	0.1
Total	1.1	1.2

The appointed auditor was KPMG for the fi nancial years 2009–2010.

7. EMPLOYEE BENEFITS AND NUMBER OF PERSONNEL

Employee benefi ts

M€	2010	2009
Wages and salaries	125.1	113.4
Other compulsory personnel costs	32.8	36.8
Pension costs, defi ned contribution plans	13.2	13.4
Pension costs, defi ned benefi t plans	0.3	0.3
Other post employment benefi ts	0.8	0.0
Termination benefi ts	0.7	1.4
Total	172.8	165.3

Personnel, end of period

	2010	2009
Finland	1,678	1,598
Other Europe	1,377	1,293
USA	570	740
Other	319	110
Total	3,944	3,742

Personnel (FTE), average

	2010	2009
Direct	1,790	2,052
Indirect	1,822	1,635
Total	3,612	3,687

8. FINANCIAL INCOME AND EXPENSES

M€	2010	2009
Interest income on cash and bank	0.7	0.5
Exchange gains and losses on
commercial hedges	-1.5	-4.6
Exchange gains and losses, other	0.9	1.3
Financial income total	0.1	-2.7
Interest expenses on debt at
amortized cost	-4.6	-9.6
Interest cost on fi nancial leasing at
amortized cost	-0.7	-0.8
Derivative revaluation gains (losses),
at fair value through profi t and loss	0.9	0.0
Other fi nancial expenses	-1.7	-1.0
Financial expense total	-6.2	-11.5
Financial income and expenses total	-6.1	-14.2

9. INCOME TAXES

Income taxes in the income statement

M€	2010	2009
Current year income taxes	-11.7	-4.4
Prior year income taxes	1.5	-0.4
Change in deferred taxes	-2.2	-3.1
Income taxes total	-12.4	-7.9

Reconciliation of income taxes

M€	2010	2009
Tax rate for the parent company	26%	26%
Profi t before taxes	106.7	91.4
Income tax using the domestic
corporation tax rate	-27.7	-23.8
Effect of tax rates in foreign jurisdictions	-1.2	-0.8
Income tax for prior years	1.5	-0.4
Impact of associate	17.1	17.3
Fair value adjustments and other tax
exempt items	0.6	0.6
Non-deductible expenses	-3.6	-2.0
Tax booked against unbooked tax assets	0.6	0.8
Change in valuation of tax assets	0.9	1.4
Other items	-0.6	-1.0
Income taxes recognized in profi t and loss	-12.4	-7.9

Taxes in other comprehensive income

2010
M€	Total	Tax	Net
Translation differences	10.1		10.1
Share of other comprehensive
income in associate	-12.5		-12.5
Cash fl ow hedges	-0.1		-0.1
Defi ned benefi t plan, actuarial
gains (losses)	-0.8	0.2	-0.5
Other comprehensive income for
the period, total	-3.3	0.2	-3.1

2009
M€	Total	Tax	Net
Translation differences	-1.9		-1.9
Share of other comprehensive
income in associate	12.7		12.7
Equity net investment hedges	1.6	-0.3	1.3
Defi ned benefi t plan, actuarial
gains (losses)	1.0	-0.3	0.7
Other comprehensive income for
the period, total	13.4	-0.6	12.8

Deferred income taxes in the balance sheet 2010

			Recognized
Deferred tax assets		Recognized in	in other com	Transfers and
		income	prehensive	translation
M€	Jan 1, 2010	statement	income	difference	Dec 31, 2010
Retirement benefi t	1.9	-1.4	0.2	0.5	1.3
Provisions	10.1	-0.8		-0.7	8.5
Effects on consolidation and eliminations	1.9	-0.6		0.0	1.3
Property, plant & equipment	0.7	0.1		0.0	0.9
Tax losses and tax credits carried forward	20.7	-1.7		0.3	19.2
Valuation allowance of deferred tax assets	-21.1	1.3		-0.4	-20.2
Other temporary differences	4.0	0.0		0.7	4.7
Total deferred tax assets	18.3	-3.1	0.2	0.4	15.9
Offset against deferred tax liabilities	-0.5	-0.1	-0.1	0.0	-0.7
Net deferred tax assets	17.8	-3.2	0.1	0.5	15.2

			Recognized
Deferred tax liabilities		Recognized in	in other com	Transfers and
		income	prehensive	translation
M€	Jan 1, 2010	statement	income	difference	Dec 31, 2010
Property, plant & equipment	4.2	0.0		0.1	4.3
Fair value adjustments	11.8	-0.6			11.2
Effects on consolidation and eliminations *)	31.3	-0.5		-0.8	30.0
Other temporary differences	0.3	0.2		0.3	0.9
Total deferred tax liabilities	47.6	-0.9	0.0	-0.3	46.4
Offset against deferred tax assets	-0.5	-0.1	-0.1	0.0	-0.7
Net deferred tax liabilities	47.2	-1.0	-0.1	-0.3	45.8

Deferred tax assets (+) / liabilities (-), net -29.4 -30.6

*) Consist mainly of adjustments to fair value in acquisitions.

2009

Deferred tax assets		Recognized in	Recognized in other com	Transfers and
		income	prehensive	translation
M€	Jan 1, 2009	statement	income	difference	Dec 31, 2009
Retirement benefi t	0.7	1.4	-0.3	0.1	1.9
Provisions	12.7	-3.1		0.4	10.1
Effects on consolidation and eliminations	3.0	-1.1			1.9
Property, plant & equipment	3.6	-2.9			0.7
Tax losses and tax credits carried forward	19.3	0.7		0.7	20.7
Valuation allowance of deferred tax assets	-19.3	-1.6		-0.1	-21.1
Other temporary differences	5.9	-1.6	-0.3	0.0	4.0
Total deferred tax assets	25.9	-8.2	-0.6	1.1	18.3
Offset against deferred tax liabilities	-4.3	3.8			-0.5
Net deferred tax assets	21.7	-4.4	-0.6	1.1	17.8

			Recognized
Deferred tax liabilities		Recognized in	in other com	Transfers and
		income	prehensive	translation
M€	Jan 1, 2009	statement	income	difference	Dec 31, 2009
Property, plant & equipment	8.5	-4.1		-0.3	4.2
Fair value adjustments	11.8	0.4		-0.4	11.8
Effects on consolidation and eliminations *)	32.1	-0.8		0.0	31.3
Other temporary differences	1.1	-0.6		-0.1	0.3
Total deferred tax liabilities	53.5	-5.1	0.0	-0.8	47.6
Offset against deferred tax assets	-4.3	3.8			-0.5
Net deferred tax liabilities	49.3	-1.3	0.0	-0.8	47.2
Deferred tax assets (+) / liabilities (-), net	-27.6				-29.4

*) Consist mainly of adjustments to fair value in acquisitions.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred taxes relate to the same fi scal authority. The Group has full control of dividend distribution and therefore no deferred tax liability has been recorded. Associate Wärtsilä is a public company and its distribution of profi t is tax exempt for Fiskars. Taxes relating to equity net investment hedge and actuarial gains and losses have been recorded into other comprehensive income. The deferred tax on tax losses carried forward amounted to EUR 19.2 million (EUR 20.7 million) at the end of fi nancial year. Deferred tax allowance is recorded to offset deferred tax assets in order to recognize the deferred tax assets only to the extent that it is probable that future taxable profi ts will be available. The tax losses carried forward, net of allowance will not expire in the following fi ve years. Income taxes recorded in the income statement and in other comprehensive income are specifi ed in earlier in this note 9.

10. EARNINGS PER SHARE

The basic earnings per share is the annual net profi t attributable to ordinary shareholders of the parent company divided by the weighted average number of shares outstanding during the year. Fiskars Corporation does not have any current share option programs or other diluting fi nancial instruments, so the diluted earnings per share is the same as the undiluted.

	2010	2009
Net profi t attributable to the ordinary shareholders of the Parent company, M€	94.3	83.5
Number of shares	82,023,341	82,023,341
Weighted average number of shares outstanding	81,910,722	79,289,391
Earnings per share, euro (basic)	1.15	1.05
Earnings per share, euro (diluted)	1.15	1.05

11. GOODWILL

M€	2010	2009
Historical cost, Jan 1	117.5	117.9
Translation differences	2.3	-0.6
Acquisitions	0.0	0.2
Historical cost, Dec 31	119.8	117.5
Accumulated impairment, Jan 1	18.1	18.7
Translation differences	1.8	-0.6
Impairment	11.3
Accumulated impairment, Dec 31	31.2	18.1
Net book value, Dec 31	88.6	99.4

Goodwill is not amortized but is tested at least annually for impairment.

Goodwill impairment test in cash-generating units

Goodwill allocated to cash-generating units:

M€	2010	2009
Home	73.8	73.7
Garden	14.9	14.5
Outdoor	0.0	11.3
Total	88.6	99.4

Goodwill from acquisitions is allocated to Cash Generating Units (CGU). The business areas, which form the CGUs, are Home, Garden, and Outdoor. The recoverable amounts from CGUs are determined with value in use method, using fi ve-year discounted cash fl ow projections, based on strategic plans approved by management. Cash fl ows for the period extending over the planning period are calculated using the terminal value method. The discount rate is the weighted average post-tax cost of capital (WACC) as defi ned by Fiskars. The components of the WACC are risk-free rate, market risk premium, company-specifi c risk premium, industry specifi c equity beta, cost of debt and debt to equity ratio. On the basis of the impairment calculations made, there has been no need for impairment of goodwill for any CGU for the period ended 31 December 2009.

Based on the goodwill impairment testing in 2010, Fiskars wrote down the entire goodwill of the Silva business. The impairment charge against the goodwill allocated to the Outdoor business area totalled EUR 11.3 million and was booked during the last quarter of the year. The charge did not impact the Group's cash fl ow. There has been no need for impairment of goodwill for any other CGU for the period ended 31 December 2010.

Key parameters applied in impairment testing

%	2010	2009
Increase in net sales on average	1.8	1.8
Steady growth rate in projecting
terminal value	2.5	2.5
WACC pre-tax	6.6	7.3

The EBIT used in impairment testing is the CGU's actual 3 previous years average EBIT. This is consistently used for all periods in the fi ve year discounted cash fl ow projections.

Sensitivity analysis

Sensitivity analyses have been carried out for the valuation of each CGU by making downside scenarios. The analysis illustrates the amount of impairment needed in the downside scenarios. These downside scenarios were created by changing the underlying assumptions below:

2010

Downside scenario effect by CGU

M€	Home	Garden
EBIT, decrease by 2%-units	-	-
WACC, increase by 2%-units	-	-
Steady growth rate 0% in projecting
terminal value	-	-

The changes in the basic assumptions provided in these theoretical downside scenarios shall not be seen as an indication that these factors are likely to materialize.

According to the sensitivity analysis 2009 there was no need for impairment when using the same assumptions for downside scenarios as for the year 2010.

12. OTHER INTANGIBLE ASSETS

M€	2010	2009
Historical cost, Jan 1	157.2	158.1
Translation differences	1.6	-0.3
Acquisitions and divestments	0.0	-0.7
Additions	1.2	1.0
Decreases	-0.7	-1.2
Transfers between asset groups	21.0	0.3
Historical cost, Dec 31	180.3	157.2
Accumulated amortization, Jan 1	32.3	27.1
Translation differences	1.3	-0.1
Amortization for the period	5.9	6.0
Decreases	-0.7	-0.7
Transfers between asset groups	16.2	0.0
Accumulated amortization, Dec 31	55.0	32.3
Net book value, Dec 31	125.4	124.9
Trademarks included in intangible assets	106.4	106.1

Since the benefi ts from trademarks are not limited by time, they are not amortized but are tested at least annually for impairment using a relief from royalty method. Cash fl ows attributable to trademarks are derived by indentifying revenues from sales of products belonging to each trademark. The carrying amounts of trademarks are determined on a discounted cash fl ow method basis, derived from eight-year cash fl ow projections, based on strategic plans approved by the management. Cash fl ows for the period extending over the planning period are calculated using the terminal value method. On the basis of the impairment calculations made, there has been no need for impairment of trademarks for the periods ended 31 December 2010 and 2009.

Key parameters applied in impairment testing

%	2010	2009
Increase in net sales on average	1.9	1.9
Steady growth rate in
projecting terminal value	3.0	3.0
WACC pre-tax	7.6	8.3

Sensitivity analysis

Sensitivity analyses have been carried out for the valuation of each trademark by making downside scenarios. These downside scenarios were created by changing the underlying assumptions below:

Downside scenario effect

M€	2010	2009
Steady growth rate 0% in
projecting terminal value	-	-
WACC increase by 2%-units	-	-

Changes in the basic assumptions provided in these theoretical downside scenarios shall not be seen as an indication that these factors are likely to materialize.

The Group has no material investment commitments for intangible assets.

13. PROPERTY, PLANT AND EQUIPMENT

2010				Machinery
	Land and		Leased	and	Construction
M€	water	Buildings	real estate	equipment	in progress	Total
Historical cost, Jan 1	16.3	51.3	13.1	189.2	2.5	272.4
Translation differences	0.0	0.4	1.0	4.1	0.1	5.6
Additions	0.2	0.2		4.4	12.8	17.6
Decreases	0.0	-0.7	0.0	-7.7	0.0	-8.5
Transfers between asset groups	0.0	1.0	0.0	-29.3	-8.0	-36.2
Historical cost, Dec 31	16.5	52.2	14.1	160.7	7.3	250.8
Accumulated depreciation, Jan 1		24.9	10.3	137.7		172.9
Translation differences		0.2	0.8	2.8		3.8
Depreciation for the period		2.1	0.6	14.3		17.0
Decreases		-0.7	0.0	-5.8		-6.5
Transfers between asset groups		-0.1	0.0	-31.3		-31.4
Accumulated depreciation, Dec 31		26.4	11.7	117.7		155.8
Net book value, Dec 31	16.5	25.8	2.4	42.9	7.3	95.0

2009				Machinery
	Land and		Leased	and	Construction
M€	water	Buildings	real estate	equipment	in progress	Total
Historical cost, Jan 1	16.4	53.9	12.8	191.9	5.5	280.5
Translation differences	0.0	0.0	-0.4	-0.4	0.0	-0.7
Additions	0.2	0.5		5.1	7.4	13.2
Decreases	-0.2	-0.6	0.0	-11.6	-0.1	-12.4
Transfers between asset groups	0.0	-2.0	0.7	5.0	-10.2	-6.5
Historical cost, Dec 31	16.3	51.3	13.1	189.2	2.5	272.4
Accumulated depreciation, Jan 1		26.9	7.8	132.7		167.3
Translation differences		-0.1	-0.3	-0.5		-0.8
Depreciation for the period		2.1	1.6	18.3		22.0
Decreases		-0.4	0.0	-10.1		-10.5
Transfers between asset groups		-3.6	1.1	-2.7		-5.1
Accumulated depreciation, Dec 31		24.9	10.3	137.7		172.9
Net book value, Dec 31	16.3	26.4	2.8	51.5	2.5	99.5

The Group has no material investment commitments for property, plant and equipment.

14. BIOLOGICAL ASSETS

M€	2010	2009
Fair value, Jan 1	38.9	39.3
Increase due to growth	1.4	1.5
Change in fair value less estimated point-of-sale costs	-2.2	-0.5
Harvested timber	-1.5	-1.4
Fair value, Dec 31	36.7	38.9

Fiskars has some 15,000 hectares of real estate and forests in Finland, including the key landholding at Fiskars Village. For valuing biological assets Fiskars applies a three year rolling average price of standing timber multiplied by the estimated volume.

15. INVESTMENT PROPERTY

M€	2010	2009
Historical cost, Jan 1	20.4	19.7
Translation differences	0.8	-0.3
Additions	0.0	0.3
Decreases	-2.6	-1.1
Transfers between asset groups	0.0	1.9
Historical cost, Dec 31	18.6	20.4
Accumulated depreciation, Jan 1	11.9	12.0
Translation differences	0.6	-0.3
Depreciation and impairment for the period	1.1
Decreases	-2.5	0.1
Transfers between asset groups	0.0	0.1
Accumulated depreciation and impairment,
Dec 31	11.0	11.9
Net book value, Dec 31	7.6	8.5

Fair value

Investment property comprises the parent company properties in Fiskars Village, Finland, and the leasing properties of Fiskars Brands, Inc in the US that are not in Group's operational use. Properties in Fiskars Village are unique in their cultural and historical values. Therefore it is not possible to determine a comparable market value on the properties.

Book values by countries

2010	2009
5.7	6.1
1.9	2.4
7.6	8.5

16. INVESTMENTS IN ASSOCIATES

M€	2010	2009
Net book value, Jan 1	316.8	263.5
Share of profi t	65.9	66.5
Dividends received	-29.5	-25.3
Share of other comprehensive income	-12.5	12.7
Other changes	0.2	-0.7
Net book value, Dec 31	341.0	316.8

Goodwill included in the net book value 61.2 61.2

Share of profi t comprises the share of net profi t in associate reduced with the EUR 29.5 million (25.3) dividends received. Share of other comprehensive income comprises changes in associated company's equity. The market value of Wärtsilä shares owned by Fiskars as at December 31, 2010 amounted to EUR 961.9 million (472.9).

Summary of fi nancial information on the associate

M€	2010	2009
WÄRTSILÄ CORPORATION
Ownership-%	17.1	17.1
Assets	4,696	4,655
Liabilities	3,032	3,143
Equity	1,664	1,512
Net sales	4,553	5,260
Net profi t	397	396

Fiskars' share in the votes of the associate was 17.1% (17.1%).

17. FINANCIAL ASSETS

Investments at fair value through profi t and loss

M€	2010	2009
Historical cost, Jan 1	3.0	2.9
Additions	3.5	0.0
Decreases	-0.3	0.0
Change in fair value through profi t and loss	0.5	0.0
Book value, Dec 31	6.7	3.0

The investments comprise listed and unlisted shares as well as unlisted funds. Listed shares have been recognized at their fair value based on quotation at the end of the reporting period (fair value hierarchy level 1). Unlisted shares are measured at cost (level 3) since their fair value cannot be determined reliably. The fair value of unlisted funds is based on the market value reported by the fund (level 3). Changes in the fair value are booked in the income statement. For the defi nition of levels please see the accounting principles (note 1).

Other investments

M€	2010	2009
Historical cost, Jan 1	2.1	2.2
Translation differences	-0.2	0.0
Additions	0.0	0.5
Decreases	-0.3	-0.5
Other changes	0.0	-0.1
Book value, Dec 31	1.6	2.1

Other investments comprise non-current receivables and they are measured at the lower of cost and fair value (level 3).

18. INVENTORIES

M€	2010	2009
Raw materials and consumables	25.0	20.7
Work in progress	13.8	13.4
Finished goods	108.4	100.4
Advance payments	0.3	0.7
Gross value of inventories	147.6	135.2
Write-down to the carrying value
of inventories	-14.6	-16.2
Total, Dec 31	133.0	119.0

19. TRADE AND OTHER RECEIVABLES

M€	2010	2009
Trade receivables	104.5	89.2
Advances paid	0.0	0.1
Derivatives	2.0	0.4
Other receivables	5.8	5.2
Prepaid expenses and accrued income	7.1	6.9
Total, Dec 31	119.6	101.9

Trade receivables, aging classifi cation

M€	2010	2009
Aging class., not fallen due	86.2	76.3
Aging class., 0–30 days overdue	16.3	10.5
Aging class., 31–60 days overdue	2.8	2.2
Aging class., 61–90 days overdue	1.0	0.6
Aging class., 91–120 days overdue	0.4	0.3
Aging class., over 120 days overdue	1.5	2.6
Less provision for bad debts, Dec 31	-3.7	-3.2
Total, Dec 31	104.5	89.2

Trade receivables in currencies

M€	2010	2009
Danish Krones (DKK)	7.3	7.6
Euros (EUR)	38.4	32.4
Norwegian Krones (NOK)	7.9	6.0
Swedish Kronas (SEK)	10.2	6.7
United Kingdom Pounds (GBP)	6.6	5.8
US Dollars (USD)	24.5	23.2
Other currencies	9.6	7.6
Total, Dec 31	104.5	89.2

Trade receivables are widely spread geographically. The biggest customers are major retailers with solid credit ratings. Credit loss risks are estimated to be moderate. The maximum exposure to credit risk is the carrying amount of the trade receivables.

20. CASH AND CASH EQUIVALENTS

M€	2010	2009
Cash at bank	5.8	38.6
Other current investments	0.0	0.0
Total, Dec 31	5.8	38.6

21. SHARE CAPITAL

	2010	2009	2010	2009
	pcs 1,000	pcs 1,000	M€	M€
A Shares
Jan 1		54,944		54.9
Change *)		-54,944		-54.9
Dec 31		0.0		0.0
K Shares
Jan 1		22,566		22.6
Change *)		-22,566		-22.6
Dec 31		0.0		0.0
New shares
Jan 1	82,023		77.5
Change *)		82,023		77.5
Dec 31	82,023	82,023	77.5	77.5
Share capital, Dec 31	82,023	82,023	77.5	77.5
Treasury shares
A Shares
Jan 1		112.1		-0.8
Change *)		-112.1		0.8
Dec 31		0.0		0.0
K Shares
Jan 1		0.4		0.0
Change *)		-0.4		0.0
Dec 31		0.0		0.0
New shares
Jan 1	112.6		0.8
Change *)		112.6		0.8
Dec 31	112.6	112.6	0.8	0.8
Treasury shares, Dec 31	112.6	112.6	0.8	0.8

Number of shares and votes *)

		Dec 31, 2010			Dec 31, 2009
	Number of	Number of Share capital		Number of	Number of	Share capital
	shares	votes	€	shares	votes	€
New shares (1 vote/share)	82,023,341	82,023,341	77,510,200	82,023,341	82,023,341	77,510,200
Total	82,023,341	82,023,341	77,510,200	82,023,341	82,023,341	77,510,200

*) Fiskars Group has one series of shares following the combination of the company's series A and K shares based on the decision by the extraordinary general meeting in 2009. Holders of series K shares received one share free for each fi ve series K shares. The new single class shares (FIS1V) became subject to public trading as of July 31, 2009. All shares carry one vote each and equal rights.

22. FINANCE

Non-current interest-bearing debt		2010		2009
	Fair	Carrying	Fair	Carrying
M€	value	amount	value	amount
Loans from credit institutions	65.0	65.0	63.1	63.1
Financial leasing debt	12.2	11.0	13.0	11.6
Other non-current debt	0.1	0.1	0.1	0.1
Total, Dec 31	77.4	76.1	76.2	74.9

All interest-bearing debts are valued at amortized cost. The fair values of interest-bearing debts have been calculated by discounting the cash fl ow of the debt by the market rate at the end of reporting period (fair value hierarchy level 2).

Finance lease debt

M€	2010	2009
Finance lease liabilities are payable as follows:
Less than one year	2.0	3.1
Between one and fi ve years	7.2	8.7
More than fi ve years	6.3	4.9
Minimum lease payments in total	15.5	16.7

Minimum lease payments, principal

M€		2010		2009
Less than one year		1.5		1.5
Between one and fi ve years		5.8		7.0
More than fi ve years		5.2		4.7
Present value of minimum fi nance lease payments		12.4		13.1
Future fi nance charges		3.1		3.6
Current interest bearing debt
		2010		2009
	Fair	Carrying	Fair	Carrying
M€	value	amount	value	amount
Bank overdrafts	14.3	14.3	1.5	1.5
Loans from credit institutions	0.0	0.0	15.0	15.0
Commercial papers	114.4	114.4	136.4	136.4
Capital loan *)			45.6	45.1
Financial leasing debt	1.5	1.5	1.5	1.5
Other	0.1	0.1	0.2	0.2

Total, Dec 31 130.2 130.2 200.2 199.7

*) Capital loan was repaid in June 2010.

Maturity of liabilities

As of December 31, 2010 the Group has unused credit facilities EUR 405 million (425) at its disposal to guarantee its liquidity. The average maturity of the credit limit agreements as of December 31, 2010 was 3.6 years (4.4 years). Agreements concerning credit facilities and long term loans include among others covenants for the solidity. Incompliance with the covenants would lead to a premature expiry of the agreements. Potential default would require considerably deterioration of the solidity from the current.

2010
M€	2011	2012	2013	2014	2015	Later years	Total
Bank overdrafts	14.3						14.3
Commercial papers	114.4						114.4
interests	0.6						0.6
Other debt	0.1					0.1	0.2
Loans from credit institutions	1.3			11.2	22.5	30.0	65.0
interests	1.0	1.2	1.2	1.2	1.0	1.5	7.1
Financial leasing	1.5	1.5	1.6	1.7	1.0	5.2	12.4
interests	0.6	0.5	0.4	0.3	0.2	1.0	3.1
Trade payables	46.5						46.5
Derivative liabilities	0.0				0.1		0.1
Total, Dec 31	180.2	3.2	3.2	14.4	24.8	37.9	263.7
	68.4%	1.2%	1.2%	5.5%	9.4%	14.4%	100.0%
2009
M€	2010	2011	2012	2013	2014	Later years	Total
Bank overdrafts	1.5						1.5
Commercial papers	136.4						136.4
interests	0.6						0.6
Other debt	0.2	0.0				0.1	0.3
Capital loan	45.1						45.1
interests	2.8						2.8
Loans from credit institutions	15.0	0.1			10.4	52.6	78.1
interests	1.2	0.9	0.9	0.9	0.9	1.8	6.6
Financial leasing	1.5	2.5	1.4	1.5	1.6	4.7	13.1
interests	0.7	0.6	0.5	0.4	0.3	1.1	3.6
Trade payables	38.7						38.7
Derivative liabilities	0.1						0.1
Total, Dec 31	243.7	4.0	2.8	2.8	13.2	60.4	326.9
	74.5%	1.2%	0.9%	0.9%	4.0%	18.5%	100.0%

Sensitivity analysis of currency exposure

The exchange rate sensitivity analysis in accordance with IFRS 7 has been carried out by examining how the profi t before taxes or consolidated group equity would be impacted by a 10% devaluation of a currency against all other currencies. Impact from a 10% appreciation of a currency against all other currencies would be opposite. The analysis on profi t before taxes includes internal and external foreign currency denominated fi nancial items of the parent company in the selected currencies. Financial items have been grouped to commercial hedges and to other fi nancial items. Commercial hedges comprise internal derivatives which are used to hedge net foreign currency fl ows of purchases and sales estimated to take place during the following year by the business units. The selected currencies represent approximately 90% of the commercial net foreign currency fl ows. Other fi nancial items include foreign currency denominated loans, deposits and external derivatives. The sensitivity analysis on the group consolidated equity illustrates translation risk related to the foreign currency denominated equity.

		2010			2009
	Impact on result before taxes			Impact on result before taxes		Impact
	Commercial	Other	Impact on	Commercial	Other	on group
M€	hedges	fi nancial items	group equity	hedges	fi nancial items	equity
CAD	-1.3	1.3	-0.3	-0.8	0.8	-0.3
DKK	-1.1	1.1	-1.8	-0.7	0.0	-2.1
GBP	-0.7	0.7	-1.2	-1.0	1.0	-1.4
NOK	-1.1	1.1	-0.2	-0.6	0.6	-0.4
SEK	-1.7	1.7	-1.6	-1.5	1.5	-1.6
USD	2.4	-2.4	-3.6	2.0	-2.0	-3.0

Average interest rates and sensitivity analysis of interest expenses

The sensitivity of interest expenses on changes in interest rates has been presented by simulating a permanent 1 percentage unit raise in interest rates at the end of the reporting year. The Corporation's net interest bearing debt as of December 31, 2010 was EUR 200.0 million (EUR 235.7 million) and the average interest reset period was 9 months (5 months). A permanent 1 percentage unit raise in all interest rates would increase the Corporation's annual interest costs by EUR 1.3 million (EUR 2.0 million) assuming no change in the amount of the net debt.

The table below shows the Corporation's net interest bearing debt, currency derivatives, average interest rates on loans and interest rate sensitivity by major currencies.

2010
M€	EUR	USD	GBP	SEK	Other	Total
External loans and deposits	166.1	28.8	0.3	0.5	4.3	200.0
Currency derivatives	77.8	-116.0	13.6	7.8	15.6	-1.2
Net debt on currency derivatives	243.9	-87.2	13.8	8.3	19.9	198.8
Average interest rate on loans (p.a.)	1.6%	3.2%				1.8%
Interest rate sensitivity	1.8	-0.9	0.1	0.1	0.2	1.3

2009
M€	EUR	USD	GBP	SEK	Other	Total
External loans and deposits	222.7	16.4	-1.0	-3.3	0.9	235.7
Currency derivatives	32.9	-85.4	16.3	15.6	20.1	-0.4
Net debt on currency derivatives	255.7	-69.0	15.3	12.3	21.0	235.3
Average interest rate on loans (p.a.)	2.2%	3.8%				2.3%
Interest rate sensitivity	2.3	-0.7	0.2	0.2	0.1	2.0

Operating lease obligations

M€	2010	2009
Payments next year	14.5	15.7 44.6
Payments later	44.3
Total, Dec 31	58.8	60.3

The present value of fi nancial lease agreements has been recorded under liabilities in the balance sheet.

Contingencies and pledged assets

M€	2010	2009
Guarantees as security for own commitments	0.0	0.2
Guarantees as security for subsidiaries' commitments	9.0	9.4
Real estate mortgages as security for third-party commitments	0.0	2.0
Lease commitments	58.8	60.3
Pledged assets	0.0	1.7
Other contingencies	1.0	4.4
Total pledged assets and contingencies, Dec 31	68.8	78.0

Litigation

Fiskars is involved in a number of legal actions, claims and other proceedings. The fi nal outcome of these matters cannot be predicted. Taking into account all available information to date the outcome is not expected to have material impact on the fi nancial position of the Group.

Nominal amounts of derivatives

M€	2010	2009
Derivatives not designated in hedge accounting:
Forward exchange contracts	186.7	150.9
Electricity forward agreements	2.4	1.8
Interest rate swaps	1.1	1.1
Cash fl ow hedges:
Interest rate swaps	22.5

Fair value of derivatives

M€	2010	2009
Derivatives not designated in hedge accounting:
Forward exchange contracts	1.2	0.4
Electricity forward agreements	0.8	0.0
Interest rate swaps	0.0	-0.1
Cash fl ow hedges:
Interest rate swaps	-0.1

The fair values of derivatives have been determined by using generally accepted valuation techniques supported by observable market data (fair value hierarchy level 2). Derivatives are recognised at fair value through profi t and loss except for cash fl ow hedges, which are recorded in equity.

Maturity of derivatives

2010
M€	2011	2012	Later years	Total
Forward exchange contracts	186.7			186.7
Electricity forward agreements	0.9	0.9	0.6	2.4
Interest rate swaps	1.1		22.5	23.6
Total, Dec 31	188.8	0.9	23.1	212.7

2009
M€	2010	2011	Later years	Total
Forward exchange contracts	150.9			150.9
Electricity forward agreements	0.8	0.8	0.3	1.8
Interest rate swaps	0.0	1.1	0.0	1.1
Total, Dec 31	151.7	1.9	0.3	153.9

Fair value of fi nancial instruments

Level 1	Level 2	Level 3	Total
		6.7	6.7
		1.6	1.6
	2.0		2.0
0.0	2.0	8.3	10.3
	207.6		207.6
	0.1		0.1
0.0	207.7	0.0	207.7

2009
M€	Level 1	Level 2	Level 3	Total
Investments at fair value through profi t and loss	0.2		2.8	3.0
Other investments			2.1	2.1
Derivative assets		0.4		0.4
Total assets	0.2	0.4	4.9	5.5
Financial liabilities		276.4		276.4
Derivative liabilities		0.1		0.1
Total liabilities	0.0	276.5	0.0	276.5

The defi nition of fair value category levels please see the accounting principles (note 1).

Financial risk management

Financial risks are managed by Corporate Treasury, in accordance with a set of risk management principles approved by the Board of Directors.

Currency risk

Currency risk is linked to changes in the value of Fiskars' cash fl ows, its balance sheet, and/or its competitiveness resulting from changes in exchange rates. Fiskars' currency position is split between its transaction position and translation position, both of which are managed separately.

Transaction risk results from the possibility that the value of expected cash fl ow denominated in a particular currency may change as a result of changes in exchange rates. Translation risk refers to the impact that changes in exchange rates can have on the consolidated balance sheet, and which can affect the value of balance sheet assets, equity, and debt liabilities. In addition to balance sheet values, changes in exchange rates can also result in some circumstances in changes in key indicators, such as the Group's equity-to-assets ratio and gearing.

Fiskars aims to manage its currency risks primarily through business means. Acquisition of production inputs and sale of products are primarily denominated in the local currencies of the Group companies, of which the euro (41% of consolidated net sales), the US dollar (29%), the Swedish krona (11%), the Norwegian krona (4%) and the pound sterling (4%) are the most important. Higher levels of imports indirectly expose Fiskars to risks linked to changes in the local currencies of its suppliers, of which the most important is the Chinese Renminbi.

Transaction risk

The objective of Fiskars' approach to managing its transaction risk is to reduce the impact of changes in exchange rates on the Group's budgeted profi tability and cash fl ows. Business units are responsible for managing the currency risks associated with their projected and agreed commercial cash fl ows. Units hedge their exposure using currency forwards with the Corporate Treasury.

Transaction risk is measured by net of the Group's commercial and fi nancial receivables and liabilities denominated in foreign currencies. The net position is hedged by currency derivatives in accordance with the Treasury Policy approved by the Board of Directors. Currency forwards and swaps are the most widely used instruments in hedging currency risks. Derivatives are used solely for hedging purposes.

Fiskars does not apply hedge accounting as defi ned under IAS 39 for transaction risk purposes. All gains and losses made on currency derivatives are booked in the income statement. If hedge accounting had been applied to currency derivatives Fiskars' consolidated profi t before tax for 2010 would have been EUR 1.5 million above the reported fi gure (2009: 4.5 million above).

Translation risk

The objective of the management of translation risk is to reduce the impact of changes in exchange rates on the Group's equity. Fiskars has applied hedge accounting in accordance with IAS 39 and IAS 21 in respect of net investments made in units outside Finland. Fiskars did not have any hedges on the net investments in 2010.

Interest rate risk

Interest rate risk refers to possible changes in cash fl ow or in the value of assets or liabilities resulting from changes in interest rates. Interest rate risk is measured by the average reset period

of interest rates of fi nancial assets and liabilities. The average reset period refl ects the time it takes for the change in interest rates to take full effect on the interest costs of net debt portfolio. The risk is quantifi ed in monetary terms as the change in interest costs during the observation period caused by a permanent one percentage point rise in interest rates. The shorter the average reset period, the more unpredictable are the interest costs and thus the higher the interest rate risk.

Derivatives are used in the management of interest rate risks. The objective is to maintain the average reset period within the agreed limits of 4 to 18 months as set in the Treasury Policy. As of December 31, 2010 the nominal amount of outstanding interest rate derivatives was EUR 23.6 million (1.1).

The Group's interest-bearing net debt as of December 31, 2010 was EUR 200.0 million (235.7). 82% (75%) of the net debt was linked to variable interest rates and including effect from interest rates derivatives 18% (25%) to fi xed interest rates. The average interest rate reset period of interest-bearing debt was 9 months (5 months).

Sensitivity of interest expenses on changes in market rates has been calculated by assuming permanent one percentage unit increase change in market rates and assuming no change in the net debt during the year. The calculated impact on the consolidated result before tax would be EUR 1.3 million (2.0) in 2011.

Liquidity and re-fi nancing risk

Liquidity risk refers to the possibility of the Group's fi nancial assets proving insuffi cient to cover its business needs or a situation in which arranging such funding would result in substantial additional costs. The objective of liquidity management is to maintain an optimal amount of liquidity to fund the business operations of the Group at all times while minimising interest costs. Liquidity is considered to be the sum of cash and cash equivalents and available committed credit lines.

Re-fi nancing risk refers to the possibility of such a large amount of liabilities falling due over such a short space of time that the re-fi nancing needed might be unavailable or prohibitively expensive. The objective is to minimise the re-fi nancing risk by diversifying the maturity structure of the debt portfolio.

The Group has extensive unused credit facilities at its disposal to guarantee its liquidity. As of the end of the year, the aggregate of unutilized committed revolving credit facilities and overdraft facilities totaled EUR 415.7 million (448.5). In addition, the Group's parent company in Finland has a commercial paper program with a number of leading banks amounting to EUR 400.0 million, of which EUR 114.4 million (136.4) was utilized as of the end of the year.

Commodity risk

Fiskars may use derivatives to hedge its exposure to commodity price fl uctuations where appropriate. As of the end of the year, the Group held no commodity derivative contracts other than electricity futures with a nominal value of EUR 2.4 million (1.8) recognized at market value through the Income Statement.

Credit risk

Corporate Treasury is responsible for evaluating and monitoring fi nancial counterparty risk. The Group minimizes this risk by limiting its counterparties to a limited number of major banks and fi nancial institutions and by working within agreed counterparty limits.

Business units are responsible for monitoring customer credit risks. The Group's clientele is extensive and even the largest customer represent less than 10% of the outstanding receivables.

As of the end of the year, the Group's sales receivables totaled EUR 104.5 million (89.2), and the fi nancial statements include provisions for bad debts related to sales receivables totaling EUR 3.7 million (3.2).

Management of Capital

Fiskars is not subject to any externally imposed capital requirements (other than eventual local company law requirements effective in the jurisdictions where Fiskars Group Companies are active).

The Group's objectives when managing capital are:

• to safeguard the Corporation's ability to continue as a going concern so that it can continue to provide returns for shareholders and take care of its obligations towards other stakeholders
• to provide an adequate return to shareholders by maintaining a balanced business and investment portfolio that provides returns both on short and long term
• to maintain possibilities to act on potential investment opportunities

The aim is to maintain the capital structure of the Group strong enough to ensure Group's capacity to fund its operations in all business conditions.

23. EMPLOYEE BENEFIT OBLIGATIONS

Most of Fiskars Group's pension plans are defi ned contribution plans. The defi ned benefi t plans in the US, Great Britain and Germany are closed plans, and future pay increases will not impact the valuation. The defi ned benefi t plans in Norway and Holland are not closed. The Group also has supplementary pension plans in Finland which are classifi ed as defi ned benefi t plans. Authorized actuaries have performed the actuarial calculations for the defi ned benefi t plans. The Group is responsible for some postemployment benefi ts in Italy, but the liabilities recorded are fi nal and as such they are classifi ed as defi ned contribution plans.

M€	2010	2009
Liabilities for post-employment benefi ts	2.0	2.3
Defi ned benefi t pension liabilities *)	6.7	7.1
Pension liability total	8.7	9.4

*) The defi ned benefi t liabilities consist of Germany 1.2, Norway -0.6, Holland 1.4, USA 4.5 and Finland 0.2 million euro.

Amounts as of December 31

M€	2010	2009	2008	2007	2006
Defi ned Benefi t Obligation	26.4	27.1	23.9	32.4	27.6
Plan assets	19.7	20.0	17.0	25.4	17.1
Defi cit/(Surplus) in the plan	6.7	7.1	6.9	7.1	10.5
Experience adjustments on plan liabilities	0.2	0.8	2.3	0.4	0.3
Experience adjustments on plan assets	0.3	1.5	-4.9	-0.3	-0.2

Amounts recognized in the Balance Sheet

M€	2010	2009
Change in defi ned benefi t obligation:
Defi ned benefi t obligation at the
beginning of the year	27.1	23.9
Translation difference	1.1	1.8
Service cost	0.2	0.6
Interest cost	1.3	1.4
Actuarial (gain) or loss	1.5	2.9
Settlements	-1.0	-2.0
Benefi ts paid	-3.8	-1.4
Defi ned benefi t obligation, Dec 31	26.4	27.1

Changes in plan assets:

		Fair value of plan assets at the beginning

of the year	20.0	17.0
Translation difference	0.8	1.6
Expected return on plan assets	1.0	1.1
Actuarial gain or (loss)	0.7	1.7
Benefi ts paid	-3.8	-1.3
Employer contributions	1.4	1.0
Settlements	-0.5	-1.2
Fair value of plan assets, Dec 31	19.7	20.0

Net defi ned pension benefi t liability at Dec 31 6.7 7.1

Amounts recognized in the Income Statement
M€	2010	2009
Current service cost	0.2	0.6
Interest cost	1.3	1.4
Effect of settlement and curtailments	-0.3	-0.7
Expected return on plan assets	-1.0	-1.1
Amortization of past service cost	0.0	0.0
Total	0.1	0.1

Amounts recognized directly in

other comprehensive income

M€	2010	2009
Actuarial gain or (loss)	-0.1	0.7
Deferred tax	0.1	-0.2
Total	0.0	0.5
Actual gain/(loss) for defi ned benefi t plan funds	1.7	2.9

Plans in US and Germany are non-funded. Plans in Finland, Norway and the Netherlands are taken care of by local pension insurance companies. The plans in UK are funded by investments in equities and bonds totaling EUR 12.2 million of which EUR 9.3 million are investments in equities. The Group estimates its contributions to the plans during 2011 to be EUR 1.4 million.

Percentages of plan assets by asset group

%	2010	2009
Equity securities	52	37
Debt securities	2	4
Real Estate	6	8
Bonds	26	40
Other	13	11

Principal actuarial assumptions at the balance-sheet date

Discount rate

%	2010	2009
Great Britain	5.20–5.30	5.30–5.60
Germany	4.3	5.3
Finland	4.3	5.3
United States	4.7	5.4
Norway	3.2	4.4
The Netherlands	4.3	5.3

Expected return on plan assets,

long term

%	2010	2009
Great Britain	2.70–5.90	3.10–5.90
Germany	n/a	n/a
Finland	4.00	5.25
United States	n/a	n/a
Norway	4.60	n/a
The Netherlands	4.25	n/a

Future salary increases

%	2010	2009
Great Britain	4.2	4.5
Germany	0.0	n/a
Finland	2.5	1.85
United States	n/a	n/a
Norway	4.0	n/a
The Netherlands	0–4.0	n/a

Future pension increases

%	2010	2009
Great Britain	3.0–3.3	3.0–3.6
Germany	1.8	1.5
Finland	2.1	n/a
United States	0.0	0.0
Norway	0.5	n/a
The Netherlands	0–2.5	n/a

24. PROVISIONS

2010 M€	Warranty provision	Restructuring provision	Onerous contracts and other provisions	Total
Provisions, Jan 1	1.7	4.6	2.8	9.1
Translation differences	0.1	0.2	0.1	0.4
Additions	0.4	0.2	0.3	0.9
Used provisions	-0.1	-1.9	-0.2	-2.2
Change in estimates	-0.1	0.0	0.1	0.1
Reversals	0.0	0.0	-0.5	-0.5
Provisions, Dec 31	2.0	3.1	2.6	7.7

2009	Onerous contracts
	Warranty	Restructuring	and other
M€	provision	provision	provisions	Total
Provisions, Jan 1	1.7	8.8	2.9	13.4
Translation differences	-0.4	-0.1	-1.2	-1.7
Additions	0.4	0.6	1.0	2.0
Used provisions		-4.6		-4.6
Change in estimates		0.0	0.0	0.0
Reversals		-0.2	0.2	-0.1
Provisions, Dec 31	1.7	4.6	2.8	9.1

25. TRADE AND OTHER PAYABLES

M€	2010	2009
Trade payables	46.4	38.7
Advances received	0.0	0.3
Other debt	10.4	8.5
Accrued expenses and deferred income
Interest payable	1.0	2.5
Wages, salaries and social costs	34.6	31.6
Customer rebates and commissions	20.3	15.3
Other	33.9	24.4
Total, Dec 31	146.6	121.3

Other accrued expenses and deferred income comprise periodization of bought materials and supplies, annual rebates for clients and other accrued items.

26. RELATED PARTY TRANSACTIONS

Fiskars has no significant transactions, liabilities or receivables with its associated company, Wärtsilä. The dividend from Wärtsilä EUR 29.5 million (EUR 25.3 million in 2009), has been reported as Dividends from associate in the Consolidated Statement of Cash Flows. The dividend was received in the first quarter of 2010. Iittala Group Oy Ab rents real estate from its associate Koy Iittalan Lasimäki and has granted a capital loan to the company at inception. Fiskars has booked fees for legal services to Foley & Lardner LLP where Ralf Böer, board member of Fiskars, is Chairman, CEO and partner. Ralf Böer did not provide any of the services, and total fees paid to Foley represent less than 0.25% of Foley's revenues.

M€	2010	2009
Rent	0.2	0.2
Capital loan	0.2	0.2
Legal service fees	1.3	1.4

Shareholdings of the Board and key management, Dec 31

Includes holding of corporations under controlling power together with a family member

			2010			2009
		Holdings of			Holdings of
	Own	controlled		Own	controlled
	holdings	corporations	Total	holdings	corporations	Total
Bergh Kaj-Gustaf	5,000		5,000	5,000		5,000
Böer Ralf	5,677		5,677	5,677		5,677
Ehrnrooth Alexander	1,700,000	9,450,000	11,150,000	1,833,534	9,213,770	11,047,304
Ehrnrooth Paul	8,205	9,030,406	9,038,611	648,205	8,440,406	9,088,611
Ervasti-Vaintola Ilona *	14,000		14,000	14,000		14,000
Fromond Louise	601,135	8,229,050	8,830,185
Gripenberg Gustaf	243,320	4,057,289	4,300,609	243,320	4,056,348	4,299,668
Grotenfelt Karl *	11,680		11,680	11,680		11,680
Jonasson Blank Ingrid	0		0
Slotte Karsten	1,000		1,000	1,000		1,000
Suominen Jukka	1,500		1,500	1,500		1,500
Alfthan Max	2,500		2,500	2,500		2,500
Kangas-Kärki Teemu	2,000		2,000	2,000		2,000
Karlsson Jutta	0		0	0		0
Kauniskangas Kari	25,397		25,397	25,397		25,397
Korhonen Hille	3,350		3,350	3,350		3,350

The Directors and the CEO do not have any debts to the company; nor has the company given pledges or taken on other responsibilities in their names.

Fees and salaries paid to the Board and key management

T€	2010	2009
Bergh Kaj-Gustaf	85.4	91.4
Böer Ralf	42.7	45.5
Ehrnrooth Alexander	58.3	60.5
Ehrnrooth Paul	58.3	61.0
Ervasti-Vaintola Ilona *	10.4	46.0
Fromond Louise	32.3
Gripenberg Gustaf	44.7	48.2
Grotenfelt Karl *	10.4	44.4
Jonasson Blank Ingrid	32.3
Slotte Karsten	42.1	46.0
Suominen Jukka	42.7	44.9
Kauniskangas Kari	684.2	468.7
Executive board excl. President & CEO	1,011.9	764.5
Total	2,155.3	1,721.1

The key management consists of the Board of Directors, the President & CEO and the members of Corporate Management Team (Executive Board).

* Member of the Board of Directors untill 16.3.2010

27. SUBSIDIARIES AND OTHER PARTICIPATIONS

Shares in subsidiaries

			% of	% of	Nature of
	Domicile		share capital	voting power	activities
Avlis AB	Sollentuna	SE	100.0	100.0	H
Hackman Polska Sp. Z.o.o.	Warsaw	PL	100.0	100.0	L
iittala ab	Höganäs	SE	100.0	100.0	M
iittala Estonia a/s	Tallinn	EE	100.0	100.0	M
iittala b.v.	Oosterhout	NL	100.0	100.0	M
iittala bvba	Antwerpen	BE	100.0	100.0	M
iittala GmbH	Solingen	DE	100.0	100.0	M
Iittala Group Oy Ab	Helsinki	FI	100.0	100.0	T
iittala Ltd (GB).	Windsor Berkshire	GB	100.0	100.0	M
ImanCo Oy	Helsinki	FI	100.0	100.0	H
Nilsjohan AB	Höganäs	SE	100.0	100.0	L
OOO iittala (Russia)	Moscow	RU	100.0	100.0	L
Silva Deutschland GmbH	Friedrichsdorf	DE	100.0	100.0	M
Silva Far East Ltd.	Hong Kong	HK	100.0	100.0	H
Silva France S.A.R.L.	Mantes la Ville	FR	100.0	100.0	M
Silva Ltd	Livingston	GB	100.0	100.0	M
Silva Shenzhen Company Limited	Shenzhen	CN	100.0	100.0	T
Silva Sweden AB	Sollentuna	SE	100.0	100.0	T
Fiskars Brands, Inc.	Madison, Wi.	US	100.0	100.0	T
Fiskars Australia Pty Limited	Melbourne	AU	100.0	100.0	M
Fiskars Brands Global Holdings LLC	Madison, Wi.	US	100.0	100.0	H
Fiskars Canada, Inc.	Toronto	CA	100.0	100.0	M
Fiskars de Mexico, S.A. de C.V.	Mexico City	MX	100.0	100.0	M
Fiskars Servicios, S.A. de C.V.	Mexico City	MX	100.0	100.0	L
Puntomex Internacional, S.A. de C.V. iL	Tijuana	MX	100.0	100.0	H
Fiskars Brands Europe ApS	Silkeborg	DK	100.0	100.0	H
Consumer Brands (Hong Kong) Co., Limited	Hong Kong	HK	100.0	100.0	H
Excalibur Management Consulting (Shanghai) Co., Ltd.	Shanghai	CN	100.0	100.0	H
Fiskars Brands Finland Oy Ab	Raasepori	FI	100.0	100.0	T
Fiskars Brands Holding AB iL	Motala	SE	100.0	100.0	L
Fiskars Brands Holding AS	Oslo	NO	100.0	100.0	H
Fiskars Brands Denmark A/S	Silkeborg	DK	100.0	100.0	M
Fiskars Deutschland GmbH iL	Herford	DE	100.0	100.0	L
Fiskars France S.A.S	Wissous	FR	100.0	100.0	M
Fiskars Germany GmbH	Herford	DE	100.0	100.0	T
Fiskars Italy S.r.l.	Premana	IT	100.0	100.0	T
Fiskars Limited	Bridgend	GB	100.0	100.0	L
Fiskars Norway AS	Oslo	NO	100.0	100.0	M
Fiskars Poland Sp. z o.o.	Slupsk	PL	100.0	100.0	T
Fiskars Spain S.L.	Madrid	ES	100.0	100.0	M
Fiskars Thailand Co.,Limited	Bangkok	TH	100.0	100.0	H
Fiskars UK Limited	Bridgend	GB	100.0	100.0	T
Kitchen Devils Limited	Bridgend	GB	100.0	100.0	L
Richard Sankey & Son Limited	Nottingham	GB	100.0	100.0	T
Vikingate Limited	Nottingham	GB	100.0	100.0	L
ZAO Fiskars Brands Rus	St. Petersburg	RU	100.0	100.0	T

		Domicile		% of share capital	% of voting power	Nature of activities
Fiskars Americas Holding Oy Ab		Raasepori	FI	100.0	100.0	H
Fiskars Europe Holding Oy Ab		Raasepori	FI	100.0	100.0	H
Fiskars Services Oy Ab		Helsinki	FI	100.0	100.0	H
Inha Works Ltd.		Ähtäri	FI	100.0	100.0	T
Ferraria Oy Ab		Raasepori	FI	100.0	100.0	H
Kiinteistö Oy Danskog gård		Raasepori	FI	100.0	100.0	H
Ab Åbo Båtvarf - Turun Veneveistämö Oy		Turku	FI	100.0	100.0	L
				Management or holding Manufacturing and marketing	H T M L
Shares in associates
	Number of shares	Domicile		% of share capital	% of voting power
Wärtsilä Corporation	16,846,301	Helsinki	FI	17.1	17.1

FINANCIAL INDICATORS

FIVE YEARS IN FIGURES

		2010	2009	2008	2007	2006
Net sales	M€	716	660	697	647	530
of which outside Finland	M€	550	519	546	553	486
in percent of net sales	%	76.8	78.6	78.2	85.4	91.8
export from Finland	M€	77	89	98	79	59
Percentage change of net sales	%	8.4	-5.3	7.7	22.1	3.8
Gross profi t	M€	254	221	213	210	155
in percent of net sales	%	35.4	33.5	5.6	12.3	9.7
Operating profi t (EBIT)	M€	49	39	6	54	22
in percent of net sales	%	6.9	6.0	0.9	8.3	4.2
Operating profi t excluding non-recurring items	M€	60	40	41	52	33
Share of profi t from associates	M€	66	66	70	43	59
Change in fair value of biological assets	M€	-2	0	-6	10	5
Financial items net	M€	-6	-14	-19	13	-9
in percent of net sales	%	-0.9	-2.2	-2.8	2.0	-1.7
Profi t before taxes	M€	107	91	52	120	77
in percent of net sales	%	14.9	13.8	7.4	18.5	14.5
Income tax (continuing operations)	M€	-12	-8	-2	-11	-10
Profi t from discontinued operations	M€					15
Profi t for the period attributable to
the equity holders of the company	M€	94	84	49	108	82
in percent of net sales	%	13.2	12.7	7.1	16.8	15.5
Minority interest	M€	0.0	0.0	-0.1	0.3	0.0
Employee benefi ts	M€	173	165	187	146	121
Depreciation and amortization	M€	35	28	33	23	29
in percent of net sales	%	4.9	4.3	4.7	3.6	5.4
Cash fl ow from operating activities	M€	93	121	97	82	99
Capital expenditure (incl. acquisitions)	M€	19	15	30	221	41
in percent of net sales	%	2.6	2.2	4.3	34.1	7.7
Research and development costs in income
statement	M€	8	9	8	7	6
in percent of net sales	%	1.2	1.3	1.2	1.1	1.2
Capitalized development costs	M€	1	0	1	1	1
Equity attributable to equity holders of
the company	M€	553	505	447	478	422
Minority interest	M€	0.0	0.0	0.0	0.5	0.0
Equity total	M€	553	505	447	478	422
Net interest bearing debt	M€	200	236	310	319	102
Working capital	M€	101	103	149	162	104
Balance sheet total	M€	979	973	970	1,047	707
Return on investment	%	15	14	9	19	18
Return on equity	%	18	18	11	25	20
Equity ratio	%	57	52	46	46	60
Net gearing	%	36	47	69	67	24
Personnel (FTE), average		3,612	3,867	4,325	3,517	3,167
Personnel, end of period		3,944	3,742	4,119	4,515	3,003
of which outside Finland		2,373	2,111	2,397	2,662	2,224

Discontinued operations include Power Sentry in 2006.

Formulas for calculations are shown on page 84.

SHARE RELATED FIGURES

		2010	2009	2008	2007	2006
Share capital	M€	77.5	77.5	77.5	77.5	77.5
Earnings per share (basic and diluted)	€	1.15	1.05	0.64	1.40	1.06
continuing operations		1.15	1.05	0.64	1.40	0.86
discontinued operations						0.20
Dividend per share *)	€/share	0.60	0.52	0.50	0.80	0.60
Dividend	M€	49.1	42.6	38.2	61.5	46.0
Equity per share	€	6.76	6.16	5.77	6.18	5.45
Adjusted average price **)	€/share	14.23	8.25	10.91	13.33	10.71
Adjusted lowest price per share **)	€/share	10.52	5.32	6.89	11.92	9.00
Adjusted highest price per share **)	€/share	17.45	11.10	13.90	15.40	12.55
Adjusted price per share, Dec 31 **)	€/share	17.33	10.62	6.96	13.30	12.29
Market value of shares	M€	1,419.5	869.9	633.2	1,055.1	947.0
Number of shares, 1,000	Total	82,023.3	82,023.3	77,510.2	77,510.2	77,510.2
Number of treasury shares, 1,000	Total	112.6	112.6	112.5	127.9	127.9
Number of shares traded, 1,000	Total	6,626.0	4,406.8	5,082.1	12,648.2	6,565.2
Price per earnings **)	Share	15	10	11	9	12
Dividend per earnings in percent	%	52.2	51.0	77.6	55.9	56.1
Dividend yield in percent **)	Share	3.5	4.9	7.2	6.0	4.9
Number of shareholders, Dec 31		12,213	11,916	9,899	8,356	6,592

*) Board's proposal.

**) The combination of the share series A and K was registered on 30 July 2009. The earlier years include the share information for share serie A.

Basic and diluted Earnings per Share are equal, as the company has no potential ordinary shares.

EURO EXCHANGE RATES

		Income Statement		Balance Sheet
	2010	2009	2010	2009
USD	1.322	1.395	1.336	1.441
GBP	0.848	0.891	0.861	0.888
DKK	7.453	7.446	7.454	7.442
SEK	9.056	10.619	8.966	10.252
NOK	7.902	8.728	7.800	8.300
CAD	1.333	1.585	1.332	1.513

CALCULATION OF FINANCIAL INDICATORS

Earnings before depreciation and amortization	=	Operating profi t + depreciation and amortization + impairment
Return on investment in percent	=	Profi t for the period + income taxes + interest and other fi nancial expenses Balance sheet total – non-interest bearing debt (average of beginning and end of year amounts)	x 100
Return on equity in percent	=	Profi t for the period Equity, total (average of beginning and end of year amounts)	x 100
Equity ratio in percent	=	Equity, total Balance sheet total – advances received	x 100
Net gearing in percent	=	Interest bearing debt – cash and bank Equity, total	x 100
Earnings per share	=	Profi t attributable to equity holders of the company Weighted average number of outstanding ordinary shares, Dec 31
Earnings per share from continuing activities	=	Profi t from continuing activities attributable to equity holders of the company Weighted average number of outstanding ordinary shares, Dec 31
Equity per share	=	Equity attributable to equity holders of the company Number of outstanding ordinary shares, Dec 31
Adjusted average share price	=	Value of shares traded during the period Number of shares traded during the period, adjusted for emissions
Market capitalization	=	Number of outstanding ordinary shares, Dec 31 x market quotation, Dec 31
Price per earnings (P/E)	=	Market quotation per share, Dec 31 Earnings per share
Dividend per earnings in percent	=	Dividend paid Profi t attributable to equity holders of the company	x 100
Dividend per share	=	Dividend paid Number of outstanding shares, Dec 31
Dividend yield in percent	=	Dividend per share Market quotation, Dec 31 adjusted for emissions	x 100

PARENT COMPANY FINANCIAL STATEMENTS, FAS

PARENT COMPANY INCOME STATEMENT

M€	Note	2010		2009
Net sales	2	23.7		20.1
Cost of goods sold		-3.4		-3.5
Gross profi t		20.3	86%	16.6	82%
Administration expenses		-14.5		-13.6
Other operating income	3	0.1		0.2
Other operating expenses	4	0.0		-0.1
Operating profi t		5.9	25%	3.1	16%
Financial income and expenses	7	27.9		-1.6
Profi t (loss) before extraordinary items		33.8		1.6
Extraordinary items	8	18.1		8.5
Profi t (loss) before appropriations and taxes		51.9		10.0
Appropriations		0.3		0.2
Income taxes	9	-4.5		-2.7
Profi t (loss) for the period		47.8		7.6

PARENT COMPANY BALANCE SHEET

M€	Note	Dec 31, 2010		Dec 31, 2009
ASSETS
NON-CURRENT ASSETS
Intangible assets	10	0.6		0.6
Tangible assets	11
Land and water		15.3		15.3
Buildings		15.0		16.0
Machinery and equipment		1.7		1.6
Construction in progress		0.3		0.1
		32.4		32.9
Investments	12
Holdings in subsidiaries		577.8		577.8
Receivables from subsidiaries		75.4		108.3
Other shares		6.2		2.9
		659.4		689.0
Non-current assets total		692.4	78%	722.6	78%
CURRENT ASSETS
Inventories	13	0.2		0.2
Current receivables
Trade receivables		0.5		0.3
Receivables from subsidiaries	14	190.8		169.5
Prepayments and accrued income	15	0.6		1.2
		191.9		171.0
Cash and cash equivalents	16	0.9		29.7
Current assets total		193.1	22%	201.0	22%
Assets total		885.6	100%	923.6	100%

M€	Note	Dec 31, 2010		Dec 31, 2009
SHAREHOLDERS' EQUITY AND LIABILITIES
SHAREHOLDERS' EQUITY	17
Share capital		77.5		77.5
Revaluation reserve		3.8		3.8
Treasury shares		-0.8		-0.8
Other reserves		3.2		3.2
Retained earnings		388.1		423.1
Profi t (loss) for the fi nancial year		47.8		7.6
Shareholders' equity total		519.5	59%	514.4	56%
APPROPRIATIONS	18	1.3		1.7
LIABILITIES
Non-current	19
Loans from credit institutions		63.7		62.9
		63.7		62.9
Current
Capital loan	20			45.1
Loans from credit institutions		124.0		151.6
Advances received		0.0		0.2
Trade payables		0.5		0.4
Liabilities to subsidiaries	21	165.0		138.9
Income tax payable		2.4		0.5
Other payables		1.6		0.5
Accruals and deferred income	22	7.5		7.4
		301.0		344.7
Liabilities total		364.7	41%	407.6	44%
Shareholders' equity and liabilities total		885.6	100%	923.6	100%

PARENT COMPANY STATEMENT OF CASH FLOWS

M€	2010	2009
Cash fl ow from operating activities
Profi t before appropriations and taxes	51.9	10.0
Adjustments for
Depreciation, amortization and impairment	1.7	1.6
Investment income	-0.1	-0.3
Interest income and dividends	-33.0	-9.0
Interest expenses	5.1	10.6
Change in provisions and other non-cash items	-18.1	-8.5
Cash fl ow before changes in working capital	7.5	4.5
Changes in working capital
Change in current assets, non-interest bearing	0.4	-0.6
Change in inventories	0.0	0.0
Change in current liabilities, non-interest bearing	4.2	0.8
Cash fl ow from operating activities before fi nancial items and taxes	12.2	4.7
Dividends received	29.5	0.0
Financial income received	3.8	8.3
Financial expenses paid	-7.0	-11.7
Taxes paid	-2.6	-3.9
Cash fl ow from operating activities (A)	35.8	-2.5
Cash fl ow from investing activities
Acquisitions and investments in fi nancial assets	-3.5	0.0
Investments in property, plant & equipment	-1.3	-1.1
Proceeds from sale of property, plant & equipment and other investments	0.3	0.6
Sale of other holdings	0.1	0.0
Change in long term loan receivables	33.1	25.2
Cash fl ow from investing activities (B)	28.6	24.7
Cash fl ow from fi nancing activities
Change of non-current debt	-15.0	-60.5
Change in current debt	-28.7	58.1
Change in current receivables	-15.4	34.8
Dividends paid	-42.6	-38.2
Group contribution received/paid	8.4	8.7
Cash fl ow from fi nancing activities (C)	-93.2	2.9
Change in cash and cash equivalents (A+B+C)	-28.8	25.1
Cash and cash equivalents at beginning of period	29.7	4.6
Cash and cash equivalents at end of period	0.9	29.7

M€	Share capital	Revaluation reserve	Treasury shares	Other reserves	Retained earnings	Total
Dec 31, 2008	77.5	3.8	-0.8	3.2	461.3	545.0
Transfer from revaluation
reserve following sale of landholdings		0.0			0.0	0.0
Dividends					-38.2	-38.2
Net profi t (loss)					7.6	7.6
Dec 31, 2009	77.5	3.8	-0.8	3.2	430.6	514.4
Transfer from revaluation
reserve following sale of landholdings		0.0			0.0	0.0
Dividends					-42.6	-42.6
Net profi t (loss)					47.8	47.8
Dec 31, 2010	77.5	3.8	-0.8	3.2	435.8	519.5

STATEMENT OF CHANGES IN PARENT COMPANY SHAREHOLDERS' EQUITY

NOTES TO THE FINANCIAL STATEMENTS OF PARENT COMPANY

1. PARENT COMPANY ACCOUNTING PRINCIPLES

The fi nancial statements have been prepared in accordance with local requirements and generally accepted accounting principles in Finland (Finnish Accounting Standards, FAS). The fi nancial statements are presented in euro.

The preparation of fi nancial statements in conformity with regulations in force and generally accepted accounting principles requires management to make estimates and assumptions that affect the valuation of assets and liabilities and reported amounts of revenues and expenses. Actual results could differ from those estimates.

Transactions in foreign currencies

Transactions in foreign currencies are recorded at the rates of exchange prevailing at the date of the transaction. At the end of the reporting period balances in foreign currencies are translated using the exchange rate prevailing at the end of the reporting period. Derivatives are recognized according to group principles (please see Accounting principles for the consolidated fi nancial statements, Derivatives and hedge accounting).

Net sales

Net sales are defi ned as invoiced amount less indirect taxes, rebates and exchange rate differences related to sales. Revenue is recognized when all signifi cant risks and rewards of ownership have been transferred to the buyer, ie. when a product has been delivered to the client in accordance with the terms of delivery. Royalty income from trademarks held by Fiskars Corporation is recorded as net sales.

Leasing arrangements

Lease payments are expensed as incurred. Future leasing payment obligations are reported as contingent liabilities. Rent income, when the company acts as a lessor, is recorded as net sales.

Pension benefi t plans

The retirement plans for the Finnish companies' employees are funded through payments to independent insurance companies.

Extraordinary income and expense

Group contributions, merger losses and liquidation losses are reported in extraordinary income and expenses.

Income taxes

Income taxes consist of the aggregate current tax expense based on the Finnish tax rules and adjustments to prior year taxes. Parent company does not account for deferred taxes as a stand-alone entity.

Tangible and intangible assets and other long term investments

Tangible and intangible assets are stated at cost less accumulated depreciation according to plan. Certain land holdings have been revalued.

Revaluations are based on market values at time of the revaluation. Revaluation reserves are adjusted for decreases in the market value of land holdings. When revalued real estate is sold, the respective share in the revaluation reserve is transferred to retained earnings.

Tangible and intangible assets are depreciated and amortized over their expected useful lives. Typically, the following expected useful lives are applied:

• Long term expenditure 3–10 years
• Buildings 20–40 years • Vehicles 4 years • Machinery and equipment 3–10 years • Land and water No depreciation

Investments in holdings in subsidiaries are stated in the balance sheet at cost or at net realizable value if the net realizable value is signifi cantly and permanently impaired.

Inventories

Inventories are stated at the lower of cost and net realizable value. Cost includes

both direct and indirect costs. Cost is determined on a fi rst-in-fi rst-out (FIFO) basis. Net realizable value is the amount that could be realized from the sale of the asset less any related sales cost.

Receivables

Receivables are carried at the lower of cost or probable value.

Mandatory provisions

Provisions consist of reserves for future costs to which the Corporation is committed and reserves for loss-making contracts.

Appropriations

Appropriations in the parent company balance sheet consist of depreciation in excess of plan.

2. NET SALES

M€	2010	2009
Royalties	18.8	15.0
Lease income	3.1	3.0
Other	1.8	2.1
Total	23.7	20.1

3. OTHER OPERATING INCOME

M€	2010	2009
Net gain on sale of property, plant and equipment	0.1	0.2
Other income	0.0	0.0
Total	0.1	0.2

4. OTHER OPERATING EXPENSES

M€	2010	2009
Loss on sale of property, plant and equipment	0.0
To subsidiaries	0.0	0.1
Total	0.0	0.1

5. FEES PAID TO COMPANY'S AUDITORS

M€	2010	2009
Audit fees	0.1	0.1
Tax consultation	0.1	0.0
Other	0.0	0.0
Total	0.2	0.2

6. PERSONNEL COSTS AND NUMBER OF EMPLOYEES

Personnel costs M€ 2010 2009 Wages and salaries 5.7 6.0 Pension costs 0.8 0.5 Other personnel costs 0.8 1.7 Total 7.3 8.2

Number of employees

	2010	2009
Average (FTE)	56	60
End of period	49	57

7. FINANCIAL INCOME AND EXPENSES

M€	2010	2009
Dividend income
From subsidiaries	29.5
From other investments	0.0	0.0
Dividend income, total	29.5	0.0
Interest and fi nancial income from non-current investments
From subsidiaries	3.2	3.1
From other investments	0.0	0.0
Interest and fi nancial income from non-current investments, total	3.2	3.1
Other interest and fi nancial income
From subsidiaries	0.2	2.9
From other parties	0.7	2.9
Other interest and fi nancial income, total	0.9	5.8
Interest and fi nancial income, total	4.1	9.0
Interest and other fi nancial expenses
To subsidiaries	-0.3	-0.3
To other parties	-5.4	-10.3
Interest and other fi nancial expenses, total	-5.7	-10.6
Total fi nancial income and expenses	27.9	-1.6
Net exchange gains and losses included in fi nancial items	0.4	2.8
8. EXTRAORDINARY ITEMS
M€	2010	2009
Group contribution received	23.6	17.4
Group contribution paid	-5.5	-8.9
Total	18.1	8.5

9. INCOME TAXES ITEMS

M€	2010	2009
Current year taxes for profi t before extraordinary items	-1.4	-0.5
Tax for extraordinary items	-4.7	-2.2
Income tax for previous periods	1.6
Income taxes per income statement	-4.5	-2.7

10. INTANGIBLE ASSETS

M€	2010	2009
Historical cost, Jan 1	1.6	1.4
Additions	0.1	0.3
Transfers	0.1	0.0
Historical cost, Dec 31	1.9	1.6
Accumulated amortization according to plan, Jan 1	1.0	0.9
Amortization according to plan	0.2	0.1
Accumulated amortization according to plan, Dec 31	1.2	1.0
Net book value, Dec 31	0.6	0.6

11. TANGIBLE ASSETS

2010			Machinery
	Land and		and	Construction
M€	water	Buildings	equipment	in progress	Total
Historical cost, Jan 1	5.5	33.9	5.6	0.1	45.1
Additions	0.0	0.0	0.2	1.0	1.2
Decreases	0.0	0.0	-0.4		-0.4
Transfers	0.0	0.2	0.5	-0.8	-0.1
Historical cost, Dec 31	5.5	34.1	5.8	0.3	45.7
Accumulated depreciation according to plan, Jan 1		17.9	4.0		21.9
Depreciation according to plan		1.1	0.4		1.5
Decreases		0.0	-0.3		-0.3
Accumulated depreciation according to plan, Dec 31		19.0	4.1		23.1
Revaluation, Jan 1	9.8				9.8
Decreases	0.0				0.0
Revaluation, Dec 31	9.8				9.8
Book value, Dec 31, 2010	15.3	15.0	1.7	0.3	32.4

2009			Machinery
	Land and		and	Construction
M€	water	Buildings	equipment	in progress	Total
Historical cost, Jan 1	5.3	33.3	5.7	0.2	44.5
Additions	0.2	0.5	0.1	0.0	0.9
Decreases	0.0	0.0	-0.3		-0.3
Transfers		0.1	0.0	-0.1	0.0
Historical cost, Dec 31	5.5	33.9	5.6	0.1	45.1
Accumulated depreciation according to plan, Jan 1		16.8	3.8		20.6
Depreciation according to plan		1.1	0.3		1.5
Decreases		0.0	-0.2		-0.2
Accumulated depreciation according to plan, Dec 31		17.9	4.0		21.9
Revaluation, Jan 1	9.8				9.8
Decreases	0.0				0.0
Revaluation, Dec 31	9.8				9.8
Book value, Dec 31, 2009	15.3	16.0	1.6	0.1	32.9

12. INVESTMENTS

2010		Receivables
	Holdings in	from	Other
M€	subsidiaries	subsidiaries	shares	Total
Historical cost, Jan 1	983.2	108.3	3.6	1,095.1
Additions	0.0		3.5	3.5
Decreases	0.0	-33.0	-0.1	-33.1
Historical cost, Dec 31	983.2	75.4	6.9	1,065.5
Write-downs, Jan 1	-405.5		-0.7	-406.2
Write-downs, Dec 31	-405.5		-0.7	-406.2
Net book value, Dec 31, 2010	577.8	75.4	6.2	659.4

2009
	Holdings in	Receivables from	Other
M€	subsidiaries	subsidiaries	shares	Total
Historical cost, Jan 1	983.5	133.6	3.6	1,120.6
Additions		1.2		1.2
Decreases	-0.2	-26.4		-26.7
Historical cost, Dec 31	983.2	108.3	3.6	1,095.1
Write-downs, Jan 1	-405.5		-0.7	-406.1
Write-downs, Dec 31	-405.5		-0.7	-406.1
Net book value, Dec 31, 2009	577.8	108.3	2.9	689.0

Shares in subsidiaries

	Number			% of share	% of voting	Book value
	of shares	Domicile		capital	power	(€ 1,000)
Avlis AB *)	N/A	Sollentuna	SE	100.0	100.0	444,622
Ferraria Oy Ab	750,000	Raasepori	FI	100.0	100.0	17,660
Fiskars Americas Holding Oy Ab	250	Raasepori	FI	100.0	100.0	3
Fiskars Brands, Inc.	22,924,913	Madison, Wi.	US	100.0	100.0	42,484
Fiskars Brands Europe ApS	1,251,250	Silkeborg	DK	100.0	100.0	71,338
Fiskars Europe Holding Oy Ab	250	Raasepori	FI	100.0	100.0	3
Fiskars Services Oy Ab	250	Helsinki	FI	100.0	100.0	3
Fiskars (Thailand) Co., Ltd.	97	Bangkok	TH	0.0	0.0	2
Inha Works Ltd.	5,000	Ähtäri	FI	100.0	100.0	1,199
Kiinteistö Oy Danskog gård	4,000	Raasepori	FI	100.0	100.0	505
Ab Åbo Båtvarf - Turun Veneveistämö Oy	150	Turku	FI	100.0	100.0	3
						577,821

Other shares

	Book value
	(€ 1,000)
Other shares owned by the parent company	6,222

*) Holds 17.1% of Wärtsilä shares, the market value of Wärtsilä shares as at Dec 31, 2010 amounted to EUR 961.9 million (472.9).

13. INVENTORIES

M€	2010	2009
Work in progress	0.0	0.0
Finished goods	0.2	0.2
Total, Dec 31	0.2	0.2

14. RECEIVABLES FROM SUBSIDIARIES

M€	2010	2009
Trade receivables	0.7	0.3
Loan receivables	103.5	134.3
Other receivables	58.8	12.6
Prepayments and accrued income	27.8	22.2
Total, Dec 31	190.8	169.5

15. PREPAYMENTS AND ACCRUED INCOME

M€	2010	2009
Prepaid and accrued interest	0.2	0.2
Other prepayments and accruals	0.4	1.1
Total, Dec 31	0.6	1.2

16. CASH AND CASH EQUIVALENTS

M€	2010	2009
Cash and cash equivalents	0.9	29.7
Total, Dec 31	0.9	29.7

17. SHAREHOLDERS' EQUITY

M€	2010	2009
Share capital
A Shares
Jan 1	0.0	54.9
Change *)	0.0	-54.9
Dec 31	0.0	0.0
K Shares
Jan 1	0.0	22.6
Change *)	0.0	-22.6
Dec 31	0.0	0.0
New shares
Jan 1	77.5	0.0
Change *)	0.0	77.5
Dec 31	77.5	77.5
Share capital, Dec 31	77.5	77.5
Revaluation reserve
Jan 1 Decrease following sale of fi xed assets	3.8 0.0	3.8 0.0
Revaluation reserve, Dec 31	3.8	3.8
Treasury shares
A Shares
Jan 1	0.0	-0.8
Decrease	0.0	0.8
Dec 31	0.0	0.0
K Shares
Jan 1	0.0	0.0
Decrease	0.0	0.0
Dec 31	0.0	0.0
New shares
Jan 1	-0.8	0.0
Change *)	0.0	-0.8
Treasury shares, Dec 31	-0.8	-0.8
Other reserves
Jan 1	3.2	3.2
Other reserves, Dec 31	3.2	3.2

*) Fiskars Corporation has one series of shares following the combination of the company's series A and K shares in July 2009. The new single class shares (FIS1V) became subject to public trading as of July 31, 2009. All shares carry one vote each and equal rights.

M€	2010	2009
Retained earnings
Jan 1	430.6	461.3
Dividends	-42.6	-38.2
Net profi t	47.8	7.6
Retained earnings, Dec 31	435.8	430.6
Less treasury shares	-0.8	-0.8
Distributable earnings, Dec 31	435.0	429.9
Restricted equity	80.7	80.7
Non-restricted equity	438.8	433.6
Shareholders' equity total	519.5	514.4

18. APPROPRIATIONS

M€	2010	2009
Depreciation in excess of plan, Jan 1	1.7	1.9
Changes during the year	-0.3	-0.2
Depreciation in excess of plan, Dec 31	1.3	1.7

The deferred tax liabilities, 26% from appropriations, are not recorded.

19. NON-CURRENT LIABILITIES WHICH MATURE AFTER 5 YEARS

M€	2010	2009
Loans from credit institutions	0.0	52.5

20. CAPITAL LOAN

Main characteristics of the loan:

The principal, interest and any other yield was payable on the dissolution or bankruptcy of the company solely at a priority ranking inferior to that of all other debt. The principal could be repaid if and only to the extent the company retained full cover for its restricted equity and non-distributable funds in accordance with the balance sheet and consolidated balance sheet approved for the latest fi nancial year. Interest could be paid if and only to the extent the equivalent sum was available for dividend distribution in accordance with the balance sheet and consolidated balance sheet approved for the latest fi nancial year. The loan was repaid in full on June 17, 2010 and a fi xed annual interest of 6.25% was paid. The loan was listed on NASDAQ OMX Helsinki.

21. LIABILITIES TO SUBSIDIARIES

M€	2010	2009
Trade payables	1.3	0.0
Other liabilities	157.8	130.0
Accruals and deferred income	5.9	8.9
Total, Dec 31	165.0	138.9

22. ACCRUALS AND DEFERRED INCOME

M€	2010	2009
Interest payable	0.8	2.4
Wages, salaries and social costs	2.4	2.4
Other items	4.2	2.6
Total, Dec 31	7.5	7.4

23. LEASE OBLIGATIONS

M€	2010	2009
Operating leases, payments next year	0.6	0.6
Operating leases, payments later	2.3	2.8
Total, Dec 31	2.9	3.4

24. CONTINGENCIES AND PLEDGED ASSETS

M€	2010	2009
As security for own commitments
Lease commitments	2.9	3.4
Other contingencies	0.0	4.4
Guarantees as security for subsidiaries' commitments	9.0	9.4
Total, Dec 31	11.9	17.2

The distributable equity of the Parent Company at the end of the 2010 fi scal year was EUR 435.0 million (429.9).

The Board of Directors proposes to the Annual General Meeting of Shareholders that a dividend of EUR 0.60 per share would be paid for 2010.

The number of shares entitling to a dividend totaled 81,910,722. The proposed distribution of dividend would thus be EUR 49,146,433.20. This would leave EUR 385.9 million of distributable profi t funds at the Parent Company.

No material changes have taken place in the fi nancial position of the Company after the end of the fi scal year. The fi nancial standing of the Company is good and according to the Board of Directors' assessment the proposed distribution of dividend will not compromise the Company's solvency.

Helsinki, February 8, 2011

Kaj-Gustaf Bergh	Ralf Böer
Alexander Ehrnrooth	Paul Ehrnrooth
Louise Fromond	Gustaf Gripenberg
Ingrid Jonasson Blank	Karsten Slotte
Jukka Suominen	Kari Kauniskangas President and CEO

AUDITORS' REPORT

To the Annual General Meeting of Fiskars Corporation

We have audited the accounting records, the fi nancial statements, the report of the Board of Directors, and the administration of Fiskars Corporation for the year ended December 31, 2010. The fi nancial statements comprise the consolidated balance sheet, consolidated income statement, statement of comprehensive income, statement of changes in consolidated equity and consolidated statement of cash fl ows, and notes to the consolidated fi nancial statements, as well as the parent company's balance sheet, income statement, statement of cash fl ows and notes to the fi nancial statements.

Responsibility of the Board of Directors and the President and CEO

The Board of Directors and the President and CEO are responsible for the preparation of consolidated fi nancial statements that give a true and fair view in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU, as well as for the preparation of fi nancial statements and the report of the Board of Directors that give a true and fair view in accordance with the laws and regulations governing the preparation of the fi nancial statements and the report of the Board of Directors in Finland. The Board of Directors is responsible for the appropriate arrangement of the control of the company's accounts and fi nances, and the President and CEO shall see to it that the accounts of the company are in compliance with the law and that its fi nancial affairs have been arranged in a reliable manner.

Auditor's Responsibility

Our responsibility is to express an opinion on the fi nancial statements, on the consolidated fi nancial statements and on the report of the Board of Directors based on our audit. The Auditing Act requires that we comply with the requirements of professional ethics. We conducted our audit in accordance with good auditing practice in Finland. Good auditing practice requires that we plan and perform the audit to obtain reasonable assurance about whether the fi nancial statements and the report of the Board of Directors are free from material misstatement, and whether the members of the Board of Directors of the parent company and the President and CEO are guilty of an act or negligence which may result in liability in damages towards the company or have violated the Limited Liability Companies Act or the articles of association of the company.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the fi nancial statements and the report of the Board of Directors. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation of fi nancial statements and report of the Board of Directors that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the fi nancial statements and the report of the Board of Directors.

We believe that the audit evidence we have obtained is suffi cient and appropriate to provide a basis for our audit opinion.

Opinion on the consolidated fi nancial statements

In our opinion, the consolidated fi nancial statements give a true and fair view of the fi nancial position, fi nancial performance, and cash fl ows of the group in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU.

Opinion on the company's fi nancial statements and the report of the Board of Directors

In our opinion, the fi nancial statements and the report of the Board of Directors give a true and fair view of both the consolidated and the parent company's fi nancial performance and fi nancial position in accordance with the laws and regulations governing the preparation of the fi nancial statements and the report of the Board of Directors in Finland. The information in the report of the Board of Directors is consistent with the information in the fi nancial statements.

Helsinki, February 8, 2011 KPMG OY AB

Mauri Palvi Authorized Public Accountant

SHARES AND SHAREHOLDERS

Information on the share

Fiskars Corporation's shares are traded in the Large Cap segment of NASDAQ OMX Helsinki Ltd. The Company has one series of shares following the combination series A and K shares in July 2009. After the combination all shares carry one vote each and have equal rights. New single class shares became subject to public trading as of July 31, 2009 with a trading code FIS1V (earlier FISAS and FISKS).

In connection with the combination of the share series, a free share issue was directed to the holders of series K shares. In the share issue, the holders of series K shares received one share free of charge for each fi ve series K shares. As a result, a total of 4,513,141 new shares were issued.

The share combination further involved the merger of Agrofi n Oy Ab into Fiskars Corporation. As a merger consideration, in total 11,863,964 new shares were issued to the shareholders of Agrofi n Oy Ab. At the same time, the 11,863,964 shares, transferred to the Company in connection to the execution of the merger, were cancelled.

The total number of shares at the end of 2010 was 82,023,341. The share capital remained unchanged in 2010 at EUR 77,510,200.

Treasury shares

As of the end of the year, Fiskars owned 112,619 treasury shares, corresponding to 0.14% of the Corporation's shares and votes. The Company has acquired the shares at the NASDAQ OMX Helsinki in accordance with the authorization of the general meet-

Changes in the number of shares, 2008–2010

ing of the shareholders. The acquisitions have been made from December 10, 2003 through January 16, 2004.

Board authorizations

The Annual General Meeting decided to authorize the Board to acquire a maximum of 4,000,000 own shares and convey a maximum of 4,000,000 own shares. The Board may decide on the acquisition and conveyance of shares also in derogation of the pre-emptive right of shareholders to company shares. Both authorizations will remain in force until the end of the next Annual General Meeting.

The Board of Directors has not used these authorizations during 2010.

Shareholders

Fiskars Corporation had 12 213 (2009: 11 915) shareholders as of the end of the year. Approximately 2.8% of the share capital was owned by foreign or nominee-registered shareholders (2009: 2.5% of shares).

Management shareholding

On December 31, 2010, the Board members, the President & CEO and the companies where they have a controlling interest together with a family member, owned a total of 33,365,829 shares corresponding to 40.0% of the Company's shares and votes. As of the end of the year, the Company did not have any share option programs.

	A share	K share	Total
Total shares, Dec 31, 2008	54,944,492	22,565,708	77,510,200
Jul 30, 2009	-54,944,492	-22,565,708		77,510,200 Combination of share series
Jul 30, 2009				4,513,141 Directed issue: one new share for each fi ve series K shares
Jul 31, 2009				11,863,964 Directed issue to shareholders of Agrofi n
Aug 8, 2009				-11,863,964 Cancelling shares in accordance with the merger of Agrofi n
Total shares, Dec 31, 2009			82,023,341
Total shares, Dec 31, 2010			82,023,341
Treasury shares			112,619

Share ownership, December 31, 2010

	Number of		Number of
Ownership structure	shareholders	%	shares and votes	%
Private corporations	521	4.27	31,456,897	38.35
Financial institutions and insurance companies	26	0.21	767,109	0.94
Public entities	10	0.08	6,137,331	7.48
Households	11,413	93.45	31,395,047	38.28
Non-profi t organizations	153	1.25	9,936,281	12.11
Foreigners	90	0.74	1,085,188	1.32
Nominee registered		0.00	1,228,326	1.50
Other		0.00	17,162	0.02
Total	12,213	100.00	82,023,341	100.00

Distribution of shares, December 31, 2010

	Number of		Number of
Number of shares	shareholders	%	shares and votes	%
1–100	3,410	27.92	234,145	0.29
101–500	4,926	40.33	1,338,693	1.63
501–1,000	1,648	13.49	1,254,377	1.53
1,001–10,000	1,942	15.90	5,446,727	6.64
10,001–100,000	216	1.77	5,385,861	6.57
100,001–1,000,000	57	0.47	19,805,352	24.15
1,000,001–	14	0.11	48,558,186	59.20
Total	12,213	100.00	82,023,341	100.00

Major shareholders, December 31, 2010

			% of shares
		Total shares	and votes
1	Virala Oy Ab	9,450,000	11.52
2	Turret Oy Ab	9,030,406	11.01
3	Oy Holdix Ab	8,229,050	10.03
4	Ilmarinen Mutual Pension Insurance Company	2,718,807	3.31
5	I.A. von Julins Sterbhus	2,689,120	3.28
6	Sophie von Julins stiftelse	2,551,791	3.11
7	Varma Mutual Pension Insurance Company	2,469,326	3.01
8	Julius Tallberg Oy Ab	2,277,035	2.78
9	Ehrnrooth Alexander	1,700,000	2.07
10	Fromond Elsa	1,623,926	1.98
11	Ehrnrooth Jacob	1,616,929	1.97
12	Ehrnrooth Albert	1,610,372	1.96
13	Ehrnrooth Sophia	1,536,230	1.87
14	Stiftelsen för Åbo Akademi	969,241	1.18
15	Åberg Albertina	940,999	1.15
16	Wrede Sophie	821,790	1.00
17	Foril Corporation	750,000	0.91
18	Hartwall Peter	748,450	0.91
19	Lindsay von Julin & Co Ab	733,320	0.89
20	Therman Anna	722,436	0.88
	20 major shareholders	53,189,228	64.85

ANNUAL REVIEW OF INFORMATION PUBLISHED IN 2010

Fiskars Corporation published the following stock exchange releases in 2010. The releases and reports are available at www.fi skarsgroup.com.

Jan 8, 2010	Fiskars' annual review 2009
Feb 11, 2010	Fiskars' Financial Statements Bulletin 2009: Strong cash fl ow, comparable EBIT at previous year's level
Feb 11, 2010	Notice to the Annual General Meeting 2010
Feb 23, 2010	Fiskars' Annual Report 2009 published
Mar 16, 2010	Resolutions of the Annual General Meeting 2010
Apr 29, 2010	Finnish Competition Authority proposes a fi ne on the Iittala Group
May 4, 2010	Fiskars' Interim Report January 1–March 31, 2010
Aug 5, 2010	Fiskars' Interim Report January 1–June 30, 2010
Nov 2, 2010	Fiskars' Interim Report January 1–September 30, 2010
Dec 10, 2010	Results of Fiskars Group's impairment testing
Dec 10, 2010	Fiskars' fi nancial reports in 2011

• Dec 13, 2010 Notifi cation on a change in holdings, referred to in chapter 2, section 10, of the securities markets act
• Dec 15, 2010 Notifi cation on a change in holdings, referred to in chapter 2, section 10, of the securities markets act

FOR SHAREHOLDERS

Fiskars' shares are traded on NASDAQ OMX in Helsinki. Fiskars has one series of shares traded under the FIS1V code.

Share details

NASDAQ OMX Helsinki
FI000900400
FIS1V (OMX)
OMXH Large Cap
Consumer Discretionary,
Housewares & Specialties
25201050
82,023,341

Annual General Meeting and dividend

Fiskars Corporation holds its Annual General Meeting on Wednesday, March 16, 2011 at 3.00 p.m. at the Helsinki Exhibition & Convention Centre, the Congress Wing (Messuaukio 1, Helsinki). The reception of persons who have registered for the meeting and the distribution of voting tickets will commence at 2.00 p.m.

Each shareholder, who is registered on the record date March 4, 2011 in the shareholders' register of the company held by Euroclear Finland Ltd, has the right to participate in the Annual General Meeting.

A shareholder, who wants to participate in the Annual General Meeting, should register for the meeting no later than March 11,

FIS1V (FISAS until July 30, 2009) OMXH25 index

2011 at 3.00 p.m. on the Fiskars Corporation's website www. fi skarsgroup.com or by telephone +358 (0)20 439 5171 Monday-Friday between 9.00 a.m. and 3.00.

The Board of Directors will propose to the Annual General Meeting that a dividend of EUR 0.60 per share shall be paid for the fi nancial period that ended on December 31, 2010. The record date for the payment of dividend will be March 21, 2011 and dividends will be paid on March 28, 2011.

Further information on the matters to be discussed at the AGM and how to register can be found in the invitation to the meeting at www.fi skarsgroup.com.

Investor relations

The goal of Fiskars' investor relations is to provide all parties in the market with accurate, up-to-date, and suffi cient information on the company to enable them to analyze its performance and prospects as an investment. Information is provided to all stakeholders simultaneously.

Fiskars has adopted a silent period of three weeks prior to the publication of results. During this period comments on market situation or company prospects are not available from Fiskars.

Meetings with investors and analysts are coordinated by Corporate Communications. Questions on investor relations matters should be addressed to Communications Manager Anu Ilvonen (anu.ilvonen@fi skars.com).

Fiskars' share price, €

January 1 2006–December 31, 2010

Fiskars is present in more than 20 countries across the world, and our products are sold in more than 60. For contact details to our sales offices, please visit our corporate website.

Our website offers an up-to-date archive of stock exchange releases, annual reports, interim reports, and quarterly presentations. The site also features the latest corporate governance information, various share tools, and other services for investors.

www.fiskarsgroup.com

Fiskars is present in more than 20 countries across the world, and our products are sold in more than 60. For contact details to our sales offices, please visit our corporate website.

Our website offers an up-to-date archive of stock exchange releases, annual reports, interim reports, and quarterly presentations. The site also features the latest corporate governance information, various share tools, and other services for investors.

www.fiskarsgroup.com

Interested in learning more about

…how Fiskars has introduced the world's best reel mower,

…or what Gerber and Bear Grylls have created for the adventurous outdoor trekker?

FUNCTIONaLITY Innovation Design

Fiskars Corporation

Hämeentie 135 A P. O. Box 130 00561 Helsinki, Finland Tel. +358 204 3910 www.fiskarsgroup.com