Fiskars Oyj Abp — Earnings Release 2021

Oct 29, 2021

Fiskars Group interim report January-September 2021

Fiskars Group interim report January-September 2021

Fiskars Corporation
Interim Report
October 29, 2021 at 8:30 a.m. (EEST)

Fiskars Group interim report January-September 2021

Sixth consecutive quarter of net sales growth, with Business Area Vita as the
main driver in Q3

This release is a summary of the Fiskars Corporation’s January–September 2021
interim report published today. The complete report with tables is attached to
this release as a pdf-file. It is also available at
http://fiskarsgroup.com/investors/reports-presentations/interim-reports and on
the company website at www.fiskarsgroup.com. Investors should not rely on
summaries of the interim reports only, but should review the complete interim
reports with tables.

Third quarter 2021 in brief:

· Net sales increased by 9.4% to EUR 291.8 million (Q3 2020: 266.7)
· Comparable net sales1) increased by 10.0% to EUR 291.8 million (265.4)
· EBITA decreased by 1.3% to EUR 38.6 million (39.1)
· Comparable2) EBITA decreased by 3.1% to EUR 38.0 million (39.3)
· Cash flow from operating activities before financial items and taxes
decreased to EUR 51.9 million (115.6)
· Earnings per share (EPS) were EUR 0.36 (0.33)

January-September 2021 in brief:

· Net sales increased by 12.2% to EUR 901.2 million  (Q1-Q3 2020: 802.9)
· Comparable net sales1) increased by 15.6% to EUR 901.2 million (779.8)
· EBITA increased by 65.1% to EUR 129.6 million (78.5)
· Comparable2) EBITA increased by 52.9% to EUR 132.7 million (86.8)
· Cash flow from operating activities before financial items and taxes
decreased to EUR 109.3 million (134.0)
· Earnings per share3) (EPS) were EUR 0.84 (0.53)

Outlook for 2021 upgraded on October 13, 2021:

On October 13, 2021, Fiskars upgraded its outlook for 2021. The company expects
the comparable EBITA for 2021 to be in the range of EUR 160-170 million.
According to the previous outlook issued on June 23, 2021, the comparable EBITA
in 2021 was expected to be in the range of EUR 140-160 million.

The upgrade was based on the company’s better than expected financial
performance during the third quarter, in particular towards the end of the
quarter. A central factor was that Fiskars has so far successfully mitigated the
global supply chain challenges, which have previously been highlighted as a
material risk for the full-year financial performance.

The seasonality of both trade and consumer demand may continue to differ from a
typical year, also towards the end of the year. Trade customers may seek to
secure the availability of products by pulling forward orders from the first
quarter of 2022 into the fourth quarter of 2021. In addition, there are ongoing
challenges in global supply chains as well as raw material and energy price
inflation. While the company has managed to mitigate these factors, they
continue to pose a risk.

President and CEO, Fiskars Group, Nathalie Ahlström:

We continued on a strong growth path in the third quarter, marking the sixth
consecutive quarter of growth. At the same time, this was our highest third
-quarter net sales ever. Comparable EBITA fell somewhat behind the record high
level seen last year.

Our financial performance improved towards the end of the quarter in all
Business Areas. Comparable net sales increased in Vita and Crea, while it was at
the previous year’s level in Terra. For Terra and Crea, the comparison figures
from 2020 were at record levels.

Despite challenges in the global supply chains, we have successfully served our
customers, which has been a competitive advantage for us. The risks related to
product availability are still ongoing. In addition, raw material and logistics
prices continue to increase. A new factor is the increase in energy prices,
which impacts Vita in particular. We continue to mitigate these factors.
However, there might be a lag with the timing of the cost inflation and the
effect of the actions.

During the second half of the year, we are investing more in our growth levers.
These investments are mostly related to our digital operations, to develop our
capabilities within data, direct-to-consumer and the consumer experience. During
the third quarter, we opened approximately 50 new positions to support our
Digital growth initiative. We have also made changes to our current IT
operations, which will bring savings from 2022 onwards. We expect these upfront
investments to be covered by future savings.

Our two ongoing restructuring programs are coming to an end. In the half-year
financial report of 2021 we gave an update on the Vita transformation program.
We can now confirm that the Restructuring program will also be completed by the
end of 2021. We expect that the majority of the benefits will be realized by the
end of 2021. Additionally, the costs of the programs will be significantly lower
than originally anticipated. In other words, 2021 will mark the completion of
both programs, delivering the savings we targeted and with costs below our
initial expectations.

Our focus is now on ensuring the shipments for the important last quarter of the
year. At the same time, we continue to implement our strategy to create organic
growth for the longer term. As part of our growth plans, we announced a new
global strategic partnership with Moomin Characters, as we announced the
acquisition of a minority stake in Rights & Brands, a licensing agency
representing iconic Nordic brands such as the Moomins. We look forward to
discussing our growth strategy in more detail at our Capital Markets Day on
November 9, 2021.

1)       Comparable net sales excludes the impact of exchange rates,
acquisitions and divestments.

2)       Items affecting comparability in EBITA includes items such as
restructuring costs, impairment or provisions charges and releases, integration
-related costs, and gain and loss from the sale of businesses.

3)       EPS in Q1 2021 impacted negatively by the unfavorable ruling in the tax
dispute (EUR 0.35 per share).

Group key figures

EUR million Q3 Q3 Change Q1-Q3 Q1-Q3 Change 2020
2021 2020 2021 2020
Net sales 291.8 266.7 9.4% 901.2 802.9 12.2% 1,116.2
Comparable net 291.8 265.4 10.0% 901.2 779.8 15.6% 1,096.9
sales1)
EBITA 38.6 39.1 -1.3% 129.6 78.5 65.1% 125.8
Items affecting 0.6 -0.1 -3.1 -8.3 -62.6% -11.0
comparability in
EBITA2)
Comparable EBITA 38.0 39.3 -3.1% 132.7 86.8 52.9% 136.8
Operating profit 34.7 35.6 -2.5% 119.0 64.7 83.9% 98.0
(EBIT)
Profit before 37.8 34.6 9.1% 120.0 59.4 102.1% 89.8
taxes
Profit for the 29.8 27.0 10.2% 69.3 43.2 60.4% 68.5
period
Earnings per 0.36 0.33 9.8% 0.84 0.53 60.1% 0.83
share, EUR3)
Equity per 9.68 9.08 9.30
share, EUR
Cash flow from 51.9 115.6 -55.1% 109.3 134.0 -18.4% 223.8
operating
activities
before financial
items
and taxes
Equity ratio, % 58% 51% 57%
Net gearing, % 17% 29% 19%
Capital 7.3 8.8 -16.4% 21.6 20.5 5.3% 30.0
expenditure
Personnel (FTE), 6,157 6,027 2.2% 6,033 6,140 -1.8% 6,104
average

1)                    Comparable net sales excludes the impact of exchange
rates, acquisitions and divestments.

2)                    In Q3 2021, items affecting comparability consisted of
items related to the transformation and restructuring programs.

3)                    EPS in Q1 2021 impacted negatively by the unfavorable
ruling in the tax dispute (EUR 0.35 per share).

FISKARS CORPORATION

Nathalie Ahlström
President and CEO

Webcast

A webcast on the third quarter results will be held on October 29, 2021 at
11:00. It will be held in English and can be followed at:
https://fiskars.videosync.fi/2021-q3-results

Presentation materials will be available at www.fiskarsgroup.com.

An on-demand version of the webcast will be available on the company website.
Personal details gathered during the event will not be used for any other
purpose.

Media and investor contacts:
Kristian Tammela, Director, Investor Relations, tel. +358 40 708 1181

Making the everyday extraordinary
Fiskars Group’s vision is to create a positive, lasting impact on our quality of
life. Our brands Fiskars, Gerber, Iittala, Royal Copenhagen, Waterford, and
Wedgwood are present in people’s everyday lives – at home, in the garden, and
outdoors. This gives us an opportunity to make the everyday extraordinary today,
and for future generations. We have a presence in 30 countries, and our products
are available in more than 100 countries. Our shares are listed on the Nasdaq
Helsinki (FSKRS). Please visit us at www.fiskarsgroup.com for more information
and follow us on Twitter @fiskarsgroup.

Attachments: