Fiskars Oyj Abp — Interim / Quarterly Report 2021

Jul 29, 2021

Fiskars Group half-year financial report January-June 2021

Fiskars Group half-year financial report January-June 2021

Fiskars Corporation
Half-year Financial Report
July 29, 2021 at 8:30 a.m. (EEST)

Fiskars Group half-year financial report January-June 2021

All-time high comparable EBITA during the first half of the year

This release is a summary of the Fiskars Corporation’s January–June 2021 half
-year financial 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.

Second quarter 2021 in brief:
•    Net sales increased by 9.7% to EUR 307.2 million (Q2 2020: 280.0)
•    Comparable net sales1) increased by 14.1% to EUR 307.2 million (269.3)
•    EBITA increased to EUR 41.9 million (27.5)
•    Comparable2) EBITA increased by 56.7% to EUR 44.8 million (28.6)
•    Cash flow from operating activities before financial items and taxes
decreased to EUR 46.7 million (55.8)
•    Earnings per share (EPS) were EUR 0.38 (0.14)

January-June 2021 in brief:
•    Net sales increased by 13.6% to EUR 609.4 million (Q1-Q2 2020: 536.2)
•    Comparable net sales1) increased by 18.5% to EUR 609.4 million (514.4)
•    EBITA increased to EUR 91.0 million (39.4)
•    Comparable2) EBITA increased by 99.0% to EUR 94.7 million (47.6)
•    Cash flow from operating activities before financial items and taxes
increased to EUR 57.4 million (18.3)
•    Earnings per share3) (EPS) were EUR 0.48 (0.20)

Outlook for 2021 upgraded on June 23, 2021:
On June 23, 2021, Fiskars upgraded its outlook for 2021 as the company’s
financial performance in the second quarter had been better than previously
expected. The company now expects the comparable EBITA for 2021 to be in the
range of EUR 140-160 million. According to the previous outlook issued on April
19, 2021, the comparable EBITA in 2021 was expected to be in the range of EUR
130-145 million.

Visibility continues to be low due to the COVID-19 pandemic, which is profoundly
impacting consumers’ lives in terms of changes in for example disposable income,
purchasing choices and consumer behavior. These may bring challenges as well as
opportunities for Fiskars Group. The seasonality of both trade and consumer
demand may continue to differ from a typical year. In addition, there have been
challenges in global supply chains and increasing raw material price inflation.
While the company has managed to mitigate these factors, they continue to have
an impact.

The fourth quarter of the year has typically been seasonally the most important
one for Fiskars Group, particularly for Business Area Vita. The market
conditions are volatile and consumer demand in the fourth quarter impacts sales
performance particularly during the gifting season. In previous years
approximately one third of full-year sales in BA Vita has been generated through
the company’s direct channel, i.e. own stores and direct e-commerce.

President and CEO, Fiskars Group, Nathalie Ahlström:
Fiskars Group continued to perform well during the second quarter, as overall
demand remained strong and our own actions yielded results. Consequently, net
sales and comparable EBITA increased from the previous year’s level, wrapping up
an unforeseen strong start to the year.

Business Area Vita improved clearly from a weak second quarter in 2020. The
performance was supported by a good rebound in sales as well as increased
benefits from the ongoing Transformation and Restructuring programs. The strong
growth in China continued, with net sales doubling from the previous year’s
level. The expansion proceeded and during the quarter, we opened new stores,
including the first Royal Copenhagen store in the country. Our growth in China
is driven by luxury products from the Wedgwood and Royal Copenhagen brands.
Overall, our efforts to improve the performance of the English & Crystal Brands
are yielding results, in particular for Wedgwood.

I’m also glad to see that comparable net sales in Terra continued to grow, and
Crea reached the previous year’s level despite the unusually strong comparison
period figures, particularly in the Americas. Both Business Areas have improved
their performance in Europe and are in a good position to grow in the long term.

We have progressed well during the first half of the year. When looking at the
performance, it’s important to bear in mind that the pandemic has altered
consumer habits and needs, shifting the seasonality of both trade and consumer
demand. This phenomenon may continue, and create differences compared to a
typical year. Looking forward, the second half of the year is up against strong
comparison figures from 2020.

At the same time, we need to focus on creating organic growth in the longer
term. A strong digital business is a pre-requisite for growth and while we have
invested in this field, we are committed to doing more. We will continue to
develop our capabilities within data, direct-to-consumer and the consumer
experience, to support our growth ambitions. To implement this, we will need to
make upfront investments starting in the third quarter of 2021. We have also
made changes to our current IT operations, which will bring savings in 2022 and
onwards. We expect these upfront investments and savings to be broadly cost
neutral over time.

There are challenges in supply chains on a global scale which continue to impact
our operations as well. Raw materials and logistics costs have risen rapidly and
at the same time, there are availability issues in several categories. We expect
the challenges posed by inflation and availability issues to persist throughout
2021.

Our ongoing programs are making progress. We expect to close the Vita
transformation program by the end of the year, whereas the closing of the
Restructuring program might be delayed until the first quarter of 2022. For the
Vita transformation program, the costs are estimated to be approximately EUR 5
million lower than previously anticipated and the estimated benefits will be
realized. A majority of the benefits will be visible by the end of 2021.

We appointed Jussi Siitonen as new Chief Financial Officer and deputy to the
CEO. He starts in his role in mid-August, and the current CFO Sari Pohjonen
continues in her role until Jussi joins the company. I would like to thank Sari
for her dedication and leadership, as she has ensured that the team generated
outstanding results in challenging times. In addition, I would like to express
my gratitude towards all our employees. They have worked hard and showed
flexibility and resilience, delivering the strong results in the quarter.

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 | Q2| Q2|Change|Q1-Q2|Q1-Q2|Change|
2020|
| | 2021| 2020| | 2021| 2020| |
|
+---------------------------------+-----+-----+------+-----+-----+------+------
-+
|Net sales |307.2|280.0| 9.7%|609.4|536.2|
13.6%|1,116.2|
+---------------------------------+-----+-----+------+-----+-----+------+------
-+
|Comparable net sales[1)] |307.2|269.3| 14.1%|609.4|514.4|
18.5%|1,094.5|
+---------------------------------+-----+-----+------+-----+-----+------+------
-+
|EBITA | 41.9| 27.5| 52.4%| 91.0| 39.4|130.9%|
125.8|
+---------------------------------+-----+-----+------+-----+-----+------+------
-+
|Items affecting comparability in | -2.9| -1.1|168.1%| -3.7| -8.2|-55.1%|
-11.0|
|EBITA[2)] | | | | | | |
|
+---------------------------------+-----+-----+------+-----+-----+------+------
-+
|Comparable EBITA | 44.8| 28.6| 56.7%| 94.7| 47.6| 99.0%|
136.8|
+---------------------------------+-----+-----+------+-----+-----+------+------
-+
|Operating profit (EBIT) | 38.5| 20.8| 85.3%| 84.3| 29.1|189.3%|
98.0|
+---------------------------------+-----+-----+------+-----+-----+------+------
-+
|Profit before taxes | 40.4| 16.3|147.9%| 82.2| 24.8|232.1%|
89.8|
+---------------------------------+-----+-----+------+-----+-----+------+------
-+
|Profit for the period | 31.4| 11.1|183.5%| 39.5| 16.2|144.2%|
68.5|
+---------------------------------+-----+-----+------+-----+-----+------+------
-+
|Earnings per share, EUR[3)] | 0.38| 0.14|182.0%| 0.48| 0.20|144.8%|
0.83|
+---------------------------------+-----+-----+------+-----+-----+------+------
-+
|Equity per share, EUR | | | | 9.27| 9.23| |
9.30|
+---------------------------------+-----+-----+------+-----+-----+------+------
-+
|Cash flow from operating | 46.7| 55.8|-16.3%| 57.4| 18.3|213.5%|
223.8|
|activities before financial items| | | | | | |
|
|and taxes | | | | | | |
|
+---------------------------------+-----+-----+------+-----+-----+------+------
-+
|Equity ratio, % | | | | 56%| 49%| |
57%|
+---------------------------------+-----+-----+------+-----+-----+------+------
-+
|Net gearing, % | | | | 19%| 38%| |
19%|
+---------------------------------+-----+-----+------+-----+-----+------+------
-+
|Capital expenditure | 8.2| 6.7| 21.7%| 14.2| 11.7| 21.5%|
30.0|
+---------------------------------+-----+-----+------+-----+-----+------+------
-+
|Personnel (FTE), average |6,033|6,021| 0.2%|5,971|6,197| -3.7%|
6,104|
+---------------------------------+-----+-----+------+-----+-----+------+------
-+

1)    Comparable net sales excludes the impact of exchange rates, acquisitions
and divestments.
2)    In Q2 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 second quarter results will be held on July 29, 2021 at 11:00
a.m. It will be held in English and can be followed at:
https://fiskars.videosync.fi/2021-q2-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.

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