Fiskars Oyj Abp · OMXHEX:FSKRS
Fiskars Oyj Abp — Fiskars Group — FY2019 Earnings Presentation
23 slides from Fiskars Oyj Abp's earnings presentation, Feb 5, 2020
Slide 1: Financial Statement Release January–December 2019
Financial Statement Release January–December 2019
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements that reflect management’s current views with respect to certain future events and potential financial performance. Although Fiskars Group believes that the expectations reflected in such forward- looking statements are reasonable, no a
Slide 3: Key takeaways
Key takeaways • Challenging quarter with a decrease in comparable net sales, comparable EBITA and cash flow • Functional segment improved on many fronts • Living segment faced challenges during the seasonally important quarter • Outlook for 2020: Comparable EBITA to increase from 2019 • Dividend pro
Slide 4: Fiskars Group comparable net sales in Q4 2019
Fiskars Group comparable net sales in Q4 2019 Net sales, EUR million Net sales bridge, EUR million Comparable change* -5.6% 5.1 400 Change -5.0% -2.9 324.1 -2.4 319 324 308 300 -16.1 266 273 269 265 256 249 0.2 308.0 200 100 0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q4 FX Divest- SBU SBU Other Q4 2017 2018 2018
Slide 5: Fiskars Group comparable EBITA in Q4 2019
Fiskars Group comparable EBITA in Q4 2019 Comparable EBITA, EUR million Comparable EBITA margin Comparable EBITA* -28% EBITA -26% 48.8 50 16% 15.1% 40 14% 35.4 35.1 12% 11.1% 11.4% 30 27.0 10.6% 25.9 9.7% 23.6 22.3 10% 8.9% 8.2% 20 16.1 8% 13.4 6.1% 10 6% 5.4% 4% 0 -4.9 -1.6 -2.1 -0.3 -5.2 -5.8 -2.6
Slide 6: Fiskars Group strategic priorities – Growing business
Fiskars Group strategic priorities – Growing business Expanding in China Exploring Growing and services the core e-commerce Net sales increased in China growth plan in early Vintage expansion ongoing Germany during 2019 phase, progressing well Arabia service in pilot Growth in the gardening E-commer
Slide 7: Planned changes to the organization structure
Planned changes to the organization structure As the business Simplifying the Restructuring Program Changes in the Fiskars environment continues organization and to target annual net cost Group Leadership Team to evolve, we are completing the savings of appr. positioning the company integration into
Slide 8: Functional marketing highlights in Q4 2019
Functional marketing highlights in Q4 2019 The Functional business reached some important milestones in the development of its direct channel during the quarter. The Fiskars brand launched its renewed e-commerce site in the U.S. and opened one in Finland. Additionally, Gerber’s renewed e-commerce si
Slide 9: Living marketing highlights in Q4 2019
Living marketing highlights in Q4 2019 Arabia launched a new subscription-based tableware service that allows customers to enjoy their favorite tableware for an flat monthly fee. The Vintage service continued to expand during the quarter. The service was made available in all Iittala stores in Finla
Slide 10: Q4 2019
Q4 2019 ⓒ Fiskars Group.
Slide 11: Functional in Q4 2019
Functional in Q4 2019 Comparable change* EUR million Q4 2019 Q4 2018 Change 2019 2018 Change -1.8% Net sales 135.6 138.4 -2.0% 585.5 585.2 0.1% Comparable EBITA 11.2 9.2 22.2% 64.2 75.5 -15.0% 159 157 163 153 135 138 136 Capital expenditure 5.7 5.7 1.0% 17.5 18.9 -7.4% 130 130 • Comparable net sales
Slide 12: Living in Q4 2019
Living in Q4 2019 Comparable change* EUR million Q4 2019 Q4 2018 Change 2019 2018 Change -8.6% Net sales 171.3 184.7 -7.3% 501.0 529.6 -5.4% 188 185 Comparable EBITA 26.7 42.5 -37.2% 38.9 57.0 -31.8% 171 Capital expenditure 5.8 7.4 -21.6% 18.3 23.8 -23.0% 112 112 120 118 111 101 • Comparable net sal
Slide 13: Update on programs
Update on programs Transformation program Restructuring program Focusing on: Focusing on: • The English & Crystal Living business, to improve its • Looking for synergies and efficiencies in our selling and profitability administrative spending • Planned actions in retail, distribution and supply net
Slide 14: Net sales by geography in Q4 2019
Net sales by geography in Q4 2019 Comparable Comparable EUR million Q4 2019 Q4 2018 Change 2019 2018 Change change* change* Europe 153.7 162.1 -5.2% -3.1% 518.9 531.2 -2.3% -0.4% Americas 106.6 112.0 -4.9% -8.4% 427.5 444.4 -3.8% -8.4% Asia-Pacific 47.7 48.7 -2.0% -4.8% 143.6 141.7 1.4% -0.9% Unallo
Slide 15: SKU reduction ongoing with potential remaining
SKU reduction ongoing with potential remaining Number of Stock Sales / SKU, EUR Keeping Units (SKU) 45 000 90 000 40 000 80 000 Targeting to reach the previous high in sales / SKU 35 000 70 000 30 000 60 000 25 000 50 000 20 000 40 000 15 000 30 000 10 000 20 000 5 000 10 000 0 0 2007 2008 2009 2010
Slide 16: Earnings per share in Q4 2019
Earnings per share in Q4 2019 0.34 0.33 0.26 0.21 0.21 0.20 0.13 0.12 0.04 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 ⓒ Fiskars Group. 5.2.2020 16
Slide 17: Cash flow decreased from previous year's level
Cash flow decreased from previous year’s level Cash flow from operating activities before Working capital, EUR million financial items and taxes, EUR million 300 150 258 250 242 227 232 226 218 196 197 194 100 200 150 50 104 92 85 Impact from 43 48 IFRS 16 : 100 41 EUR +6.4 million 0 11 -26 50 -39 -
Slide 18: Net debt excluding the impact from IFRS 16 close to previous year's level
Net debt excluding the impact from IFRS 16 close to previous year’s level Net debt, EUR million Equity ratio and net gearing 350 322 317 80% 71% excluding 69 % 69 % 70 % impact from 300 70% 68 % 68 % 278 65 % IFRS 16 –impact 261 and Wärtsilä 250 60% 56 % 55 % 56 % share dividend 226 Impact from 207
Slide 19: Outlook for 2020
Outlook for 2020: In 2020, Fiskars expects the comparable EBITA to increase from 2019. Fluctuations in currency rates might have a considerable impact on comparable EBITA. Fiskars continues to invest in future growth and is focused on improving profitability through the ongoing transformation progra
Slide 20: Long-term financial targets unchanged
Long-term financial targets unchanged Growth Profitability Capital structure Dividend The average annual net sales EBITA margin Net gearing* below Fiskars aims to distribute a growth to exceed 5%, through a to reach 12% 100% stable, over time increasing combination of organic growth dividend, to be
Slide 21: Wärtsilä share distribution changed the baseline for dividend growth
Wärtsilä share distribution changed the baseline for dividend growth Wärtsilä share Dividend per share (DPS) history 2009–2019 distribution EUR 5.31 1,60 2.60 1,40 1.30 1,20 1,00 0,80 0.75 0.70 0.71 0.72 0.65 0.67 0.68 0.60 0.62 0,60 0.54 0.56* 0.52 0.36 0,40 0.27 0.28 0,20 0.35 0.36 0.27 0.28 0,00
Slide 22: Planned Reporting Structure (as of Q1/2020)
Planned Reporting Structure (as of Q1/2020) PRIMARY REPORTING VITA TERRA CREA OTHER SEGMENTS SECONDARY REPORTING Americas SEGMENTS Europe Asia-Pacific ⓒ Fiskars Group. 5.2.2020 22
Slide 23: Making the everyday extraordinary
Making the everyday extraordinary ⓒ Fiskars Group. 5.2.2020 23