Fiskars Oyj Abp · OMXHEX:FSKRS
Fiskars Oyj Abp — Fiskars Group — FY2017 Earnings Presentation
28 slides from Fiskars Oyj Abp's earnings presentation, Feb 7, 2018
Slide 1: Fiskars Group January–December 2017
Fiskars Group February 7, Helsinki, Finland January–December 2017
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 believes that the expectations reflected in such forward-looking statements are reasonable, no assura
Slide 3: Key takeaways for Q1–Q4 2017
Key takeaways for Q1–Q4 2017 1 2 3 4 5 Growth in comparable The Functional The Scandinavian English & Crystal Change of organization net sales and business continued Living business Living business faced structure in January, comparable EBITA to improve, with net exceeded our challenges throughout n
Slide 4: Q1–Q4 2017
Q1–Q4 2017 Net sales Comparable EBITA** Cash flow from operating Earnings per share Operative earnings EUR million EUR million activities*** EUR million EUR per share EUR 1,185.5 119.0 130.5 2.04 0.81 -1.6% +11% Q1–Q4 2016: 120.7 Q1–Q4 2016: 0.78 Q1–Q4 2016: 0.56 Comparable net sales* +1.5% *Using c
Slide 5: Q4 2017
Q4 2017 Net sales Comparable EBITA** Cash flow from operating Earnings per share Operative earnings EUR million EUR million activities*** EUR million EUR per share EUR 319.2 35.4 103.5 -0.56 0.21 -4.4% -2% Q4 2016: 77.5 Q4 2016: 0.51 Q4 2016: 0.23 Comparable net sales* -0.2% * Using comparable excha
Slide 6: Fiskars Group in Q4 2017
Fiskars Group in Q4 2017 Net sales and comparable EBITA % Comparable EBITA EUR million EUR million -0.2% Comparable growth -4.4% -2% 36.3 35.4 334 319 32.0 306 29.1 290 270 22.4 10.9% 10.5% 10.8% 11.1% 7.7% -1.1 -1.1 1.3 -4.9 -8.2 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q4 2016 Q1 2017 Q2 2017 Q3 20
Slide 7: Net sales bridge Q4 2017
Net sales bridge Q4 2017 Net sales Comparable EUR million growth -0.2% 335 334.1 -13.0 330 325 3.1 -4.0 -1.1 0.2 319.2 320 315 310 305 300 Q4 2016 FX rate Divestments SBU Functional SBU Living Other Q4 2017 7 Fiskars Q4 2017
Slide 8: Net sales and profitability development
Net sales and profitability development 1,205 1,186 55% 8% 1 200 1,107 50% 1 000 799 45% 748 768 43.2% 800 716 743 42.5% 660 40.9% 41.0% 38.7% 40% 600 36.7% 35.4% 35.0% 33.5% 35% 400 200 30% 0 25% 2009 2010 2011 2012 2013 2014 2015 2016 2017 Net sales, EUR million Comp. gross profit 8 Fiskars Q4 201
Slide 9: SKU efficiency supporting profitability
SKU efficiency supporting profitability Number of Stock Keeping Units (SKU)* Sales / SKU, EUR 45 000 80 000 40 000 70 000 35 000 60 000 30 000 50 000 25 000 40 000 20 000 30 000 15 000 20 000 10 000 5 000 10 000 0 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Number of Stock Keeping Units
Slide 10: Living marketing Q4 highlights
Living marketing Q4 highlights • During the fourth quarter, Arabia introduced a new series of stackable tableware, Mainio Sarastus The series is versatile, practical, light, and can be used for serving, preparing, and storing food. Mainio Sarastus is inspired by key trends of urbanization and small
Slide 11: Functional marketing Q4 highlights
Functional marketing Q4 highlights • Fiskars won 11 GOOD DESIGN® 2017 Awards, which emphasize quality design of the highest form, function, and aesthetic The 2017 award-winning products included wide range of Fiskars and Gilmour branded products • In the Nordics, Fiskars launched the Hard Face and H
Slide 12: Events after the reporting period
Events after the reporting period Renewal of the group leadership New LTI-plan for the Group’s key employees • On January 11, 2018, Fiskars renewed and expanded its • On February 7, 2018, Fiskars announced a new group leadership team share-based Long-term Incentive Plan for the Fiskars • At the same
Slide 13: Building a family of iconic lifestyle brands
Building a family of iconic lifestyle brands Delivering on our strategic priorities 13 Fiskars Q4 2017
Slide 14: Fiskars Q4 2017
Fiskars Q4 2017 14 Fiskars Q4 2017
Slide 15: Living in Q4 2017
Living in Q4 2017 EUR million Q4 2017 Q4 2016 Change 2017 2016 Change Net sales Net sales 187.8 199.4 -5.8% 573.9 598.1 -4.0% EUR million Comparable EBITA 38.3 39.4 -3% 70.7 59.4 19% Comparable -2.1% Capital expenditure 4.9 5.0 -2% 14.0 14.9 -6% change *Using comparable exchange rates and excluding
Slide 16: Functional in Q4 2017
Functional in Q4 2017 EUR million Q4 2017 Q4 2016 Change 2017 2016 Change Net sales Net sales 130.4 133.9 -2.6% 607.8 602.7 0.8% EUR million Comparable EBITA 1.0 0.6 62% 59.7 57.1 5% Comparable Capital expenditure 6.6 5.7 15% 19.4 21.8 -11% 2.4% growth *Using comparable exchange rates and excluding
Slide 17: Net sales by geography in Q4 2017
Net sales by geography in Q4 2017 Comparable Comparable EUR million Q4 2017 Q4 2016 Change 2017 2016 Change change* change* Europe 165.9 162.2 2.2% 3.2% 568.5 555.3 2.4% 5.7% Americas 107.2 116.2 -7.7% -0.7% 463.0 489.9 -5.5% -2.3% Asia-Pacific 46.4 53.0 -12.4% -4.8% 152.8 153.3 -0.3% 1.6% Unallocat
Slide 18: Other segment
Other segment • The Other segment contains the Group’s investment portfolio, the real estate unit, corporate headquarters and shared services • Along with the rest of the Group’s active investments, shares in Wärtsilä Corporation have been treated as financial assets at fair value through profit or
Slide 19: Transformation process
Transformation process Alignment program Supply Chain 2017 program • In November 2016, Fiskars launched the Alignment • During Q3/15, Fiskars announced a restructuring program to proceed in the transformation program to optimize its global supply chain network in Europe and Asia • The total costs of
Slide 20: Cash flow and debt Q4 2017
Cash flow and debt Q4 2017 Cash flow from operating activities* EUR million Net debt, EUR million 104 257 78 228 226 49 25 152 148 -46 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Working capital, EUR million Capex, EUR million 258 252 12.0 218 232 196 9.6 9.2 7.2
Slide 21: Key ratios Q4 2017
Key ratios Q4 2017 EPS, euro Operative EPS, euro 1.07 1.20 0.23 0.25 0.51 0.21 0.31 0.19 0.14 -0.56 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Equity ratio, % Net gearing, % 69.3 65.7 67.0 69.3 69.3 21.0 18.6 17.1 12.5 11.6 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017
Slide 22: Long-term financial targets
Long-term financial targets Growth: The average annual net sales growth to Profitability: exceed 5%, through a combination of organic EBITA margin to exceed 10% growth and targeted acquisitions Dividend: Capital structure: Fiskars aims to distribute a stable, over time Net gearing* below 100% increa
Slide 23: Outlook 2018 issued
Outlook 2018 issued • In 2018, Fiskars expects the Group’s comparable net sales and comparable EBITA to increase from 2017 • The comparable net sales excludes the impact of exchange rates, acquisitions and divestments • Items affecting comparability in EBITA excludes restructuring costs, impairment
Slide 24: Impact of the US tax reform
Impact of the US tax reform • In December 2017, the U.S. tax reform was signed into law. The legislation includes, among other things, a reduction in the U.S. federal corporate income tax rate from 35% to 21% • The change is expected to have a slightly positive impact on Fiskars’ net result from 201
Slide 25: Proposal for distribution of dividend
Proposal for distribution of dividend • Fiskars’ aim is to distribute a stable, over time increasing dividend to be paid biannually • Board of Directors proposes a dividend of total EUR 0.72 per share be paid • The first instalment of EUR 0.36 per share will have an ex-dividend on March 15, 2018. Th
Slide 26: Nine years of base dividend growth
Nine years of base dividend growth Dividend per share (DPS) history 2009–2017 EUR 2.60 1.30 0.75 0.72 0.70 0.71 0.67 0.68 0.62 0.65 0.60 0.52 0.36 0.35 0.36 2009 2009 2010 2010 2011 2011 2012 2012 2013 2013 2014 2014 2015 2015 2016 2016 2017* 2017 *Proposal Base Dividend First dividend 26 Fiskars Q4
Slide 27: Fiskars in 2017
Fiskars in 2017 GLOBALLY RECOGNIZED BRANDS NET SALES BY BRAND 7,900 EMPLOYEES IN OVER 30 COUNTRIES PRODUCTS IN MORE THAN 100 COUNTRIES NET SALES IN 2017 1,186 EUR MILLION Fiskars Waterford Royal Copenhagen Iittala BY REGION Wedgwood Gerber Americas Europe Asia-Pacific Others 39% 48% 13%
Slide 28: Making the everyday extraordinary
Making the everyday extraordinary 28 Fiskars Q4 2017