Fiskars Oyj Abp · OMXHEX:FSKRS
Fiskars Oyj Abp — Fiskars Group — Q1 2019 Earnings Presentation
22 slides from Fiskars Oyj Abp's earnings presentation, April 2019
Slide 1: Interim report January–March 2019
Interim report January–March 2019
Slide 2: Today’s speakers
Today’s speakers Jaana Tuominen Sari Pohjonen President & CEO CFO Deputy to the CEO Q1 2019 2
Slide 3: 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 as
Slide 4: Key takeaways for Q1 2019
Key takeaways for Q1 2019 • Comparable EBITA increased, despite a decrease in comparable net sales • Profitability improved clearly in the Functional segment, as comparable EBITA increased with comparable net sales remaining at the previous year’s level • Seasonally less important quarter for the Li
Slide 5: Fiskars Group comparable net sales
Fiskars Group comparable net sales in Q1 2019 Net sales, EUR million Net sales bridge, EUR million Comparable change* -1.4% 400 Change +1.0% 319 324 6.5 -0.3 306 0.0 -3.7 0.0 268.6 300 290 266.1 270 266 273 269 256 200 100 0 Q1 FX Divest- SBU SBU Other Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2018 rate ments F
Slide 6: Fiskars Group comparable EBITA
Fiskars Group comparable EBITA in Q1 2019 Comparable EBITA, EUR million Comparable EBITA margin Comparable EBITA* +9.9% EBITA -8.6% 48.8 50 16% 15.1% 40 15% 35.4 32.0 14% 29.1 30 27.0 13% 25.9 22.4 23.6 22.3 12% 11.1% 10.8% 10.6% 20 11% 10.5% 10% 10 9% 9.7% 8% 8.9% 8.2% 0 1.3 7% 7.7% -1.1 -1.1 -4.9
Slide 7: Update on the Transformation program in the Living business
Update on the Transformation program in the Living business The Transformation program focuses primarily on: Targeted annual cost savings app. EUR 17 million • The English & Crystal Living business, to improve its • Subject to the full implementation of the program profitability • Targeted cost savi
Slide 8: Functional marketing highlights
Functional marketing highlights in Q1 2019 The Fiskars brand launched a new marketing concept in EMEA. The “100% happiness” concept for the gardening category emphasizes the positive impact of gardening on happiness and well-being. The Fiskars brand received seven Red Dot Design Awards for design ex
Slide 9: Living marketing highlights
Living marketing highlights in Q1 2019 Iittala and Arabia launched the new Vintage concept, where we buy and sell used Iittala and Arabia-branded tableware. The concept was piloted in 2018 with good results and feedback. Circular economy is part of Fiskars Group’s sustainability focus areas, and the
Slide 10: Q1 2019
Q1 2019 Q1 2019 10
Slide 11: Functional in Q1 2019
Functional in Q1 2019 Comparable change* -0.2% EUR million Q1 2019 Q1 2018 Change 2018 Net sales 157.2 152.8 2.9% 585.2 176 166 159 157 153 Comparable EBITA 26.0 24.0 8.0% 75.5 135 130 135 138 Capital expenditure 3.0 3.3 -7.2% 18.9 • Comparable net sales remained close to the previous year’s level •
Slide 12: Living in Q1 2019
Living in Q1 2019 Comparable change* -3.2% EUR million Q1 2019 Q1 2018 Change 2018 188 185 Net sales 110.5 112.4 -1.7% 529.6 Comparable EBITA 3.2 3.4 -4.6% 57.0 129 134 123 120 Capital expenditure 4.0 5.1 -21.8% 23.8 112 112 111 • Comparable net sales decreased by 3.2%. • Comparable net sales increa
Slide 13: Net sales by geography
Net sales by geography in Q1 2019 Comparable EUR million Q1 2019 Q1 2018 Change change* Europe 130.1 125.8 3.4% 4.3% Americas 104.4 110.3 -5.3% -11.0% Asia-Pacific 33.5 31.4 6.4% 4.6% Unallocated** 0.6 -1.5 *Using comparable exchange rates **Geographically unallocated exchange rate differences • Net
Slide 14: Other segment
Other segment The Other segment contains the Group’s investment portfolio, the real estate unit, corporate headquarters and shared services At the end of Q1 2019, Fiskars Group owned 32,645,343 shares in Wärtsilä, representing 5.52% of Wärtsilä’s share capital The shares in Wärtsilä were valued at E
Slide 15: Earnings per share increased
Earnings per share increased in Q1 2019 0.34 0.34 0.33 0.28 0.21 0.21 0.20 0.14 0.13 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 EPS Op. EPS EPS (for Q1- Q4 2017 restated to current accounting practice) Operative EPS (reported until Q4 2017) Q1 2019 15
Slide 16: Cash flow improved
Cash flow improved Cash flow from operating activities before financial Working capital, EUR million items and taxes, EUR million 300 150 258 258 252 250 232 232 227 218 100 196 197 200 150 50 104 92 49 43 41 100 25 0 Impact from 50 -26 IFRS 16: -46 -39 EUR +6 million -50 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q
Slide 17: Net debt decreased excluding the impact from IFRS 16
Net debt decreased excluding the impact from IFRS 16 Net debt, EUR million Equity ratio and net gearing 350 80% 322 69% 69% 68% 68% 69% 70% 300 70% 66% 67% 65% 70% excluding Impact from 257 IFRS 16: IFRS 16 -impact 60% 250 228 EUR 117 million 226 226 207 204 50% 200 40% 148 150 135 30% 26% 19% exclu
Slide 18: Outlook for 2019 unchanged
Outlook for 2019 unchanged: In 2019, Fiskars Group expects the comparable net sales and comparable EBITA to be at the same level as in 2018 The outlook is influenced by the company’s investments in growth initiatives that are expected to add sustainable value in the long-term. In addition, there are
Slide 19: Long-term financial targets
Long-term financial targets Growth Profitability Capital Dividend The average annual net sales EBITA margin structure Fiskars aims to distribute a growth to exceed 5%, through a to reach 12% stable, over time increasing Net gearing* below 100% combination of organic growth and dividend, to be paid b
Slide 20: Dividend
Dividend Dividend authorized by the AGM: Long-term financial targets intact: • Cash dividend of EUR 0.27 per share in March and an After the potential distribution of the Wärtsilä shares to authorization to distribute an additional EUR 0.27 per shareholders, Fiskars would cease to receive dividend s
Slide 21: Dividend track
Dividend track Planned Wärtsilä share distribution 2.60 1.60 1.40 1.30 1.20 1.00 0.80 0.75 0.71 0.72 0.67 0.68 0.70 0.62 0.65 0.60 0.60 0.52 0.54 0.36 0.40 0.27 0.20 0.35 0.36 0.27 0.00 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Base Dividend First dividend Extra Dividend Second dividend Q1 2
Slide 22: Making the everyday extraordinary
Making the everyday extraordinary Q1 2019 22