Fiskars Group

Q1/2014 1.1. – 31.3.2014 Helsinki, May 6, 2014

Q1 2014: Challenging start to the year

Page 2 Fiskars Q1 2014

Net sales 184.1 MEUR,-3%

Net sales impact from currencies

– 4.9 MEUR

Outlook for 2014: FY sales at 2013

levels, EBIT excl. NRI at 2013 levels or

slightly below

EBIT excl. NRI 12.8 MEUR, -23 %

Soft performance in Outdoor

Net Sales and EBIT in Q1 2014 Fiskars Group

EBIT by quarter, MEUR

190,4

217,6

177,9

212,6

184,1

0,0%

2,0%

4,0%

6,0%

8,0%

10,0%

12,0%

14,0%

0

25

50

75

100

125

150

175

200

225

Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014

Net sales by quarter, MEUR

16,6

27,8

15,4 14,0 12,8

-2,1 -1,7

-6,6 -2,3

-4,6

-10

-5

0

5

10

15

20

25

Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014

EBIT excluding non-recurring items

Non-recurring items

EBIT excl.

NRI % 8,7% 12,8% 8,6% 6,6% 6,9%

- 3 %

Cn -1 %

Fiskars Q1 2014 Page 3

Net sales development bridge

Page 4

MEUR

Divested Garden

Business

190,4

Exchange

rate effect

Home

184,1

Outdoor

-4,9

Garden

Fiskars Q1 2014

Q1 2013 Q1 2014

Europe & Asia-Pacific and Americas in Q1 2014

134,7 149,6

119,8

160,1

133,7

0,0%

4,0%

8,0%

12,0%

16,0%

20,0%

0

40

80

120

160

200

Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014

Europe & Asia Pacific Net sales and EBIT % by quarter, MEUR

EBIT excl. NRI %

7,5% 12,2% 8,4% 8,9% 7,0%

Europe & Asia Pacific

• Net sales 133.7 MEUR, -1 %, cn +1 %

• EBIT excl. NRI 9.4 MEUR, -7 %

• Sales impacted by currencies, sale of UK

pottery business and availability issues

• Increased marketing spending and

depreciation and amortization

Fiskars Q1 2014 Page 5

58,0 71,3

60,7 55,1 51,8

0,0%

4,0%

8,0%

12,0%

16,0%

20,0%

0

40

80

120

160

200

Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014

Americas Net sales and EBIT % by quarter, MEUR

EBIT excl. NRI %

15,4% 16,5% 12,5% 5,8% 10,3%

Americas

• Net sales 51.8 MEUR, -11 %

• EBIT 5.3 MEUR, -41 %

• Decreased sales in Outdoor

Page 6 Fiskars Q1 2014

Q1 2014 Home

Home, Quarterly View

Fiskars Q1 2014 Page 7

• Net sales 79.3 MEUR, +2%, cn +4 %

• In Europe, product availability issues curbed growth

• Good performance for Royal Copenhagen continued

• Earlier, strong launches for license, good performance for core Fiskars kitchen products

• In the Americas, slow start for School, office and craft

62,8 65,1 78,0 79,3

0,0

20,0

40,0

60,0

80,0

100,0

120,0

140,0

Q1 2011

Q1 2012

Q1 2013

Q1 2014

Q2 2011

Q2 2012

Q2 2013

Q2 2014

Q3 2011

Q3 2012

Q3 2013

Q3 2014

Q4 2011

Q4 2012

Q4 2013

Q4 2014

Net Sales, MEUR

Page 8 Fiskars Q1 2014

Q1 2014 Garden

Garden Quarterly View

Fiskars Q1 2014 Page 9

• Net sales 80.0 MEUR, -3 %, cn -0 %

• In Europe, UK pottery business divested at the end of 2013, availability issues dampened

growth

• Good sell-in for European spring campaigns

• Cold weather and inventory management at trade impacted sales in the Americas

93,2 91,2 82,5 80,0

0,0

10,0

20,0

30,0

40,0

50,0

60,0

70,0

80,0

90,0

100,0

Q1 2011

Q1 2012

Q1 2013

Q1 2014

Q2 2011

Q2 2012

Q2 2013

Q2 2014

Q3 2011

Q3 2012

Q3 2013

Q3 2014

Q4 2011

Q4 2012

Q4 2013

Q4 2014

Net Sales, MEUR

Page 10 Fiskars Q1 2014

Q1 2014 Outdoor

Outdoor Quarterly View

Fiskars Q1 2014 Page 11

• Net sales 23.4 MEUR, -19.0 %, cn -17.0

• In Europe & Asia-Pacific, Gerber sales impacted by adjustments

• Boat sales shifted to smaller models

• In the Americas, weak Outdoor commercial sales

32,1 30,6 28,9 23,4

0,0

5,0

10,0

15,0

20,0

25,0

30,0

35,0

40,0

45,0

Q1 2011

Q1 2012

Q1 2013

Q1 2014

Q2 2011

Q2 2012

Q2 2013

Q2 2014

Q3 2011

Q3 2012

Q3 2013

Q3 2014

Q4 2011

Q4 2012

Q4 2013

Q4 2014

Net Sales, MEUR

Q1 Spotlight: EMEA transformation programs

Page 12 Fiskars Q1 2014

Two programs to build a solid platform for growth

5 year platform program

• Investments decreasing,

depreciations on the increase

• Largest single implementation in

September affected sales and

efficiency in Q4 2013

• Impacts on Home products

availability in Q1 2014

• To mitigate effects of future

implementations, implementation

period extended to 2016

EMEA 2015 restructuring program

• EUR 4.2 million of total EUR 25-

30 million restructuring costs

recorded in Q1 2014

• Planned restructuring of Fiskars

Italy

• Close local manufacturing and

warehousing

• Discontinue professional knife

business

• Consolidation of glass

manufacturing in Iittala completed

• Some projects moved to 2015

from 2014

Page 13 Fiskars Q1 2014

Q1 Financials:

Page 14 Fiskars Q1 2014

Cash flow and debt Q1 2014, MEUR

118 123

110

88

120

0

20

40

60

80

100

120

140

Working Capital

206

201

186

153

206

0

50

100

150

200

250

Net debt

Fiskars Q1 2014 Page 15

10,1 10,3

8,6 8,5

5,4

0,0

2,0

4,0

6,0

8,0

10,0

12,0

Capital expenditure

2

15

23

41

7

0

5

10

15

20

25

30

35

40

45

Cash flow from operating activities

Key ratios Q1 2014

7,06 7,28 7,42 7,71

7,20

0,0

1,0

2,0

3,0

4,0

5,0

6,0

7,0

8,0

9,0

Equity per Share

55 57

59 61

57

0

10

20

30

40

50

60

70

Equity ratio, %

36

34 31

24

35

0

5

10

15

20

25

30

35

40

Gearing, %

Fiskars Q1 2014 Page 16

0,25

0,33

0,16

0,40

0,14

0,00

0,05

0,10

0,15

0,20

0,25

0,30

0,35

0,40

0,45

EPS*

Outlook for 2014

• After a challenging first quarter, action plans are formulated to drive

sales and to adjust cost levels.

• During the rest of the year, currency rates could have a significant effect

on Fiskars full-year sales.

• To accelerate growth, the company plans to increase spending on brand

recognition, strengthening the newly established Asia-Pacific sales

region, and on new category expansion ventures.

• Annual investment related to the five-year platform program has started

to decrease, whereas depreciation and amortization are increasing.

• Group’s full-year net sales for 2014 are expected to be at 2013 levels

and operating profit excluding non-recurring items to be at or slightly

below 2013 levels.

Page 17 Fiskars Q1 2014

Fiskars 365 – celebrating centuries of

pride, passion and design. Every day.