fiskars group q3/2012 · *incl. non-recurring items: in q3 2012 income of eur 0.8 million from the...
TRANSCRIPT
Fiskars Group
Q3/2012 1.1. - 30.9.2012 Helsinki, November 1, 2012
Agenda Highlights
Business Review
Spotlight: New Sales Organization
Financials
Appendixes
Page 2 Fiskars Q3 2012
Q3: Good performance, driven by the Americas
Net sales 168.0 MEUR, + 2 %
EBIT 14.0 MEUR, + 106 %
EBIT excl. NRI 13.2 MEUR, +1 %
Americas Sales + 17%
EBIT excl. NRI + 45 %
Five-year investment program in EMEA
progresses according to plan
Operational efficiency improved in EMEA
Garden and SOC performed well in the
Americas
Page 3 Fiskars Q3 2012
Q3 Business review
Operating environment in Q3
• Market conditions remained challenging in Europe, especially in Southern Europe
• Stream of worrying financial news impacted consumer behavior and shopping was still value-driven
• Trade remained cautious, keeping tight control on inventory levels
• In the Americas, consumer sentiment improved amid a string of encouraging signs from the
economy
• Retail sales increased compared both to the previous quarter and the previous year
• Retailers still monitored their inventories carefully
Page 5 Fiskars Q3 2012
Home sales driven by good momentum
in SOC Q3/2012
• Net sales for Home products at 2011 levels
• Export sales continued to develop well
• Successful product launches boosted sales in Dining
category
• Iittala’s international expansion continued in Japan
and France
• In the Americas, School, Office and Craft products
(SOC) maintained good momentum
• Expanded retail availability and robust sales for die-cutting
novelty
• Good back-to-school sales to key accounts
78,8 95,6
62,9 73,5
0,0
HOME Modern Scandinavian design
products for the kitchen, table, living
room and school, office and craft
80.5 MEUR net sales +4%
48 % of total sales
Page 6 Fiskars Q3 2012
GARDEN
Ergonomically designed tools for
gardening and construction
56.5 MEUR net sales, -3 %
34 % of total sales
Strong Garden sales in the Americas Q3/2012
• In the Americas, Garden business performed strongly
• Positive development across main accounts
• Growth driven by strong axe sales
• Successful marketing programs drove incremental sales at
key accounts
• Net sales in EMEA decreased during the quarter
• Sale of snow tools behind previous year’s exceptional levels
• Rainy weather affected container gardening products
• Core Garden & Yard Care categories developed well
• Ebert and Sankey brands consolidated into one
container gardening offering under EbertSankey brand
Page 7 Fiskars Q3 2012
OUTDOOR Innovative, essential products for an
active lifestyle and durable leisure
boats
30.1 MEUR net sales,
+5%
18% of total sales
Gerber sales boosted by international
expansion Q3/2012
• European distribution for Gerber progressing
• In Europe, growth in Gerber sales offset tough market
conditions in boat business
• In the Americas, Sales of Outdoor products did not
reach previous year’s high levels due to decrease in
institutional demand
• Sales grew in commercial segment also in the
Americas
Page 8 Fiskars Q3 2012
Q3 Spotlight: New sales organization
Page 9 Fiskars Q3 2012
Two Sales Regions in EMEA
Page 10
SALES REGION NORTH
President Jakob Hägerström
SALES REGION CENTRAL
President Axel Goss
Focused Channel Strategy
Consistent Consumer Experience
World-class Sales Execution
Stores &
Outlets Flagship Stores
Shop in Shops
Outlets
-
Wholesale DIY
Garden Centers
Hardware Stores
Hyper and supermarkets
Department Stores
Design Stores
Furniture Stores
Grocery Stores
Soft Discounters
Web stores
Fiskars products are sold in multiple channels Focused strategy and execution across channels
B2B
Sales Promotion
Business Gifts
HoReCa
Customer Loyalty
e-commerce Web store, direct
3rd Party Sales Direct Consumer Sales
Page 11 Fiskars Q3 2012
The two regions differ from each other
• St •
SALES REGION
CENTRAL SALES REGION
NORTH
Page 12 Fiskars Q3 2012
• Focused investments for growth in
selected key markets
• Well-established presence in Garden
categories
• Access to a broad national and
international customer base
Opportunities
• Leverage on total brand offering
• Increase distribution
• Expand assortment and improve in-
store execution at current customers
• Expand Outdoor business
• Strong position across categories
• High market shares in Home business
• Broad Nordic customer base
• Strong direct consumer sales
Opportunities
• Grow Key International brands
• Invest in and enter new categories and
channels
•Maximize launches and seasonalities
• Maximise return from regional and
local brands
• Expand in Russia and Export countries
Q3 Financials
Net Sales in Q3 2012 by Segment
108,0
0
50
100
150
200
250
Q311 Q411 Q112 Q212 Q312
Net sales, MEUR
EMEA Americas Fiskars Total
60,7
0
50
100
150
200
250
Q311 Q411 Q112 Q212 Q312
Net sales, MEUR
168,0
0
50
100
150
200
250
Q311 Q411 Q112 Q212 Q312
Net sales, MEUR
-5 %
+17 %
+ 2%
64% of total sales 36% of total sales 100% of total sales
Cn - 4 % Cn + 3 % Cn - 7 %
Fiskars Q3 2012 Page 14
Net Sales in Q3 2012 by Business Area
80,5
0
20
40
60
80
100
Q311 Q411 Q112 Q212 Q312
Net sales, MEUR
Home Garden Outdoor
56,5
0
20
40
60
80
100
Q311 Q411 Q112 Q212 Q312
Net sales, MEUR
30,1
0
20
40
60
80
100
Q311 Q411 Q112 Q212 Q312
Net sales, MEUR + 4 %
-3 %
+5 %
Cn - 5 % Cn -8 % Cn - 0 %
Fiskars Q3 2012 Page 15
Net Sales and EBIT in Q3 2012 Fiskars Group
EBIT by quarter, MEUR
165,3
187,3 188,3 201,1
168,0
0
25
50
75
100
125
150
175
200
225
Q311 Q411 Q112 Q212 Q312
Net sales by quarter, MEUR
13,1 13,7 17,1
19,7
13,2
-6,3 -3,0
+0,8
-15
-10
-5
0
5
10
15
20
25
Q311 Q411 Q112 Q212 Q312
EBIT excluding non-recurring items
Non-recurring items
EBIT % 7,9 % 7,3 % 9,1 % 9,8 % 7,8 %
+2 %
Cn - 4 %
Fiskars Q3 2012 Page 16
Net Sales and EBIT in Q3 2012 EMEA segment
113,7
131,6 130,6 130,4
108,0
0
20
40
60
80
100
120
140
Q311 Q411 Q112 Q212 Q312
Net sales by quarter, MEUR
9,9 11,3 11,9 10,9 8,1
-5,3 -3,0
0,8
-15
-10
-5
0
5
10
15
20
Q311 Q411 Q112 Q212 Q312
EBIT by quarter, MEUR
EBIT excluding non-recurring items
Non-recurring items
EBIT % 8,7 % 8,6 % 9,1 % 8,4 % 7,5 %
• Net sales -5% at EUR 108.0 million
(113.7), as Garden sales did not reach
previous year’s levels
• Operational efficiency in EMEA
continued to improve
• EBIT excl. NRI EUR 8.1 million (9.9),
mainly reflecting the increase in costs
related to the five-year platform
investment program
Fiskars Q3 2012 Page 17
Net Sales and EBIT in Q3 2012 Americas segment
52,0 56,9 58,9
72,3
60,7
0
10
20
30
40
50
60
70
80
Q311 Q411 Q112 Q212 Q312
Net sales by quarter, MEUR
5,5 6,7 8,2
12,8
8,0
-1,1
-4
0
4
8
12
16
20
Q311 Q411 Q112 Q212 Q312
EBIT by quarter, MEUR
EBIT % 10,7 % 11,8 % 13,9 % 17,7 % 13,2 %
EBIT excluding non-recurring items
Non-recurring items
• Net sales +17% to EUR 60.7 million
(52.0), boosted by the strengthening of
the US dollar and good development in
Garden and SOC
• Using comparable currency rates,
sales increased by 3%
• EBIT EUR 8.0 million (5.5, excluding a
EUR 1.1 million non-recurring loss),
boosted by volume increase and sales
mix in Garden and SOC businesses
Fiskars Q3 2012 Page 18
Cash flow and debt Q3 2012, MEUR
25
42
14
19
24
0
5
10
15
20
25
30
35
40
45
CF from operating activities
112
83
109 109
96
0
20
40
60
80
100
120
140
160
Working Capital
186
151
194
51
100
0
50
100
150
200
250
Net debt
Fiskars Q3 2012 Page 19
4,5
9,6
4,7
7,3
9,0
0,0
2,0
4,0
6,0
8,0
10,0
12,0
Capital expenditure
Key ratios Q3 2012
6,37
6,81
6,38
7,74
7,21
0,0
1,0
2,0
3,0
4,0
5,0
6,0
7,0
8,0
Equity per Share
57 59
55
64 64
0
10
20
30
40
50
60
70
80
Equity ratio, %
36
27
37
8
17
0
10
20
30
40
50
60
70
80
Gearing, %
Gain of Wärtsilä sales
Excl. Wärtsilä sales
Fiskars Q3 2012 Page 20
0,17
0,33 0,24 0,26 0,22
1,06
0,00
0,20
0,40
0,60
0,80
1,00
1,20
1,40
EPS
Fiskars share price development 2009 – Q3 2012 Valuation of Fiskars’ own operations and the share of Wärtsilä shares
Fiskars Q3 2012 Page 21
0,00
2,00
4,00
6,00
8,00
10,00
12,00
14,00
1/2009 4/2009 7/2009 10/2009 1/2010 4/2010 7/2010 10/2010 1/2011 4/2011 7/2011 10/2011 1/2012 4/2012 7/2012
EUR Fiskars stand alone / share Wärtsilä / Fiskars share
OMXH25
Dividend A: 0,50 € K: 0,48 €
Dividend
0,52 €
Dividend
1,90 € Dividend
0,62 €
Outlook for 2012 unchanged • Fiskars’ operating environment remained uncertain during the third quarter, and further instability could
affect consumer and trade behavior adversely
• Changes in demand, for Home products in particular, during the last quarter could affect the full-year results
• In the Garden business, demand for snow tools has been exceptionally high over the last two winters
• Fiskars will continue implementing its integrated company strategy, the investment program in EMEA
and investments in new product development and marketing
• We expect full-year 2012 net sales and operating profit excl. non-recurring items to amount to similar
levels as in 2011
• The associated company, Wärtsilä, will continue to have a major impact on Fiskars’ profit and cash flow
in 2012
Page 22 Fiskars Q3 2012
Q3 Appendixes
Key figures Q3 2012
EUR million Q3 2012 Q3 2011 Change Q1-Q3 2012 Q1-Q3 2011 Change 2011
Net sales 168.0 165.3 2% 557.5 555.2 0% 742.5
Operating profit (EBIT)* 14.0 6.8 106% 50.8 42.1 21% 52.8
Operating profit excluding non-
recurring items
13.2 13.1 1% 50.0 48.4 3% 62.1
Share of profit from associated
company
9.8 7.5 29% 28.1 29.3 -4% 42.7
Change in the fair value of standing
timber
0.7 -0.1 1.0 -0.9 -1.0
Profit before taxes** 22.8 14.8 54% 163.4 138.3 18% 161.8
Profit for the period** 18.4 13.6 35% 147.1 129.7 13% 156.3
Earnings per share, EUR*** 0.22 0.17 35% 1.79 1.58 13% 1.91
Equity per share, EUR 7.21 6.37 13% 6.77
Cash flow from operating
activities****
23.5 25.3 -7% 56.4 65.5 -14% 107.4
Equity ratio, % 64% 57% 59%
Net gearing, % 17% 36% 27%
Capital expenditure 8.8 4.6 90% 21.2 14.9 42% 24.7
Personnel (FTE), average 3,371 3,463 -3% 3,377 3,606 -6% 3,545
Page 24 Fiskars Q3 2012
*Incl. non-recurring items: in Q3 2012 income of EUR 0.8 million from the release of a provision related to the sale of Silva, in Q4 2011 a fine of EUR 3 million, in Q3 2011 losses of EUR
5.3 million from the sale of Silva and EUR 1.1 million form product recalls
**Including non-recurring profit from the sale of Wärtsilä shares of EUR 87.0 million in Q2 2012 and EUR 69.8 million in Q1 2011
***Including EUR 1.06 from the sale of Wärtsilä shares in Q2 2012 and EUR 0.85 in Q1 2011
****Including a Wärtsilä dividend of EUR 26.8 million in Q1 2012 (40.9)
Fiskars IR Calendar and Contact Information
• Q1 Interim Report May 3, 2012
• Q2 Interim Report August 2, 2012
• Q3 Interim Report November 1, 2012
• EGM September 12, 2012
• Fiskars Corporation
Hämeentie 135 A
P.O. Box 130
FI-00561 Helsinki, Finland
Tel. +358 204 3910
Fax +358 9 604 053
• IR Contact
Anu Ilvonen
Tel. +358 20439 5446
Page 25 Fiskars Q3 2012
Analyst coverage
• To the best of our knowledge, the following persons follow the Fiskars share. They do so on their own initiative, and Fiskars takes no responsibility for the opinions expressed.
– Carnegie Investment Bank
Tommy Ilmoni, +358 9 618 71 235 [email protected]
– Evli Bank Mika Karppinen, +358 9 4766 9643 [email protected]
– FIM
Mona Grannenfelt, +358 9 6134 6503
– Nordea Bank Johannes Grasberger, +358 9 165 59929 [email protected]
– Pohjola Bank Jari Räisänen, +358 10 252 4504 [email protected]
Page 26 Fiskars Q3 2012
Disclaimer
The content of this presentation contains time-sensitive information that
is accurate as of the time hereof.
A number of forward-looking statements will be made during this
presentation. Forward-looking statements are any statements that are
not historical facts. These statements are based on current decisions
and plans and currently known factors. They involve risks and
uncertainties, which may cause the actual results to materially differ from
the results currently expected by Fiskars Group.
If any portion of this presentation is rebroadcast, retransmitted or
redistributed at a later date, the Fiskars Group will not be reviewing or
updating the material that is contained herein.
Page 27 Fiskars Q3 2012
Lasting everyday design,
since 1649