Fiskars Corporation
Financial Statement Release
February 8, 2024 at 8:30 a.m. (EET)

Fiskars Corporation's Financial Statement Release 2023

All-time high cash flow despite a year of challenging market conditions - sales and EBIT declined

This release is a summary of Fiskars Corporation's Financial Statement Release 2023 published today. The complete Financial Statement Release with tables is attached to this release as a pdf-file. It is also available at https://fiskarsgroup.com/investors/reports-and-presentations/annual-and-interim-reports/ and on the Group's website at www.fiskarsgroup.com. Investors should not rely on summaries of financial reports only, but should review the complete reports with tables.

• Comparable net sales[1] were stable at EUR 292.0 million (Q4 2022: 291.7). Reported net sales increased by 13.7% to EUR 345.8 million (304.1).
• Comparable EBIT[2] increased to EUR 37.7 million (29.7), or 10.9% (9.8%) of net sales. EBIT increased to EUR 34.0 million (24.4).
• Cash flow from operating activities before financial items and taxes increased to EUR 101.4 million (60.5).
• Free cash flow increased to EUR 77.5 million (35.7).
• Comparable earnings per share were EUR 0.40 (0.19). Earnings per share (EPS) were EUR 0.35 (0.14).

• Comparable net sales[1] decreased by 9.7% to EUR 1,076.0 million (Q1-Q4 2022: 1,192.2). Reported net sales decreased by 9.5% to EUR 1,129.8 million (1,248.4).
• Comparable EBIT[2] decreased to EUR 110.3 million (151.0), or 9.8% (12.1%) of net sales. EBIT decreased to EUR 98.9 million (134.7).
• Cash flow from operating activities before financial items and taxes increased to EUR 247.5 million (-24.9).
• Free cash flow turned clearly positive and was EUR 184.9 million (-100.7), improving by EUR 285.6 million.
• Comparable earnings per share were EUR 0.99 (1.37). Earnings per share (EPS) were EUR 0.86 (1.21).

1) Comparable net sales exclude the impact of exchange rates, acquisitions and divestments.

2) Items affecting comparability in EBIT include items such as restructuring costs, impairment or provisions charges and releases, acquisition-related costs, and gains and losses from the sale of businesses. Comparable EBIT is not adjusted to exclude the EBIT contribution of acquisitions/ divestments/ disposals.

Proposal for the distribution of dividend
The Board of Directors proposes to the Annual General Meeting that a dividend of EUR 0.82 per share shall be paid for the financial period that ended on December 31, 2023. The dividend shall be paid in two instalments of EUR 0.41 per share each.

Guidance for 2024
Fiskars Corporation expects comparable EBIT to be slightly above the 2023 level (2023: EUR 110.3 million).

Assumptions behind the guidance
The operating environment is expected to remain challenging and impact demand in 2024. Based on the company's current visibility on the market development, this applies especially to the first half of the year. The savings from the completed organizational changes are expected to support EBIT, although they will be partially offset by wage inflation.

As a result of the Georg Jensen acquisition, the Group's EBIT generation will shift even more toward the end of the year, highlighting the importance of the second half and especially of the fourth quarter.

President and CEO, Fiskars Group, Nathalie Ahlström:

"In 2023, we continued our transformation and bold strategic actions, such as the acquisition of Georg Jensen, despite a challenging operating environment. During the year, we also delivered our all-time high free cash flow, which was driven by our systematic inventory management.

Nevertheless, low consumer confidence and retailers' focus on managing their inventories impacted demand negatively in most of our key markets, especially in the retailer customer segment. As a result, comparable net sales decreased by 10% in 2023. Comparable EBIT declined to EUR 110 million for the full year, which is a solid result considering the drop in volumes. The fourth quarter developed as we had expected, with stable comparable net sales against an easier comparison period. Comparable EBIT increased to EUR 38 million in the fourth quarter, including now also Georg Jensen.

The acquisition of the Danish luxury lifestyle brand Georg Jensen is a good example of our transformation. Georg Jensen is a great strategic fit to Fiskars Group and exemplifies the type of brand we want to accelerate; a sizeable lifestyle brand with high-end positioning and a strong presence in direct-to-consumer channels. The acquisition was completed swiftly in the beginning of October 2023 in only two weeks after signing. This allowed us to fully consolidate Georg Jensen's fourth quarter, the brand's most important quarter, to Fiskars Group. Despite the acquisition temporarily increasing our net debt, we have already returned to our leverage target level, driven by our determined cash flow management. Our focus is now on integrating the brand into Fiskars Group, which is progressing well.

During 2023, we simplified our organizational structure and strengthened the role of the Business Areas. The Group's role is to act as an active portfolio manager and to enable the Business Areas to fully focus on what matters to the consumers and employees-the brands. The implemented organizational changes included combining Business Areas Terra and Crea into one Business Area called Fiskars, and this is the first quarter we are reporting with the new structure. During the fourth quarter, we concluded consultations with employees related to the planned organizational changes we announced in September 2023. As a result, the targeted reduction of 400 roles globally was completed. After the reporting period, we announced plans to integrate sales operations into the Business Areas as a logical continuation to the earlier changes. The brands, assortment and customers of Business Area Vita differ from those of Business Area Fiskars, which is why it makes sense for the sales operations to be more specialized as well.

Looking at our strategic transformation levers, three of the four levers-commercial excellence, direct-to-consumer (DTC) and China-showed positive development in 2023.  Our organic gross margin, which is our key performance indicator for commercial excellence, increased by 100 basis points in 2023. Comparable DTC sales increased by 4%, driven by continuous growth in e-commerce. Including Georg Jensen, DTC amounted to 25% of the Group's sales. In China, comparable net sales increased by 25%. In the U.S., which is the fourth transformation lever, comparable net sales decreased by 14% during the year as retailers' focus on inventory management affected demand.

We continued to make good progress in sustainability. One of our key targets is that majority of our sales comes from circular products and services by 2030. At the end of 2023, we were already at 14%, almost tripling from previous year's 5%. We still have a lot of work to do, and we are constantly developing new solutions. To reinforce the commitment to achieving this ambition, advancing circular products and services was included as a target in the share-based incentive plan for our key employees during the year.

I would like to thank all our employees, customers and partners for the year 2023. I look forward to continuing the good collaboration in 2024, which marks the 375th year of Fiskars. Pioneering design, high quality and craftsmanship are values that have guided us throughout the centuries, and they continue to be at the heart of everything we do.

Looking at 2024, the operating environment is expected to remain challenging and impact demand. Based on the current visibility of the market development, this applies especially to the first half of the year. We are expecting comparable EBIT to be slightly above the 2023 level. The savings from the completed organizational changes are expected to support EBIT, although they will be partially offset by wage inflation. As a result of the Georg Jensen acquisition, the Group's EBIT generation will shift even more toward the end of the year, highlighting the importance of the second half and especially the fourth quarter.

I am confident that the actions taken throughout 2023 have strengthened our foundation and will support our performance going forward."

Group key figures

[][][][]
EUR million Q4 Q4 Change 2023 2022 Change
(unless otherwise 2023 2022
noted)
Net sales 345.8 304.1 13.7% 1,129.8 1,248.4 -9.5%
Comparable net 292.0 291.7 0.1% 1,076.0 1,192.2 -9.7%
sales [1)]
EBIT 34.0 24.4 39.4% 98.9 134.7 -26.6%
Items affecting 3.7 5.3 -30.7% 11.4 16.3 -29.9%
comparability in
EBIT[2)]
Comparable 37.7 29.7 26.9% 110.3 151.0 -27.0%
EBIT[3)]
Comparable EBIT 10.9% 9.8% 9.8% 12.1%
margin
EBITDA 53.9 39.2 37.6% 164.9 194.1 -15.1%
Comparable 57.6 44.5 29.4% 175.8 210.3 -16.4%
EBITDA[4)]
Profit before 25.0 14.5 72.7% 79.7 124.1 -35.7%
taxes
Profit for the 28.0 11.4 70.0 99.1 -29.3%
period
Earnings per 0.35 0.14 0.86 1.21 -28.6%
share, EUR
Comparable 0.40 0.19 0.99 1.37 -27.9%
earnings per
share, EUR
Cash earnings per 1.11 0.66 68.2% 2.68 -0.79
share (CEPS),
EUR
Equity per share, 10.15 10.32 -1.7%
EUR
Cash flow from 101.4 60.5 67.7% 247.5 -24.9
operating
activities before
financial items
and taxes
Free cash flow 77.5 35.7 184.9 -100.7
Free cash 231.0% -90.0 %
flow/comparable
net
profit
(LTM), %
Net debt 446.7 325.3 37.3%
Net 2.54 1.55 64.3%
debt/comparable
EBITDA (LTM),
ratio
Equity ratio, % 47% 53%
Net gearing, % 54% 39%
Capital 18.4 13.4 37.2% 50.8 48.1 5.5%
expenditure
Personnel (FTE), 6,714 6,250 7.4% 6,133 6,273 -2.2%
average

1) Comparable net sales exclude the impact of exchange rates, acquisitions and divestments.

2) In Q4 2023, items affecting comparability were mainly related to the acquisition of Georg Jensen and organizational changes.

3) EBIT excluding items affecting comparability. Comparable EBIT is not adjusted to exclude the EBIT contribution of acquisitions/ divestments/ disposals.

4) EBITDA excluding items affecting comparability. Comparable EBITDA is not adjusted to exclude the EBIT contribution of acquisitions/ divestments/ disposals.

FISKARS CORPORATION

Nathalie Ahlström
President and CEO

Webcast
A webcast on the fourth quarter and full year results will be held on February 8, 2024 at 14:00 p.m. (EET). It will be held in English and can be followed at https://fiskars.videosync.fi/q4-results.

Presentation materials will be available at www.fiskarsgroup.com.

An on-demand version of the webcast will be available on the Group's website. Personal details gathered during the event will not be used for any other purpose.

Media and investor contacts:
Essi Lipponen, Director, Investor Relations, tel. +358 40 829 1192

Fiskars Group in brief
Fiskars Group (FSKRS, Nasdaq Helsinki) is the global home of design-driven brands for indoor and outdoor living. Our brands include Fiskars, Georg Jensen, Gerber, Iittala, Moomin Arabia, Royal Copenhagen, Waterford, and Wedgwood. Our brands are present in more than 100 countries and we have close to 450 own stores. We have approximately 7,000 employees and our global net sales in 2023 were EUR 1.1 billion.

We are driven by our common purpose: Pioneering design to make the everyday extraordinary. In 2024, we are celebrating our 375th anniversary. Since 1649, we have designed products of timeless, purposeful, and functional beauty, while driving innovation and sustainable growth.

Read more: fiskarsgroup.com