Fiskars Group Q2/2013 · (2011-2015) Strategy global growth and increased efficiency 9-11 MEUR...
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Fiskars Group Q2/2013 1.4. – 30.6.2013 Helsinki, August 2, 2013
Transcript of Fiskars Group Q2/2013 · (2011-2015) Strategy global growth and increased efficiency 9-11 MEUR...
Fiskars Group
Q2/2013 1.4. – 30.6.2013 Helsinki, August 2, 2013
Q2 2013: Strong result, regained sales momentum after soft start to the year
Page 2 Fiskars Q2 2013
Net sales 217.6 MEUR,+8%
EBIT excl. NRI 27.8 MEUR, +41%
Outlook for 2013 unchanged:
FY sales and EBIT excl. NRI to grow
Best quarterly result in the company’s
history
Successful combination of sales execution,
inventory management, operational efficiency
and product mix
Regained sales momentum for core
garden categories, good performance in Home
business
Iittala Japan store opening
Royal Copenhagen Japan store opening
Slupsk factory expansion
Q2 Highlights
Page 3 Fiskars Q2 2013
Net Sales and EBIT in Q2 2013 Fiskars Group
EBIT by quarter, MEUR
201,1
168,0
190,3 190,4
217,6
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
Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013
Net sales by quarter, MEUR
19,7
13,2 13,0 16,6
27,8 0,8
-2,1 -1,7
-5
0
5
10
15
20
25
Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013
EBIT excluding non-recurring items Non-recurring items
EBIT % 9,8 % 7,8 % 6,9 % 8,7% 12,8 %
+8 %
Cn +8 %
Fiskars Q2 2013 Page 4
EMEA and Americas in Q2 2013
130,4 108,0
132,9 134,7 149,6
0,0%
4,0%
8,0%
12,0%
16,0%
20,0%
0
40
80
120
160
200
Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013
EMEA Net sales and EBIT % by quarter, MEUR
EBIT % 8,4% 7,5% 8,2% 7,5% 12,3%
EMEA • Net sales 149.6 MEUR, +15 %
• Royal Copenhagen net sales 16,6 MEUR • Comparable net sales, excl. Royal
Copenhagen, +2% • EBIT excl. NRI +37% thanks to efficiency,
inventory management and product mix
Fiskars Q2 2013 Page 5
72,3 60,7 58,5 58,0
71,3
0,0%
4,0%
8,0%
12,0%
16,0%
20,0%
0
40
80
120
160
200
Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013
Americas Net sales and EBIT % by quarter, MEUR
EBIT % 17,7% 13,2% 8,9% 15,4% 16,5%
Americas • Net sales 71.2 MEUR, -1% • SOC sales up, Outdoor institutional sales
down • EBIT 11.8 MEUR, -8% due to volume loss
Q2 Spotlight: EMEA transformation programs
Page 6 Fiskars Q2 2013
Page 7 Fiskars Q2 2013
Building a platform for growth in EMEA with two programs
From 13 to 1
ERP and way of working in
EMEA
A more efficient Fiskars
65 MEUR 5 years
(2011-2015)
Strategy
global growth and increased
efficiency
9-11 MEUR savings/year Optimized
supply chain and sales units
25-30 MEUR 2 years
(2013-2014)
5 year investment program with updated scope
EMEA 2015 restructuring program
Implementation of common systems proceeds in EMEA
8 Fiskars Q2 2013
Total annual investments, MEUR
,%
Q2 Business Review
Page 9 Fiskars Q2 2013
Operating environment in Q2
• The overall economic climate remained uncertain in Europe, and prospects for the euro area were weak • Consumer confidence did not improve significantly and retail sales trended down in
many markets • Weather conditions improved around mid-April after a late start to the spring
• In the Americas, May showed positive signs for the economy but the quarter
ended on a weaker note with relatively stagnant retail sales • The federal budget sequester continued to cause uncertainty, impacting local, state and
federal government spending.
Page 10 Fiskars Q2 2013
Q2 Home
Page 11 Fiskars Q2 2013
Home in Q2 2013
Fiskars Q2 2013 Page 12
62,6 62,8 65,1 64,0 71,6 73,1 75,2 78,8 77,5 76,4 79,3 94,9 91,3 99,9
14,0 16,6
0,0
20,0
40,0
60,0
80,0
100,0
120,0
Q1 2010
Q1 2011
Q1 2012
Q1 2013
Q2 2010
Q2 2011
Q2 2012
Q2 2013
Q3 2010
Q3 2011
Q3 2012
Q3 2013
Q4 2010
Q4 2011
Q4 2012
Q4 2013
Net sales, MEUR
Royal Copenhagen, MEUR Home, MEUR
• Net sales 95.4 MEUR, + 27% • comparable net sales (excl. Royal Copenhagen) + 4.8%
• In EMEA, sales grew in key Nordic and Central European markets • Kitchen boosted by knife and licensed product sales • Living weighed by B-2-B sales in Finland • Royal Copenhagen performed well
• In America, SOC sales increased, reflecting good start to back-to-school season
Q2 Garden
Page 13 Fiskars Q2 2013
Garden in Q2 2013
Fiskars Q2 2013 Page 14
• Net sales 87.3 MEUR, -1% • In EMEA, business recovered in core garden and yard care categories
• Net sales grew slightly despite soft container gardening market • In America, sales were below 2012 due to decrease in container
gardening sales • Core cutting tool and axe sales were up
80,2 93,2 91,2 82,5 88,3 84,1 87,9 87,3
51,2 59,3 57,7 57,5 60,5 54,1
0,0
20,0
40,0
60,0
80,0
100,0
Q1 2010
Q1 2011
Q1 2012
Q1 2013
Q2 2010
Q2 2011
Q2 2012
Q2 2013
Q3 2010
Q3 2011
Q3 2012
Q3 2013
Q4 2010
Q4 2011
Q4 2012
Q4 2013
Net sales, MEUR
Q2 Outdoor
Page 15 Fiskars Q2 2013
Outdoor in Q2 2013
Fiskars Q2 2013 Page 16
• Net sales 33.8 MEUR, -10% • In EMEA, Gerber sales reached 2012 levels and boat sales came close
to 2012 despite contraction of boat markets • In America, Outdoor sales were clearly behind previous year
• Continued slump in government spending affected institutional sales • De-stocking at some commercial accounts
26,1 32,1 30,6
28,9 35,4 42,6 37,3 33,8 29,5 28,6 30,1 37,2 34,5 35,3
0,0 5,0
10,0 15,0 20,0 25,0 30,0 35,0 40,0 45,0
Q1 2010
Q1 2011
Q1 2012
Q1 2013
Q2 2010
Q2 2011
Q2 2012
Q2 2013
Q3 2010
Q3 2011
Q3 2012
Q3 2013
Q4 2010
Q4 2011
Q4 2012
Q4 2013
Net sales, MEUR
Q1 Financials
Page 17 Fiskars Q2 2013
Cash flow and debt Q2 2013, MEUR
109
96
71
118 123
0
20
40
60
80
100
120
140
Working Capital
51
100
72
206 201
0
50
100
150
200
250
Net debt
Fiskars Q2 2013 Page 18
7,3
9,0
11,7
10,1 10,3
0,0
2,0
4,0
6,0
8,0
10,0
12,0
14,0
Capital expenditure
19
24
39
2
15
0
5
10
15
20
25
30
35
40
45
Cash flow from operating activities
Key ratios Q2 2013
7,74 7,21
7,56 7,06
7,39
0,0
1,0
2,0
3,0
4,0
5,0
6,0
7,0
8,0
9,0
Equity per Share
64 64 66
55 58
0
10
20
30
40
50
60
70
Equity ratio, %
8
17
12
36 34
0
5
10
15
20
25
30
35
40
Gearing, %
Gain of Wärtsilä sales Excl. Wärtsilä sales
Fiskars Q2 2013 Page 19
0,26 0,22 0,39
0,25 0,33
1,06
0,00
0,20
0,40
0,60
0,80
1,00
1,20
1,40
EPS*
Outlook for 2013
• No significant improvement in Fiskars’ general operating environment during the second quarter. • During the latter half of the year, previously announced changes in manufacturing and roll-outs of
common systems and processes will temporarily impact operational efficiency negatively and increase fixed costs.
• Following the acquisition of Royal Copenhagen, the weight of the fourth quarter in full-year sales and profit has further increased. Negative issues related to demand for Home products during the last quarter could affect the full-year results.
• We expect the Group’s full-year 2013 net sales and operating profit excluding non-recurring items to be above 2012 levels.
Page 20 Fiskars Q2 2013
Fiskars share price development 2009 – Q2 2013 Valuation of Fiskars’ own operations and the share of Wärtsilä shares
Fiskars Q2 2013 Page 21
0
2
4
6
8
10
12
14 Fiskars Stand alone / share
Wärtsilä / Fiskars share
OMXH25
Dividend
Dividend 0,52 €
Dividend A: 0,50 € K: 0,48 €
Dividend 1,90 €
Dividend 0,62 €
Dividend 0,65 €
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