Fiskars Corporation Stock Exchange Release August 8, at 8.30 am FISKARS CORPORATION INTERIM REPORT JANUARY-JUNE 2007 (Unaudited) Fiskars increased net sales and improved profitability in second quarter - Net sales were EUR 165.5 million (151.3) - Operating profit for the wholly-owned businesses was EUR 22.7 million (16.7 excluding EUR 5.0 million in non-recurring costs) - Income from Wärtsilä was EUR 8.6 million (25.1) - French Leborgne S.A. was acquired in May - An agreement was signed to purchase Iittala Group Plc at the end of June FISKARS CORPORATION IN BRIEF EUR, million Q2/2007 Q2/2006 1-6/2007 1-6/2006 2006 Net sales 165.5 151.3 317.5 290.4 534.9 Operating profit from 22.7 11.7 35.6 18.9 27.2 wholly-owned businesses Income from associate 8.6 25.1 15.5 33.9 58.6 Operating profit 31.3 36.9 51.1 52.8 85.8 Pre-tax profit 28.9 33.2 47.0 47.5 76.7 Net profit for the period 25.3 50.2 40.0 62.7 82.0 Earnings/share from 0.33 0.48 0.52 0.64 0.86 continuing operations, EUR Earnings/share, total, 0.33 0.65 0.52 0.81 1.06 EUR Cash from operations 22.5 28.7 30.3 41.5 99.0 FISKARS CORPORATION Second quarter, April-June 2007 Fiskars net sales increased by 9.4% in the second quarter compared to the previous year, being EUR 165.5 million (151.3). Acquisitions represented a total of EUR 11.4 million or 7.5% of the growth in the quarter. The Corporation's operating profit was EUR 31.3 million (36.9), including a EUR 8.6 million income from the associate Wärtsilä (25.1). Thus, the operating profit from the Fiskars' wholly-owned businesses was EUR 22.7 million (16.7 excluding non-recurring restructuring costs of EUR 5.0 million) or 13.7% of net sales (11.1 %). Net financial costs were EUR 2.3 million (3.6) and the pre-tax profit was EUR 28.9 million (33.2). Taxes for continuing operations were EUR 3.6 million, while the taxes for the corresponding period last year were EUR 4.3 million positive due to the tax treatment of discontinued operations in the USA. Power Sentry division was divested in the USA in the second quarter of 2006 and the EUR 12.7 million gain from the divestiture was reported as profit from discontinued operations. The net profit for the quarter was EUR 25.3 million (50.2) and earnings per share were EUR 0.33 (0.65). January-June 2007 review period Fiskars net sales increased by 9.4% in the review period, totaling EUR 317.5 million (290.4). Silva Group, acquired in September 2006, represented EUR 17.9 million or 6.2% of the growth. Leborgne S.A., the French company manufacturing and marketing garden tools which was acquired in May 2007, has been consolidated with Fiskars operations from the beginning of May. Since then, Leborgne net sales have been EUR 2.7 million. When comparing the net sales for the review period with the previous year, the impact of about EUR 13 million of the discontinuation of floor-mat and water-hose product lines in the United States at the end of 2006 as well as the effects of the weakening of the US dollar should be noted. With constant exchange rates, a calculated increase in sales would have been 13.6%. During the review period, 55.7% of net sales were generated in Europe (48.4%) and 38.0% in the USA (43.8%). Operating profit was EUR 51.1 million (52.8). The operating profit for the Corporation's wholly-owned operations was EUR 35.6 million or 11.2% of net sales. Profits were improved both in industrial operations and as a consequence of higher prices of standing timber for EUR 5.1 million in the real estate segment. The operating profit for the corresponding period last year before non-recurring restructuring costs of EUR 5.6 million was EUR 24.5 million or 8.4%. Net financial costs decreased from last year, totaling EUR 4.1 million (5.3). The pre-tax profit was EUR 47.0 million (47.5) and the net profit for the review period was EUR 40.0 million (62.7). The corresponding period last year included EUR 13.0 million in non-recurring profit from discontinued operations. Personnel totaled 3,333, having been 3,003 at the beginning of the year. Staff numbers increased by the 120 employees of Leborgne S.A., and also due to seasonal fluctuations in the European operations as well as within the Outdoor Recreation operations in the USA. FISKARS BRANDS Second quarter, April-June 2007 Fiskars Brands net sales increased by 5.4% and was EUR 145.8 million (138.4). The operating profit improved and was EUR 18.7 million (10.0). The operating profit for the corresponding period last year included EUR 5.0 million in non-recurring restructuring costs. The comparable operating profit percentage was 12.8 (10.8 %). Fiskars Brands strengthened its garden tools operations in Europe through the acquisition of the French company Leborgne S.A. The company markets its products mostly in France and other parts of southern Europe. Leborgne's annual net sales are approximately EUR 16 million. The consolidated net sales for the second quarter was EUR 2.7 million. January-June 2007 review period Fiskars Brands net sales increased by 6.1% and was EUR 282.7 million (266.4). The operating profit was EUR 29.9 million (17.7). The corresponding period last year included restructuring costs of EUR 5.6 million, comparable profitability being 10.6% (8.7). The acquisition of Silva Group last year and Leborgne during the review period resulted in a combined increase in net sales of EUR 20.4 million or 7.8%. The weakening dollar had a negative impact on sales, as did the discontinuation of the floor-mat and water-hose production lines in the USA in the Fall of last year. Profitability for Fiskars Brands operations increased from last year. Profitability was in particulary improved with the discontinuation of less profitable production lines in accordance with the restructuring project realized in the US. The move to increased outsourcing has progressed according to plan. In the European markets, where the bulk of the business is in garden tools, sales developed positively during the entire first half of the year. Sales of both garden tools and housewares increased through new product launches as well as through the opening up of new market areas. For some products, a rapid increase in demand has lead to occasional delays in deliveries and measures are taken to rectify this. US sales of garden tools has developed favorably compared to last year and the marketing effort realized at the end of last year has proven successful. Competition continues to be stiff, however. Sales of outdoor recreation products also increased clearly compared to last year. Gerber, which mainly operates in the USA markets, has gained more shelf space in the stores of some large customers and has also signed a significant agreement to deliver products to governmental use. Last year's acquisition, Silva, also increased sales of outdoor recreation products in the European markets and broadened its product range. Large numbers of new craft products and consumables were released in the US market during the review period and their share of sales increased. The restructuring project initiated in 2005 was completed and the share of outsourced articles among the offering has increased significantly. In the markets outside Europe and the US, sales have developed favorably in Australia and Canada, while sales in Mexico trailed last year's numbers. In these markets, the products sold are mainly garden tools. Investments during the review period totaled EUR 19.5 million (6.1). The acquisition cost for Leborgne S.A., included in investments, was EUR 13.2 million. Fiskars Brands personnel numbered 2,943 at the end of the review period, an increase of 284 people since the beginning of the year. The increase was due to the acquisition of Leborgne (120), the usual seasonal fluctuations in Europe (134), and the increased capacity of Gerber's outdoor recreation production line to meet the large delivery contract (41). INHA WORKS In the review period, net sales for Inha Works increased by 23% compared to last year, totaling EUR 27.8 million (22.5). Operating profit was EUR 3.6 million (2.7). Profitability increased and the operating profit percentage was 12.8 (12.1). Buster boat sales increased once again this year in all their most important markets. Investments in production have improved profitability, and productivity is higher up. The factory worked to its full capacity and production continues to be developed. The new Buster X has found its user group and has become one of the most popular boat models. A minor problem with the boat's fuel tank seal has been appropriately dealt with and the measures taken will not cause Inha Works significant costs. The hinges and forged products operations developed according to plan. The company has continued to invest in its product development and market research in order to complement its boat range in a way that will respond to market expectations. Investments during the review period were EUR 1.7 million (0.6). Personnel totaled 335 at the end of the review period (301 at the beginning of the year). REAL ESTATE Net sales for the Real Estate Group was EUR 8.0 million (2.8). The operating profit was EUR 6.0 million (1.9). The price of standing timber has increased clearly in the first half of the year, resulting in an increase of EUR 6.0 million (0.8) in net sales and operating profit. The total value of the Fiskars Corporation standing timber at the end of the review period was EUR 40.3 million (30.2). No major real estate deals were made during the review period and the business developed according to plan. Investments by the Real Estate operations totaled EUR 0.6 million (1.3). The number of staff was 37 (27 at the beginning of the year). ASSOCIATED COMPANY WÄRTSILÄ Fiskars' income from associate Wärtsilä for the review period was EUR 15.5 million (33.9). Wärtsilä's net profit for the corresponding period last year included a significant gain from the divestment of shares in Assa Abloy and a share in the associate Ovako's net profits. Fiskars' share of Wärtsilä equity and votes was 16.5% (16.8%) and 30.4% (30.6%) respectively. Fiskars did not sell or purchase any Wärtsilä shares during the review period. The book value of Fiskars' investment in the associate was EUR 227.8 million (239.1 at the beginning of the year). Dividends paid to Fiskars in the review period totaled EUR 27.7 million (23.7). Some EUR 37.6 million of the book value of Fiskars' holding in Wärtsilä was goodwill. The market value of Fiskars shares in Wärtsilä was EUR 764 million at the end of the review period. PROFITS AND TAXES Net financial costs for the review period were EUR 4.1 million (5.3). The financial income for the review period was slightly higher than during the corresponding period last year. Profit before taxes totaled EUR 47.0 million (47.5). Taxes for the review period have been calculated on the basis of the local accumulated income and the enacted tax rates while taking into consideration the potential use of deferred tax assets and the estimated whole-year effective tax rate. Taxes totaled EUR 7.1 million; the taxes for the corresponding period last year were EUR 2.2 million positive due to the tax treatment of discontinued operations. The net profit for the period for continuing operations was EUR 40.0 million (49.7). Power Sentry division, divested in the summer of 2006, was reclassified in 2006 as discontinued operations and its net profit for last year's first quarter is reported accordingly. The net profit for the review period was EUR 40.0 million (62.7). The minority share was not significant. The earnings per share attributable to equity holders of the company was EUR 0.52 (0.81). BALANCE SHEET AND FINANCING Total assets were EUR 728.9 million (707.2 at the beginning of the year). Fiskars operations are seasonal and the second quarter is the most important quarter for the operations. Growth in operations increased trade receivables and inventories as well as trade payables. Net working capital was EUR 138.1 million, or EUR 33.4 million more than at the end of the year. The Corporation's interest-bearing net debt was EUR 137.4 million, or EUR 35.5 million more than at year-end. Net cash flow from operating activities was EUR 30.3 million (41.5). Net cash used in investing activities totaled EUR 18.2 million. In the corresponding period last year, the cash flow of investing activities was EUR 22.3 million positive because of divestments. The equity to assets ratio was 57% (60% at the beginning of the year). Net gearing was 33% (24% at the beginning of the year). The Corporation's financial situation and liquidity remain strong. In addition to cash and cash equivalents, the Corporation has significant credit facilities available. MANAGEMENT OF RISKS AND UNCERTAINTIES Fiskars most important operational risks relate to supply-chain control, the potential structural changes in the retail environment in various markets and also partly to the development of the prices of raw materials. Efforts are made in particular to improve supply chain management and build ties to subcontractors, as outsourcing is increased in accordance with the Corporation's strategy. In order to mitigate possible problems with subcontractors and logistics, the Corporation has also increased inventories. The potential structural changes in distribution channels are seen to represent a risk mainly in the US, and operations are required increased flexibility and ability to think ahead. Most of the company's industrial operations are of such nature that have no significant environmental risks. The company complies with legislation and statutes for the protection of the environment and strives to develop its production and mode of operation in ways that minimize the burden on the environment. The Fiskars Corporation Board of Directors regularly reviews the principles for the management of financial risks and in accordance with the Corporation's investment policy, liquid assets are only invested in low-risk entities. Trade receivables are relatively widely spread geographically and between customers, and major customers generally have a high credit rating. No significant credit losses have materialized during the review period. The Corporation has protected a portion of its most significant foreign currency net investments in its subsidiaries against exchange rate fluctuations and as from January 1, 2007 it has applied hedge accounting in accordance with IAS 39 standard to them. REPURCHASE AND TRANSFER OF OWN SHARES Until the Annual General Meeting held March 21, 2007, the Board of Directors had an authorization to repurchase and decide on the distribution of the Corporation's shares provided that the total nominal value of such shares and the votes carried by them did not exceed ten percent (10%) of the share capital and the total votes in the company. At the Annual General meeting on March 21, 2007 the authorization was renewed unchanged. The Board has not exercised its authorization during the review period. As at June 30, 2007, the company held in total 127,512 of its own A shares and 420 K shares. The holding has not changed during the review period, and the number of shares equals 0.2% of the entire share capital of the company. The EUR 0.9 million repurchase cost of the Corporation's own shares decreases the Corporation's equity. SHARE PRICES Fiskars shares are traded on the OMX Nordic Exchange. The shares were moved to the Large Cap Helsinki segment in the beginning of July 2007. At the end of June, the price of the Fiskars A share was EUR 12.79 (12.29 at the beginning of the year) and the price of the K share EUR 14.00 (12.11). The market value of the Corporation's share capital was EUR 1,017 million at the end of the review period. ANNUAL GENERAL MEETING 2007 The Annual General Meeting of shareholders on March 21, 2007 decided to pay a dividend of EUR 0.60 per share for A shares, totaling EUR 32,890,188, and EUR 0.58 per share for K shares, totaling EUR 13,087,867, the sum total for both series of shares being EUR 45,978,055. It was decided that the number of Board members be nine. Mr. Kaj- Gustaf Bergh, Mr. Alexander Ehrnrooth, Mr. Paul Ehrnrooth, Mr. Ralf Böer, Mr. David Drury, Ms. Ilona Ervasti-Vaintola, Mr. Gustaf Gripenberg, Mr. Karl Grotenfelt, and Mr. Clas Thelin were elected to the Board. The term of the Board members will expire at the end of the Annual General Meeting in 2008. KPMG Oy Ab was elected auditor. The Annual General Meeting decided to authorize the Board to repurchase, of the company's own shares, no more than 5,366,937 of series A and no more than 2,256,150 of series K shares in a proportion other than that of the shareholders' proportional shareholdings. The share price will be no higher than the highest price paid for Fiskars Corporation shares in public trading at the time of repurchase. This authorization shall remain in force until the end of the next Annual General Meeting. The Annual General Meeting authorized the Board to decide on the distribution of the company's repurchased shares up to a maximum of 5,494,449 series A shares and up to a maximum of 2,256,570 series K shares. The Board may decide on the distribution of the shares otherwise than in proportion to the shareholders'existing pre-emptive subscription rights. This authorization shall remain in force until the end of the next Annual General Meeting. In its organization meeting the Board elected Kaj-Gustaf Bergh its chairman and Alexander Ehrnrooth and Paul Ehrnrooth vice chairmen. The Board decided to establish an Audit Committee, a Compensation Committee, and a Nomination Committee. The Board appointed Gustaf Gripenberg chairman of the Audit Committee, and David Drury, Alexander Ehrnrooth, Paul Ehrnrooth and Ilona Ervasti-Vaintola as its other members. The Board appointed Kaj-Gustaf Bergh chairman of the Compensation Committee and Ralf Böer, Karl Grotenfelt and Clas Thelin as its other members. The Board appointed Kaj-Gustaf Bergh chairman of the Nomination Committee and Alexander Ehrnrooth and Paul Ehrnrooth its other members. SUBSEQUENT EVENTS SINCE THE END OF THE QUARTER At the end of June, Fiskars signed an agreement to purchase Iittala Group Plc with net sales of approximately EUR 200 million. The debt-free price for Iittala, which will be finally determined at closing, will be approximately EUR 230 million. The acquisition will be funded by using existing credit facilities. The closing of the transaction was subject to approval by the competition authorities. The required approvals were received by August 1st 2007 and the acquisition is expected to be closed as planned at the end of August. OUTLOOK The full-year net sales for the Fiskars wholly-owned operations will grow, and the operating profit will exceed that of last year due to the level of sales and profits of the first two quarters as well as the restructuring measures gradually starting to take effect. Iittala Group will be consolidated as from September 1st with Fiskars and it's net sales and operating profit, which is mostly generated during the last months of the year, will improve Fiskars' end-of-year figures. Income from associated company Wärtsilä also forms a significant part of Fiskars' annual profit. Heikki Allonen President and CEO NOTES TO THE INTERIM REPORT This interim report has been prepared in accordance with IAS 34 Interim Financial Reporting. Using the same accounting principles and methods of computation as for the annual financial statements for 2006 with the exception of hedge accounting being applied on foreign currency net investments in subsidiaries. Use of estimates Complying with the IFRS standards in preparing financial statements requires the management to make estimates and assumptions. Such estimates affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the amounts of revenues and expenses. Although these estimates are based on the management's best knowledge of current events and actions, actual results may differ from these estimates. IAS 39 Financial instruments - hedge accounting for foreign currency net investments in subsidiaries Significant equity investments in subsidiaries situated outside the Euro zone have largely been hedged against foreign currency exchange rate fluctuations through foreign currency loans and derivatives using the hedge accounting to reduce the effect of exchange rate fluctuations on the Corporation's equity. When a foreign subsidiary is sold, these translation differences are included in the gain or loss on disposal reported in the income statement. The change in calculation principles resulted in an increase in the review period's equity of EUR 0.6 million. Discontinued operations The Power Sentry division was divested in the summer of 2006 and is reported under discontinued operations. The gain from the sale and the division's net operating profit for the corresponding period last year is reported as a separate item under discontinued operations. Formulas for calculation of key ratios The key ratios presented in the interim reports have been calculated using the same formulas as the corresponding ratios in the latest financial statements. The formulas for calculation of ratios are available on page 36 of the Annual Report. As of January 1, 2007, Fiskars has applied the following new or amended IFRS standards: IFRS 7 Financial Instruments: Disclosures. IFRS 7 requires additional disclosures about the influence of financial instruments on the entity's financial situation and results. Implementation will mainly influence future Notes to the Consolidated Financial Statements and does not have any significant impact on the interim report. Amendment to the IAS 1 standard: Presentation of Financial Statements - Capital Disclosures. Implementation of the amendment will mainly influence future Notes to the Consolidated Financial Statements and does not have any significant impact on the interim report. IFRIC 9 Reassessment of Embedded Derivatives. The Corporation estimates that this interpretation will not influence its consolidated financial statements or the interim report, as no company within the Corporation has changed contract stipulations as indicated by the interpretation. IFRIC 10 Interim Financial Reporting and Impairment. IFRIC 10 states that an entity shall not reverse an impairment loss recognized in a previous interim period in respect of goodwill or an investment in either an equity instrument or a financial asset carried at cost. The Corporation estimates that this interpretation will not influence its consolidated financial statements or its interim report. CONSOLIDATED INCOME STATEMENT 4-6 4-6 chg 1-6 1-6 chg 1-12 2007 2006 % 2007 2006 % 2006 MEUR MEUR MEUR MEUR MEUR NET SALES 165.5 151.3 9 317.5 290.4 9 534.9 Cost of goods sold -109.3 -105.7 3 -212.9 -203.2 5 -375.4 GROSS PROFIT 56.2 45.7 23 104.6 87.2 20 159.6 Other operating income -0.1 1.4 -108 0.8 1.5 -47 1.3 Sales and marketing expenses -19.5 -17.9 9 -40.8 -37.2 10 -73.3 Administration expenses -12.3 -11.2 10 -25.4 -24.1 5 -45.3 Research and development costs -1.5 -1.4 13 -3.0 -2.9 5 -6.1 Other operating expenses -0.1 -4.9 -98 -0.6 -5.6 -89 -9.0 Income from associate 8.6 25.1 -66 15.5 33.9 -54 58.6 OPERATING PROFIT 31.3 36.9 -15 51.1 52.8 -3 85.8 Financial income 1.1 -0.2 690 1.7 0.5 234 1.8 Financial expenses -3.5 -3.5 0 -5.8 -5.8 -1 -10.9 PROFIT BEFORE TAXES 28.9 33.2 -13 47.0 47.5 -1 76.7 Income taxes -3.6 4.3 -185 -7.1 2.2 -419 -9.8 PROFIT FROM CONTINUING OPERATIO 25.3 37.5 -33 40.0 49.7 -20 66.9 Profit from discontinued oper. 12.7 13.0 15.2 PROFIT (LOSS) FOR THE PERIOD 25.3 50.2 -50 40.0 62.7 -36 82.0 Minority share 0.0 0.0 0.0 PROFIT FOR ORDINARY SHAREHOLDER 25.3 50.2 -50 40.0 62.7 -36 82.0 Earnings for ordinary shareholders per share, euro 0.33 0.65 0.52 0.81 1.06 continuing operations 0.33 0.48 0.52 0.64 0.86 discontinued operations 0.16 0.17 0.20 Earnings per share is undiluted. The company has no open option programs or other earnings diluting financial instruments. CURRENCY RATES 1-6 1-6 chg 1-12 2007 2006 % 2006 USD average rate (I/S) 1.33 1.23 8 1.26 USD end-of-period (B/S) 1.35 1.27 6 1.32 CONSOLIDATED BALANCE SHEET 6/07 6/06 chg 12/06 MEUR MEUR % MEUR ASSETS NON-CURRENT ASSETS Intangible assets 20.6 11.8 75 19.2 Goodwill 28.3 11.3 151 22.4 Tangible assets 98.1 102.8 -5 98.7 Biological assets 40.3 30.2 33 35.0 Investment property 8.5 9.0 -6 8.7 Investment in associate 227.8 232.9 -2 239.1 Other shares 3.2 4.9 -35 5.0 Other investments 1.7 1.2 33 1.5 Other long-term tax receivables 3.8 8.2 -54 5.5 Deferred tax assets 23.2 32.9 -29 24.9 NON-CURRENT ASSETS TOTAL 455.3 445.2 2 460.0 CURRENT ASSETS TOTAL Inventories 126.9 103.5 23 114.6 Trade receivables 125.2 108.9 15 82.7 Other receivables 4.5 2.3 96 5.0 Cash in hand and at bank 17.0 51.7 -67 44.9 CURRENT ASSETS TOTAL 273.6 266.4 3 247.2 ASSETS TOTAL 728.9 711.6 2 707.2 EQUITY AND LIABILITIES EQUITY 415.2 420.3 -1 421.8 NON-CURRENT LIABILITIES Interest bearing debt 132.3 135.9 -3 120.7 Non-interest bearing debt 2.0 2.6 -22 2.6 Deferred tax liabilities 22.5 17.4 29 20.8 Pension liability 12.1 14.1 -14 12.8 Provisions 4.3 6.6 -35 4.2 NON-CURRENT LIABILITIES TOTAL 173.2 176.5 -2 161.1 CURRENT LIABILITIES Interest bearing debt 22.1 17.7 25 26.1 Trade payable and other non-interest bearing debt 114.0 90.9 25 92.6 Income tax payable 4.5 6.1 -26 5.7 CURRENT LIABILITIES TOTAL 140.6 114.7 23 124.4 EQUITY AND LIABILITIES TOTAL 728.9 711.6 2 707.2 CONSOLIDATED STATEMENT 1-6 1-6 1-12 OF CASH FLOWS 2007 2006 2006 MEUR MEUR MEUR CASH FLOWS FROM OPERATING ACTIVITIES Net profit before taxes 47.0 47.5 76.7 Adjustments for Depreciation 10.4 12.6 28.6 Income from associate -15.5 -33.9 -58.6 Investment income -1.3 -0.4 -0.8 Interest expense 5.3 5.7 9.9 Chg in value of biological assets -5.3 -0.3 -5.0 Cash generated before working capital 40.7 31.2 50.8 Change in working capital Change in interest free assets -36.6 -32.3 -5.4 Change in inventories -10.0 12.4 7.6 Change in interest free liabilities 17.9 11.2 7.6 Cash generated before financing and ta 12.0 22.5 60.6 Dividends from associate 27.7 23.7 47.5 Dividends received, other 0.1 3.6 3.6 Financial costs paid (net) -5.2 -5.3 -7.4 Taxes paid -4.3 -3.0 -5.1 NET CASH FROM OPERATING ACTIVITIES A 30.3 41.5 99.0 CASH FLOWS FROM INVESTING ACTIVITIES Acquisitions -13.1 -0.4 -26.0 Capital expenditure -8.1 -8.6 -19.3 Proceeds from sale of fixed assets 0.1 1.9 5.4 Sale of other l/t investments 3.2 1.8 2.2 Purchase of other l/t investments -0.3 -5.1 -5.3 Cash flow from discontinued operations 32.7 33.0 NET CASH USED IN INVESTING ACTIVITIES -18.2 22.3 -10.1 CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from l/t borrowings 0.0 15.0 15.0 Repayment of l/t borrowings -0.2 -3.1 -4.6 Proceeds from (payment) of) s/t borrow 9.1 -14.4 -21.4 Payment of financial leases liabilitie -1.5 -1.5 -2.8 Cash flows from other financing items -0.7 0.1 0.1 Dividends paid -46.0 -34.4 -57.1 NET CASH USED IN FINANCING ACTIVITIES -39.2 -38.2 -70.8 CHANGE IN CASH (A+B+C) -27.1 25.6 18.2 Cash at beginning of period 44.9 21.7 21.7 Translation difference -0.8 4.4 5.0 Cash at end of period 17.0 51.7 44.9 STATEMENT OF CHANGES IN Equity holders of the parent companMinorit Total SHAREHOLDERS' EQUITY Other interest Share Own reser-Transl.Retain. capital shares vesadjustm earn. MEUR MEUR MEUR MEUR MEUR MEUR MEUR Dec 31, 2005 77.5 -0.9 24.7 1.2 300.3 0.0 402.7 Translation differences -1.6 -1.6 Change in fair value reserve, associate -9.0 -9.0 Other changes in associate -0.2 0.0 -0.2 NET INCOME RECOGNISED DIRECTLY IN EQUITY -9.0 -1.8 0.0 0.0 -10.8 Net profit for the period 62.7 62.7 TOTAL RECOGNISED INCOME AND EXPENSE FOR THE PERIOD -9.0 -1.8 62.7 0.0 52.0 Dividend distribution -34.4 -34.4 Jun 30, 2006 77.5 -0.9 15.7 -0.6 328.6 0.0 420.3 Translation differences -0.4 -0.4 Change in fair value reserve, associate 5.8 5.8 Other changes in associate -0.4 -0.1 -0.5 Other changes 0.0 0.0 NET INCOME RECOGNISED DIRECTLY IN EQUITY 5.8 -0.9 -0.1 0.0 4.9 Net profit for the period 19.3 0.0 19.3 TOTAL RECOGNISED INCOME AND EXPENSE FOR THE PERIOD 5.8 -0.9 19.2 0.0 24.2 Dividend distribution -22.8 -22.8 Dec 31, 2006 77.5 -0.9 21.6 -1.5 325.0 0.0 421.8 Translation differences -2.0 -2.0 Change in fair value reserve, associate 0.3 0.3 Other changes in associate 0.5 0.5 Cash flow hedges after taxes 0.6 0.6 NET INCOME RECOGNISED DIRECTLY IN EQUITY 0.9 -1.5 0.0 0.0 -0.6 Net profit for the period 40.0 0.0 40.0 TOTAL RECOGNISED INCOME AND EXPENSE FOR THE PERIOD 0.9 -1.5 40.0 0.0 39.4 Dividend distribution -46.0 -46.0 Jun 30, 2007 77.5 -0.9 22.5 -3.0 319.1 0.0 415.2 Fiskars shares of associated company Wärtsilä's fair value reserve and its changes are specified in the other reserves above. KEY FIGURES 6/07 6/06 chg 12/06 % Equity/share, euro 5.36 5.43 -1 5.45 Equity ratio 57% 59% 60% Net gearing 33% 24% 24% Equity, meur 415.2 420.3 -1 421.8 Net interest bear.debt, meur 137.4 101.9 35 101.9 Average number of employees 3112 3245 -4 3167 Number of employees eop 3333 3227 3 3003 SEGMENT INFORMATION 4-6 4-6 chg 1-6 1-6 chg 1-12 NET SALES 2007 2006 % 2007 2006 % 2006 MEUR MEUR MEUR MEUR MEUR Fiskars Brands 145.8 138.4 5 282.7 266.4 6 489.9 Inha Works 15.1 12.2 24 27.8 22.5 23 37.2 Real Estate 5.0 1.6 203 8.0 2.8 189 10.3 Unallocated and eliminations -0.4 -0.9 -56 -1.0 -1.3 -28 -2.4 CORPORATE TOTAL 165.5 151.3 9 317.5 290.4 9 534.9 Export from Finland 17.8 15.4 16 38.6 33.2 16 58.9 SEGMENT INFORMATION 4-6 4-6 1-6 1-6 1-12 RESULT 2007 2006 2007 2006 2006 MEUR MEUR MEUR MEUR MEUR Fiskars Brands 18.7 10.0 29.9 17.7 21.1 Inha Works 2.0 1.6 3.6 2.7 3.7 Real Estate 3.9 1.8 6.0 1.9 7.6 Associate Wärtsilä 8.6 25.1 15.5 33.9 58.6 Unallocated and eliminations -1.9 -1.8 -3.9 -3.5 -5.2 OPERATING PROFIT 31.3 36.9 51.1 52.8 85.8 SEGMENT INFORMATION 4-6 4-6 1-6 1-6 1-12 DEPRECIATIONS 2007 2006 2007 2006 2006 MEUR MEUR MEUR MEUR MEUR Fiskars Brands 4.5 5.5 9.0 11.2 25.8 Inha Works 0.3 0.3 0.7 0.6 1.2 Real Estate 0.4 0.3 0.7 0.6 1.4 Unallocated and eliminations 0.1 0.0 0.1 0.1 0.1 CORPORATE TOTAL 5.2 6.1 10.4 12.6 28.6 SEGMENT INFORMATION 4-6 4-6 1-6 1-6 1-12 CAPITAL EXPENDITURE 2007 2006 2007 2006 2006 MEUR MEUR MEUR MEUR MEUR Fiskars Brands 16.9 3.8 19.5 6.1 37.5 Inha Works 1.1 0.4 1.7 0.6 1.2 Real Estate 0.3 0.6 0.6 1.3 1.9 Unallocated and eliminations 0.2 0.3 0.0 0.3 CORPORATE TOTAL 18.5 4.8 22.1 7.9 40.8 GEOGRAPHICAL SEGMENT 4-6 4-6 chg 1-6 1-6 chg 1-12 NET SALES BASED ON CUSTOMER 2007 2006 % 2007 2006 % 2006 LOCATION MEUR MEUR MEUR MEUR MEUR Europe 91.8 71.5 28 177.1 140.5 26 257.1 USA 64.2 66.4 -3 120.9 127.2 -5 235.2 Rest of the world 9.5 13.3 -29 19.5 22.6 -14 42.6 CORPORATE TOTAL 165.5 151.3 9 317.5 290.4 9 534.9 Short delivery times are a prerequisite in Fiskars' fields of operations. Therefore, the backlog of orders and changes in it are not of significant importance. IMPACT OF ACQUISITIONS ON THE CONSOLIDATED BALANCE SHEET MEUR Fiskars acquired the French company Leborgne S.A. in May. The company produces garden tools in France and in addition to the French market sells them in Spain, Belgium and Italy. The net sales for Leborgne in 2006 was EUR 16 million. LEBORGNE ACQUISITION COST, PRELIMINARY SPECIFICATION Purchase price paid in cash 12.8 Acquisition related costs 0.4 Fair value of acquired assets 6.9 GOODWILL 6.3 sellers book fair ACQUIRED ASSETS AND LIABILITIES values values Non-current assets 0.9 3.7 Inventories 3.2 3.3 Receivables 6.1 6.1 Cash and bank 0.1 0.1 Deferred tax liability 0.0 -1.0 Non-current liabilities -0.9 -0.9 Current liabilities -4.5 -4.5 TOTAL 4.9 6.9 CONTINGENCIES AND PLEDGED ASSETS 6/07 6/06 12/06 MEUR MEUR MEUR AS SECURITY FOR OWN COMMITMENTS Discounted bills of exchange 0 0 Lease commitments 17 20 19 Other contingencies 8 8 9 TOTAL 25 29 28 GUARANTEES AS SECURITY FOR THIRD-PARTY COMMITMENTS Real estate mortgages 2 2 2 TOTAL PLEDGED ASSETS AND CONTINGENCIES 26 30 30 NOMINAL AMOUNTS OF DERIVATIVES Forward exchange contracts 74 94 94 MARKET VALUE VS. NOMINAL AMOUNTS OF DERIVATIVES Forward exchange contracts -1 0 0 Forward exchange contracts have been valued at market in the financial statements.
Press and stock exchange releases from Fiskars Corporation, dating from 1997 have been gathered onto this page. Additional financial data related to interim reports and the annual reports stock exchange releases can be retrieved from 2000 onwards.