Fiskars Corporation Interim Report May 8, 2008 8:30 am FISKARS CORPORATION INTERIM REPORT JANUARY-MARCH 2008 (Unaudited) FISKARS' PROFITABILITY DECREASED DURING Q1 BUT FULL YEAR OPERATING PROFITABILITY EXPECTED AT LAST YEAR'S LEVEL - Net sales increased to EUR 174.7 million (149.9) - Operating profit decreased to EUR 13.7 million (19.8). - Net cash flow from operating activities in Q1 was EUR -33.9 million (+7.8). Dividend from Wärtsilä of EUR 67.2 million was received on April 2, impacting the comparable cash flow. - Full year operating profit, excluding income from associate and change in the value of standing timber, is expected to remain at a level of the previous year. FISKARS CORPORATION IN BRIEF EUR, million Q1/2008 Q1/2007 2007 Net sales 174.7 149.9 647.0 Income from associate 13.6 6.9 43.3 Operating profit (EBIT) 13.7 19.8 109.5 Pre-tax profit 8.5 18.1 122.5 Net profit for the 9.5 14.7 110.4 period Earnings / share, 0.12 0.19 1.42 total, EUR Cash from operations -33.9 7.8 82.0 FISKARS CORPORATION NEW ORGANIZATION STRUCTURE On March 7, 2008, Fiskars announced a new organization and its related new structure for segment reporting. From the beginning of 2008, Fiskars reports the following business segments: Americas, EMEA (Europe, Middle East, and Asia), Wärtsilä, and Other. The segment Other consists of Inha Works and the Real Estate Group. The 2007 financial statements were made according to the previous segment division. Fiskars will also present the change in fair value of biological assets as a separate line in the income statement and hence the value change will no longer impact net sales. In a Stock Exchange Release on March 20, 2008, Fiskars published the comparative figures for 2007 according to the new reporting structure. The Corporation's business areas are: Garden, Homeware, Outdoor Recreation, Craft, Real Estate, and Inha Works. Q1/2008 The Corporation's net sales increased by 17% to EUR 175 million (150) during the first quarter. At constant currency rates the comparable sales decreased by EUR 6.5 million (-5%) The combined effect on net sales of Iittala and Leborgne, both purchased in 2007, was some EUR 40 million. The effect of currency rates, in particular the weakening of the US dollar against the euro, was EUR -8.9 million. The Corporation's operating profit (EBIT) was EUR 13.7 million (19.8), EUR 6.1 million less than last year. The operating profit includes the Fiskars share of Wärtsilä's profit, EUR 13.6 million (6.9). The operating profit from wholly-owned businesses was EUR 0.1 million (12.9). The decrease in operating profit was largely due to the change in the value of standing timber, which is reported as a separate item, EUR -4.9 million, versus a gain of EUR 2.1 million previous year. The decrease is also due to Iittala being included in the 1st quarter numbers for the first time, while its sales and profits tend to concentrate towards the end of the year. Iittala integration continues according to plans and synergies are expected to begin to be realized towards the end of the year. Research and Development costs were EUR 2.0 million (1.5) or 1.1% of net sales. Net financial costs were EUR 5.2 million (1.7). The increase in interest costs was due mainly to the acquisition of Iittala, which was financed by debt. Taxes for continuing operations are based on the calculated average tax rate. The result for the first quarter of 2008 was EUR 9.5 million (14.7) and earnings per share EUR 0.12 (0.19). EMEA Net sales for the EMEA segment increased by EUR 37.8 million to EUR 115.3 million. The operating profit (EBIT) was EUR 3.4 million (10.5). The operating environment was challenging during the first months of the year. The Garden business is extremely weather dependent. Very mild weather during January and February had a negative impact on sales of snow tools. In March, the very late winter delayed the start of the gardening season across all of our major markets. Also the unusually early timing of Easter had a negative impact on our Homeware businesses. In addition, lower consumer confidence resulted in trade being cautious in their purchasing. Non-recurring expenses of EUR 1.7 million for closing the factories in Höganäs, Sweden, and Moss, Norway, reduced the profit during the first three months. AMERICAS Net sales for the Americas segment were EUR 52.5 million (64.0); -18% or USD 79.0 million (83.8), -5.7%. The operating profit (EBIT) improved to EUR 2.0 million (0.7) or USD 3.1 million (0.9). Continued slowing down of the US economy, lower consumer confidence and reduced discretionary spending impacted the business environment in the US. Our sales decreased in all key business areas, but our profitability increased driven by the improved efficiencies in the supply chain. OTHER INHA WORKS The Inha Works net sales were EUR 11.8 million (12.7), a decrease of some 7%. The operating profit (EBIT) weakened and was EUR 0.8 million (1.6). The demand for boats has continued strong in all key markets, the development of net sales and operating profit was primarily affected by delays in delivery of the new Buster boat models. Hinge business decreased compared to the previous year. On March 6, 2008, Inha Works started codetermination negotiations to adjust the number of personnel. The negotiations concern employees involved in the manufacture of hinges and those in other areas who indirectly support the hinge operation. The negotiations ended in April and the hinge division will be closed. The measures are expected to affect 60-80 workers and administrative staff. REAL ESTATE GROUP Net sales for the Real Estate Group were EUR 1.0 million (0.6). The operating income (EBIT) was EUR -4.3 million (2.1). In addition to leasing real estate to internal and external customers, the Real Estate Group manages the Corporation's forests. The change in the market value of biological assets, which is included in EBIT, is reported as a separate line item. During the first quarter the value of standing timber decreased by EUR 4.9 million while during the corresponding period previous year the value increased by EUR 2.1 million. ASSOCIATED COMPANY WÄRTSILÄ CORPORATION At the end of the review period, the holdings of Fiskars Corporation in Wärtsilä totaled 17.1% of shares (16.5%) and 17.1% of votes (32.2%). This change resulted from the decision of the Annual General Meeting of Wärtsilä on 19 March 2008 to combine the two share series A and B. Though the holdings of Fiskars Corporation in Wärtsilä decreased below 20 percent, Fiskars continues to be the largest single stockholder with more than 17% of the votes. The Chairman of the Board of Fiskars, Mr. Kaj- Gustaf Bergh, and the President and CEO of Fiskars, Mr. Kari Kauniskangas, were elected to the Wärtsilä Board of Directors. Fiskars has assessed that it has a significant influence on Wärtsilä as defined in IAS 28 and accordingly continues to report Wärtsilä as an associated company. Fiskars Corporation's share of Wärtsilä's results for the review period was EUR 7.7 million (6.9 ). Through a bonus share issue, Fiskars' share of the Wärtsilä equity increased by EUR 5.8 million, which is included in the total amount of Income from associate, EUR 13,6 million. The book value of Fiskars' investment in Wärtsilä was EUR 226 million (278 at the beginning of the year). The Wärtsilä Annual General Meeting decided on dividends in March and the dividends were paid in April. The EUR 67.2 million to be received by Fiskars have decreased the book value of the associated company. EUR 61.2 million of the book value of the associate is goodwill (61.2 at the beginning of the year). The market value of the Wärtsilä shares of Fiskars was EUR 720 million at the end of the review period (share price EUR 42.75). BALANCE SHEET AND FINANCING The Corporation's net working capital was EUR 197 million (EUR 162 million at the end of the year). The increase is mainly due to the seasonality of the business. Non-interest-bearing current assets were EUR 79 million (6), including the dividend receivable of EUR 67 million from Wärtsilä. Long-term assets totaled EUR 655 million (713). Of this, EUR 134 million was intangible assets, and EUR 99 million was goodwill. Net interest-bearing debt amounted to EUR 356 million which, due to the seasonality of the business, was up EUR 37 million from year-end 2007 (319). Shareholder's Equity totaled EUR 424 million (478) at the end of the period. The Corporation's equity to assets ratio was 39 (46) and net gearing 84 (67). The Corporation's financial position continues to be good. The Corporation's liquidity position is strong. Cash and deposits at the end of the period were EUR 43 million (35), in addition to which the Corporation had EUR 425 million in unused long-term credit facilities, mainly with major Nordic banks. Cash flow from operations was EUR -34 million (7.8 Q1/2007). The comparable figure in 2007 included EUR 27.7 million of Wärtsilä dividends, which in 2008 were paid in April. Capital expenditure was EUR 5.6 million (3.6). MANAGEMENT OF RISKS AND UNCERTAINTIES The most important operational risks for Fiskars relate to supply-chain management, potential structural changes in the retail environment of various markets, and also in part to the rising costs of raw materials and energy, and to the ability to foresee changes in demand. As sourcing is increased in accordance with the corporate strategy, particular efforts are made to improve supply-chain management and build ties with suppliers. To mitigate possible problems with supply and logistics, the Corporation has also increased inventories. Potential structural changes in distribution channels are seen to represent a risk, and operations are required to increase both their flexibility and ability to plan ahead. Changes in the cost of raw materials influence directly the cost of the Corporation's own manufacturing and indirectly its purchasing costs. Price increases for energy impact on the cost of the Corporation's own manufacturing processes, on the cost of logistics, and indirectly on purchasing costs. The Corporation has not used raw-material derivative instruments, but strives to make long-term contracts with key suppliers of raw materials. The nature of the Corporation's industrial operations is such that they pose no significant environmental risks. Changes in environmental regulations and in production capacity or structure may cause additional costs at some of its older production facilities. The company is committed to complying with legislation and statutes for the protection of the environment and strives to develop its production and modes of operation in ways that minimize their burden on the environment. Development of the associated company Wärtsilä's profitability has a significant impact on Fiskars' results, whereby the ability of the associated company to pay dividends influences Fiskars' cash flow. The Fiskars Board of Directors regularly reviews the principles for the management of financial risks and, in accordance with the Corporation's investment policies, liquid assets are only invested in low-risk entities. Trade receivables are spread relatively widely, both geographically and between customers, and major customers generally have a high credit rating. No significant credit losses have materialized during the review period. The increasing share of imports from low-cost countries indirectly involves a higher risk against the suppliers' currencies, mainly Chinese Renminbi (CNY). The Corporation has hedged against exchange rate fluctuations a certain amount of its most significant foreign currency net investments in its subsidiaries, and as from January 1, 2007, it has applied hedge accounting in accordance with the IAS 39 standard. PURCHASE AND SALE OF TREASURY SHARES The Board of Directors had an authorization to acquire and convey the treasury shares until the Annual General Meeting on 25 March 2008 provided that the amount of the acquired shares did not exceed ten percent (10%) of the total share capital and votes in the company. The Annual General Meeting on 25 March 2008 authorized the Board to acquire and convey the treasury shares provided that the total amount of shares acquired is less than five percent (5%) of the total amount of shares of the Corporation. During the review period the Corporation sold at the market price (EUR 11.20 per share) a total of 15,397 A shares through the Stock Exchange to the President and CEO. The Corporation recorded a gain of EUR 0.1 million to equity. On March 31, 2008, the Corporation had a total of 54,944,492 Series A shares (71% of shares and 11% of votes) and 22,565,708 Series K shares (29% and 89% respectively), in total 77,510,200 shares, also representing the total book counter-value in Euros. On March 31, 2008 the Company had 112,115 treasury shares of Series A and 420 shares of Series K, corresponding to 0.15% of the Corporations shares and 0.02% of the votes. SHARE PRICES Fiskars Series A and K shares are traded on the Large Cap segment of the OMX Nordic Exchange Helsinki Oy. At the end of March, the price of one Fiskars Series A share was EUR 12.50 (Dec 31,2007 EUR 13.30) and the price of one Series K share EUR 14.00 (14.45). At the end of the review period the market value of the Corporation's share capital was EUR 1,003 million. ANNUAL GENERAL MEETING OF SHAREHOLDERS 2008 The Annual General Meeting of shareholders approved the financial statements for 2007 on March 25, 2008. It was decided to pay a dividend of EUR 0.80 per share for Series A shares, totaling EUR 43,865,901.60, and EUR 0.78 per share for Series K shares, totaling EUR 17,600,924.64. The record date for the dividend was March 28, 2008, and a dividend totaling EUR 61,466,826.24 was paid on April 4, 2008. Members of the Board and the President were discharged from liability for the 2007 financial year. It was decided that the number of Board members be nine. Mr. Kaj-Gustaf Bergh, Mr. Ralf Böer, Mr. Alexander Ehrnrooth, Mr. Paul Ehrnrooth, Ms. Ilona Ervasti-Vaintola, Mr. Gustaf Gripenberg, Mr. Karl Grotenfelt, Mr. Karsten Slotte, and Mr. Jukka Suominen were elected. The term of the Board members will expire at the end of the Annual General Meeting in 2009. KPMG Oy Ab was elected auditor and they nominated Mr. Mauri Palvi as responsible auditor. The Annual General Meeting decided to authorize the Board to acquire the treasury shares, with the Corporation's distributable equity, no more than 2,747,224 of Series A and no more than 1,128,285 of Series K shares. The share price will be no higher than the highest price paid for the shares of Fiskars Corporation in public trading at the time of purchase. This authorization shall remain in force until the end of the next Annual General Meeting. The Annual General Meeting decided to authorize the Board to decide to convey the treasury shares to a maximum of 2,747,224 of Series A shares and a maximum of 1,128,285 of Series K shares. The Board may decide on the conveyance of the shares otherwise than in proportion to the shareholders' pre-emptive subscription rights. This authorization shall remain in force until the end of the next Annual General Meeting. Convening after the Annual General Meeting, the Board elected Kaj-Gustaf Bergh to be its Chairman and Alexander Ehrnrooth and Paul Ehrnrooth its Vice Chairmen. The Board appointed Gustaf Gripenberg to be chairman of the Audit Committee and its other members to be Ilona Ervasti-Vaintola, Alexander Ehrnrooth, Paul Ehrnrooth and Karsten Slotte. The Board appointed Kaj-Gustaf Bergh to be chairman of the Compensation Committee and its other members to be Ralf Böer, Karl Grotenfelt, and Jukka Suominen. The Board appointed Kaj-Gustaf Bergh to be chairman of the Nomination Committee and its other members to be Alexander Ehrnrooth and Paul Ehrnrooth. In addition, the Annual General Meeting decided to amend the Corporation's Articles of Association. The changes in the Articles of Association were entered into the Trade Register on April 21, 2008. PERSONNEL At the end of the review period, the company employed 4,341 (3,041) people. At the end of 2007, the number of personnel was 4,515, of which 3,089 are in the EMEA (1,975), and 908 in the Americas (1,037). CHANGES IN CORPORATE MANAGEMENT Mr. Kari Kauniskangas, M.Sc (Econ), took over as the President and CEO of Fiskars Corporation at the beginning of 2008. On March 7, 2008, Hille Korhonen, Lic.Tech. was appointed Vice President, Operations, and a member of the Corporate Management Team. Jim Purdin, CEO of Fiskars Brands, Inc., left the Corporation on March 31, 2008. Maija Elenius, Vice President, Corporate Control, left the Corporation on March 7, 2008. Teemu Kangas-Kärki, M.Sc.(Econ.) has been appointed CFO of Fiskars Corporation on April 25, 2008. He will assume his duties no later than October 2008. OUTLOOK 2008 The general market outlook for 2008 continues to be uncertain. Consumer demand in the United States is weaker than during the previous year and the European economic climate is also clearly weakening. Fiskars Corporation net sales are expected to increase during 2008 due to the effect of the Iittala acquisition, which was closed in the fall of 2007. Full year operating profit, excluding income from associate and change in the value of standing timber, is expected to remain at a level of the previous year. Net profit will not be at the same level as last year, because the 2007 results included a EUR 23.7 million gain from sale of Wärtsilä shares, and a positive change of the value of standing timber, EUR 9.8 million. Financial costs will increase due to the financing of Iittala and Leborgne acquisitions. The associated company Wärtsilä will have a big impact on the Corporation's profit and cash flow. Further material weakening of the general economic environment, cost increases and lower consumer spending levels can have a negative impact on the outlook for 2008. Kari Kauniskangas President & CEO Fiskars Corporation CONSOLIDATED INCOME STATEMENT 1-3 1-3 chg 1-12 2008 2007 % 2007 MEUR MEUR MEUR NET SALES 174.7 149.9 17 647.0 Cost of goods sold -119.2 -103.6 15 -437.8 GROSS PROFIT 55.6 46.3 20 209.2 Other operating income 0.5 0.9 -48 5.8 Change in fair value of biological ass -4.9 2.1 11.1 Sales and marketing expenses -33.3 -21.3 56 -99.4 Administration expenses -15.4 -13.2 17 -48.8 Research and development costs -2.0 -1.5 36 -7.4 Other operating expenses -0.3 -0.5 -43 -4.2 Income from associate 13.6 6.9 97 43.3 OPERATING PROFIT (EBIT) 13.7 19.8 -31 109.5 Gain on sale of Wärtsilä shares 23.7 Financial income 0.0 0.7 -95 3.0 Financial expenses -5.3 -2.4 120 -13.7 PROFIT BEFORE TAXES 8.5 18.1 -53 122.5 Income taxes 1.1 -3.4 -12.1 PROFIT (LOSS) FOR THE PERIOD 9.5 14.7 -35 110.4 Attributable to: Equity holders of the Parent Company 9.5 14.7 -35 110.0 Minority interest 0.0 0.0 0.3 9.5 14.7 110.4 Earnings for Equity holders of the Parent Company per share, euro 0.12 0.19 1.42 Earnings per share is undiluted. The company has no open option programs or other earnings diluting financial instruments. CURRENCY RATES 1-3 1-3 chg 1-12 2008 2007 % 2007 USD average rate (I/S) 1.50 1.31 14 1.37 USD end-of-period (B/S) 1.58 1.33 19 1.47 CONSOLIDATED BALANCE SHEET 3/08 3/07 chg 12/07 MEUR MEUR % MEUR ASSETS NON-CURRENT ASSETS Intangible assets 134.2 18.4 630 134.0 Goodwill 99.1 21.9 353 99.8 Tangible assets 118.7 96.9 22 121.7 Biological assets 40.0 36.8 9 44.9 Investment property 8.1 8.6 -6 8.4 Investment in associate 226.0 219.9 3 278.3 Other shares 3.0 5.3 -43 3.0 Other investments 2.6 1.5 74 2.3 Other long-term tax receivables 5.3 0.3 Deferred tax assets 22.9 24.7 -7 20.6 NON-CURRENT ASSETS TOTAL 654.7 439.3 49 713.4 CURRENT ASSETS TOTAL Inventories 177.0 118.1 50 173.7 Trade receivables 138.3 118.7 17 115.2 Other receivables 79.4 5.7 1300 10.4 Cash and cash equivalents 43.1 10.0 332 34.5 CURRENT ASSETS TOTAL 437.8 252.4 73 333.8 ASSETS TOTAL 1092.5 691.7 58 1047.1 SHAREHOLDERS' EQUITY AND LIABILITIES Equity holders of the Parent Company 423.9 390.7 8 477.8 Minority interest 0.5 0.0 0.5 SHAREHOLDERS' EQUITY TOTAL 424.4 390.7 9 478.3 NON-CURRENT LIABILITIES Interest bearing debt 160.9 132.9 21 124.6 Non-interest bearing debt 5.0 3.1 58 4.7 Deferred tax liabilities 50.4 21.1 138 51.7 Pension liability 8.8 12.4 -29 9.4 Provisions 7.0 3.4 107 6.2 NON-CURRENT LIABILITIES TOTAL 232.1 173.0 34 196.7 CURRENT LIABILITIES Interest bearing debt 237.8 19.5 1117 228.9 Trade payable and other non-interest bearing debt 193.1 101.6 90 139.4 Income tax payable 5.2 6.9 -25 3.8 CURRENT LIABILITIES TOTAL 436.0 128.1 240 372.1 SHAREHOLDERS' EQUITY AND LIABILITIES T 1092.5 691.7 58 1047.1 CONSOLIDATED STATEMENT 1-3 1-3 1-12 OF CASH FLOWS 2008 2007 2007 MEUR MEUR MEUR CASH FLOWS FROM OPERATING ACTIVITIES Net profit before taxes 8.5 18.1 122.5 Adjustments for Depreciation 6.6 5.2 23.2 Gain/loss on sale of non-current assets -26.1 Income from associate -13.6 -6.9 -43.3 Investment income 0.1 -0.3 -3.0 Interest expense 5.2 2.0 13.7 Chg in value of biological assets 4.9 -1.8 -10.0 Cash generated before working capital changes 11.6 16.3 77.0 Change in working capital Change in interest free assets -27.6 -37.2 -9.7 Change in inventories -7.5 -4.2 -1.5 Change in interest free liabilities -3.1 8.1 11.4 Cash generated before financing and taxes -26.7 -17.1 77.2 Dividends from associate 27.7 27.7 Dividends received, other 0.0 0.1 Financial costs paid (net) -5.0 -1.3 -11.8 Taxes paid -2.2 -1.5 -11.2 NET CASH FROM OPERATING ACTIVITIES A -33.9 7.8 82.0 CASH FLOWS FROM INVESTING ACTIVITIES Acquisitions -169.2 Net change in shares in associate -0.1 Capital expenditure -5.9 -3.3 -20.5 Proceeds from sale of fixed assets 0.4 0.1 2.4 Sale of other investments -0.1 0.1 4.1 Capital expenditure in other investments -0.7 -0.1 0.0 NET CASH USED IN INVESTING ACTIVITIES B -6.3 -3.2 -183.4 CASH FLOWS FROM FINANCING ACTIVITIES Repurchase/Sell of treasury shares 0.1 Proceeds from l/t borrowings 37.5 0.6 Repayment of l/t borrowings 0.0 -0.1 -0.1 Proceeds from/payment of s/t borrowings 11.8 6.8 137.6 Payment of financial leases liabilities 1.8 -0.7 -1.8 Cash flows from other financing items -1.4 0.6 0.9 Dividends paid -46.0 -46.0 NET CASH USED IN FINANCING ACTIVITIES C 49.7 -39.4 91.3 CHANGE IN CASH (A+B+C) 9.5 -34.8 -10.2 Cash at beginning of period 34.5 44.9 44.9 Translation difference -1.0 -0.1 -0.3 Cash at end of period 43.1 10.0 34.5 STATEMENT OF CHANGES IN Equity holders of the parent companMinorit Total CONSOLIDATED SHAREHOLDERS' EQUITY Trea- Fair Cumul. interest Share sury valuetransl.Retain. capital sharesreserve diff. earn. MEUR MEUR MEUR MEUR MEUR MEUR MEUR Dec 31, 2006 77.5 -0.9 21.6 -1.5 325.0 0.0 421.8 Translation differences -1.1 0.0 -1.1 Change in fair value reserve, associate 1.3 1.3 Changes in associate 0.2 0.2 Equity net investment hedges after tax -0.1 -0.1 Other changes 0.0 0.0 NET INCOME RECOGNISED DIRECTLY IN EQUITY 1.3 -1.1 0.0 0.0 0.3 Net profit for the period 14.7 0.0 14.7 TOTAL RECOGNISED INCOME AND EXPENSE FOR THE PERIOD 1.3 -1.1 14.7 0.0 14.9 Dividend distribution -46.0 -46.0 Mar 31, 2007 77.5 -0.9 22.9 -2.5 293.8 0.0 390.7 Translation differences -9.2 0.0 -9.3 Changes in associate -1.5 -0.2 -1.7 Equity net investment hedges after tax 2.6 2.6 Other changes 0.1 0.1 NET INCOME RECOGNISED DIRECTLY IN EQUITY -1.5 -6.8 0.0 0.1 -8.1 Net profit for the period 95.4 0.3 95.7 TOTAL RECOGNISED INCOME AND EXPENSE FOR THE PERIOD -1.5 -6.8 95.4 0.5 87.6 Dec 31, 2007 77.5 -0.9 21.4 -9.3 389.1 0.5 478.3 Translation differences -6.9 0.0 -6.9 Changes in associate 2.0 2.0 Equity net investment hedges after tax 2.7 2.7 Other changes 0.1 0.1 NET INCOME RECOGNISED DIRECTLY IN EQUI 0.1 2.0 -4.1 0.0 0.0 -2.0 Net profit for the period 9.5 0.0 9.5 TOTAL RECOGNISED INCOME AND EXPENSE FOR THE PERIOD 0.1 2.0 -4.1 9.5 0.0 7.5 Dividend distribution -61.5 -61.5 Mar 31, 2008 77.5 -0.8 23.4 -13.4 337.2 0.5 424.4 The fair value reserve includes Fiskars share of associate company Wärtsilä's fair value reserve and its changes. Equity net investment hedges have been re-classified to translation differences as of Jan 1, 2008. KEY FIGURES 3/08 3/07 chg 12/07 % Equity/share, euro 5.48 5.05 9 6.18 Equity ratio 39% 57% 46% Net gearing 84% 36% 67% Equity, meur 424.4 390.7 9 478.3 Net interest bear.debt, meur 355.7 142.5 150 319.0 Average number of employees 4378 3018 45 3324 Number of employees eop 4341 3041 43 4515 This interim financial report is prepared in accordance with IAS 34 (Interim Financial Reporting) using the same accounting policies and methods of computation as in the annual financial statements for 2007. All figures in the accounts have been rounded and consequently the sum of individual figures can deviate from the presented sum figure. Fiskars Corporation has adopted IFRS 8 (Operating Segments) as of January 1, 2008. This will impact on disclosure information. Use of estimates The preparation of the financial statements in accordance with IFRS requires management to make estimates and assumptions that affect the valuation of the reported assets and liabilities and other information, such as contingent liabilities and the recognition of income and expenses in the income statement. Although the estimates are based on the management's best knowledge of current events and actions, actual results may differ from the estimates. Amended and new International Financial Reporting Standards (IFRS) as of 1 January 2008: - IFRIC 11 IFRS 2 - Group Treasury Share Transaction - IFRIC 12 Service Concession Agreements - IFRIC 13 Customer Loyalty Programmes - IFRIC 14 IAS 19 - The Limit on Defined Benefit Asset, Minimum Funding Requirements and their Interaction The adoption of the new and revised standards and interpretations does not have any material effect on the interim financial report. SEGMENT INFORMATION 1-3 1-3 chg 1-12 NET SALES 2008 2007 % 2007 MEUR MEUR MEUR EMEA *) 115.3 77.5 49 365.9 Americas *) 52.5 64.0 -18 255.3 Other 13.3 13.5 -2 45.9 Inter-segment sales **) -6.3 -5.0 26 -20.1 CORPORATE TOTAL 174.7 149.9 17 647.0 Export from Finland 30.3 20.8 46 78.6 SEGMENT INFORMATION 1-3 1-3 1-12 OPERATING PROFIT (EBIT) 2008 2007 2007 MEUR MEUR MEUR EMEA *) 3.4 10.5 38.9 Americas *) 2.0 0.7 22.2 Other -3.5 3.7 14.6 Associate Wärtsilä 13.6 6.9 43.3 Unallocated and eliminations -1.7 -2.0 -9.4 CORPORATE TOTAL 13.7 19.8 109.5 SEGMENT INFORMATION 1-3 1-3 1-12 DEPRECIATIONS 2008 2007 2007 MEUR MEUR MEUR EMEA *) 4.0 2.1 10.8 Americas *) 1.9 2.4 9.3 Other 0.7 0.7 2.7 Unallocated and eliminations 0.1 0.1 0.4 CORPORATE TOTAL 6.6 5.2 23.2 SEGMENT INFORMATION 1-3 1-3 1-12 CAPITAL EXPENDITURE 2008 2007 2007 MEUR MEUR MEUR EMEA *) 4.1 2.0 181.5 Americas *) 0.4 0.6 3.2 Other 1.1 0.9 5.3 Associate Wärtsilä 28.9 Unallocated and eliminations 0.1 0.1 1.6 CORPORATE TOTAL 5.6 3.6 220.6 SEGMENT INFORMATION 1-3 1-3 chg 1-12 NET SALES BY BUSINESS AREAS 2008 2007 % 2007 MEUR MEUR MEUR Garden 71.1 74.3 -4 251.2 Homeware 50.2 12.7 295 142.2 Craft 16.9 24.3 -30 92.1 Outdoor Recreation 23.2 27.2 -14 116.2 Inha Works 11.8 12.7 -7 42.0 Real Estate 1.0 0.6 61 3.4 Others 0.4 -1.9 0.0 CORPORATE TOTAL 174.7 149.9 17 647.0 *) In a Stock Exchange Release on March 20, 2008, Fiskars published the comparative figures for 2007 according to the new reporting structure. Since the publication of the Stock Exchange Release, Australia has operationally been moved from the Americas to the EMEA segment and the comparative figures changed accordingly. **) Inter-segment sales, EMEA 4.1 (3.4), Americas 1.8 (1.2), Other 0.4 (0.4). 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. CONTINGENCIES AND PLEDGED ASSETS 3/08 3/07 12/07 MEUR MEUR MEUR AS SECURITY FOR OWN COMMITMENTS Guarantees 1 1 Lease commitments 63 18 53 Other contingencies 7 8 7 TOTAL 71 25 62 GUARANTEES AS SECURITY FOR THIRD-PARTY COMMITMENTS Real estate mortgages 2 2 2 AS SECURITY FOR SUBSIDIARIES' COMMITMENTS Guarantees 12 12 13 TOTAL PLEDGED ASSETS AND CONTINGENCIES 85 39 76 Iittala Group has long-term lease commitments for several facilities in Finland and abroad. NOMINAL AMOUNTS OF DERIVATIVES Forward exchange contracts 136 98 186 Interest rate swaps 16 16 Forward interest rate agreements 30 60 Electricity forward agreements 1 1 MARKET VALUE VS. NOMINAL AMOUNTS OF DERIVATIVES Forward exchange contracts -2 0 0 Interest rate swaps 0 0 Forward interest rate agreements 0 0 Electricity forward agreements 0 0 Forward exchange contracts have been valued at market in the financial statements. RELATED PARTY TRANSACTION Other receivables include dividend receivable EUR 67.2 million from associated company Wärtsilä.
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.