Fiskars Corp. Financial Statement Release February 11, 2010, at 8.30 a.m. STRONG CASH FLOW, COMPARABLE EBIT AT PREVIOUS YEAR'S LEVEL Year 2009 in brief: - Net sales decreased 5% and were EUR 662.9 million (697.0) - Operating profit (EBIT) grew to EUR 39.5 million (6.0) - Operating profit excluding non-recurring items was EUR 40.0 million (40.9) - Cash flow from operating activities was EUR 121.0 million (97.0) - Earnings per share were EUR 1.05 (0.64) - The Board proposes a dividend of EUR 0.52 per share Fourth quarter 2009 in brief: - Net sales decreased 1% and were EUR 173.6 million (174,9) - Operating profit (EBIT) was EUR 9.5 million (-23.5) - Operating profit excluding non-recurring items was EUR 9.5 million (8.3) Fiskars' President & CEO, Kari Kauniskangas: "Overall, Fiskars succeeded well in 2009. Despite a challenging market situation, we improved our position in several markets and strengthened our key brands. The streamlining of our organization reduced our fixed costs, and our relative profitability remained at 2008 levels. One of our successes was the strong level of cash flow from operating activities, thanks to lower costs and a significant reduction in inventory levels. The outlook for 2010 is uncertain. Unemployment remains high in Fiskars' main market areas and this could have an impact on purchasing power and thus the development of our net sales. We remain committed, all the same, to investing in our brands and product development and to improving our profitability." The full-year figures stated in this release are audited. GROUP KEY FIGURES EUR million Q4 Q4 Q1-Q4 Q1-Q4 2009 2008 2009 2008 Net sales 173.6 174.9 662.9 697.0 Change in net sales, % -1% -5% Operating profit (EBIT) 9.5 -23.5 39.5 6.0 Share of profit from associate 19.8 24.6 66.5 70.5 Change in the fair value of biological assets -0.1 -3.1 -0.4 -5.6 Profit before taxes 28.2 -8.2 91.4 51.5 Profit for the period 26.0 -6.5 83.5 49.2 Earnings per share*, EUR 0.32 -0.08 1.05 0.64 Equity per share*, EUR 6.16 5.77 Cash flow from operating activities** 43.0 17.2 121.0 97.0 Equity ratio, % 52% 46% Net gearing, % 47% 69% * Calculated using the weighted average number of shares in the reporting period; with the effect of the combination of the share series on July 30, 2009 ** Incl. Wärtsilä dividend of EUR 25.3 m in 2009 (2008: 67.2m) Further information: - President and CEO Kari Kauniskangas, tel- +358 9 6188 6222 - CFO Teemu Kangas-Kärki, tel.+358 9 6188 6231 Fiskars has today published its Corporate Governance Statement for 2009, which is appended to this release. The statement can also be read on the company's website at www.fiskarsgroup.com. FOURTH QUARTER 2009 The Group's financial performance Fiskars' net sales in October-December 2009 decreased by 1% to EUR 173.6 million (Q4 2008: EUR 174.9 million). At comparable currency rates, the Group's sales increased by 3%. Cash flow from operating activities was EUR 43.0 million (17.2). The Group's operating profit increased to EUR 9.5 million (-23.5). The profit does not include non-recurring items whereas in the comparison period non- recurring costs related to restructuring amounted to EUR 31.8 million. Income from associate Wärtsilä was EUR 19.8 million (24.6) for the quarter, and the change in the fair value of standing timber (i.e. biological assets) EUR -0.1 million (-3.1). Capital expenditure during the quarter was EUR 3.5 million (6.5). The majority of them were investments for production and product development. Net financial costs were EUR -1.0 million (-6.1). Profit before taxes was EUR 28.2 million (-8.2). The profit for the quarter was EUR 26.0 million (-6.5), and earnings per share were EUR 0.32 (-0.08). Segment performance Net sales in EMEA (Europe, Middle East, and Asia-Pacific) rose 2% in the fourth quarter, to EUR 126.4 million (124.4). Net sales of homeware products in the Home business area increased as a result of a successful Christmas season, while those of craft products remained at 2008 levels. Net sales in the Garden business area grew, with snow tools generating good sales as a result of the snowy winter in particular. Net sales in the Outdoor business area continued to decrease, however. Net sales in the Americas declined 7% to EUR 49.9 million (53.7 million). This reflected exchange rate developments, however, as in USD-terms net sales rose 4%, to USD 73.9 million (70.7 million). At comparable currency rates, net sales in the Garden business area moved up compared to 2008, while Homes school, office, and craft (SOC) product sales continued to decline. Net sales at Outdoor rose significantly, partly as a result of sales transferred from the previous quarter. Operating profit in EMEA was up compared to 2008, at EUR 10.5 million (1.0 million, including -7.4 million in non-recurring items). This improvement was driven by better sales margins due to higher sales volumes and more efficient operations, as well as reduced fixed costs. Marketing expenditure, particularly in the garden business in Europe, together with product development and production costs in the boat business, had a negative impact on the profit. Operating profit in the Americas totaled EUR 2.3 million (-18.0 million, including -19.4 million in non-recurring items). Higher sales volumes and lower logistics expenses made a positive contribution. Marketing expenditure also increased in the US, as a result of an extensive revamp of the product packaging. Net sales in the Other segment rose 27% to EUR 1.6 million (1.2 million), and the segment's EBIT came in at EUR -3.1 million (-6.6 million, including -5.0 in non-recurring items). Operating highlights Fiskars sold its Brunton camping brand and its business in December 2009, and American Outdoor business will focus on the Gerber brand in the future. The divestment did not have a substantive impact on net sales or operating profit for the quarter. Brunton recorded net sales of EUR 8.8 million (USD 12.2 million) in 2009. Iittala Group Oy Ab, a subsidiary of Fiskars in the Home business area, simplified its organization in the fourth quarter. Codetermination negotiations held with personnel resulted in 18 people being made redundant and 11 other contracts being terminated. REPORT BY THE BOARD OF DIRECTORS 2009 2009 in brief The challenging market situation and cautious purchasing by retailers and consumers lead to lower net sales of EUR 662.9 million in 2009 (2008: EUR 697.0 million) Operating profit totaled EUR 39.5 million (6.0 million), and EUR 40.0 (40.9 million) excluding non-recurring items. Improvements in the company's cost structure resulted in better relative profitability in the Americas. Lower raw materials costs also contributed to improved performance. Cash flow from operations improved to EUR 121.0 million (97.0), despite a drop in dividend revenue from Fiskars' holding in Wärtsilä Corporation to EUR 25.3 million (67.2 million). The company's series A and K shares were combined in July 2009 in accordance with a decision taken by an Extraordinary General Meeting. Earnings per share for the year were EUR 1.05 (0.64). The Group employed 3,623 people as of the end of the year (4,119). The Group's financial performance Fiskars' net sales decreased by 5% to EUR 662.9 million (697.0) in 2009. At comparable currency rates, the sales decreased by 4%. The operating profit increased to EUR 39.5 million (6.0), and includes EUR 0.5 million of non- recurring costs (34.9). Operating profit excluding non-recurring items was EUR 40.0 million (40.9) or 6% of net sales (6%). Fiskars' reporting structure was changed as of January 1, 2009. Its share of the profit of associated company Wärtsilä and the change in the fair value of its biological assets (i.e. standing timber) are presented as separate lines below EBIT in the income statement. The share of profit from associate was EUR 66.5 million (70.5), and the change in the fair value of standing timber was EUR -0.4 million (-5.6). Net financial costs were EUR -14.2 million (-19.4). Profit before taxes was EUR 91.4 million (51.5). The income taxes for the year totaled EUR -7.9 million (-2.3). The profit for the period increased to EUR 83.5 million (49.2), and earnings per share were EUR 1.05 (0.64). Organizational structure Fiskars' operating segments are EMEA (Europe, Middle East, and Asia-Pacific), Americas, Wärtsilä (associated company), and Other. The Inha Works business, which mainly consists of boat production, has been moved from Other to EMEA as of January 1, 2009. The business areas as of the beginning of 2009 are Home, Garden, Outdoor, and Other. The Home business area includes Homeware as well as School, Office, and Craft (SOC). Boats are included in the Outdoor business area. Other covers Real Estate and corporate headquarter functions. Key operating segments EUR million Q4 Q4 Change Q1-Q4 Q1-Q4 Change 2009 2008 % 2009 2008 % EMEA, net sales 126.4 124.4 2% 454.2 491.3 -8% EMEA, operating profit 10.5 1.0 26.7 21.7* Americas, net sales 49.9 53.7 -7% 218.2 216.5 1% Americas, operating profit 2.3 -18.0 23.9 -4.0** *) Includes non-recurring costs of EUR 9.3 million. **) Includes non-recurring costs of EUR 19.5 million. In addition, Other includes EUR 6.1 million non-recurring costs in 2008. Key business areas EUR million Q4 Q4 Change Q1-Q4 Q1-Q4 Change 2009 2008 % 2009 2008 % Home, net sales 93.9 94.3 0% 299.9 316.8 -5% Garden, net sales 40.0 38.3 5% 230.9 231.2 0% Outdoor, net sales 38.7 41.2 -6% 128.4 145.2 -12% EMEA Net sales in the EMEA segment fell 8% to EUR 454.2 million (491.3). Using comparable exchange rates, the decline was 5%. Operating profit totaled EUR 26.7 million (21.7, including -9.3 million in non-recurring items). Personnel as of the end of the year totaled 2,899 (3,276). The market situation remained challenging throughout the year. Consumer demand and retailer purchasing failed to return to pre-recessions levels. The weaker performance of currencies such as the British pound and the Swedish krona compared to the euro also contributed to lower net sales. Net sales in the Home business area fell slightly. Sales in the business' largest markets in Finland and Sweden as well as in Norway continued to develop well, particularly with respect to the Arabia and Iittala brands. Weaker exchange rates and sales in other markets, however, had a negative impact on net sales. More efficient production and procurement improved the operating profit in the EMEA segment. Sales of craft products were lower, but this was compensated for by lower costs. In the Garden business area, sales of Fiskars-brand garden tools grew significantly, particularly in Germany. Low levels of sales in construction tools and forged products, together with weaker exchange rates, kept net sales lower than in 2008. The improved profitability of the product range, resulting from factors such as lower raw material costs and more efficient production, together with other cost savings, contributed positively to the segment's operating profit, although marketing expenditure increased. Net sales in the Outdoor business area fell in a challenging market situation. Net sales of outdoor gear in France and Sweden in particular were lower, as a result of the weaker Swedish krona and lower sales of corporate gifts and everyday exercise products. 2009 was a difficult year on the boat market, and the Group's boat-related net sales were significantly down. Lower sales volumes, together with development costs related to new boat models, had a negative effect on the operating profit of the EMEA segment. Americas Net sales in the Americas segment rose by 1% to EUR 218.2 million (216.5). In USD terms, net sales fell by 4%, however, to USD 302.5 million (319.1). Operating profit totaled EUR 23.9 million (-4.0, including -19.5 million in non-recurring items). Personnel as of the end of year totaled 667 (792). The recession in the US economy impacted purchases made by retailers, but also reduced the prices of raw materials, particularly plastics, during 2009. Operating profit in the Americas improved strongly, driven by lower fixed costs, in particular. Net sales in the Garden business area remained at 2008 levels. Although some retailers continued to reduce their inventories during the year, these lost sales were replaced by sales of new garden products launched during 2009. Net sales of school, office, and craft (SOC) products in the Home business fell significantly, partly as a result of the divestment of consumables product lines and brands in craft business in July 2009. Lower sales were compensated for by lower fixed costs. Net sales in the Outdoor business area rose in 2009, driven in particular by institutional sales, which developed well. Higher sales volumes contributed positively to the operating profit of the Americas segment. The Brunton brand and its business were sold in December 2009, which will impact net sales in 2010. Other Fiskars' Other segment comprises Real Estate, which is responsible for managing the Group's forests and other land and for the internal and external leasing of Fiskars' property in Finland, and the corporate headquarter functions. The segment recorded net sales of EUR 6.1 million (5.9 million), of which the majority comprised revenue from timber sales and rental income from properties. The segment's operating profit,including EUR -0.5 million non- recurring items, was EUR -11.1 million (-11.7, including -6.1 million in non- recurring items). The change in the value of standing timber, reported below EBIT, was EUR -0.4 million (-5.6). Personnel as of the end of year totaled 57 (51). Wärtsilä Wärtsilä Corporation, a leading provider of marine and power solutions, is included in Fiskars' consolidated financial statements as an associated company. Fiskars owns in total 17.1% of the shares and votes of Wärtsilä. Fiskars' share of Wärtsilä's profit totaled EUR 66.5 million (70.5) in 2009. The Annual General Meeting of Wärtsilä was held on March 11, 2009. The Chairman of the Board of Fiskars, Mr. Kaj-Gustaf Bergh, and the President and CEO of Fiskars, Mr. Kari Kauniskangas, were re-elected to Wärtsilä's Board of Directors. The Meeting decided to pay a dividend of EUR 1.50 per share (4.25). Fiskars received a total of EUR 25.3 million (67.2) in dividends. The market value of Fiskars' Wärtsilä shares was EUR 472.9 million (353.9) or EUR 5.76 (4.57) per Fiskars' share at the end of the year, with a closing price EUR 28.07 (21.01) per Wärtsilä share. The book value of the shares was EUR 316.8 million (263.5). Financing Fiskars' cash flow from operations totaled EUR 121.0 million (97.0 million) in 2009, an improvement that was largely driven by significantly lower inventory levels. The cash flow includes dividends paid by associated company Wärtsilä totaling EUR 25.3 million (67.2 million). Cash flow from investing activities was EUR -8.7 million (-25.8) and cash flow after investing activities was EUR 112.2 million (71.2) in the year. Net working capital was EUR 102.6 million (EUR 149.4) at the end of the year. The equity ratio was 52% (46%) and net gearing 47% (69%). Cash and deposits at the end of the period were EUR 38.6 million (11.3). Fiskars hedges exchange rate risks associated with future cash flow using currency derivatives. The value of these derivatives increased financing expenses in 2009 by EUR 4.5 million (2008: decreased expenses by 3.7 million), as the company does not apply hedge accounting as defined under IAS 39 to its derivatives. Net interest-bearing debt amounted to EUR 235.7 million (309.9). Short-term borrowings totaled EUR 199.7 million (183.7) and long-term borrowings EUR 74.9 million (137.5). Short-term borrowings are mainly commercial papers issued by Fiskars Corporation. In addition, Fiskars had EUR 425.0 million (405.0) in unused, binding long-term credit facilities, mainly with major Nordic banks. Investments and product development Investments during the 2009 financial year totaled EUR 14.6 million (29.8 million). The EMEA segment accounted for 10.7 million (23.7 million) of the total, the Americas EUR 2.8 million (3.0 million), and Other 1.1 million (3.1 million). Investments were largely related to production and product development. The Home business area also invested in revamping retail stores and in its customer loyalty system. Investments at Real Estate were largely concentrated in building repair and renovation projects. The Group's product development expenditure totaled EUR 8.9 million (8.4 million), equivalent to 1% (1%) of net sales. Major R&D projects in 2009 covered, for example, a rainwater collector product range, a new ax concept, and new boat models. Personnel The Group employed an average of 3,867 people (4,325) in 2009. The number of personnel was 3,623 (4,119) as of the end of the year, of which 2,899 (3,276) were employed in the EMEA region, 667 (792) in the Americas, and 57 (51) by segment Other. Fiskars employed 1,512 (1,722) people in Finland. The reduction of personnel in EMEA was largely the result of reorganizations of production plant operations. The merger of the Garden and SOC units, together with the sale of the Brunton business, reduced personnel levels in the Americas. The wages and salaries for the year totaled EUR 113.4 million (126.4). Changes in management Juha Lehtola, M.Sc. (Econ), was appointed President of the Boats business and Managing Director of Inha Works Ltd. in March 2009. Jaakko Autere, M.Sc. (Econ), was appointed President of Fiskars' Home business area and CEO of Iittala Group Oy Ab in August 2009 and took over his duties in January 2010. Both Lehtola and Autere report to Fiskars' President & CEO, Kari Kauniskangas. Corporate Governance Fiskars complies with the Finnish Corporate Governance Code issued by the Securities Market Association, which came into force on January 1, 2009. Fiskars' Corporate Governance Statement for 2009 in accordance with Recommendation 51 of the Code was issued on February 11, 2010 as a separate report. Fiskars also complies with the insider regulations of NASDAQ OMX Helsinki latest updated on October 9, 2009, and the company's internal insider guidelines latest updated on November 3, 2009. Risks and business uncertainties Fiskars' business, net sales and financial performance may be affected by several uncertainties. The principal uncertainties are related to: - General market conditions and a potential decline in consumer demand in Fiskars' significant market areas in Europe and North America - Loss of or reduced sales of major retail customers, retailers' financial difficulties, and disruptions in the activities of a distribution channel - Availability of products due to supply chain issues - Unexpected weather conditions in the Garden business area and seasonal variations, especially in the Home business area which is heavily geared towards the end of the year - Sudden fluctuations in raw material and energy prices; the most important raw materials being steel, aluminum, and plastic - Major changes in profitability or ability to pay dividends of the associated company Wärtsilä. Environment In line with its Code of Conduct, Fiskars aims to ensure that its products, services, and production promote sustainable development. The company does not monitor environmental costs separately, as they are an integral part of its normal business operations and business development. No major environmental investments were made in 2009. Most of Fiskars' industrial operations involve no significant environmental risks. Production facilities have up-to-date environmental permits that set clear limits on their operations. Changes in environmental directives can affect existing environmental permits. Adapting to such directives may require changes in existing production methods or investments in new equipment. Production in the Home business area uses more energy than other Fiskars' production units. All of the business area's production plants in Finland have environmental and quality systems audited in accordance with ISO standards. Share Fiskars Corporation has one series of shares, following the combination of the company's series A and K shares in July 2009. The new single class shares (FIS1V) became subject to public trading as of July 31, 2009. All shares carry one vote each and equal rights. With reference to the decisions of the Extraordinary General Meeting on June 5, 2009, the combination of the share series, the directed free share issue to the holders of series K shares, and the amendments to the articles of association were registered with the Finnish Trade Register on July 30, 2009. In the directed free share issue, the holders of series K shares received one share free of charge for each five series K shares. The execution of the merger of Agrofin Oy Abinto Fiskars as well as the share issue for the payment of the merger consideration were registered with the Finnish Trade Register on July 31. The new shares issued as merger consideration became subject to public trading as of August 3, 2009. The cancellation of 11,863,964 shares that were transferred to Fiskars as a result of the execution of merger was registered on August 3, 2009. The total number of shares at the end of the period was 82,023,341, including 112,619 treasury shares. The share capital remained unchanged at EUR 77,510,200. Fiskars' shares are traded in the Large Cap segment of NASDAQ OMX Helsinki Ltd. At the end of the year, the closing price was EUR 10.62 per share (A- share 6.96; K-share 11.15). The market value of Fiskars, excluding treasury shares, was EUR 869.9 million (633.2). The number of shares traded during the year was 4.4 million (5.1). Treasury shares The Board of Directors had authorizations to acquire and dispose treasury shares during the year. At the end of the period, the authorizations concerned a maximum of 4,020,000 shares. The Board may decide on the disposal of the shares otherwise than in proportion to the shareholders' pre-emptive subscription rights. The authorizations will remain in force until the end of the next Annual General Meeting. The authorizations were not used during the year. As of the end of the year, Fiskars owned 112,619 treasury shares, corresponding to 0.14% of the Corporation's shares and votes. Shareholders Fiskars Corporation had 11 915 (9 899) shareholders as of the end of the year. During the year Fiskars was informed on the following changes among the largest shareholders of the Company: - The voting rights of Robert G. Ehrnrooth fell below the 1/10 threshold on June15, 2009 when his controlling interest ended at Turret Oy Ab. - The voting rights of Virala Oy Ab fell below the 3/20 threshold, holdings of Elsa Fromond together with the company Holdix Oy Ab in which she has a controlling interest exceeded the 1/10 threshold, and the voting rights of Oy Julius Tallberg Ab fell below the 1/20 threshold, following the combination of share series on July 30, 2009 and the merger of Agrofin and Fiskars on July 31, 2009. - Elsa Fromond together with the company Holdix Oy Ab in which she has a controlling interest fell below the 1/10 threshold on October 5, 2009. Annual General Meeting 2009 Fiskars Corporation's Annual General Meeting on March 16, 2009 approved the financial statements for 2008 and discharged the members of the Board and the CEO from liability for the 2008 financial year. It was decided to pay a dividend of EUR 0.50 per share for series A shares and EUR 0.48 per share for series K shares, totaling EUR 38,247,526.74. The dividend was paid on March 26, 2009. The number of Board members was decided to 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 re-elected as Board members. The term of Board members will expire at the end of the Annual General Meeting in 2010. KPMG Oy Ab was elected auditor and they nominated Authorized Public Accountant Mr. Mauri Palvi as responsible auditor. The Meeting authorized the Board to acquire and dispose Fiskars shares, a maximum of 2,700,000 of Series A shares and a maximum of 1,100,000 of Series K shares. Constitutive meeting of the Board of Directors Convening after the Annual General Meeting on March 16,2009, 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 Alexander Ehrnrooth, Paul Ehrnrooth, Ilona Ervasti-Vaintola 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. Extraordinary General Meeting 2009 Fiskars Corporation's Extraordinary General Meeting on June 5, 2009 approved a proposal by the Board of Directors to combine the Company's A and K series of shares, make a complimentary issue of shares to holders of K series shares, amend the Company's Articles of Association, and approve a plan to merge the Company and Agrofin Oy Ab. The Meeting also decided to authorize the Board to acquire and dispose Fiskars shares in accordance, a maximum of 4,020,000 shares, with separately agreed conditions. Annual General Meeting 2010 Fiskars Corporation's Annual General Meeting will be held on Tuesday, March 16, 2010 starting at 3 p.m. in the Helsinki Fair Centre. The invitation to the meeting will be published separately. Board's proposal to the Annual General Meeting The distributable equity of the Parent Company at the end of the 2009 fiscal year was EUR 429.9 million (460.5). The Board of Directors proposes to the Annual General Meeting of Shareholders that a dividend of EUR 0.52 per share would be paid for 2009. The number of shares entitling to a dividend totaled 81,910,722. The proposed distribution of dividend would thus be EUR 42,593,575.44. This would leave EUR 387.3 million of unused profit funds at the Parent Company. No material changes have taken place in the financial position of the Company after the end of the fiscal year. The financial standing of the Company is good and according to the Board of Directors' assessment the proposed distribution of dividend will not compromise the Company's solvency. Outlook for 2010 The market situation is expected to remain uncertain, which will continue to make predicting developments difficult in 2010. High unemployment in North America and Europe in particular could result in weaker consumer demand. Retailer purchasing is also expected to remain cautious. All these factors could have an impact on the development of Fiskars' net sales. Fiskars will continue implementing measures designed to improve its profitability and competitiveness in 2010. Investments in brands and product development will be increased, as the Group's capabilities in these areas are central to its success in a challenging market situation. Fiskars' net sales in 2010 are expected to remain at 2009 levels. Full-year operating profit excluding non-recurring items is expected to increase compared to 2009. Associated company Wärtsilä will continue to have a major impact on Fiskars' profit and cash flow in 2010. Helsinki, Finland, February 10, 2010 Fiskars Corporation Board of Directors CONSOLIDATED INCOME STATEMENT 10-12 10-12 Change 1-12 1-12 Change 2009 2008 % 2009 2008 % MEUR MEUR MEUR MEUR NET SALES 173.6 174.9 -1 662.9 697.0 -5 Cost of goods sold -112.6 -132.1 -15 -436.3 -483.5 -10 GROSS PROFIT 61.0 42.8 43 226.6 213.5 6 Other operating income 0.4 0.4 17 1.8 2.9 -37 Sales and marketing expenses -33.6 -34.3 -2 -119.4 -129.8 -8 Administration expenses -15.5 -12.3 26 -58.8 -54.4 8 Research and development costs -2.5 -2.9 -14 -8.9 -8.4 6 Other operating expenses -0.3 -17.1 -98 -1.9 -17.8 -89 OPERATING PROFIT (EBIT) 9.5 -23.5 39.5 6.0 Change in fair value of biological assets -0.1 -3.1 -98 -0.4 -5.6 -93 Share of profit from associate 19.8 24.6 -20 66.5 70.5 -6 Other financial income and expenses -1.0 -6.1 -83 -14.2 -19.4 -26 PROFIT BEFORE TAXES 28.2 -8.2 91.4 51.5 77 Income taxes -2.2 1.7 -7.9 -2.3 PROFIT FOR THE PERIOD 26.0 -6.5 83.5 49.2 70 Attributable to: Owners of the Company 26.0 -6.5 83.5 49.3 69 Non-controlling interest 0.0 -0.1 0.0 -0.1 26.0 -6.5 83.5 49.2 Earnings for owners of the Company per share, euro (basic and diluted) 0.32 -0.08 1.05 0.64 OTHER COMPREHENSIVE INCOME 10-12 10-12 1-12 1-12 2009 2008 2009 2008 MEUR MEUR MEUR MEUR PROFIT FOR THE PERIOD 26.0 -6.5 83.5 49.2 Translation differences 0.1 -2.0 -1.9 -1.9 Change in associate recognized directly in other comprehensive income 2.2 -9.1 12.7 -18.1 Equity net investment hedges after tax 0.1 1.6 1.3 0.7 Defined benefit plan, actuarial gains (losses), net of tax 1.1 -0.1 0.7 -0.2 Other changes 0.0 0.2 OTHER COMPREHENSIVE INCOME FOR THE PERIOD, NET OF TAX, IN TOTAL 3.5 -9.6 12.8 -19.3 TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 29.6 -16.1 96.3 29.9 Attributable to: Owners of the Company 29.6 -16.0 96.3 30.0 Non-controlling interest 0.0 -0.1 0.0 -0.1 29.6 -16.1 96.3 29.9 CONSOLIDATED BALANCE SHEET 12/2009 12/2008 Change MEUR MEUR % ASSETS NON-CURRENT ASSETS Intangible assets 124.9 131.0 -5 Goodwill 99.4 99.2 0 Property, plant & equipment 99.5 113.2 -12 Biological assets 38.9 39.3 -1 Investment property 8.5 7.7 11 Investments in associates 316.8 263.5 20 Financial assets Shares at fair value through profit and loss 3.0 2.9 1 Other investments 2.1 2.2 -2 Deferred tax assets 17.8 21.7 -18 NON-CURRENT ASSETS TOTAL 710.9 680.6 4 CURRENT ASSETS Inventories 119.0 159.8 -26 Trade and other receivables 101.9 109.6 -7 Income tax receivables 2.9 8.4 -66 Cash and cash equivalents 38.6 11.3 243 CURRENT ASSETS TOTAL 262.4 289.0 -9 ASSETS TOTAL 973.3 969.7 0 EQUITY AND LIABILITIES Equity attributable to the Owners of the Company 504.8 446.7 13 Non-controlling interest 0.0 0.0 EQUITY TOTAL 504.8 446.7 13 NON-CURRENT LIABILITIES Interest bearing debt 74.9 137.5 -46 Other liabilities 0.9 1.4 -36 Deferred tax liabilities 47.2 49.3 -4 Pension liability 9.4 9.2 3 Provisions 9.1 13.4 -32 NON-CURRENT LIABILITIES TOTAL 141.5 210.8 -33 CURRENT LIABILITIES Interest bearing debt 199.7 183.7 9 Trade and other payables 121.3 121.9 -1 Income tax payable 6.1 6.6 -9 CURRENT LIABILITIES TOTAL 327.1 312.2 5 EQUITY AND LIABILITIES TOTAL 973.3 969.7 0 CONSOLIDATED STATEMENT 10-12 10-12 1-12 1-12 OF CASH FLOWS 2009 2008 2009 2008 MEUR MEUR MEUR MEUR CASH FLOW FROM OPERATING ACTIVITIES Profit before taxes 28.2 -8.2 91.4 51.5 Adjustments for Depreciation 6.5 12.8 28.1 32.9 Share of profit from associate -19.8 -24.6 -66.5 -70.5 Investment income 0.5 -1.1 0.3 -1.0 Interest expenses 1.1 7.4 14.2 20.4 Change in fair value of biological assets 0.1 3.1 0.4 5.6 Other non-cash items -4.5 -12.4 Cash flow before changes in working capital 12.1 -10.6 55.6 39.0 Changes in working capital Change in current assets, non-interest bearing -4.1 14.5 -0.7 10.9 Change in inventories 18.2 15.5 50.3 10.6 Change in current liabilities, non-interest bearing 17.4 1.5 4.1 -7.5 Cash flow from operating activities before financial items and taxes 43.6 20.8 109.3 53.0 Dividends from associate 25.3 67.2 Financial costs paid (net) -1.2 -4.3 -13.8 -18.0 Taxes paid 0.6 0.6 0.2 -5.2 CASH FLOW FROM OPERATING ACTIVITIES (A) 43.0 17.2 121.0 97.0 CASH FLOW FROM INVESTING ACTIVITIES Acquisitions -0.2 -3.1 Capital expenditure on fixed assets -3.4 -5.5 -14.5 -25.4 Proceeds from sale of fixed assets 0.0 1.9 1.6 4.1 Cash flow from other investments 3.7 -1.7 4.2 -1.4 CASH FLOW FROM INVESTING ACTIVITIES (B) 0.3 -5.3 -8.7 -25.8 CASH FLOW FROM FINANCING ACTIVITIES Sell of treasury shares 0.2 Borrowings of non-current debt 21.5 40.0 62.2 Repayment of non-current debt -9.7 -86.5 -0.1 Change in current debt -1.6 -30.2 2.0 -85.6 Payment of financial lease liabilities -0.7 -0.8 -2.5 -3.4 Cash flow from other financing items 0.0 -3.0 -0.1 -3.5 Dividends paid -38.2 -61.5 CASH FLOW FROM FINANCING ACTIVITIES (C) -12.0 -12.5 -85.4 -91.7 CHANGE IN CASH (A+B+C) 31.3 -0.6 26.9 -20.5 Cash at beginning of period 7.0 11.9 11.3 34.5 Translation difference 0.3 0.0 0.5 -2.8 Cash at end of period 38.6 11.3 38.6 11.3 STATEMENT OF CHANGES IN Equity attributable to the Non-cont Total CONSOLIDATED EQUITY owners of the Company: rolling Trea- Cumul. interest Share sury transl. Retain. capital shares diff. earn. MEUR MEUR MEUR MEUR MEUR MEUR 31.12.2007 77.5 -0.9 -9.3 410.5 0.5 478.3 Total comprehensive income for the period 0.1 -7.1 37.4 -0.5 29.9 Dividends paid -61.5 -61.5 31.12.2008 77.5 -0.8 -16.5 386.5 0.0 446.7 Total comprehensive income for the period 3.7 92.6 0.0 96.3 Dividends paid -38.2 -38.2 Acquisition of non-controlling interest 0.1 0.1 31.12.2009 77.5 -0.8 -12.8 440.9 0.0 504.8 KEY FIGURES 12/2009 12/2008 Change % Equity/share, euro 6.16 5.77 7 Equity ratio 52% 46% Net gearing 47% 69% Equity, EUR million 504.8 446.7 13 Net interest bearing debt, EUR million 235.7 309.9 -24 Average number of employees 3,867 4,325 -11 Number of employees, end of period 3,623 4,119 -12 Number of shares outstanding end of period, in thousands A shares 54,832 K shares 22,565 Total 81,911 77,398 Weighted average number of outstanding shares during period, in thousands 79,289 77,398 CURRENCY RATES 1-12 1-12 Change 2009 2008 % USD average rate 1.39 1.47 -5 USD end-of-period 1.44 1.39 4 NOTES TO THE FINANCIAL STATEMENTS BULLETIN This financial statement bulletin is prepared in accordance with IAS 34 (Interim Financial Reporting) using the same accounting policies and methods of computation as in the previous annual financial statements and IFRS standards and interpretations applied from January 1, 2009 onwards. All figures in the accounts have been rounded and consequently the sum of individual figures can deviate from the presented sum figure. The share series of Fiskars Corporation were combined in July 2009. Since that Fiskars Corporation has only one series of shares. The total number of shares in the end of the reporting period was 82,023,341. The company owns 112,619 treasury shares. In the calculation of earnings per share (EPS), average number of shares in the reporting period has been used. Therefore EPS includes the effect of the combination of the two share series and the directed free share issue. The definition for operating profit (EBIT) was changed as of January 1, 2009. The operating profit includes operating results of Fiskars operating segments EMEA, America, and Others. The share of the profit of associated company Wärtsilä and the change in the fair value of biological assets are presented in separate lines below the EBIT in the income statement. Fiskars' operating segment and business area structure was changed as of January 1, 2009. The comparison figures for 2008 have been restated according to the new structure. Fiskars Corporation has adopted IFRS 8 (Operating Segments) as of January 1, 2008. Fiskars changed the accounting estimate used for valuing its biological assets in the fourth quarter of 2008. The average price for measuring the fair value of standing timber was changed to a three-year rolling average price. Fiskars changed the accounting for defined benefit pension liabilities to apply the amendment of IAS 19 allowing for immediate recognition of actuarial gains and losses in the equity in the fourth quarter of 2008. The previous periods' data was restated accordingly. Due to the change, a EUR 0.1 million adjustment in the operating profit (EBIT) to the fourth quarter of 2008 was made. The Group has implemented the following new or amended International Financial Reporting Standards (IFRS) and interpretations applicable to the Group as of January 1, 2009: - Revised IAS 1 Presentation of Financial Statements - Amendments to IFRS 7 Financial Instruments: Disclosures - Improving Disclosures About Financial Instruments - IFRIC 13 Customer Loyalty Programmes - Improvements to IFRS (Annual Improvements) - IAS 23 (revised) Borrowing costs The adoption of the revised standards and interpretations had no material impact on the reported results or financial position. Adoption of new IFRS standards and interpretations as from January 1, 2010: The standards, interpretations and their amendments described below have been issued but the Group has not applied these regulations before their effective dates. The Group will adopt them as of the effective date or, if the date is other than the first day of the financial year, from the beginning of the subsequent financial year. - Revised IFRS 3 Business Combinations - Amended IAS 27 Consolidated and Separate Financial Statements - IFRS 9 Financial Instruments Several other IFRS changes and interpretations will be issued 2010. They will not have an impact on the financial statements. 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. OPERATING SEGMENTS *) 10-12 10-12 Change 1-12 1-12 Change NET SALES 2009 2008 % 2009 2008 % MEUR MEUR MEUR MEUR EMEA 126.4 124.4 2 454.2 491.3 -8 Americas 49.9 53.7 -7 218.2 216.5 1 Other 1.6 1.2 27 6.1 5.9 3 Inter-segment sales **) -4.3 -4.4 -15.5 -16.7 GROUP TOTAL 173.6 174.9 -1 662.9 697.0 -5 OPERATING SEGMENTS *) 10-12 10-12 1-12 1-12 OPERATING PROFIT (EBIT) 2009 2008 2009 2008 MEUR MEUR MEUR MEUR EMEA 10.5 1.0 26.7 21.7 Americas 2.3 -18.0 23.9 -4.0 Other and eliminations -3.3 -6.6 -11.1 -11.7 GROUP TOTAL 9.5 -23.5 39.5 6.0 OPERATING SEGMENTS *) 10-12 10-12 1-12 1-12 DEPRECIATION AND IMPAIRMENT 2009 2008 2009 2008 MEUR MEUR MEUR MEUR EMEA 5.9 4.8 20.5 18.3 Americas 2.0 7.6 7.8 12.8 Other and eliminations -1.4 0.5 -0.2 1.8 GROUP TOTAL 6.5 12.8 28.1 32.9 OPERATING SEGMENTS *) 10-12 10-12 1-12 1-12 CAPITAL EXPENDITURE 2009 2008 2009 2008 MEUR MEUR MEUR MEUR EMEA 2.6 4.4 10.7 23.7 Americas 0.8 0.4 2.8 3.0 Other and eliminations 0.2 1.7 1.1 3.1 GROUP TOTAL 3.5 6.5 14.6 29.8 *) In a Stock Exchange Release on April 23, 2009, Fiskars published the comparative figures for 2008 according to the new reporting structure. The share of profit of the associated company Wärtsilä is presented in a separate line below EBIT in the income statement. **) Inter-segment sales EMEA -2.6 -2.7 -7.9 -10.3 Americas -1.1 -1.1 -5.2 -5.1 Other -0.6 -0.5 -2.4 -1.4 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. BUSINESS AREAS 10-12 10-12 Change 1-12 1-12 Change NET SALES 2009 2008 % 2009 2008 % MEUR MEUR MEUR MEUR Home 93.9 94.3 0 299.9 316.8 -5 Garden 40.0 38.3 5 230.9 231.2 0 Outdoor 38.7 41.2 -6 128.4 145.2 -12 Other 1.0 1.0 3.7 3.9 GROUP TOTAL 173.6 174.9 -1 662.9 697.0 -5 INTANGIBLE ASSETS AND GOODWILL 12/200912/2008 MEUR MEUR Book value, Jan. 1 230.2 233.8 Currency translation adjustment -0.1 2.8 Acquisitions and divestments -0.5 Additions 1.0 1.4 Amortization and impairment -6.0 -6.0 Decreases and transfers -0.2 -1.9 BOOK VALUE AT END OF PERIOD 224.4 230.2 TANGIBLE ASSETS AND INVESTMENT PROPERTY 12/200912/2008 MEUR MEUR Book value, Jan. 1 120.9 130.2 Currency translation adjustment 0.1 -1.2 Acquisitions and divestments -1.5 Additions 13.6 24.0 Depreciation and impairment -22.0 -26.5 Decreases and transfers -3.0 -5.5 BOOK VALUE AT END OF PERIOD 108.0 120.9 CONTINGENCIES AND PLEDGED ASSETS 12/200912/2008 MEUR MEUR AS SECURITY FOR OWN COMMITMENTS Guarantees 0 1 Lease commitments 60 64 Other contingencies 4 5 TOTAL 65 71 GUARANTEES AS SECURITY FOR THIRD-PARTY COMMITMENTS Real estate mortgages 2 2 Pledged assets 2 TOTAL 4 2 AS SECURITY FOR SUBSIDIARIES' COMMITMENTS Guarantees 9 16 TOTAL CONTINGENCIES AND PLEDGED ASSETS 78 89 NOMINAL AMOUNTS OF DERIVATIVES Forward exchange contracts 151 171 Interest rate swaps 1 16 Electricity forward agreements 2 2 MARKET VALUE VS. NOMINAL AMOUNTS OF DERIVATIVES Forward exchange contracts 0 2 Interest rate swaps 0 0 Electricity forward agreements 0 0 Forward exchange contracts have been valued at market in the financial statements. RELATED PARTY TRANSACTIONS The dividend from Wärtsilä EUR 25.3 million is reported as Dividends from associate in the Consolidated Statement of Cash Flows. The dividend was received during the first quarter of 2009. ACQUISITIONS AND DIVESTMENTS Fiskars acquired a 30% minority share of Silva Far East Ltd in June 2009. The holding was acquired from Kasinda Holding Limited for EUR 0.2 million. After the minority share acquisition, the manufacturing company in China became a wholly owned subsidiary of Silva Sweden AB. Fiskars sold the Brunton business in in Wyoming, USA in December 2009 to Fenix Outdoor AB (publ) of Sweden. The transaction did not have a material impact on Fiskars´ net sales or operating profit 2009. Brunton was reported as a part of Fiskars´Outdoor business. Fiskars is a leading global supplier of consumer products for the home, garden, and outdoors. The group has a strong portfolio of respected international brands, including Fiskars, Iittala, Gerber, Silva, and Buster. Founded in 1649 and listed on NASDAQ OMX Helsinki, Fiskars is Finland's oldest company. Fiskars recorded net sales of EUR 663 million in 2009, and employs some 3,600 people. www.fiskarsgroup.com FISKARS CORPORATION Kari Kauniskangas President & CEO
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.