2011-02-09 07:30:00 CET
2011-02-09 07:30:06 CET
REGULATED INFORMATION
Fiskars - Financial Statement Release
Fiskars Corporation Financial Statement Release for the year 2010
A year of solid performance and profit increase
Fiskars Corp. Financial Statement Release February 9, 2011, at 8.30 a.m
EET.
Year 2010 in brief:
-- Net sales increased 8% and were EUR 715.9 million (660.3)
-- Operating profit excluding non-recurring items grew 51 % to EUR 60.4million
(40.0)
-- Operating profit (EBIT) grew 24 % to EUR 49.1 million (39.5)
-- Cash flow from operating activities was EUR 92.6 million (121.0)
-- Earnings per share were EUR 1.15 (1.05)
-- The Board proposes a dividend of EUR 0.60 per share
-- Outlook for 2011: Net sales to be above 2010 level, operating profit excl.
non-recurring items at a similar level as in 2010
Fourth quarter 2010 in brief:
-- Net sales increased 10% and were EUR 190.6 million (172.6)
-- Operating profit excluding non-recurring items increased 33 % to EUR 12.6
million (9.5)
-- Operating profit (EBIT) decreased 86 % and was EUR 1.3 million (9.5)
Fiskars' President & CEO, Kari Kauniskangas:
“Fiskars had a solid year in 2010 and we recorded the best operating profit
excluding non-recurring items in the company's history. I am pleased to see
that our new strategy is starting to pay off and our transformation into a
branded consumer goods company is well on its way.
In EMEA, all businesses grew and improved their operating profit. In the
Americas we were able to keep net sales at 2009 levels and clearly increase our
profit although the general market situation remained cautious in 2010 and
despite some divestments we made in 2009.
Year 2010 was an exceptionally strong year for our Garden business,
particularly in Europe. The weather was on our side, and the sales of snow
tools reached record levels both during the first and last quarter. In
addition, marketing efforts and product launches led to market share gains in
major Central European markets.
At the end of 2010, we launched a significant five year investment program in
EMEA to create a more streamlined supply chain and improve business
transparency. In 2011, we continue simplifying our operations and building
common processes and platforms to further increase efficiency. We also continue
to invest in brand building and product development, as these areas are central
in helping to secure future growth.
Although some uncertainty may linger in parts of our business environment in
2011, consumer trends support our business and Fiskars is in a good position to
continue expanding its business.”
Further information:
-- President and CEO Kari Kauniskangas, tel. +358 204 39 5500
-- CFO Teemu Kangas-Kärki, tel.+358 204 39 5703
The full-year figures stated in this release are audited.
GROUP KEY FIGURES
MEUR Q4 Q4 Change Q1-Q4 Q1-Q4 Change
2010 2009 2010 2009
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Net sales 190.6 172.6 10% 715.9 660.3 * 8%
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Operating profit (EBIT) 1.3 9.5 -86% 49.1 39.5 24%
--------------------------------------------------------------------------------
Share of profit from associate 30.1 19.8 52% 65.9 66.5 -1%
--------------------------------------------------------------------------------
Change in the fair value of -0.4 -0.1 -2.2 -0.4
biological assets
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Profit before taxes 30.3 28.2 8% 106.7 91.4 17%
--------------------------------------------------------------------------------
Profit for the period 28.9 26.0 11% 94.3 83.5 13%
--------------------------------------------------------------------------------
Earnings per share, EUR** 0.35 0.32 11% 1.15 1.05 9%
--------------------------------------------------------------------------------
Equity per share, EUR** 6.76 6.16 10%
--------------------------------------------------------------------------------
Cash flow from operating 29.6 43.0 -31% 92.6 121.0 -23%
activities***
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Equity ratio, % 57% 52%
--------------------------------------------------------------------------------
Net gearing, % 36% 47%
--------------------------------------------------------------------------------
Capital expenditure 7.5 3.5 114% 18.6 14.6 27%
--------------------------------------------------------------------------------
Personnel (FTE), average 3,664 3,885 -6% 3,612 3,867 -7%
--------------------------------------------------------------------------------
*The figures for 2009 include changes due to the reclassification of certain
accounts. Please see the notes to the interim report
**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 29.5 million in 2010 (2009: 25.3)
Fiskars has on February 9, 2011 published its Corporate Governance Statement
for 2010, which is available on the company's website at www.fiskarsgroup.com.
Fiskars has on February 9, 2011 also published its Annual Review of information
published in 2010. The Annual Review is available at www.fiskarsgroup.com.
News conference:
An analyst and press conference on the quarterly and full year results will be
held today, February 9, 2011, at 10:00 am EET at the company's headquarters,
Fiskars Campus, Hämeentie 135 A, Helsinki, Finland. Presentation materials will
be available at www.fiskarsgroup.com.
FOURTH QUARTER 2010
Group financial performance
Fiskars' net sales in October-December 2010 increased by 10% to EUR 190.6
million (Q4 2009: EUR 172.6 million), driven by strong growth in the Garden
business and good performance in Boats and Home. At comparable currency rates,
the Group's sales increased by 5%. Cash flow from operating activities was EUR
29.6 million (43.0).
The Group's operating profit excluding non-recurring items grew 33% to EUR 12.6
million (9.5) owing mainly to improved profit in the Americas. As a result of
impairment testing, Fiskars booked an EUR 11.3 million impairment charge
against the goodwill allocated to the Outdoor business area in EMEA. As a
result of the impairment charge, operating profit decreased 86% to EUR 1.3
million (9.5).
Income from associate Wärtsilä was EUR 30.1 million (19.8) for the quarter, and
the change in the fair value of standing timber (i.e. biological assets) EUR
-0.4 million (-0.1).
Capital expenditure during the quarter was EUR 7.5 million (3.5). The majority
of them were investments in production and new product development.
Net financial costs were EUR -0.6 million (-1.0). Profit before taxes was EUR
30.3 million
(28.2). The profit for the quarter was EUR 28.9 million (26.0), and earnings
per share were EUR 0.35 (0.32).
Reporting structure
Fiskars' operating segments are EMEA (Europe, Middle East, and Asia-Pacific),
Americas, Wärtsilä (associated company), and Other (Real Estate, corporate
headquarters and shared services).
The company's business areas are Home (homeware and school, office & craft),
Garden and Outdoor (outdoor equipment and boats).
Business areas in Q4
Net sales, EUR million Q4 2010 Q4 2009 Change 2010 2009 Change
----------------------------------------------------------------------
Home 95.6 92.9 3% 309.4 297.3 4%
----------------------------------------------------------------------
Garden 56.8 40.0 42% 274.5 230.9 19%
----------------------------------------------------------------------
Outdoor 37.2 38.7 -4% 128.3 128.4 0%
----------------------------------------------------------------------
EMEA in Q4
EUR million Q4 Q4 Change 2010 2009 Change
2010 2009
--------------------------------------------------------------------------------
Net sales 143.4 125.4 14% 502.4 451.6 11%
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Net sales, currency neutral 143.4 129.3 11% 502.4 465.9 8%
--------------------------------------------------------------------------------
Operating profit excluding 11.1 10.7 4% 44.4 26.5 68%
non-recurring items
--------------------------------------------------------------------------------
Operating profit (EBIT) -0.2*) 10.7 -102% 33.1 26.5 25%
*)
--------------------------------------------------------------------------------
Capital expenditure 5.5 2.5 121% 12.9 10.6 22%
--------------------------------------------------------------------------------
Personnel (FTE), average 2,911 3,020 -4% 2,864 3,006 -5%
--------------------------------------------------------------------------------
*) Includes non-recurring costs of EUR 11.3 million.
Net sales in EMEA (Europe, Middle East, and Asia-Pacific) rose 14% in the
fourth quarter, to EUR 143.4 million (125.4). Using comparable currency rates,
sales were up 11%.
The increase in sales was mainly driven by the exceptionally strong development
in the Garden business area, where sales of snow tools more than doubled,
reaching record levels. Sales of stick tools and wood preparation tools were
all up, too.
Sales of the homeware products of the Home business area developed well, with
good development in Finland, Norway and Poland. Homeware sales were also
boosted by favorable currency development.
Outdoor sales increased due to strong performance in boat sales and growth in
mobile light sales.
Operating profit excluding non-recurring items was up 4%, amounting to EUR 11.1
million (10.7), driven by strong sales and continued focus on efficiency.
Americas in Q4
EUR million Q4 2010 Q4 2009 Change 2010 2009 Change
---------------------------------------------------------------------------
Net sales 50.4 49.9 1% 223.1 218.2 2%
---------------------------------------------------------------------------
Net sales, currency neutral 50.4 54.2 -7% 223.1 230.8 -3%
---------------------------------------------------------------------------
Operating profit (EBIT) 5.3 2.3 133% 28.1 23.9 17%
---------------------------------------------------------------------------
Capital expenditure 0.6 0.8 -19% 3.4 2.8 21%
---------------------------------------------------------------------------
Personnel (FTE), average 590 746 -21% 597 742 -20%
---------------------------------------------------------------------------
Net sales in the Americas increased 1% to EUR 50.4 million (49.9). In USD-terms
net sales decreased 7%, to USD 68.6 million (73.9), mainly as a result of the
divestment of the Brunton business in 2009.
Net sales in the Garden business area developed strongly, driven by sales
growth in cutting tools and pottery and continued good development in newly
launched mower sales. Sales increased with all major customers.
Sales in the Home‘s school, office, and craft (SOC) were up slightly.
In the Outdoor business area, net sales decreased due to the Brunton divestment
and cautious institutional purchasing.
Operating profit in the Americas totaled EUR 5.3 million (2.3), increasing by
133 % as a result of improved Garden and SOC businesses. Higher sales and
enhanced product mixes contributed to the profit improvement during the
quarter.
Other in Q4 2010
EUR million Q4 2010 Q4 2009 Change 2010 2009 Change
------------------------------------------------------------------------
Net sales 1.6 1.6 3% 6.2 6.1 2%
------------------------------------------------------------------------
Operating profit (EBIT) -3.7 -3.5 -12.1 -10.9
------------------------------------------------------------------------
Capital expenditure 1.4 0.2 2.3 1.2
------------------------------------------------------------------------
Personnel (FTE), average 163 119 37% 151 119 27%
------------------------------------------------------------------------
Fiskars' Other segment covers the Real Estate unit, corporate headquarters, and
shared services.
Net sales in the Other segment rose 3% to EUR 1.6 million (1.6), and the
segment's EBIT came in at EUR -3.7 million (-3.5).
Investment program in EMEA
In line with Fiskars' strategy to achieve faster growth and increased
efficiency, the company is in the process of executing a new, integrated
operating model. In December 2010, Fiskars launched a significant investment
program to facilitate further growth by implementing a new business model in
EMEA.
The approximately EUR 50 million investment over the next five years will be
funded by operative cash flow. During these years, the program will increase
Fiskars' operating expenses and capital expenditure.
With this program, the company will create a more streamlined supply chain and
improve transparency through common processes and IT systems, including a new
common enterprise resource planning (ERP) system.
After an initial implementation period, the investment program is expected to
further enhance the efficiency of Fiskars' operations and gradually improve
cash flow.
JANUARY- DECEMBER 2010
Group performance in 2010
Fiskars' consolidated net sales increased by 8% to EUR 715.9 million (660.3) in
2010, boosted by strong development in the Garden business area and improvement
in the Home business area. Favorable currency rates added to sales at group
level, and at comparable currency rates, the sales increase was 4%.
The Group's operating profit excluding non-recurring items grew 52 % to EUR
60.4 million (40.0) or 8% of net sales (6%) and operating profit (EBIT) grew
24% to EUR 49.1 million (39.5), even including EUR -11.3 million of
non-recurring costs (-0.5).
Based on the year's impairment testing, Fiskars booked an EUR 11.3 million
impairment charge against the goodwill allocated to the Outdoor business area
in EMEA during the last quarter of the year.
Cash flow from operations decreased to EUR 92.6 million (121.0). In 2009, cash
flow was enhanced by a significant reduction in inventory levels.
Fiskars' 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 65.9 million (66.5), and the change in the fair value of
standing timber was EUR -2.2million (-0.4).
Net financial costs were EUR -6.1 million (-14.2). Profit before taxes was EUR
106.7 million (91.4). The income taxes for the year totaled EUR -12.4 million
(-7.9).
The profit for the period increased to EUR 94.3 million (83.5), and earnings
per share were EUR 1.15 (1.05).
The Group employed 3,944 people as of the end of the year (3,742).
EMEA
Year 2010 saw a clear improvement in Fiskars' operating environment in EMEA,
where both the trade and consumer demand developed positively. Favorable
performance in currencies such as the Swedish krona compared to the euro also
contributed to higher net sales. Net sales in the EMEA segment grew 11% to EUR
502.4 million (451.6). Using comparable exchange rates, growth was 8%.
Net sales in the Home business area's homeware products increased, especially
in key markets, and net sales were further boosted by favorable currency
rates. Sales of craft products were lower than in 2009.
In the Garden business area, sales of Fiskars branded garden tools grew
significantly, led by increased sales of snow tools, stick tools and cutting
tools. Even sales of construction tools picked up compared to 2009. Two snowy
winters in a row saw sales of snow tools rise to record levels both in the
first and last quarter of the year. In other product categories the company
gained market share in major Central European markets such as Germany and
France through marketing campaigns and product launches.
Net sales in the Outdoor business area increased following strong sales
increase in the boat business. Sales of outdoor gear increased as well, led by
good development in mobile light sales.
Increased sales and efficiency in supply chain continued to have a positive
effect on profit, and the segment's operating profit excluding non-recurring
items grew 68% to EUR 44.4 million (26.5).
Personnel at the end of the year totaled 3,209 (3,006).
Americas
Net sales for the Americas rose by 2% to EUR 223.1 million (218.2). In USD
terms, net sales fell by 3% to USD 294.9 million (302.5), mainly impacted by
the divestments made in 2009. In the Americas, consumer confidence started to
improve towards the end of the year. Market conditions remained challenging as
the trade continued to purchase cautiously and focus on working capital.
Net sales in the Garden business area increased, driven by increased market
share in garden tools, rain barrels and newly introduced mowers. Sales
developed well with key customers.
Net sales of school, office, and craft (SOC) products in the Home business were
down, primarily because of the divestment of consumables products in July 2009.
Net sales in the Outdoor business area decreased in 2010. Sales were impacted
by the divestment of Brunton in December 2009 and cautious purchasing by the
institutional segment.
Despite the market situation, operating profit in the Americas increased 17% to
EUR 28.1 million (23.9) thanks to increased volume in the Garden business area
and improved product mix in Garden and Outdoor businesses.
Personnel as of the end of year totaled 570 (742).
Other
Fiskars' Other segment comprises Real Estate, which is responsible for managing
the Group's forests and land as well as for the internal and external leasing
of Fiskars' property in Finland, corporate headquarters and shared services.
The segment recorded net sales of EUR 6.2 million (6.1), the majority of which
comprised revenue from timber sales and rental income from properties. The
segment's operating profit was EUR -12.1 million (-10.9 including -0.5 million
in non-recurring items). The change in the value of standing timber, reported
below EBIT, was EUR -2.2 million (-0.4). Personnel as of the end of year
totaled 165 (119).
Wärtsilä
Fiskars owns 17.1% of the shares and votes of its associated company, Wärtsilä
Corporation. Fiskars' share of Wärtsilä's profit totaled EUR 65.9 million
(66.5) in 2010.
Wärtsilä's Annual General Meeting was held on March 4, 2010. The Chairman of
Fiskars' Board, Mr. Kaj-Gustaf Bergh, was re-elected to Wärtsilä's Board of
Directors. Mr. Alexander Ehrnrooth and Mr. Paul Ehrnrooth, both members of
Fiskars' Board, were elected to the Board as new members.
The Annual General Meeting decided to pay a dividend of EUR 1.75 per share
(1.50), which gave Fiskars dividend revenue of EUR 29.5 million (25.3).
The market value of Fiskars' Wärtsilä shares was EUR 961.9 million (472.9) or
EUR 11.74 (5.76) per Fiskars' share at the end of the year, with a closing
price EUR 57.10 (28.07)per Wärtsilä share. The book value of the shares was EUR
341.0 million (316.8).
Financing
Fiskars' cash flow from operations totaled EUR 92.6 million (121.0) in 2010. In
2009, cash flow was enhanced by a significant reduction in inventory levels.
The cash flow includes dividends paid by associated company Wärtsilä totaling
EUR 29.5 million (25.3).
Cash flow from investing activities was EUR -18.8 million (-8.7) and cash flow
after investing activities was EUR 73.8 million (112.2) in the year.
Working capital was EUR 101.2 million (EUR 102.6) at the end of the year. The
equity ratio was 57% (52%) and net gearing 36% (47%).
Cash and deposits at the end of the period were EUR 5.8 million (38.6). Fiskars
hedges exchange rate risks associated with future cash flow using currency
derivatives. The value of these derivatives increased financing expenses in
2010 by EUR 1.5 million (2009: increased expenses by EUR 4.5 million), as the
company does not apply hedge accounting as defined under IAS 39 to its
derivatives.
Net interest-bearing debt amounted to EUR 200.0 million (235.7). Short-term
borrowings totaled EUR 130.1 million (199.7) and long-term borrowings EUR 76.2
million (74.9). Short-term borrowings are mainly commercial papers issued by
Fiskars Corporation. In addition, Fiskars had EUR 405 million (425.0) in
unused, binding long-term credit facilities, mainly with major Nordic banks.
Capital expenditure
Capital expenditure during the 2010 financial year totaled EUR 18.6 million
(14.6). The EMEA segment accounted for EUR 12.9 million (10.6) of the total,
the Americas EUR 3.4 million (2.8), and Other EUR 2.3 million (1.2). Capital
expenditure was largely related to production and new product development.
New product development
The Group's new product development expenditure totaled EUR 8.5 million (8.9),
equivalent to 1% (1%) of net sales. During the year, especially Garden EMEA
strengthened its product development organization.
Personnel
The Group employed an average of 3,612 people (3,867) in 2010. The number of
personnel was 3,944 (3,742) as of the end of the year, of which 3,209 (2,959)
were employed in the EMEA region, 570 (667) in the Americas, and 165 (116) by
segment Other. Fiskars employed 1,678 (1,598) people in Finland.
The wages and salaries for the year totaled EUR 125.1 million (113.4).
Changes in management
Mr. Jaakko Autere took over as President of the Home business area and Managing
Director of Iittala Group Ltd. on January 1, 2010. He reports to Fiskars'
President and CEO, Kari Kauniskangas.
Corporate Governance
Fiskars complies with the Finnish Corporate Governance Code issued by the
Securities Market Association, which came into force on October 1, 2010.
Fiskars' Corporate Governance Statement for 2010 in accordance with
Recommendation 51 of the Code was issued on February 9, 2011 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 business uncertainties are related to:
-- General market conditions and a 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
-- Adverse weather conditions particularly in the Garden business area
-- Seasonal variations, which can make predicting developments more difficult,
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.
-- Changes in currency rates that may affect consolidated sales, profit and
balance sheet
-- Major changes in the profit of associated company Wärtsilä or its ability
to pay dividends
Litigation
The Finnish Competition Authority proposed on April 29, 2010 to the Market
Court that a fine of EUR 4 million should be imposed on Iittala Group Oy Ab due
to violation of the Finnish Competition Act by applying resale price
maintenance between 2005 and 2007. The Iittala Group, a Fiskars subsidiary,
considers the proposal to be unfounded. The Market Court will decide on the
matter in due course. No provision has been booked for the proposed fine.
Fiskars is involved in a number of legal actions, claims and other proceedings.
The final outcome of these matters cannot be predicted. Taking account all
available information to date the outcome is not expected to have material
impact on the financial position of the Group.
Environment
In line with its Code of Conduct, Fiskars aims to ensure that its products,
services, and production promote sustainable development. During 2010 Fiskars
conducted a Carbon Footprint Inventory, which represented an important input in
further developing Fiskars' environmental sustainability.
The Carbon Footprint Inventory produced baseline information for Fiskars'
energy efficiency programs, target-setting, and performance monitoring, and
will provide the foundation for further developing and monitoring the Group's
environmental sustainability.
The inventory covered all of Fiskars' production operations, sales offices, and
distribution centers, as well as outsourced transportation, and it will give
the company a good starting point to further develop its processes and
practices.
Fiskars does not monitor environmental costs separately, as they are an
integral part of its normal business operations and business development. 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.
Share
Fiskars Corporation has one series of shares. 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 17.33 per share (10.62). The
market value of Fiskars, excluding treasury shares, was EUR 1,419.5 million
(869.9). The number of shares traded during the year was 6.6 million (4.4).
Treasury shares
The Board of Directors had authorizations to acquire and convey treasury shares
during the year. At the end of the period, the authorizations concerned a
maximum of 4,000,000 shares. The Board may decide on the conveyance 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 12,213 (11,915) 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:
-- On December 13, 2010, Holdix Oy Ab announced that its shareholding in
Fiskars had risen above the 10% (1/10) threshold. Holdix Oy Ab now owns
8,229,050 Fiskars shares, which represents 10.03 per cent of Fiskars' share
capital and voting rights.
-- On December 15, 2010, Holdix Oy Ab decided to commence a share issue which
resulted in Elsa Fromond no longer having a controlling interest in Holdix
Oy Ab. Elsa Fromond's direct ownership in Fiskars falls below the 5% (1/20)
flagging threshold.
Annual General Meeting for 2010
The Annual General Meeting of Shareholders (AGM) was held on March 16, 2010.
The AGM approved the financial statements for 2009 and discharged the members
of the Board and the President and CEO from liability. It was decided to pay a
dividend of EUR 0.52 per share, totaling EUR 42.6 million. The dividend was
paid on March 26, 2010.
The number of Board members was set at nine. Mr. Kaj-Gustaf Bergh, Mr. Ralf
Böer, Mr. Alexander Ehrnrooth, Mr. Paul Ehrnrooth, Mr. Gustaf Gripenberg, Mr.
Karsten Slotte, and Mr. Jukka Suominen were re-elected; and Ms. Louise Fromond
and Ms. Ingrid Jonasson Blankwere elected as new members. The term of Board
members will expire at the end of the Annual General Meeting in 2011. KPMG Oy
Ab was re-elected as company auditor, and nominated Authorized Public
Accountant Mr. Mauri Palvi as responsible auditor.
The Annual General Meeting decided to authorize the Board to acquire a maximum
of 4,000,000 own shares and convey a maximum of 4,000,000 own shares. The Board
may decide on the acquisition and conveyance of shares also in derogation of
the pre-emptive right of shareholders to company shares. Both authorizations
will remain in force until the end of the next Annual General Meeting.
The AGM further decided to amend Item 7 of the Articles of Association. The
amended wording reads as follows: "Shareholders' Meetings (General Meetings)
can be held either in Raasepori or Helsinki. Notices to Shareholders' Meetings
shall be published on the company's website and in another manner possibly
decided by the Board of Directors."
Constitutive meeting of the Board
Convening after the Annual General Meeting, the Board of Directors elected
Kaj-Gustaf Bergh as Chairman, and Alexander Ehrnrooth and Paul Ehrnrooth as
Vice Chairmen.
The Board appointed Gustaf Gripenberg Chairman of the Audit Committee, and
Alexander Ehrnrooth, Paul Ehrnrooth, Louise Fromond, and Karsten Slotte as
members. The Board appointed Kaj-Gustaf Bergh Chairman of the Compensation
Committee, and Ralf Böer, Ingrid Jonasson Blank, and Jukka Suominen as members.
The Board appointed Kaj-Gustaf Bergh Chairman of the Nomination Committee, and
Alexander Ehrnrooth and Paul Ehrnrooth as members.
Annual General Meeting 2011
Fiskars Corporation's Annual General Meeting will be held on Tuesday, March 16,
2011 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 2010 fiscal
year was EUR 435.1 million (429.9). The Board of Directors proposes to the
Annual General Meeting of Shareholders that a dividend of EUR 0,60 per share
would be paid for 2010.
The number of shares entitling to a dividend totaled 81,910,722. The proposed
distribution of dividend would thus be EUR 49.1 million. This would leave EUR
385.9 million of distributable 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 2011
The general market situation is expected to remain positive in 2011. This
assumes, however, that the lingering uncertainty in the financial markets does
not turn into renewed economic instability. We expect the trade to continue
focusing on their working capital and retailer purchasing is expected to remain
cautious.
Fiskars will carry on investing in brand building and new product development.
In addition, Fiskars has begun implementing the significant five year
investment program to execute its business transformation in EMEA, including a
common enterprise resource planning (ERP) system for the company. The program
will increase Fiskars' operating expenses and capital expenditure during the
coming years.
Fiskars' net sales in 2011 are expected to be above 2010 levels. Full year
operating profit excluding non-recurring items is expected to remain at a
similar level as in 2010.
Associated company Wärtsilä will continue to have a major impact on Fiskars'
profit and cash flow in 2011.
FISKARS CORPORATION
Board of Directors
CONSOLIDATED INCOME STATEMENT 10-12 10-12 Chang 1-12 1-12 Change
e
M€ 2010 2009* % 2010 2009* %
--------------------------------------------------------------------------------
Net sales 190.6 172.6 10 715.9 660.3 8
Cost of goods sold -125.4 -114.1 10 -462.3 -439.2 5
--------------------------------------------------------------------------------
Gross profit 65.2 58.5 11 253.6 221.1 15
Other operating income 0.3 0.4 2.1 1.8
Sales and marketing expenses -33.7 -31.4 7 -122.4 -114.2 7
Administration expenses -16.5 -15.4 8 -64.1 -60.0 7
Research and development costs -2.5 -2.3 7 -8.5 -8.7 -3
Other operating expenses -0.1 -0.4 -0.3 -0.5
Goodwill impairment -11.3 0.0 -11.3 0.0
--------------------------------------------------------------------------------
Operating profit (EBIT) 1.3 9.5 -86 49.1 39.5 24
Change in fair value of -0.4 -0.1 -2.2 -0.4
biological assets
Share of profit from associate 30.1 19.8 52 65.9 66.5 -1
Other financial income and -0.6 -1.0 -38 -6.1 -14.2 -57
expenses
--------------------------------------------------------------------------------
Profit before taxes 30.3 28.2 8 106.7 91.4 17
Income taxes -1.4 -2.2 -12.4 -7.9
--------------------------------------------------------------------------------
Profit for the period 28.9 26.0 11 94.3 83.5 13
--------------------------------------------------------------------------------
Attributable to:
Owners of the Company 28.9 26.0 11 94.3 83.5 13
Earnings for owners of the
Company per
share, euro (basic and diluted) 0.35 0.32 1.15 1.05
OTHER COMPREHENSIVE INCOME 10-12 10-12 1-12 1-12
M€ 2010 2009 2010 2009
-------------------------------------------------------------------------
Profit for the period 28.9 26.0 94.3 83.5
-------------------------------------------------------------------------
Translation differences 2.6 0.1 10.1 -1.9
Change in associate recognized
directly in other comprehensive -16.2 2.2 -12.5 12.7
income
Cash flow hedges 0.5 -0.1
Equity net investment hedges 0.1 1.3
after tax
Defined benefit plan, actuarial
gains (losses), net of tax -0.5 1.1 -0.5 0.7
-------------------------------------------------------------------------
Other comprehensive income
for the period, net of tax, in -13.6 3.5 -3.1 12.8
total
-------------------------------------------------------------------------
Total comprehensive income
for the period 15.3 29.6 91.2 96.3
Attributable to:
Owners of the Company 15.3 29.6 91.2 96.3
*) The previous year's figures
include changes due to
reclassification of certain
accounts.
Please see the notes to the
financial statements bulletin.
CONSOLIDATED BALANCE SHEET 12/2010 12/2009 Change
M€ %
----------------------------------------------------------------------
ASSETS
Non-current assets
Goodwill 88.6 99.4 -11
Other intangible assets 125.4 124.9 0
Property, plant & equipment 95.0 99.5 -5
Biological assets 36.7 38.9 -6
Investment property 7.6 8.5 -11
Investments in associates 341.0 316.8 8
Financial assets
Shares at fair value through profit and loss 6.7 3.0 125
Other investments 1.6 2.1 -23
Deferred tax assets 15.2 17.8 -14
----------------------------------------------------------------------
Non-current assets total 717.7 710.9 1
Current assets
Inventories 133.0 119.0 12
Trade and other receivables 119.6 101.9 17
Income tax receivables 3.0 2.9 5
Cash and cash equivalents 5.8 38.6 -85
----------------------------------------------------------------------
Current assets, total 261.3 262.4 0
Assets total 979.0 973.3 1
----------------------------------------------------------------------
EQUITY AND LIABILITIES
Equity attributable to the owners of the Company 553.5 504.8 10
Equity total 553.5 504.8 10
-------------------------------------------------------------------
Non-current liabilities
Interest bearing debt 76.2 74.9 2
Other liabilities 2.8 0.9 207
Deferred tax liabilities 45.8 47.2 -3
Pension liability 8.7 9.4 -8
Provisions 5.2 6.7 -22
Non-current liabilities total 138.7 139.1 0
-------------------------------------------------------------------
Current liabilities
Interest bearing debt 130.1 199.7 -35
Provisions 2.5 2.4 4
Trade and other payables 146.6 121.3 21
Income tax payable 7.6 6.1 26
Current liabilities total 286.8 329.4 -13
-------------------------------------------------------------------
Equity and liabilities total 979.0 973.3 1
-------------------------------------------------------------------
CONSOLIDATED STATEMENT 10-12 10-12 1-12 1-12
OF CASH FLOWS M€ 2010 2009 2010 2009
--------------------------------------------------------------------------------
Cash flow from operating activities
Profit before taxes 30.3 28.2 106.7 91.4
Adjustments for
Depreciation 17.3 6.5 34.9 28.1
Share of profit from associate -30.1 -19.8 -65.9 -66.5
Investment income 0.0 0.5 -0.7 0.3
Interest expenses 0.8 1.1 6.3 14.2
Change in fair value of biological assets 0.4 0.1 2.2 0.4
Change in provisions and other non-cash items -2.0 -4.5 -6.8 -12.4
Cash flow before changes in working capital 16.9 12.1 76.6 55.6
--------------------------------------------------------------------------------
Changes in working capital
Change in current assets, non-interest bearing -9.5 -4.1 -10.9 -0.7
Change in inventories 9.0 18.2 -6.4 50.3
Change in current liabilities, non-interest bearing 17.7 17.4 23.0 4.1
Cash flow from operating activities
--------------------------------------------------------------------------------
before financial items and taxes 34.1 43.6 82.3 109.3
Dividends from associate 29.5 25.3
Financial costs paid (net) -3.7 -1.2 -10.3 -13.8
Taxes paid -0.9 0.6 -8.9 0.2
Cash flow from operating activities (A) 29.6 43.0 92.6 121.0
--------------------------------------------------------------------------------
Cash flow from investing activities
Acquisitions and investments in financial assets -3.1 -3.5 -0.2
Capital expenditure on fixed assets -7.4 -3.4 -18.5 -14.5
Proceeds from sale of fixed assets 0.4 0.0 3.0 1.6
Cash flow from other investments 0.0 3.7 0.2 4.2
Cash flow from investing activities (B) -10.1 0.3 -18.8 -8.7
--------------------------------------------------------------------------------
Cash flow from financing activities
Borrowings of non-current debt 0.3 1.5 40.0
Repayment of non-current debt -15.3 -9.7 -15.6 -86.5
Change in current debt -3.9 -1.6 -48.4 2.0
Payment of financial lease liabilities -0.4 -0.7 -1.6 -2.5
Cash flow from other financing items -0.1 0.0 -0.4 -0.1
Dividends paid -42.6 -38.2
Cash flow from financing activities (C) -19.4 -12.0 -107.1 -85.4
--------------------------------------------------------------------------------
Change in cash (A+B+C) 0.1 31.3 -33.4 26.9
Cash at beginning of period 5.2 7.0 38.6 11.3
Translation difference 0.5 0.3 0.5 0.5
Cash at end of period 5.8 38.6 5.8 38.6
STATEMENT OF CHANGES IN CONSOLIDATED EQUITY Equity attributable to
the owners of the
Company:
Trea- Cumul.
Share sury transl. Retain.
M€ capital shares diff. earn. Total
--------------------------------------------------------------------------------
Dec 31, 2008 77.5 -0.8 -16.5 386.5 446.7
--------------------------------------------------------------------------------
Total comprehensive income for the 3.7 92.6 96.3
period
--------------------------------------------------------------------------------
Dividends paid -38.2 -38.2
Dec 31, 2009 77.5 -0.8 -12.8 440.9 504.8
--------------------------------------------------------------------------------
Total comprehensive income for the 0.0 12.4 78.8 91.2
period
--------------------------------------------------------------------------------
Dividends paid -42.6 -42.6
Dec 31, 2010 77.5 -0.8 -0.3 477.1 553.5
--------------------------------------------------------------------------------
KEY FIGURES * 12/ 12/ Change
2010 2009
%
--------------------------------------------------------------------------------
Equity/share, euro 6.76 6.16 10
Equity ratio 57% 52% 9
Net gearing 36% 47% -23
Net interest bearing debt, EUR million 200.0 235.7 -15
Personnel (FTE), average 3,612 3,867 -7
Personnel, end of period 3,944 3,742 5
Number of shares outstanding end of period,
in thousands 81,911 81,911
Weighted average number of outstanding shares
during period, in thousands 81,911 79,289
*) Please see the annual financial statements 2009
for the calculation of key figures.
CURRENCY RATES 1-12 1-12 Change
2010 2009 %
-------------------------------------
USD average rate 1.33 1.39 -5
USD end-of-period 1.34 1.44 -7
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.
All figures in the accounts have been rounded and consequently the sum of
individual figures can deviate from the presented sum figure.
Based on the goodwill impairment testing, Fiskars wrote down the
entire goodwill of the Silva business. The impairment charge against the
goodwill allocated to the Outdoor business area totaled EUR 11.3 million
and was booked during the last quarter of the year. The charge did not
impact the Group's cash flow.
The previous year's figures include changes due to reclassification of
certain accounts. The main impacts of the reclassification for 2009 are
summarized below:
- net sales EUR -1.0 million in Q4 2009 and EUR -2.6 million in full year 2009
- gross profit EUR -2.4 million in Q4 2009 and EUR -5.6 million in full year
2009
- the operating profit (EBIT) of 2009 is unchanged.
Additionally, Fiskars has adopted following definitions for employee
reporting in 2010:
Personnel, end of period = active employees in payroll at the end of period.
Personnel (FTE), average = full-time equivalent number of
employees according to worked volume during the period.
Fiskars has applied hedge accounting to changes in the fair value of
derivatives designated, qualifying, and effective as cash flow hedges.
The changes are recognized in Other comprehensive income.
The share series of Fiskars Corporation were combined in July 2009.
The earnings per share (EPS) in the comparison year´s second half includes
the effect from the change in the number of shares after the combination.
The Group has implemented new or amended IAS/IFRS standards and interpretations
mandatory as of January 1, 2010. Of these the most important are:
- Annual improvements to IFRS
- Revised IFRS 3 Business Combinations
- Amended IAS 27 Consolidated and Separate Financial Statements
The adoption of the standards above had no impact on the reported
results or financial position.
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
M€ 2010 2009* % 2010 2009* %
--------------------------------------------------------------------------------
Net sales
EMEA 143.4 125.4 14 502.4 451.6 11
Americas 50.4 49.9 1 223.1 218.2 2
Other 1.6 1.6 3 6.2 6.1 2
Inter-segment sales **) -4.8 -4.3 -15.8 -15.5
--------------------------------------------------------------------------------
GROUP TOTAL 190.6 172.6 10 715.9 660.3 8
Operating profit (EBIT)
EMEA -0.2 10.7 -102 33.1 26.5 25
Americas 5.3 2.3 133 28.1 23.9 17
Other and eliminations -3.7 -3.5 -12.1 -10.9
--------------------------------------------------------------------------------
GROUP TOTAL 1.3 9.5 -86 49.1 39.5 24
Depreciation, amortization and
impairment
EMEA 15.5 5.9 162 27.5 20.5 34
Americas 1.4 2.0 -30 5.6 7.8 -28
Other and eliminations 0.4 -1.4 1.8 -0.1
--------------------------------------------------------------------------------
GROUP TOTAL 17.3 6.5 167 34.9 28.1 24
Capital expenditure
EMEA 5.5 2.5 121 12.9 10.6 22
Americas 0.6 0.8 -19 3.4 2.8 21
Other and eliminations 1.4 0.2 2.3 1.2
--------------------------------------------------------------------------------
GROUP TOTAL 7.5 3.5 114 18.6 14.6 27
*) The previous year's figures include changes due
to reclassification of certain accounts.
Please see the notes to the
financial statement bulletin.
**) Inter-segment sales Q4/ Q4/ 2010 2009
2010 2009
EMEA -3.2 -2.6 -9.4 -7.9
Americas -1.0 -1.1 -4.0 -5.2
Other -0.6 -0.6 -2.4 -2.4
Short delivery times are a prerequisite in Fiskars'
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
M€ 2010 2009* % 2010 2009* %
----------------------------------------------------------
Net sales
Home 95.6 92.9 3 309.4 297.3 4
Garden 56.8 40.0 42 274.5 230.9 19
Outdoor 37.2 38.7 -4 128.3 128.4 0
Other 1.0 1.0 3.8 3.7
GROUP TOTAL 190.6 172.6 10 715.9 660.3 8
----------------------------------------------------------
INTANGIBLE AND TANGIBLE ASSETS 12/2010 12/2009
M€
---------------------------------------------------------
Intangible Assets and Goodwill
Book value, Jan. 1 224.4 230.2
Currency translation adjustment 1.2 -0.1
Acquisitions and divestments 0.0 -0.5
Additions 1.2 1.0
Amortization and impairment -17.2 -6.0
Decreases and transfers 4.4 -0.2
---------------------------------------------------------
Book value at end of period 214.0 224.4
Tangible Assets and Investment Property
Book value, Jan. 1 108.0 120.9
Currency translation adjustment 2.0 0.1
Acquisitions and divestments 0.0 -1.5
Additions 17.4 13.6
Depreciation and impairment -17.7 -22.0
Decreases and transfers -7.1 -3.0
---------------------------------------------------------
Book value at end of period 102.5 108.0
CONTINGENCIES AND PLEDGED ASSETS 12/2010 12/2009
M€
--------------------------------------------------------------------------------
As security for own commitments
Lease commitments 59 60
Other contingencies 1 4
--------------------------------------------------------------------------------
Total 60 65
Guarantees as security for third-party commitments
Real estate mortgages 0 2
Pledged assets 0 2
--------------------------------------------------------------------------------
Total 0 4
As security for subsidiaries' commitments
Guarantees 9 9
Total 69 78
--------------------------------------------------------------------------------
Fiskars is involved in a number of legal actions, claims and
other proceedings.
The final outcome of these matters cannot be predicted.
Taking account all available information to date the outcome
is not
expected to have material impact on the financial position of
the Group.
Nominal amounts of derivatives
Forward exchange contracts 187 151
Interest rate swaps 24 1
Electricity forward agreements 2 2
Market value vs. nominal amounts of derivatives
Forward exchange contracts 1 0
Interest rate swaps 0 0
Electricity forward agreements 1 0
Forward exchange contracts have been valued at market value.
The Group has no material investment commitments for intangible assets
or property, plant and equipment.
Exchange rate sensitivity of the operations
Approximately 10% of Fiskars' commerial cash flows are exposed
to fluctuations in foreign exchange rates. The most significant
risks relate to the depreciation of GBP, SEK and CAD against
USD and EUR. Foreign exchange risks are hedged primarily
through the use of currency forwards and swaps. Change in
valuation of currency derivatives is included in the
income statement without applying hedge accounting.
M€ USD GBP SEK CAD
--------------------------------------------------------------------------------
Operational currency position -23.9 7.3 16.9 13.0
Exchange rate sensitivity of the operations* 2.4 -0.7 -1.7 -1.3
*) Illustrates the impact of 10% exchange rate
depreciation on the Group's annual profit before taxes.
RELATED PARTY TRANSACTIONS
---------------------------------------------------------------------------
The dividend from Wärtsilä EUR 29.5 million is reported as Dividends from
associate in the Consolidated Statement of Cash Flows.
The dividend was received during the first quarter of 2010.
ACQUISITIONS AND DIVESTMENTS
--------------------------------------------------------------------------------
-
In 2010 there are no acquisitions nor divestments.
The following acquisitions and divestments in 2009 have an impact on
the comparability of the figures in 2010.
Fiskars acquired a 30% minority share of Silva Far East Ltd in June 2009.
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 Wyoming, USA in December 2009 to
Fenix Outdoor AB (publ) of Sweden. Brunton was reported as a part
of Fiskars´Outdoor business. Brunton´s net sales in 2009 were EUR 8.8 million.
Fiskars divested its consumables product lines and the related brands
Heidi Grace and Cloud9 to Colorbök, Inc in the U.S. in July 2009.
Net sales of the business for January - June 2009 amounted to €2.4 million.
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