Financial Statements

2020

OTHER FINANCIAL

INFORMATION

FINANCIAL

STATEMENTS

BOARD’S

PROPOSAL

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Contents

Notes to the consolidated financial statements

 General accounting principles 

.Basic information

of the Company 

.Basis of preparation 

.Use of estimates 

.Translation of foreign

currency items 

.COVID- related matters in

Fiskars Group 

.New and amended standards

applied in financial year ended 

.Adoption of new and amended

standards st Jan  

 Financial performance 

.Segment information 

.Other operating income 

.Total expenses 

.Employee benefits and number of

personnel 

.Share based payments 

.Financial income and expenses 

.Income taxes 

.Earnings per share 

 Intangible and tangible assets 

.Intangible assets 

.Property, plant and equipment 

.Right-of-use assets 

.Biological assets 

.Investment property 

 Operational assets and liabilities 

.Inventories 

.Trade and other receivables 

.Trade and other payables 

.Employee defined benefit

obligations 

.Provisions 

 Capital structure and financial

instruments 

.Financial risk management 

.Financial assets 

.Share capital 

.Financial and lease liabilities 

.Derivatives 

 Consolidation and other notes 

.Consolidated financial

statements 

.Subsidiaries and other

participations 

. Related party transactions 

.Acquisitions and divestments 

.Commitments and

contingencies 

.Subsequent events 

Report by the Board of Directors

for the year  

Financial Statements 

Consolidated Financial Statements, IFRS 

Consolidated Income Statement 

Consolidated Statement of

Comprehensive Income 

Consolidated Balance Sheet 

Consolidated Statement of Cash Flows 

Statement of Changes in

Consolidated Equity 

Notes to the consolidated

financial statements 

Parent company financial statements, FAS 

Parent company income statement 

Parent company balance sheet 

Parent Company Statement of Cash Flows 

Notes to the parent company financial

statements 

Board’s proposal for distribution

of profits and signatures 

Auditor’s Report 

Other financial information 

Items affecting comparability 

Financial indicators 

Five years in figures 

Share related figures 

Calculation of financial indicators 

Shares 

Shareholders 

With the vision to create a positive, lasting impact on the

quality of life, Fiskars Group pursues profitable growth

with the ambition to be the first choice in the garden and

outdoors, in the kitchen and at the table.

To achieve this ambition, Fiskars Group relies on its deep

understanding of the everyday and combines passion for

design, innovation and quality with a firm commitment

to sustainability. The company delivers value by

building brands that people love, driving a business that

customers respect and developing a culture where people

can perform at their best.

The Fiskars Group team consists of diverse and creative

professionals, serving people around the world with

a portfolio of loved brands. The ambition, market and

category scope for each of the brands is continuously

evaluated to target marketing and sales resources as

well as investments for each of the brands. The brand

portfolio is categorized in three groups: power brands

(Fiskars); focus brands (Gerber, Iittala, Royal Copenhagen,

Waterford and Wedgwood) and local brands, such as

Arabia, Rörstrand and Royal Doulton.

Fiskars Group’s business is based on understanding and

predicting consumer needs, aspirations motives, and

behavior. Insight and understanding of the consumer is

the starting point for the brands as well as building the

offering, sales and marketing activities. Culture that

Report by the Board of Directors

for the year 2020

brings consumer to every discussion, decision and action

is enabling Fiskars Group to build loved brands that travel.

Consumers’ understanding on global influences like

climate change, resource scarcity, and digitalization is

higher than ever. For Fiskars Group this is an opportunity

to take an action on solving these global challenges and

creating solutions that support consumers in their journey

towards more sustainable future.

Fiskars Group is committed to driving employee

engagement by creating an inclusive and inspiring

working environment. The company recognizes the

importance of its people to contribute to its success and

continuously invests in opportunities for employees to

learn and grow. Building values-based leadership help

Fiskars Group leaders to shape their skills and engage

with people, which is crucial in creating value for the

consumers and other stakeholders. Fiskars Group’s

culture is based on strong values, engaging leadership

and clear ways of working that set us apart from

competitors.

COVID-19 impacts on the employees

On March 11, 2020, the World Health Organization

(WHO) declared COVID-19 a global pandemic. Fiskars

Group acted quickly to ensure the health and wellbeing

of the employees and other people working in the value

chain. Since the start of the pandemic, the number one

concern was for the employees’ safety and wellbeing.

Quick actions were taken to help prevent the spread of

COVID-19 and local authorities’ guidance were closely

followed in the different operating countries.

To continuously monitor the situation and coordinate the

actions to keep the people safe and healthy, a COVID-19

task force was formed consisting of representatives

from across the company. The task force met regularly

throughout the year and worked with the different teams

to implement measures.

Office employees were kept safe by implementing

remote working for all employees who could do so.

Local and international business travel was suspended

to limit people’s movement and keep them safe. In the

manufacturing units and distribution centers, safety

measures were enhanced by implementing necessary

protective guidelines, reviewing cleaning protocols,

and separating shifts to minimize interaction and

reduce congestion. Safeguards were also put in place

in own stores to keep employees and consumers safe.

This included enhancing cleaning protocols, installing

plexiglass shields, and limiting visitors’ numbers to the

stores to allow for adequate social distancing.

This year required a lot from Fiskars Group’s employees,

who were working under difficult conditions during the

pandemic, amid furloughs and other savings measures,

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and who continued to deliver such positive results serving

Fiskars Group’s customers and consumers.

Year 2020 in brief:

Strong development in an

exceptional year, enabled by

agility and resilience

The entire Fiskars Group team demonstrated agility and

resilience in the exceptional circumstances during the

year and made great progress. The health and wellbeing

of employees has been a key priority for the company,

with several measures implemented to ensure healthy

working conditions during the pandemic. Fiskars Group’s

business performed exceptionally well in 2020, and net

sales and comparable EBITA increased compared to the

previous year.

The COVID-19 pandemic had a significant impact on the

business during the year. Volatility increased due to the

pandemic and visibility decreased. Fiskars Group reacted

quickly and decisively to the pandemic already during

Q1. Throughout the year the company managed costs

and invested in the direct e-commerce and product

availability, especially when demand increased in some

of the categories, for example in gardening, scissors and

crafting. Despite temporary store and factory closures

as well as personnel furloughs the company was able to

maintain operations, serve customers and consumers and

create great consumer experiences.

The pandemic had a significant negative impact on

Business Area Vita throughout the year. Footfall to stores

decreased, retailers reduced their stocks and gifting

decreased, leading to a decrease in net sales. Despite the

difficulties, comparable EBITA increased, largely thanks

to the savings measures. There are pockets of positive

development in BA Vita, as for example the expansion

in China has proceeded well and the direct e-commerce

channel is growing. These efforts will also continue going

forward.

Both BA Terra and Crea performed very well during the

year, with growth in net sales and comparable EBITA.

Terra gained support from favorable weather conditions,

increased distribution and strong demand in gardening

and fixing categories, as people stayed at home. Crea also

benefitted from people staying at home and the increased

distribution.

The focused execution of the strategic priorities

continues. In 2021, the company plans to complete

the two on-going transformation programs, aiming at

increasing simplicity and efficiency. Part of the targeted

cost savings have already materialized in the results.

During 2020, cash flow from operating activities before

financial items and taxes amounted to EUR 223.8 million

(117.5). Earnings per share were EUR 0.83 (0.63).

Group performance

In 2020, Fiskars Group’s organization featured three

Business Areas (BA): Vita, Terra and Crea. Fiskars Group’s

four primary reporting segments are Vita, Terra, Crea

and Other. In addition, Fiskars Group reports net sales

for three geographical areas: Europe, Americas and Asia-

Pacific. Segment financial figures for the year 2019 have

been restated for the new primary reporting segments.

The restated figures have not been audited.

BA Vita offers premium and luxury products for the

tableware, drinkware and interior categories. It consists of

brands such as Iittala, Royal Copenhagen, Waterford and

Wedgwood. BA Terra consists of the gardening, watering,

and outdoor categories. The brands include Fiskars,

Gerber and Gilmour. BA Crea consists of the scissors

and creating as well as the cooking categories, mainly

with the Fiskars brand. The Other segment contains

the Group’s investment portfolio, the real estate unit,

corporate headquarters and shared services.

NET SALES

EUR MILLION 2020 2019 CHANGE

COMPARABLE

CHANGE

Group 1,116.2 1,090.4 2.4% 3.8%

Vita 456.6 500.8 -8.8% -8.1%

Terra 493.8 442.9 11.5% 14.1%

Crea 162.0 142.9 13.4% 14.4%

Other 3.8 3.9 -4.1% -4.2%

Fiskars Group’s consolidated net sales increased by 2.4%

to EUR 1,116.2 million (2019: 1,090.4). Comparable net

sales increased by 3.8%. Comparable net sales increased

in the Crea and Terra segments, driven by strong demand

and increased distribution. The increase was subdued

by the challenges in the Vita segment, as the COVID-19

pandemic impacted the business and comparable net sales

decreased.

COMPARABLE EBITA

EUR MILLION 2020 2019 CHANGE

Group 136.8 90.6 50.9%

Vita 41.0 38.8 5.5%

Terra 67. 5 36.2 86.5%

Crea 41.1 28.0 46.6%

Other -12.8 -12.5 3.0%

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Fiskars Group’s comparable EBITA increased by 51% to

EUR 136.8 million (2019: 90.6). The comparable EBITA

increased in the Terra and Crea segments. The increase

was supported by the significant temporary cost-cutting

measures implemented from the second quarter onwards.

The effects of the long-term efficiency actions in the

ongoing programs were also visible, for example related to

the new organizational structure, which was implemented

in the beginning of the second quarter.

Comparable EBITA increased in the Vita segment.

Significant cost-cutting measure supported profitability,

while a decrease in sales volumes had a negative impact. In

the Terra segment, comparable EBITA increased, supported

by increased sales volumes and cost-cutting measures. In

the Crea segment, comparable EBITA increased, supported

by increased volumes, inventory efficiencies and cost-

cutting measures, which were partly offset by a weaker

product mix.

Operating environment in

2020

The operating environment was volatile in 2020. While

some categories were supported by the situation, others

were challenged.

In some of the categories, the negative impact from the

COVID-19 pandemic increased towards the end of the first

quarter and continued until the end of the year. Overall, April

was the most difficult month during the year. Significant

challenges were faced on the markets, including decreased

footfall to stores and an impact on demand. On the other

hand, there was a positive effect on some categories, as

people spent more time at home due to the pandemic.

These categories include gardening and crafting.

The importance of e-commerce increased during the year,

as brick-and-mortar stores were temporarily closed in

many markets. Despite the temporarily eased pandemic

situation, consumer behavior is different from the pre-

pandemic period. In the retail space, many department

store chains have come under renewed pressure

resulting from the pandemic. Consequently, the situation

has accelerated the shift from traditional players to

e-commerce.

Within the gardening and DIY channels, stores in most

markets were kept open. Demand in these channels

was strong during the year, supported by consumers’

increased interest in the gardening and watering

categories, as people spent more time at home.

Additionally, weather conditions during the year were

mostly favorable.

Reporting segments

and geographies

VITA SEGMENT IN 2020

EUR MILLION 2020 2019 CHANGE

Net sales 456.6 500.8 -8.8%

Comparable

EBITA 41.0 38.8 5.5%

Capital

expenditure 16.3 18.3 -11.3%

Net sales in the Vita segment decreased year-on-year by

8.8% to EUR 456.6 million (2019: 500.8). Comparable

net sales decreased by 8.1%. The COVID-19 pandemic

impacted Vita’s business through a decrease in footfall to

stores, retailers reducing their stocks and a decrease in

gifting. Gifting has been impacted by a decline in tourism

and social gatherings, which are both visible in the interior

category.

Despite the challenges posed by the pandemic, net

sales increased in China, Continental Europe and

Scandinavia. Net sales in China in particular showed a

strong double-digit increase. The positive development

was overshadowed by challenges in traditional channels

in many of the key markets, in particular the Americas

and the UK. Due to the pandemic, stores were temporarily

closed in many markets and the retailers limited their

replenishment orders. Net sales decreased in most

channels, with the exception of e-commerce.

Comparable EBITA in the Vita segment increased during

the period and amounted to EUR 41.0 million (38.8). The

comparable EBITA was supported by significant cost-

cutting measures. On the other hand, the decrease in net

sales weighed on the profitability.

TERRA SEGMENT IN 2020

EUR MILLION 2020 2019 CHANGE

Net sales 493.8 442.9 11.5%

Comparable

EBITA 67. 5 36.2 86.5%

Capital

expenditure 9.9 16.6 -40.4%

Net sales in the Terra segment increased year-on-year by

11.5% to EUR 493.8 million (2019: 442.9). Comparable

net sales increased by 14.1%.

Net sales growth was driven by the gardening and

watering categories, both of which developed positively

in the Americas and Central Europe. Demand was strong

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overall as people stayed at home, weather conditions

were mostly favorable and distribution increased.

In the Nordics and Baltics net sales development was

subdued by store closures. Several actions were taken

to improve the availability of Fiskars’ products, both in

e-commerce and in stores.

In the outdoor category net sales increased, supported

by the direct channel and increased distribution. The

Gerber Custom service, which was launched in March, has

been well received amongst consumers. Net sales were

negatively impacted by a decline in government orders.

Comparable EBITA in the Terra segment increased during

the period and amounted to EUR 67.5 million (36.2).

Profitability was supported by increased sales volumes

and cost-cutting measures.

CREA SEGMENT IN 2020

EUR MILLION 2020 2019 CHANGE

Net sales 162.0 142.9 13.4%

Comparable

EBITA 41.1 28.0 46.6%

Capital

expenditure 1.8 0.9 87.4 %

Net sales in the Crea segment increased year-on-year by

13.4% to EUR 162.0 million (2019: 142.9). Comparable

net sales increased by 14.4%. Sales increased in all

categories. Net sales in the direct channel decreased, as

growth in e-commerce did not offset the decrease in own

stores. The decrease in own stores was a result of the

COVID-19 -pandemic.

The increase in net sales was mostly driven by the strong

demand in the Americas. While net sales increased in

Europe, there were significant differences by market.

New distribution supported growth in Scandinavia and

Germany, whereas there were challenges for example in

Finland due to store closures.

Comparable EBITA in the Crea segment increased during

the period and amounted to EUR 41.1 million (28.0). The

comparable EBITA was supported by increased volumes and

inventory efficiencies as well as cost-cutting measures.

OTHER SEGMENT IN 2020

EUR MILLION 2020 2019 CHANGE

Net sales 3.8 3.9 -4.1%

Comparable

EBITA -12.8 -12.5 3.0%

Capital

expenditure 2.2 4.2 -48.1%

Net sales in the Other segment amounted to EUR 3.8

million (2019: 3.9), consisting of timber sales and rental

income. The comparable EBITA for the Other segment

amounted to EUR -12.8 million (-12.5).

NET SALES BY GEOGRAPHY IN 2020

EUR MILLION 2020 2019 CHANGE

COMPARABLE

CHANGE

Europe 495.9 518.9 -4.4% -3.6%

Americas 471.6 427.5 10.3% 11.8%

Asia-Pacific 154.1 143.6 7.3% 8.2%

Unallocated -5.4 0.3

Net sales in Europe decreased by 4.4% and amounted

to EUR 495.9 million (Q1-Q4 2019: 518.9). Comparable

net sales decreased by 3.6%, weighed down by the

Vita segment. Net sales increased in the Terra and Crea

segments. Overall, Germany was one of the key growth

drivers. Net sales decreased for example in Finland, the

UK and Ireland as a result of the lockdowns.

Net sales in the Americas increased by 10.3% to EUR

471.6 million (427.5). Comparable net sales increased by

11.8%, driven by the Terra and Crea segments, whereas

it decreased in the Vita segment.

Net sales in Asia-Pacific increased by 7.3% to EUR 154.1

million (143.6). Comparable net sales increased by 8.2%,

driven by all but one market in the region, since there

have been challenges in Japan. These challenges related

to lockdowns and low footfall to stores, as a result of the

pandemic.

Research and development

During 2020, research and development expenses

totaled EUR 16.5 million (2019: 18.4), which is equivalent

to 1.5% (1.7%) of net sales.

Personnel

At the end of the 2020, the Group employed 6,413

(6,984) employees, of whom 1,063 (1,132) were in

Finland. The main drivers behind the change were the

Transformation and Restructuring programs.

Transformation program

In October 2018, Fiskars Group launched a Transformation

program in its former Living segment aimed at increasing

efficiency, reducing complexity and accelerating long-

term strategic development.

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The program will target annual cost savings of

approximately EUR 17 million, subject to the full

implementation of the program. The targeted cost

savings are expected to be achieved gradually, and the

majority of the savings are expected to materialize in the

Group’s results after the program is completed, which is

estimated to be by the end of 2021.

The total costs of the program are approximately EUR 40

million in 2018–2021, of which EUR 22.5 million had been

recorded by the end of the December 2020. The costs are

recorded as items affecting comparability (IAC).

Restructuring program

During the first half of 2020, Fiskars Group changed its

organizational structure and simplified the organization to

continue to build one company with a common purpose,

strategy and values.

The company also launched a company-wide

Restructuring Program, announced in December 2019,

aimed at reducing costs. The savings are expected to

come from a wide range of areas, including the removal

of overlaps in the organization, simplified processes and

ways of working, and reduction of workforce. As part of

the program, the company is looking for synergies and

efficiencies in the selling and administrative spending. In

addition, the company is evaluating the entire supply and

distribution network for efficiency improvements.

The program will target annual net cost savings of

approximately EUR 20 million, subject to the full

implementation of the program. The targeted cost

savings are expected to be achieved gradually, and the

majority of the savings are expected to materialize in the

Group’s results during the program, which is estimated to

be completed by the end of 2021.

The total costs of the program are expected to be

approximately EUR 30 million by the end of 2021, of

which EUR 8.5 million had been recorded by the end of

December 2020. They will be recorded as items affecting

comparability (IAC) and have a cash flow impact. At

the same time, Fiskars Group continues investments in

growth initiatives that are expected to add sustainable

value in the long-term, e.g., in e-commerce and new

business opportunities.

Financial items, net result

and cash flow

Other financial income and expenses amounted to EUR

-8.9 million (Q1-Q4 2019: 3.4, including EUR 7.8 million

of dividends on Wärtsilä shares). Foreign exchange

differences accounted for EUR -2.2 million (-2.1) of

financial items.

Profit before taxes was EUR 89.8 million (63.2) for the full

year 2020. Income taxes for the full year 2020 were EUR

-21.3 million (-10.8). Earnings per share were EUR 0.83

(0.63).

The cash flow from operating activities before financial

items and taxes for the full year amounted to EUR 223.8

million (117.5). The change was driven by working capital

efficiencies, an increase in profit before taxes and by

timing differences. Cash flow from financial items and

taxes amounted to EUR -24.6 million (-21.0).

Cash flow from investing activities was EUR -29.4 million

(-37.0), including EUR -30.0 million of capital expenditure

on fixed assets. Cash flow from financing activities was

EUR -116.5 million (-74.5), including EUR -84.5 million of

change in current debt, EUR 39.9 million of change in non-

current debt, EUR -45.7 million of dividends paid and EUR

-24.0 million of lease liability payments. The comparison

figure from 2019 included EUR -51.0 million of dividends

paid and EUR -21.6 million of lease liability payments.

Capital expenditure for the full year totaled EUR 30.0

million (40.0), mainly relating to IT solutions and

replacements. Depreciation, amortization and impairment

amounted to EUR 76.1 million (59.6) for the full year. This

contains impairments of the Gingher trademark by EUR 1

million and the Waterford trademark by EUR 10.4 million.

Balance sheet and financing

Fiskars Group’s working capital totaled EUR 134.2 million

(194.4) at the end of December. The equity ratio was

57% (56%) and net gearing was 19% (34%).

Cash and cash equivalents at the end of the period

totaled EUR 62.5 million (9.4). Net interest-bearing

debt amounted to EUR 143.7 million (261.1), of which

leases classified as interest-bearing debt under IFRS 16

accounted for EUR 94.5 million (111.3).

Excluding leasing debt, short-term borrowing totaled EUR

61.2 million (108.7) and long-term borrowing EUR 51.2

million (51.4). Short-term borrowing consisted mainly of

bilateral loans from credit institutions maturing within 12

months.

In addition to outstanding loans, Fiskars Group had EUR

300 million of unutilized long-term committed credit

facilities and a commercial paper program of EUR 400

million with Nordic banks.

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The impact of the COVID-19

pandemic on Fiskars Group

in 2020

Market situation

The market situation has been highly volatile. It was most

challenging in March and April and improved towards the

end of the second quarter. The second half of the year

was still volatile, as some categories gained support,

while others continued to be challenged. Throughout the

year there have been significant differences by category

and market. Overall, consumers have shifted focus

to e-commerce channels due to lockdowns and store

closures, which has impacted retailers as well.

In the Vita categories demand has decreased, and store

closures negatively impacted the performance. March

and April were the most challenging months. Gifting

is an important part of the business, and it was hit by

social distancing and restrictions on holding meetings.

Additionally, customers in the hospitality channel

(i.e. hotels, cruise lines, airlines) have largely halted

investments.

In the Terra and Crea categories the pandemic had a

different impact. Demand has been strong, especially in

June, and continued at a good level in the second half

of the year. In particular, the gardening and watering

categories have seen increased consumer interest. Also,

these categories have not been hit by store closures to

the same extent as for Vita. For Crea, the demand for

scissors and sewing products has increased as people

have spent more time at home.

Temporary cost-cutting measures

At the beginning of the pandemic, proactive steps

were swiftly introduced to lessen the negative impacts

of COVID-19 on operations around the world. As the

situation evolved during the year, a broad range of cost

savings were implemented. Most of these measures

were taken starting in the second quarter of the year and

were visible in the financial performance from the second

quarter onwards.

Own stores

The company had to temporarily close stores due to the

pandemic, starting in the Asia-Pacific region as early as

January. The closures and reopenings varied by country

and even by city. The closures reached a high in April,

when a significant amount of the Group’s stores were

closed. While only a few stores were closed in the fall, the

number increased clearly towards the end of the year.

Own production

The pandemic impacted most of the production units.

Some were temporarily closed to adjust to the decrease

in demand, while others increased production volumes.

In all units, new arrangements were put in place in order

to meet regulations ensuring the health and wellbeing of

employees. Production continued to be impacted in a few

units at the end of December, in response to the reduced

demand.

Financial position

Actions to secure liquidity were promptly taken during the

first quarter of the year. The cash level was increased with

short-term borrowing (mainly by commercial paper issues

and bilateral loans from credit institutions). Due to the

strong cash flow, the majority of these loans were repaid

during the second half of 2020.

Throughout the COVID-19 pandemic, Fiskars Group has

intensely followed up on and assessed the credit risks of

trade receivables. The existing bad debt provision model

for expected credit losses is based on the age groups

of the trade receivables. Bad debt provision increases

in line with the age of the trade receivables, so as the

model is followed, the increased credit risk in the form

of more mature trade receivables results in a higher bad

debt provision. The model is adjusted for forward-looking

information. Credit losses have remained at a historically

normal level during 2020.

Impact on financial reporting

On the basis of the impairment calculations performed

in the second quarter, there has been no need for

impairment of goodwill for any CGU for the period ended

June 30, 2020. Based on impairment testing calculated

on trademarks, the Gingher trademark has been impaired

with EUR 1.0 million for the period ended June 30, 2020.

Impairment tests were performed according to the annual

schedule during Q4 2020.

The credit risk of trade receivables, and the amount

of bad debt provision was analyzed at the end of the

reporting period, with the conclusion being that sufficient

provisions have been made.

Reporting of non-financial

information

Sustainability in 2020

In 2020 accelerating of sustainability work towards

2030 continued through a shared ambition and refreshed

approach for further integrating sustainability to

business.

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A strong sustainability approach is the right thing to do

for people and the planet and the prerequisite to future-

proof and grow business. Sustainability is an opportunity

for Fiskars Group to further strengthen the reputation and

increase brand love.

Fiskars Group has set a new long-term ambition to be the

sustainability leader within its industry. Fiskars Group’s

sustainability approach describes how the ambition will

be reached: we are on a mission for the lasting wellbeing

of people and planet.

Fiskars Group’s three long-term sustainability

commitments were refreshed: against throwaway culture,

for a carbon neutral business and for increased joy. Short-

term and long-term sustainability targets are in place

support sustainability commitments.

Fiskars Group is committed to take climate action and

in 2020 Fiskars Group joined the UN Business Ambition

for 1.5°C and set the science-based targets for 2030 to

reduce greenhouse gas emissions aligned with the latest

climate science and the most ambitious goals of the Paris

Agreement.

These commitments are guided by Fiskars Group’s

sustainability ambition and inspired by the United Nations

Sustainable Development Goals (SDGs). These three

commitments will help Fiskars Group grow, provide long-

term value and give the focus to reach the sustainability

ambition.

Environment

The responsible and reduced use of natural resources, and

the careful re-usage and recycling of materials is central

to Fiskars Group’s sustainability approach. Fiskars Group’s

environmental and energy approach is guided by two main

principles: supporting long-term competitiveness and

reducing negative impacts.

New business models around circular economy, such as

extending material cycles, provide opportunities to create

value and support Fiskars Group in reducing the use of

non-renewable materials. Fiskars Group is committed

to promoting efficiency and identifying new solutions

throughout the value chain.

POLICIES AND COMMITMENTS

International standards and guidelines, such as ISO

14001, create an important foundation for Fiskars

Group’s environmental management. Fiskars Group

Environmental Policy emphasizes common targets and

ways of working within Fiskars Group’s manufacturing

units. Fiskars Group Supplier Code of Conduct outlines

expectations regarding suppliers’ energy and emissions

management, and every supplier must sign and commit to

it to be able to do business with Fiskars Group.

TARGETS & ACTIONS

Target 2030: global concept and capability in place

to take-back and recycle/reuse/resell the products,

covering all Fiskars Group main brands.

Target 2022: business model for recycling and reselling

the products in place in select markets.

Creating new business models is essential to staying

relevant in the changing business landscape. The circular

economy provides opportunities to create value and

support Fiskars Group in resource wisdom: being more

efficient and innovating new materials and technologies

to mitigate the use of non-renewable materials.

Aligned with the 2022 target, the Vintage service,

providing people the opportunity to buy and sell

previously owned Iittala and Arabia tableware products,

continued in Finland and expanded to Sweden. The

Vintage service has been very well received by consumers

and it is planned to be expanded to new categories and

markets in 2021.

Vintage products sold during 2020 saved over 165

tons of solid natural resources and over 56 t CO

emissions. The assessment was conducted with Helsinki

Metropolitan Area Reuse Centre Ltd to better understand

environmental savings that people do buying previously

owned tableware instead of buying new ones.

TARGETS 2030:

To reduce greenhouse gas emissions from own

operations (Scope 1 and 2) by 60% by 2030 from a

2017 base year

To reduce greenhouse gas emissions from

transportation and distribution (Scope 3) by 30% by

2030 from a 2017 base year

60% of Fiskars Group’s suppliers by spend covering

purchased goods and services, will have science-based

targets by 2024

Fiskars Group implemented many energy and emission

saving activities in 2020 which saved in total 6,856 MWh

of energy. Overall energy consumption decreased to

901 TJ (1023 TJ) and energy intensity (MWh/net sales)

decreased to 216 (261). Decrease in energy usage was

achieved through energy saving actions and adjustments

in production due to the COVID-19 pandemic impacts.

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Fiskars Group has been investing in renewable fuels and

electricity. Currently manufacturing units in Finland,

Slovenia, Poland and Ireland are using renewable

electricity. Royal Copenhagen factory in Thailand and

distribution center in Wall, New Jersey, U.S, have solar

panels installed. Fiskars Group is looking for opportunities

to expand these initiatives to other locations in the future.

ENERGY

GRI 302-1 Energy consumption within the organization, TJ

2020 2019

Direct energy consumption:

non-renewable 606 695

Direct energy consumption:

renewable 9 5

Indirect energy

consumption 285 323

Total energy consumption 901 1,023

In 2020, Group-wide GHG emissions decreased by 28%

compared to the previous year. Compared to the 2017

base year, Fiskars Group reached the reduction of 44%.

Reductions were achieved as a result of the energy saving

actions and investments in renewable energy in Poland.

The results of this year are not fully comparable due to the

COVID-19 pandemic impacts to business. 627 t CO

e was

saved in different energy and emissions saving activities

during since 2020.

Emissions from business travel decreased by 85%

compared to 2019, due to COVID-19 pandemic impacts

and travel restrictions. Transportation emissions remained

at the same level. In 2020 emissions from inbound and

outbound transportation were 26,000 t CO

e (26,000t

e). The COVID-19 pandemic affected the business

reducing visibility, increasing uncertainty with stores

closing and traffic decreasing. At the same time, demand

in many of the categories increased, as people spent

more time at home. This impacted the company’s ability

to optimize transportation and reduce emissions.

EMISSIONS

GRI 305-1 Direct (Scope 1) GHG emissions, 1,000 t CO

2020 2019

Scope 1 emissions 34 38

GRI 305-2 Energy indirect (Scope 2)

GHG emissions, 1,000 t CO

2020 2019

Scope 2 emissions

Market based 15 28

Location based 28 34

GRI 305-3 Other indirect (Scope 3)

GHG Emissions, 1,000 t CO

2020 2019

Scope 3 emissions

Business travel 1 5

Upstream and downstream

transportation 26 26

Business travel includes the emissions from business

flights, covering all main locations. Transportation data

is calculated by collecting GHG emissions data from

logistic partners. 94.3% of the emissions were received

from partners and 5.7% was extrapolated to cover CO

emissions for the whole year 2020.

Target 2030: All waste from Fiskars Group operations

(manufacturing, retail, offices, and DCs) is recovered or

recycled, no waste to landfill.

Target 2022: Waste to landfill reduced by 80%

compared to the 2017 base year

To reach the target, Fiskars Group’s manufacturing

units and distribution centers have been on a path of

mapping and measuring their waste and investigating

opportunities for improvement. Overall reduction of waste

to landfill was 79% since the base year 2017. The total

amount of landfill was 828 (1,550) tonnes.

The main contributors to this reduction were

manufacturing unit in Poland with improved waste

segregation and increased recycling rate, and PT Doulton

ceramics manufacturing unit in Indonesia, where both

internal and external options to reduce waste to landfill

have been pro-actively explored. They have collaborated

with external partners to use previously landfilled waste

as a raw material to produce products such as bricks,

cements or tiles.

Social and employee related matters

Fiskars Group is committed to inspiring and empowering

people to learn, develop as professionals, and bring in new

ideas, skills, and views. Fiskars Group is building a globally

collaborative culture and needs a diverse team to be able

to serve consumers in the best possible way. Fiskars

Group wants to attract, develop and retain a diverse team

of high-performing people with different backgrounds and

cultures.

One of the key priorities in Fiskars Group’s operations is to

ensure the safety and wellbeing of employees and people

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involved in the value chain. Fiskars Group promotes a

culture of zero harm in order to increase safety and hazard

awareness. A continuing focus on reducing accidents

and near-misses and promoting the reporting of safety

observations are vital in developing and retaining a team

of people engaged and enabled to do their best.

POLICIES AND COMMITMENTS

Fiskars Group has outlined a set of policies and guidelines

related to social and employee related matters, to guide

the leadership, employees, and partners in everyday work.

Fiskars Group’s Code of Conduct provides a detailed

description of Fiskars Group’s approach to doing business

in an ethical and sustainable manner. Fiskars Group’s

Supplier Code of Conduct outlines the same expectations

for suppliers.

Employment Policy aligns important topics such as

diversity and inclusion, employee wellbeing, freedom of

association and employee contracts.

Ensuring the safety and wellbeing of employees and

people involved in Fiskars Group’s value chain is a key

priority. In 2020, Fiskars Group updated the Health and

Safety Policy to further promote the culture of zero harm

and support the safety priorities. Fiskars Group Supplier

Code of Conduct includes health and safety topics, such

as workplace safety, emergency preparedness, and

management and communication on health and safety.

TARGETS & ACTIONS

Fiskars Group organizes regular mandatory training

sessions to help all employees implement the principles

and guidelines outlined in the Code of Conduct in their

everyday work. New employees conduct the training

during their onboarding. Every second year all employees

are trained. In 2020 93.5% of employees conducted the

updated Code of Conduct training.

HEALTH AND SAFETY

Target 2030: Zero harm with a zero Lost Time Accident

Frequency (LTAF)

Target 2022: LTAF reduced by 20% (compared to base

year 2017)

In 2020, Fiskars Group Lost Time Accident Frequency

(LTAF) was 5.9 (2019: 4.7) and the rate of recordable

work-related injuries was 9.7. During this exceptional year

efforts to improve safety performance were not enough.

In 2020 the classification of our own employees and

contractors aligned with the updated GRI Standard were

updated which also impacted the results. Compared to

the 2017 base year the LTAF was 31% higher.

Since the start of the COVID-19 pandemic, the number

one concern has been employees’ safety and wellbeing.

Quick actions were taken to help prevent the spread of

COVID-19 and the local authorities’ guidance was closely

followed in the different countries we operate.

Fiskars Group’s third global safety week was celebrated

with the theme – ‘I care: Safety starts with me!’. The

participation was active although due to the COVID-19

pandemic, most of the week’s activities took place

online. Safety week boosted the safety observation

reporting and in total there were 7,690 (2019: 6,470)

observations reported during 2020. This is an important

way for Fiskars Group to promote safety at work and all

these observations are recorded and actions are taken to

mitigate the hazards.

During 2020, development of the safety reporting

continued, and the reporting was rolled out to cover

offices and retail stores in addition to factories and

distribution centers. This is a big step forward towards

aligned health and safety reporting and culture across

Fiskars Group. Implementation of the new reporting tool

for health and safety KPIs enables the improvement of

safety culture at offices and retail stores. Through the

new tool, total of 198 safety observations and 10 lost

time accidents were reported from the offices and retail

stores.

DIVERSITY AND INCLUSION

In 2020 a diversity and inclusion working group was

established to reevaluate our current actions and targets,

determine where we can become better, and plan our

future activities. Chief People Officer led the working

group that included employees representing different

parts of our company and locations.

There are actions Fiskars Group still need to take and

develop to ensure a truly inclusive, equal opportunity

company where everyone, regardless of gender, age,

ethnicity or beliefs, can feel safe and perform at their

best. It is not enough to try to eliminate actual barriers,

but to make sure that Fiskars Group is actively creating a

culture that is truly inclusive and fair.

Fiskars Group’s annual employee survey provides

important feedback and insights on the performance

around diversity and inclusion. In 2020 the business

environment continued to change more rapidly than

ever, and the employee sentiment was followed through

regular pulse surveys to get feedback throughout the

whole year. The annual employee survey was postponed

to 2021 when global employee survey, Our Voice, will be

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conducted with a new partner and technology selected

during 2020.

DIVERSITY AND EQUAL OPPORTUNITIES

GRI 405-1 Diversity of governance bodies and employees

Board of Directors

Age group

FEMALE, % MALE, % TOTAL, %

Under 30 0 (0) 0 (0) 0 (0)

30–50 25.0 (25.0) 12.5 (12.5) 37.5 (37.5)

Over 50 12.5 (12.5) 50.0 (50.0) 62.5 (62.5)

Total 37.5 (37.5) 62.5 (62.5) 100.0 (100.0)

Leadership Team

Age group

FEMALE, % MALE, % TOTAL, %

Under 30 0 (0) 0 (0) 0 (0)

30–50 27.3 (22.2) 27.2 (22.2) 54.5 (44.4)

Over 50 18.2 (22.2) 27.3 (33.3) 45.5 (55.6)

Total 45.5 (44.4) 54.5 (55.6) 100.0 (100.0)

Managers with teams

Age group

FEMALE, % MALE, % TOTAL, %

Under 30 1.4 (1.3) 0.3 (0.6) 1.7 (1.9)

30–50 30.1 (28.8) 37.4 (39.2) 67.6 (68.0)

Over 50 13.6 (12.9) 17.1 (17.2) 30.7 (30.1)

Total 45.2 (43.0) 54.8 (57.0) 100.0 (100.0)

Human rights and anti-corruption & bribery

Fiskars Group has an important opportunity to influence

people’s lives throughout the value chain. Fiskars Group

respects human rights and recognizes the equality of

people.

Fiskars Group is committed to the highest possible

standards of integrity, accountability and honesty in all

its activities with employees and third parties. This is in

line with the commitment Fiskars Group expects of its

employees, and people involved in the value chain, to act

impartially and in good faith at all times.

POLICIES AND COMMITMENTS

Fiskars Group’s commitment to human rights is deeply

ingrained in its values and articulated in company policies.

The Fiskars Group Code of Conduct provides a detailed

description of Fiskars Group’s approach to doing business

in an ethical and sustainable manner, including working

conditions, labor rights, anti-corruption and bribery, and

safety at work.

Fiskars Group Supplier Code of Conduct outlines the same

expectations for the suppliers. Every supplier must sign

and commit to Fiskars Group Supplier Code of Conduct in

order to do business with Fiskars.

Fiskars Group is a participant to the United Nations

Global Compact, by which Fiskars Group has committed

to mitigate adverse human rights and work against

corruption and bribery. To support Fiskars Group’s

commitment, the Fiskars Group Anti-Corruption and Anti-

Bribery policy outlines the expectations towards Fiskars

Group’s employees, and all others that we deal with, to

act impartially and in good faith at all times. The policy

covers every individual working in or with Fiskars Group,

at any level or grade and wherever located. Fiskars Group

also expects that all of its business partners should be

governed by the same or similar principles stipulated in

this Policy. Fiskars Group expects all business partners

ensure that those principles are communicated to their

employees and sub-contractors.

TARGETS & ACTIONS

Fiskars Group’s approach to human rights and anti-

corruption and bribery is defined in Fiskars Group’s

policies, which are also the foundation for the

implementation and targets. Fiskars Group has processes

in place to support efforts in enforcing human rights and

anti-corruption and bribery throughout the value chain.

Fiskars Group is currently measuring the awareness

and commitment to human rights and anti-corruption

and bribery by measuring the percentage of employees

that have participated in Code of Conduct training. New

employees conduct the training during their onboarding.

Every second year all employees are trained. In 2020

93.5% of employees conducted the updated Code of

Conduct training.

Human rights assessment was conducted to better

understand the gaps, risks and opportunities and

needed steps to develop a human rights due diligence.

Performance was evaluated against the United Nations

Guiding Principles on Business and Human Rights.

In 2020 when the business faced the impacts of the

COVID-19 pandemic, Fiskars Group put people’s safety

and wellness first. As remote working became part of the

everyday, ensuring people’s social and emotional wellbeing

and promoting a healthy work-life balance was important.

As an example, Fiskars Group encouraged people to

organize virtual coffee breaks, moved to 45-minute

meetings and organized People Talks to all line managers

around topics like remote working and physical wellbeing.

In addition to supporting people’s safety and wellbeing

during these exceptional times the plan is to continue

the human rights work aligned with the human rights

assessment conducted earlier.

Fiskars Group is committed to conducting its business in

ethical and responsible manner, tolerating no violations

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of the Fiskars Group Code of Conduct. Fiskars Group

WhistleBlowing Channel, a third-party provided platform,

is a confidential and anonymous channel for all employees

to report any workplace-related issues and complaints or

suspected violations of the Code of Conduct. The Code of

Conduct requires all employees or other persons working

under Fiskars Group’s direction to report any suspected

violations to their manager, HR, Legal & Compliance

function or through the WhistleBlowing Channel.

All suspected violations and occurrences of misconduct

are investigated promptly and thoroughly with

confidentiality by the Legal and Compliance function.

Relevant other functions are engaged depending on the

case, such as HR, to solve the issues. All reported cases

are reported annually to Board’s audit committee.

During 2020, there were nine cases reported via

WhistleBlowing Channel and three cases received via

management. The reported cases were related to human

resources, discrimination, health and safety, corruption

and fraud. Five of the cases were investigated, resolved

and closed during 2020. Seven of the cases are still under

investigation or being followed up.

The performance of Fiskars Group’s suppliers is followed

through regular audits, and Fiskars Group supports their

development through training sessions and workshops. In

addition, Fiskars Group has organized training sessions on

the Supplier Code of Conduct and the process of managing

suppliers’ sustainability in order to raise awareness among

Fiskars Group employees across different functions.

In 2020, we conducted in total 46 sustainability audits for

our suppliers. The COVID-19 pandemic impacted to ability

to travel and conduct sustainability audits.

Risks

The overall objective of Fiskars Group’s risk management

is to identify, evaluate, and manage risks that may

threaten the achievement of Fiskars Group’s business

goals. The most material risks for Fiskars Group have

been identified. Fiskars Group has several processes in

place to manage risks, such as supplier risk management

process, and strategic initiatives to lower the emissions

and reduce energy consumption.

Climate change, resource scarcity, and changing

consumer preferences bring many new strategic,

operative, and financial risks as well as opportunities

for Fiskars Group. Cost of emissions, non-renewable

materials, and waste is expected to increase in the future.

Consumers are increasingly interested in new business

and service models based on circular economy, such as

renting and take-back concepts.

Human rights and anti-corruption and bribery related risks

are mainly seen as financial, compliance and reputational

risks, but Fiskars Group also sees them as an operative

risk. The main risk is the inability to manage these topics

throughout the value chain, such as failing to ensure the

protection of human rights and health and safety within

the supply chain.

Changes in organization and

management

On March 17, Chief Consumer Officer Tina Andersson

started in her position. On April 8, 2020, Fiskars Group

announced the appointment of James Brouillard as

Executive Vice President, Business Area Terra. He started

in his position on April 20, 2020. Both report to the CEO

and are members of the Fiskars Group Leadership Team.

On April 21, 2020, Fiskars Group announced the

resignation of President and CEO Jaana Tuominen. CFO

Sari Pohjonen was appointed interim CEO. On July 10, the

company announced the appointment of M.Sc. (Tech.)

Nathalie Ahlström (born 1974) as President and Chief

Executive Officer of Fiskars Corporation. She started in

the position on November 30, 2020. At the same time,

she stepped down from the Board of Directors at Fiskars,

where she has been a member since March 2020.

Starting on November 30, 2020, Interim President and

CEO Sari Pohjonen continued in her role as Chief Financial

Officer, Deputy to the CEO and member of the Group

Leadership team.

Other significant events

during the reporting period

New share-based Long-term Incentive

Plans for Fiskars Group’s key employees

The Board of Directors of Fiskars Corporation has

decided on new share-based Long-term Incentive Plans

for the Fiskars Group Leadership Team and other key

employees. The plans include a Performance Share Plan

and a Restricted Share Plan and they will form a part of

Fiskars remuneration program for its key employees.

The aim of the plans is to support the implementation

of the company’s strategy and drive profitable growth

and to align the objectives of key employees with the

shareholders to increase the value of the company.

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PERFORMANCE SHARE PLAN:

The Performance Share Plan consists of annually

commencing individual performance share plans, each

with a three-year performance period, followed by the

payment of the potential share reward. The Board of

Directors will decide separately the commencement of

each individual plan and their participants, the minimum,

target and maximum rewards for each participant, as

well as the performance criteria and related targets. The

amount of the reward paid to a key employee depends

on the achievement of the set targets. No reward will be

paid if the targets are not met. Also, if the participant’s

employment or service ends before reward payment, the

participant is, as a main rule, not entitled to any reward.

The potential reward will be paid in the company’s shares,

after the deduction of the proportion that is required for

covering taxes and tax-related costs due on the basis of

the reward. However, the company may decide to pay the

reward fully in cash.

The first 2021–2023 performance period commences as

of the beginning of 2021 and the potential share reward

thereunder will be paid during the first half 2024. For the

first performance period, the plan has a maximum of 50

participants and the performance targets for the Plan

relate to the company’s absolute total shareholder return

and Group EBITA.

If all maximum performance targets are reached, the

reward payable in shares on the basis of the 2021–2023

performance period would amount to a total gross

maximum of 600,000 shares in the company. For

reference purposes only (noting that the market value of

the shares will constantly change), calculated based on

the volume weighted average price of Fiskars share on

December 9, 2020, the estimated total value of this first

plan is approximately EUR 8.7 million.

RESTRICTED SHARE PLAN:

The purpose of the Restricted Share Plan is to serve as a

complementary long-term retention tool for individually

selected key employees of Fiskars Group in specific

situations. The Restricted Share Plan consists of annually

commencing individual restricted share plans. The Board

of Directors will decide separately the commencement

of each individual plan. Each plan comprises an overall

three-year retention period during which the Company

may grant fixed share rewards to individually selected key

employees. The company may choose to use a shorter

retention period on a case by case basis within this overall

three-year period. The granted share rewards will be paid

after the retention period. No reward will be paid if the

participant’s employment or service ends before reward

payment. The reward will be paid in the company’s shares,

after the deduction of the proportion that is required for

covering taxes and tax-related costs due on the basis of

the reward. However, the company may decide to pay the

reward fully in cash.

The first plan for the years 2021–2023 commences as of

the beginning of 2021 and the share rewards potentially

granted thereunder will be paid latest during the first half

of 2024.

The aggregate total maximum number of shares to be

paid based on this first plan covering the years 2021–

2023 is gross 150,000 shares. For reference purposes

only (noting that the market value of the shares will

constantly change), calculated based on the volume

weighted average price of Fiskars share on December

9, 2020, the estimated total value of this first plan is

approximately EUR 2.2 million.

OTHER TERMS:

For the first plans for the years 2021–2023, the

maximum value of the reward payable to each participant

based on each of the afore described plans is limited

by a cap linked to Fiskars share price development.

Also, members of the Fiskars Group Leadership Team

participating in the long-term incentive plan are subject to

a shareholding requirement and must retain at least 50%

of the net shares received based on the plans until their

share ownership in Fiskars corresponds to at least 100%

for the President and CEO and 50% for the other Fiskars

Group Leadership Team members of their annual gross

base salary.

As a starting point, shares to be awarded to key

employees based on Performance Share Plan or

Restricted Share Plan will be paid as existing shares of

the company and thus the plans are not expected to

have a diluting effect on the ownership of the company’s

shareholders.

Outlook for 2020 withdrawn on March 19,

2020, reinstated on October 13, 2020

On March 19, 2020, Fiskars Corporation withdrew its

guidance on the outlook for 2020, which was issued on

February 5, 2020. Due to the COVID-19 outbreak, the

comparable EBITA was seen unlikely to increase in 2020.

As the situation evolved rapidly, it was too early to make

reasoned estimates on the potential impact. Fiskars

expected to guide the outlook for the full year 2020, once

a more reliable estimate on the potential impact can be

made.

On October 13, Fiskars reinstated its guidance on the

outlook for 2020. The company expected the comparable

EBITA to increase from 2019.

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Fiskars Group’s new organizational

structure effective

At the beginning of April, Fiskars Group’s new

organizational structure became effective, as the

organization was simplified in line with the announcement

on December 4, 2019. Following the change, the company

is organized around three Business Areas, global Sales

and Consumer Experience & Growth functions, as well as

Supply Chain and other Global Functions. The company

is targeting annual net cost savings of EUR 20 million by

the end of 2021, by renewing the organizational structure

and increasing efficiencies. Additionally, the financial

reporting structure changed.

The new organizational design was expected to lead

to a net reduction of approximately 220 employees in

office roles globally. Employee consultations in Finland

started on January 20, 2020 and covered altogether

476 employees in office roles. The possible reduction

of employees was estimated to affect a maximum 60

employees in Finland. The changes resulted in a total

net reduction of 220 positions in office roles globally, of

which 31 were in Finland.

Tax decision by the Administrative Court

On April 9, 2020, Fiskars Corporation received a tax

decision from the Helsinki Administrative Court, which

maintained the decision that obliged the company to pay

EUR 28.3 million in additional tax, interest and punitive

increases as a result of a tax audit carried out in 2014.

The decision concerns intra-group loans forgiven by the

company in 2003 and their tax treatment in subsequent

tax years. Fiskars Corporation considers the decision

unfounded and has sought appeal further from the

Supreme Administrative Court.

The reassessment decision had a negative effect of EUR

28.3 million on the cash flow during the third quarter

of 2016. Fiskars Corporation has disclosed the ongoing

tax appeal process in the earlier Annual Reports and

Interim Reports. The company and its external advisors

continue to consider the decision unfounded and do not

recognize the related taxes and other costs in the income

statement.

Charges pressed against a member of the

Board of Directors of Fiskars Corporation in

a Nokian Tyres related matter

On October 29, Fiskars announced that according to the

information that Fiskars Corporation has received, the

public prosecutor has decided to press charges related to

suspected securities markets offences against Inka Mero,

who is a member of the Board at Fiskars Corporation.

Charges have been pressed against several persons.

Inka Mero was a member of the Board at Nokian Tyres plc

during the period referred in the charges, in 2015–2016,

and is currently in this position as well. According to the

information that Fiskars Corporation has received, Inka

Mero denies involvement in any criminal activity.

The matter does not relate to Fiskars Corporation.

The charges do not have an effect on the work of the

Fiskars Board. The company monitors the progress of

the proceedings and revisits the topic latest when the

outcome of the proceedings has been determined.

Corporate governance

Fiskars Corporation is a Finnish public limited company in

which duties and responsibilities are defined according

to the Finnish law. Fiskars Group comprises the parent

company Fiskars Corporation, and its subsidiaries. The

statutory governing bodies of Fiskars Corporation are the

General Meeting of Shareholders, the Board of Directors,

the Managing Director (President and CEO), and the

Auditor. Other Group management supports the statutory

governing bodies of Fiskars Corporation. The Company’s

domicile is Raseborg, Finland.

Corporate governance at Fiskars Corporation is based

on the Finnish Limited Liability Companies Act, the rules

and regulations concerning publicly listed companies, the

Company’s Articles of Association, the charters of the

Company’s Board of Directors and its Committees, and

the rules and guidelines of Nasdaq Helsinki Ltd. Fiskars

Corporation is a member of the Finnish Securities Market

Association and complies, with an exception concerning

the Nomination Committee, with the Finnish Corporate

Governance Code approved by the Securities Market

Association, which came into force on January 1, 2020

and can be reviewed at www.cgfinland.fi. In terms of the

composition of the Nomination Committee, the Company

has departed from the Recommendation 15 of Finnish

Corporate Governance Code as explained in more detail in

the Corporate Governance Statement 2020.

Dividend for the financial year 2019

The Annual General Meeting decided in accordance with

the proposal by the Board of Directors to pay dividend

of EUR 0.56 per share for the financial period that ended

on December 31, 2019. The dividend was paid in two

instalments of EUR 0.28 per share. The first instalment

of was paid on March 20, 2020 and the second on

September 17, 2020.

Shares and shareholders

Fiskars Corporation has one share series (FSKRS). All

shares carry one vote and equal rights. The number of

shares in the Corporation totals 81,905,242. Fiskars

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Corporation held 433,677 of its own shares at the end of

the year. The share capital remained unchanged at EUR

77,510,200.

Fiskars shares are traded in the Large Cap segment of

Nasdaq Helsinki. The volume-weighted average share

price during 2020 was EUR 10.88 (2019: 14.75). At the

end of the year, the closing price was EUR 14.98 (EUR

11.26) per share and Fiskars had a market capitalization

of EUR 1,220.4 million (917.7). The number of shares

traded on Nasdaq Helsinki and in alternative marketplaces

in 2020 was 11.1 million (9.1), which represents 13.6%

(11.2%) of the total number of shares. The total number

of shareholders was 25,968 (23,495) at the end of 2020.

Flagging notifications

Fiskars was not informed of any significant changes

among its shareholders during the quarter.

Board authorizations

Authorizing the Board of Directors to

decide on the acquisition of the company’s

own shares

The Annual General Meeting decided to authorize the

Board to decide on the acquisition of a maximum of

4,000,000 own shares, in one or several instalments,

using the unrestricted shareholders’ equity of the

company.

The company’s own shares may be acquired in public

trading on Nasdaq Helsinki Ltd at a price formed in public

trading on the date of the acquisition. The authorization

may be used to acquire shares to be used for the

development of the capital structure of the company,

as consideration in corporate acquisitions or industrial

reorganizations and as part of the company’s incentive

system and otherwise for further transfer, retention or

cancellation.

The Board of Directors is authorized to decide on all other

terms and conditions regarding the acquisition of the

company’s own shares. Based on the authorization the

acquisition of the company’s own shares may be made

otherwise than in proportion to the share ownership of

the shareholders (directed acquisition). The authorization

is effective until June 30, 2021 and cancels the

corresponding authorization granted to the Board by the

Annual General Meeting on March 13, 2019.

Authorizing the Board of Directors to

decide on the transfer of the company’s

own shares

The Annual General Meeting decided to authorize

the Board to decide on the transfer of own shares

(share issue) held as treasury shares of a maximum of

4,000,000 shares, in one or several instalments, either

against or without consideration.

The company’s own shares held as treasury shares may

be transferred for example as consideration in corporate

acquisitions or industrial reorganizations or for the

development of the capital structure of the company, or

as part of its incentive system.

The Board of Directors is authorized to decide on all other

terms and conditions regarding the transfer of own shares

held as treasury shares. The transfer of own shares may

also be carried out in deviation from the shareholders’

pre-emptive rights to the company’s shares (directed

issue).

The authorization is effective until June 30, 2021 and

cancels the corresponding authorization granted to the

Board by the Annual General Meeting on March 13, 2019.

Board and board committees

The Annual General Meeting decided that the Board

of Directors shall consist of nine (9) members. Albert

Ehrnrooth, Paul Ehrnrooth, Louise Fromond, Jyri

Luomakoski, Inka Mero, Fabian Månsson, Peter Sjölander

and Ritva Sotamaa were re-elected. Nathalie Ahlström

was elected as a new member. The term of the Board

members will expire at the end of the Annual General

Meeting in 2021. On November 30, 2020, Nathalie

Ahlström assumed her duties as President and CEO of

Fiskars Corporation. At the same time, she stepped down

from the Board of Directors.

Convening after the Annual General Meeting held on

March 11, 2020 the Board of Directors elected Paul

Ehrnrooth as its Chairman and Jyri Luomakoski as the Vice

Chairman. The Board decided to establish a Nomination

Committee and appointed Paul Ehrnrooth (Chairman)

and Fabian Månsson as the members of the Nomination

Committee and Alexander Ehrnrooth as an external

member to the Nomination Committee and further

decided to establish an Audit Committee and appointed

Jyri Luomakoski (Chairman), Nathalie Ahlström, Albert

Ehrnrooth, Louise Fromond and Ritva Sotamaa as the

members of the Audit Committee and a Human Resources

and Compensation Committee and appointed Paul

Ehrnrooth (Chairman), Inka Mero and Peter Sjölander as

the members of the committee.

Risks and business uncertainties

Fiskars Group has identified several uncertainties

that may have an adverse impact on the business and

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financial performance of Fiskars Group. Key risks and risk

management practices are explained in the Corporate

Governance Statement.

Development of new technologies and new retail channels

has increased the role of online shopping and social

media, and the use of mobile applications. Increasing

emphasis on sustainability is expected to add demand for

new services and business models. Failure to respond to

the changing consumer behavior or increased competition

may weaken the competitive position of Fiskars Group

and thus lead to potential loss of net sales and profit.

Fiskars Group is exposed to risks from structural changes

in retail landscape such as consolidation among retailers,

international retailers’ increasingly centralized purchasing

activity and their shifting strategic focus to own private

label businesses. Sustainability requirements for supply

chains and materials used are increasing. Failure to meet

customer demands may result in Fiskars Group losing

customers or listings with customers. This may have a

material adverse impact on the net sales and profit of

Fiskars Group.

Own manufacturing of Fiskars Group takes place in Asia,

Europe and the United States. Most of the suppliers are in

Asia. Fiskars Group is exposed to changes in quality, price

and availability of products. Failure to deliver high quality

and functional products in a timely manner may lead to

loss of listings and customers. Failure to meet consumer

expectations on the sustainability requirements in the

supply chain may have a negative impact on reputation

and consumers’ trust in our brands.

Fiskars Group is increasingly dependent on centralized

information technology systems that hold critical

business information. Breaches, malfunctions,

cyberattacks and fraud attempts may have a material

adverse effect on the net sales, profit and reputation of

Fiskars Group, and cause business interruptions.

Fiskars Group global operations are subject to

macroeconomic and political uncertainties including trade

disputes and geopolitical tensions, as well as megatrends

that may shape consumer behavior. Prolonged recession

and weak consumer demand may have a negative impact

on net sales and profit of Fiskars Group. A prolonged

global pandemic slows down the world economy, and may

thus directly impact the operations, net sales and profit

of Fiskars Group. Securing the wellbeing of the personnel

during such a pandemic is a top priority for Fiskars Group.

International tax environment creates uncertainties

related to tax obligations. Increasing tax enforcement

activity may lead to double taxation and additional

costs in the form of penalties and interest. Changes in

import duty liabilities and tariffs may affect the profit of

Fiskars Group. Fiskars Group has appealed against a tax

reassessment claim raised by the Finnish Large Taxpayers’

Office in 2016, which obliged the Group to pay a total of

EUR 28.3 million in additional tax, interest expenses and

punitive tax increases.

Changing legal and regulatory environment may expose

Fiskars Group to compliance and litigation risks and

materially impact the business and reputation of

Fiskars. Areas of evolving legislation and regulation

include, among others, anti-corruption, climate change,

competition, data security, environment, health and

safety, and human rights.

Acquisitions are a part of the growth strategy of Fiskars

Group. Despite a careful due diligence process, all

acquisitions and integration of acquired businesses include

risks. Acquired businesses may not perform as expected,

key individuals may decide to leave the company, the costs

of the integration may exceed expectations, and synergy

effects may be lower than expected.

Fiskars Group commits to offering products that are safe

to use and fit for the purpose. Failure to meet safety,

quality and legal requirements may lead to delivery stop,

product recall, reputation loss and indemnities. These

costs can be substantial and include punitive elements in

some jurisdictions.

Inability to attract and retain talented and committed

professionals may have an adverse impact on

achievement of strategic objectives. Occupational health

and safety risks may cause severe harm to employees and

endanger continuity of operations. Different stakeholders

expect Fiskars Group to commit to sustainability,

ethical business practices, and to respecting human

right and anti-corruption activities. Failure to respond

to these stakeholder expectations can lead to decrease

in employee motivation, and reputational and financial

damage. Risk of human error is prevalent in all business

operations. Risks pertaining to inadequate or missing

process descriptions and deficiencies in implementation

of processes may cause inefficiencies and non-

compliance with applicable regulation or otherwise

unintended outcomes.

Demand for some of the products of Fiskars Group

is dependent on the weather. Unfavorable weather

conditions such as cold and rainy spring and summer

or snowless winter may have a negative impact on the

sale of these products. Back-to-school and holiday

seasons are important for the sales performance during

the second half of the year. For the sale of homeware

products, the last quarter of the year is the most

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important season. Any challenges related to product

availability or demand during the important seasons for

each of the businesses may affect the full year net sales

and profit significantly.

The well-known and strong brands of Fiskars Group are

exposed to infringement of intellectual property rights.

Counterfeit products may present quality and safety risks

to consumers, and damage consumer confidence in Fiskars’

products. Infringement of intellectual property rights may

lead to loss of net sales and profit of Fiskars Group.

Climate change is one of the most pervasive global issues

and may impact Fiskars’ performance. Regulations on

renewable energy, energy efficiency and emissions as

well as potential new taxes may increase energy prices.

Increasingly frequent natural catastrophes may interrupt

and impact the operations of Fiskars Group.

A significant part of Fiskars Group’s operations is located

outside the euro zone. Changes in foreign exchange rates

may have an adverse impact on the net sales, profit,

balance sheet and cash flow of the Group. Changes

in foreign exchange rates may also impact the local

competitiveness of Fiskars Group negatively.

Fluctuations in price or availability of the most important

raw materials, components, and energy may have a

negative impact on the profitability of Fiskars Group.

Water scarcity and resource scarcity related to fossil

based materials are growing global challenges, leading to

increased cost of raw materials and to risk of production

interruptions. The challenge is the limited availability and

higher prices of more sustainable raw materials.

The financial investment portfolio of Fiskars Group mainly

consists of investments in unlisted private equity funds.

The value of the investments is exposed to fluctuations in

the financial markets, including changes in interest rates

and foreign exchange rates, and increases in credit risk.

The financial investments are treated at fair value through

profit or loss.

Events after the reporting

period

Fiskars provided preliminary information for

2020 on January 15, 2021

As the year 2020 has been highly volatile due to the

COVID-19 pandemic, Fiskars Corporation provided

preliminary information on figures for 2020 on January 15,

2021. The year ended in accordance with the Company’s

expectation. Net sales was expected to be approximately

EUR 1,116 million (2019: 1,090.4), comparable EBITA

approximately EUR 137 million (90.6) and operating profit

(EBIT) approximately EUR 98 million (60.1). The figures

were based on preliminary, unaudited information.

Outlook for 2021

In 2021, comparable EBITA is expected to be lower than

in 2020, but above EUR 110 million.

Visibility continues to be low due to the COVID-19

pandemic, which is profoundly impacting consumers’

lives in terms of changes in for example disposable

income, purchasing choices and consumer behavior.

These may bring challenges as well as opportunities for

Fiskars Group. The majority of the savings in 2020 were

temporary in nature and impacted for example marketing.

To ensure sustainable business in the long-term, similar

temporary cost savings cannot be maintained for a

prolonged period of time. Furthermore, the benefits from

the ongoing Restructuring and Transformation programs

are expected to fully materialize in 2022.

Proposal for distribution of dividend

Fiskars’ aim is to distribute a stable, over time increasing

dividend, to be paid biannually. According to the balance

sheet of the parent company at the end of the financial

period 2020, the distributable equity of the parent

company was EUR 389.4 million (2019: EUR 428.6

million).

The Board of Directors proposes to the Annual General

Meeting that a dividend of EUR 0.60 per share shall be

paid for the financial period that ended on December 31,

2020. The dividend shall be paid in two instalments. The

ex-dividend date for the first instalment of EUR 0.30 per

share shall be on March 12, 2020. The first instalment

shall be paid to a shareholder who is registered in the

shareholder register of the company maintained by

Euroclear Finland Oy on the dividend record date March

15, 2021. The payment date proposed by the Board of

Directors for this instalment is March 22, 2021.

The second instalment of EUR 0.30 per share shall be paid

in September 2021. The second instalment shall be paid

to a shareholder who is registered in the shareholders’

Oy on the dividend record date, which, together with the

payment date, shall be decided by the Board of Directors

in its meeting scheduled for September 9, 2021. The

ex-dividend date for the second instalment would then

be September 10, 2021, the dividend record date

September 13, 2021 and the dividend payment date

September 20, 2021, at the latest.

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On the date of this financial statement release, the

number of shares entitling their holders to a dividend

was 81,471,565. The proposed distribution of dividends

would thus be EUR 48.9 million (EUR 45.7 million).

This would leave EUR 340.5 million (EUR 383.0) of

distributable earnings in the parent company.

No material changes have taken place in the financial

position of the company since the end of the financial

period. The financial standing of the company is good

and, according to the Board of Directors’ assessment,

distributing the proposed dividend will not compromise

the company’s solvency.

Helsinki, Finland, February 4, 2021

FISKARS CORPORATION

Board of Directors

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Consolidated Financial Statements, IFRS

CONSOLIDATED INCOME STATEMENT

Financial Statements

EUR MILLION NOTE 2020 2019

Net sales 2.1 1,116.2 1,090.4

Cost of goods sold 2.3 -664.1 -643.1

Gross profit 452.0 40% 447.3 41%

Other operating income 2.2 6.5 2.0

Sales and marketing expenses 2.3 -241.5 -284.3

Administration expenses 2.3 -90.4 -86.2

Research and development costs 2.3 -16.5 -18.4

Goodwill and trademark impairment 2.3, 3.1 -11.4

Other operating expenses 2.3 -0.8 -0.3

Operating profit 98.0 9% 60.1 6%

Change in fair value of biological assets 3.4 0.7 -0.2

Other financial income and expenses 2.6 -8.9 3.4

Profit before taxes 89.8 8% 63.2 6%

Income taxes 2.7 -21.3 -10.8

Profit for the period 68.5 6% 52.4 5%

Attributable to:

Equity holders of the parent company 67.6 51.7

Non-controlling interest 0.8 0.7

68.5 52.4

Earnings for equity holders of the parent company

per share, euro (basic and diluted) 2.8 0.83 0.63

CONSOLIDATED STATEMENT

OF COMPREHENSIVE INCOME

EUR MILLION NOTE 2020 2019

Profit for the period 68.5 52.4

Other comprehensive income for the period:

Items that may be reclassified subsequently to

profit or loss:

Translation differences -25.3 9.3

Cash flow hedges 0.3 0.2

Items that will not be reclassified to profit or

loss:

Net change of investments at fair value

through comprehensive income, net of tax -24.3

Defined benefit plan actuarial gains (losses)

net of tax 4.4 0.2 2.0

Other comprehensive income for the period net

of tax -24.8 -12.9

Total comprehensive income for the period 43.6 39.5

Attributable to:

Equity holders of the parent company 43.5 38.5

Non-controlling interest 0.1 1.0

43.6 39.5

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CONSOLIDATED BALANCE SHEET

EUR MILLION NOTE 31.12.2020 31.12.2019

ASSETS

NON-CURRENT ASSETS

Goodwill 3.1 213.7 219.6

Other intangible assets 3.1 268.2 288.7

Property, plant & equipment 3.2 149.2 162.2

Right-of-use assets 3.3 90.2 108.6

Biological assets 3.4 44.1 43.4

Investment property 3.5 4.0 3.6

Financial assets

Financial assets at fair value through

profit or loss 5.2 24.4 28.9

Other investments 5.2 8.1 7.9

Deferred tax assets 2.7 27.4 27.9

Non-current assets total 829.1 62% 890.7 65%

CURRENT ASSETS

Inventories 4.1 207.4 232.1

Trade and other receivables 4.2 213.8 203.2

Income tax receivables 29.2 28.8

Interest bearing receivables 0.0 0.0

Cash and cash equivalents 5.2 62.5 9.4

Current assets total 512.8 38% 473.5 35%

Assets total 1,342.0 100% 1,364.3 100%

EUR MILLION NOTE 31.12.2020 31.12.2019

EQUITY AND LIABILITIES

EQUITY

Equity attributable to the equity holders of the

parent company 757.8 760.9

Non-controlling interest 3.8 3.6

Equity total 5.3 761.6 57% 764.5 56%

NON-CURRENT LIABILITIES

Interest bearing liabilities 5.4 51.2 51.4

Lease liabilities 3.3, 5.4 71.8 88.4

Other liabilities 4.5 4.4

Deferred tax liabilities 2.7 31.2 32.8

Pension liability 4.4 13.1 13.2

Provisions 4.5 3.6 4.1

Non-current liabilities total 175.4 13% 194.3 14%

CURRENT LIABILITIES

Interest bearing liabilities 5.4 61.2 108.7

Lease liabilities 3.3, 5.4 22.7 22.9

Trade and other payables 4.3 309.8 267.7

Income tax liabilities 5.5 2.1

Provisions 4.5 5.7 4.1

Current liabilities total 404.9 30% 405.5 30%

Equity and liabilities total 1,342.0 100% 1,364.3 100%

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CONSOLIDATED STATEMENT OF CASH FLOWS

EUR MILLION 2020 2019

Cash flow from operating activities

Profit before taxes 89.8 63.2

Adjustments for

Depreciation, amortization and impairment 76.1 59.6

Gain/loss on sale and loss on scrap of non-current assets -0.1 -0.2

Other financial items 8.6 -4.0

Change in fair value of biological assets -0.7 0.2

Change in provisions and other non-cash items 3.9 -4.7

Cash flow before changes in working capital 177.6 114.1

Changes in working capital

Change in current assets, non-interest bearing -25.6 23.0

Change in inventories 15.9 -6.6

Change in current liabilities, non-interest bearing 55.8 -12.9

Cash flow from operating activities before financial items and taxes 223.8 117.5

Financial items paid (net) -4.2 -2.5

Taxes paid -20.3 -18.4

Cash flow from operating activities (A) 199.2 96.5

EUR MILLION 2020 2019

Cash flow from investing activities

Investments in financial assets -1.9 -8.2

Capital expenditure on fixed assets -30.0 -40.0

Proceeds from sale of fixed assets 1.2 0.9

Proceeds from sale of investments at fair value through other

comprehensive income 0.0 0.5

Other dividends received 0.0 7.8

Cash flow from other investments 1.3 1.9

Cash flow from investing activities (B) -29.4 -37.0

Cash flow from financing activities

Purchase of treasury shares -0.3 -1.1

Change in current receivables 0.0 0.0

Change in non-current debt 39.9 0.8

Change in current debt -84.5 -2.2

Payment of finance lease liabilities -24.0 -21.6

Cash flow from other financing items -1.9 0.7

Dividends paid -45.7 -51.0

Cash flow from financing activities (C) -116.5 -74.5

Change in cash and cash equivalents (A+B+C) 53.3 -15.1

Cash and cash equivalents at beginning of period 9.4 24.4

Translation difference -0.2 0.0

Cash and cash equivalents at end of period 62.5 9.4

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EUR MILLION

EQUITY ATTRIBUTABLE TO SHAREHOLDERS OF THE PARENT COMPANY

CAPITAL

TREASURY

CUMUL.

TRANSL.

DIFF.

FAIR VALUE

RESERVE

ACTUARIAL

GAINS AND

LOSSES

FINANCIAL

ASSETS AT

FVTOCI

RETAINED

EARNINGS

NON-

CONTROLLING

INTEREST

TOTAL

Opening Balance Jan 1, 2019 77.5 -6.0 11.1 -0.4 -3.9 -95.0 1,223.6 2.7 1,209.7

Translation differences 8.9 0.3 9.3

Cash flow hedges 0.2 0.2

Defined benefit plan, actuarial gains (losses), net of tax 2.0 2.0

Net change of investments at fair value through

comprehensive income -24.3 -24.3

Other comprehensive income for the period,

net of tax, total 0.0 0.0 8.9 0.2 2.0 -24.3 0.0 0.3 -12.9

Profit for the period 51.7 0.7 52.4

Total comprehensive income for the period 0.0 0.0 8.9 0.2 2.0 -24.3 51.7 1.0 39.5

Purchase and issue of treasury shares -1.1 0.5 -0.6

Dividends paid 119.3 -603.3 -0.1 -484.1

Dec 31, 2019 77.5 -7.1 20.1 -0.2 -1.9 0.0 672.5 3.6 764.5

Opening Balance Jan 1, 2020 77.5 -7.1 20.1 -0.2 -1.9 0.0 672.5 3.6 764.5

Translation differences -24.6 -0.7 -25.3

Cash flow hedges 0.3 0.3

Defined benefit plan, actuarial gains (losses), net of tax 0.2 0.2

Other comprehensive income for the period,

net of tax, total 0.0 0.0 -24.6 0.3 0.2 0.0 0.0 -0.7 -24.8

Profit for the period 67.6 0.8 68.5

Total comprehensive income for the period 0.0 0.0 -24.6 0.3 0.2 0.0 67.6 0.1 43.6

Purchase and issue of treasury shares -0.3 0.4 0.1

Dividends paid -45.7 0.0 -45.7

Other changes 0.3 -1.2 -0.9

Dec 31, 2020 77.5 -7.2 -4.5 0.1 -1.7 0.0 693.7 3.8 761.6

DIVIDENDS

The Board of Directors has proposed a total dividend of EUR 0.60 per share to be paid for the 2020 result.

A cash dividend of EUR 0.56 per share was paid for the 2019 result.

The notes are an integral part of these consolidated financial statements.

STATEMENT OF CHANGES IN CONSOLIDATED EQUITY

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Notes to the

consolidated

financial

statements

Notes to the consolidated financial statements

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General accounting principles

.Basic information of the Company 

.Basis of preparation 

.Use of estimates 

.Translation of foreign currency items 

.COVID- related matters in Fiskars Group 

.New and amended standards applied in financial year ended 

.Adoption of new and amended standards st Jan  

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1.1 Basic information of the

Company

Fiskars Corporation is a Finnish public limited liability

company listed on Nasdaq Helsinki and domiciled in

Raseborg, Finland. The registered address of Fiskars

Corporation is Hämeentie 135 A, Helsinki, Finland.

Fiskars Corporation is the parent company of the

group. The group manufactures and markets branded

consumer goods globally. Fiskars Group’s primary

reporting segments are Vita, Terra, Crea and Other. In

addition, Fiskars reports group-level net sales for three

geographies: Europe, Americas, and Asia-Pacific. The

Other segment contains the Group’s investment portfolio,

the real estate unit, corporate headquarters and shared

services. The group’s international key brands are

Fiskars, Gerber, Iittala, Royal Copenhagen, Waterford and

Wedgwood.

The financial statements are authorized for issue by the

Board of Directors of Fiskars Corporation. According

to the Finnish Limited Liability Companies’ Act, the

shareholders have a possibility to approve or reject or

make a decision on altering the financial statements in the

Annual General Meeting to be held after the publication of

the financial statements.

1.2 Basis of preparation

The consolidated financial statements of Fiskars

Corporation (“Fiskars Group” or “the group”) are prepared

in accordance with International Financial Reporting

Standards (IFRS) in force at December 31, 2020 as

adopted by the European Union. International Financial

Reporting Standards, referred to in the Finnish Accounting

Act and in ordinances issued based on the provisions of

this Act, are standards and their interpretations adopted

in accordance with the procedure laid down in regulation

(EC) No 1606/2002 of the European Parliament and

of the Council. The notes to the consolidated financial

statements also comply with the Finnish accounting and

corporate legislation.

The consolidated financial statements are prepared

on historical cost basis except for financial assets and

financial liabilities which are presented at fair value

through profit or loss, and biological assets as well as

assets and liabilities related to defined benefit pension

plans that are measured at fair value.

Items included in the financial statements of each of

the group’s entity are measured using the currency of

the primary economic environment in which the entity

operates (‘the functional currency’). The consolidated

financial statements are presented in euro, which is the

parent company’s functional currency. The presentation

is in millions of euro with one decimal. Figures presented

have been rounded and therefore the sum of individual

figures might differ from the presented total figure.

1.3 Use of estimates

The preparation of financial statements in conformity

with IFRS requires the management to make judgments

and assumptions that affect the recognition and

measurement of financial statement items. These

estimates and associated assumptions are based on

historical experience and other justified assumptions that

are believed to be reasonable under the circumstances

at the end of the reporting period. These estimates form

the basis for judgments of the items in the financial

statements. Development of markets and general

economic situation may affect the variables underlying

the estimates and actual results may differ significantly

from these estimates. Such estimates mainly relate to the

assumptions made in

• impairment testing (Note 3.1),

• amount of obsolete inventory (Note 4.1),

• recognition of impairment losses on trade receivables

(Note 4.2),

• restructuring provisions (Note 4.5),

• determination of defined benefit pension obligations

(Note 4.4),

• value appraisement of biological assets (Note 3.4) and

• the probability of deferred tax assets being recovered

against future taxable profits (Note 2.7).

1 .4 Translation of foreign

currency items

Transactions in foreign currencies

Foreign currency transactions are translated using the

exchange rates prevailing at the dates of the transactions.

At the end of the reporting period monetary assets and

liabilities are translated using the exchange rate prevailing

at the end of the reporting period. Exchange differences

arising from translation are recognized in the income

statement and presented under financial items, except

for exchange differences related to trade receivables and

trade payables that are presented within operating profit.

Non-monetary items denominated in foreign currencies

are translated using the exchange rate at the date of the

transaction, except for those items carried at fair value

that are translated using rates prevailing at the date when

the fair value was determined.

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Translation of financial statements of

foreign subsidiaries

In the consolidated financial statements income

statements, statements of comprehensive income and

cash flows of foreign subsidiaries are translated into the

parent company’s currency at the average exchange rates

for the period. Their balance sheet items are translated

at exchange rates prevailing at the end of the reporting

period. The resulting exchange differences are recognized

in other comprehensive income and presented under

translation differences in equity. Exchange differences

resulting from the translation of profit or loss and

comprehensive income at the average rate in the income

statement and in the statement of comprehensive

income, and the balance sheet at the closing rate, are

recognized in other comprehensive income and they

are included under translation differences in equity.

The effective portions of the gains or losses on those

financial instruments hedging net investments in foreign

operations are recognized similarly. When the group

disposes of all, or part of that subsidiary, the translation

differences accumulated in equity are transferred to

profit or loss as part of the gain or loss on disposal.

1.5 COVID-19 related

matters in Fiskars Group

Financial position (notes 5.1–5.5)

Actions to secure liquidity were taken promptly during

the first quarter of the year. The cash level was increased

with short-term borrowing (mainly by commercial paper

issues and bilateral loans from credit institutions). Due to

the strong cash flow, majority of these loans were repaid

during the second half of 2020.

Credit risk of trade receivables (notes 4.2

and 5.1)

Throughout the COVID-19 pandemic, Fiskars Group has

intensely followed up on and assessed the credit risks of

trade receivables. The existing bad debt provision model

for expected credit losses is based on the age groups

of the trade receivables. Bad debt provision increases

in line with the age of the trade receivables, so as the

model is followed, the increased credit risk in the form

of more mature trade receivables results in a higher bad

debt provision. The model is adjusted for forward-looking

information. Credit losses have remained at equivalent

level during the financial year 2020 compared to 2019.

The credit risk of trade receivables and the amount of

bad debt provision have been analyzed at the end of the

reporting period, with the conclusion being that sufficient

provisions have been made.

Goodwill and intangible assets (note 3.1)

Impairment testing for goodwill and trademarks was

performed in Q2 2020 due to the changed market outlook

resulting from the COVID-19 pandemic. On the basis of

the impairment calculations made, there was no need for

impairment of goodwill for any CGU for the period ended

June 30, 2020. Based on impairment testing performed

on trademarks, the Gingher trademark has been impaired

with EUR 1.0 million for the period ended June 30, 2020.

After impairment, the carrying amount of the Gingher

trademark amounts to EUR 2.3 million.

Impairment tests were performed according to the

annual schedule during Q4 2020, and on the basis of the

impairment calculations made, there has been no need for

impairment of goodwill for any CGU for the period ended

December 31, 2020. Based on the impairment testing

performed during Q4 2020 on trademarks, Waterford

trademark has been impaired with EUR 10.4 million.

After impairment the carrying amount of the Waterford

trademark amounts to EUR 38.1 million.

Customer relationships recognized as intangible assets

in the WWRD acquisition in 2015 have been reassessed

for their useful life. As a result, the amortization has been

accelerated and this generated an additional one-off

amortization of EUR 2.5 million in the second quarter of

2020.

1.6 New and amended

standards applied in

financial year ended

Amendments to IFRS 16 Leases - Covid-19

Related Rent Concessions

On 28 May 2020, the IASB issued Covid-19-Related

Rent Concessions - amendment to IFRS 16 Leases. The

amendments provide relief to lessees from applying

IFRS 16 guidance on lease modification accounting for

rent concessions arising as a direct consequence of the

Covid-19 pandemic. As a practical expedient, a lessee

may elect not to assess whether a COVID-19 related

rent concession from a lessor is a lease modification. A

lessee that makes this election accounts for any change

in lease payments resulting from the COVID-19 related

rent concession the same way it would account for the

change under IFRS 16, if the change were not a lease

modification. The amendment applies to annual reporting

periods beginning on or after 1 June 2020. Earlier

application is permitted.

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Fiskars Group has decided to use the practical expedient

provided by Covid-19-Related Rent Concessions -

amendment to IFRS 16 Leases to all rent concessions that

meet the conditions for the practical expedient. Due to

this in Note 3.3 Right-of-use assets the Group discloses

the amount recognized in profit or loss to reflect changes

in lease payments that arise from there COVID-19 related

concessions to which the practical expedient has been

applied.

Other new or amended standards or interpretations had

no impact on the consolidated financial statements.

1 .7 Adoption of new and

amended standards

1st Jan 2021

Amended standards or interpretations will have no impact

on the consolidated financial statements of the group.

OTHER FINANCIAL

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Financial performance

.Segment information 

.Other operating income 

.Total expenses 

.Employee benefits and number of personnel 

.Share based payments 

.Financial income and expenses 

.Income taxes 

.Earnings per share 

OTHER FINANCIAL

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Operating segments

BA Vita offers premium and luxury products for the

tableware, drinkware and interior categories. It consists of

brands such as Iittala, Royal Copenhagen, Waterford and

Wedgwood.

BA Terra consists of the gardening, watering, and outdoor

categories. The brands include Fiskars, Gerber and

Gilmour.

BA Crea consists of the scissors and creating as well as

the cooking categories, mainly with the Fiskars brand.

The Other segment contains the Group’s investment

portfolio, the real estate unit, corporate headquarters and

shared services.

Business activities between the segments are not

significant. Inter-segment sales are made on an arm’s

length basis. Real Estate owns real estates in Finland

and leases them to subsidiaries in Finland e.g. for use as

production facilities.

Unallocated items

The unallocated items of the Income Statement contain

corporate level costs and income. Unallocated assets

comprise items related to corporate administration, tax

receivables, loan receivables and equity instruments.

Unallocated liabilities comprise non-current and current

debt and tax liabilities. Also part of the restructuring

costs are unallocated.

No single customer of Fiskars Group accounts for more

than 10% share of the Group’s total net sales.

2.1 Segment information

Accounting principles

Fiskars Group’s organizational structure features

three Business Areas (BA): Vita, Terra and Crea. As

of January 1, 2020 Fiskars Group’s four primary

reporting segments are Vita, Terra, Crea and Other.

In addition, Fiskars Group reports net sales for three

geographical areas: Europe, Americas and Asia-

Pacific.

The performance of the reporting segments is

reviewed regularly by the chief operating decision-

maker, Fiskars Group’s Board of Directors, to

assess performance and to decide on allocation

of resources. The operating segments, BA Vita,

Terra and Crea, are reported in a manner consistent

with the internal reporting provided to the chief

operating decision-maker. The performance of

the segments is reviewed based on segments’

operating profit (EBIT). The accounting principles

of the segments are the same as those used in the

preparation of the financial statements. Financial

income and costs and income taxes are managed

on group basis and accordingly not allocated to

operating segments.

NET SALES AND REVENUE RECOGNITION

Net sales are shown net of indirect taxes, rebates,

and exchange differences on trade receivables

denominated in foreign currencies. Revenue from

the sale of goods is recognized when performance

obligation is satisfied, i.e. when “control” of

the good or service underlying the particular

performance obligation is transferred to the

customer,.i.e. when a product has been delivered to

the client in accordance with the terms of delivery.

There are no such long-term projects in the group

for which the revenue would be recognized using

the percentage-of-completion (POC) method.

OPERATING PROFIT

IAS 1 Presentation of Financial Statements does not

give a definition for operating profit. In Fiskars Group

the operating profit (EBIT) is the net of revenues

and other operating income, material purchases

and change of inventories, production for own use,

employee benefits, depreciations, amortizations and

possible impairments and other operating expenses.

The operating profit includes operating results of

Fiskars’ primary reporting segments Vita, Terra, Crea

and Other. EBITA is calculated from EBIT by adding

back amortization. Change in fair value of biological

assets is presented as a separate line item below

EBIT in the income statement.

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OPERATING SEGMENTS

2020

EUR MILLION VITA TERRA CREA OTHER

UNALLOCATED

AND

ELIMINATIONS

GROUP TOTAL

Net sales 456.6 493.8 162.0 3.8 0.0 1,116.2

EBITA excl. Items affecting comparability in operating profit 41.0 67. 5 41.1 -12.8 0.0 136.8

Items affecting comparability in EBITA* -6.9 -3.3 -0.5 -0.4 0.0 -11.0

EBITA 34.1 64.3 40.6 -13.2 0.0 125.8

Amortization -16.3 -16.3

Impairments -11 .4 -11.4

Change in fair value of biological assets 0.7 0.7

Financial income and expenses -8.8 -8.8

Profit before taxes 89.8

Income taxes -21.3 -21.3

Profit for the period 68.5

Capital expenditure 16.3 9.9 1.8 2.2 0.0 30.0

Depreciations, amortizations and impairment 50.4 17.9 4.4 3.3 0.0 76.1

* Includes EUR 8.1 million related to the Restructuring program, EUR 3.0 million related to the Transformation program, EUR 0.2 million costs related to the divestment of the Leborgne business and as well as some other

adjustments.

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OPERATING SEGMENTS

2019

EUR MILLION VITA TERRA CREA OTHER

UNALLOCATED

AND

ELIMINATIONS

GROUP TOTAL

Net sales 500.8 442.9 142.9 3.9 0.0 1,090.4

EBITA excl. Items affecting comparability in operating profit 38.8 36.2 28.0 -12.5 0.0 90.6

Items affecting comparability in EBITA* -17. 1 -0.5 -0.1 0.0 -17.7

EBITA 21.8 35.7 28.0 -12.5 0.0 72.9

Amortization -12.9 -12.9

Impairments 0.0

Change in fair value of biological assets -0.2 -0.2

Financial income and expenses 3.4 3.4

Profit before taxes 63.2

Income taxes -10.8 -10.8

Profit for the period 52.4

Capital expenditure 18.3 16.6 0.9 4.2 0.0 40.0

Depreciations, amortizations and impairment 33.1 18.4 3.8 0.7 3.5 59.6

* Includes EUR 17.0 million related to the Transformation program, EUR 0.8 million costs related to the divestment of the Leborgne business and EUR 0.4 million related to the Restructuring program as well as some other

adjustments.

OTHER FINANCIAL

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Net sales by geography

NET SALES BY GEOGRAPHY

EUR MILLION 2020 2019

Europe 495.9 518.9

Americas 471 .6 427.5

Asia-Pacific 154.1 143.6

Unallocated* -5.4 0.3

Total 1,116.2 1,090.4

* Geographically unallocated exchange rate differences.

Accounting principles

Fiskars Group reports net sales for three geographical areas:

Europe, Americas, and Asia-Pacific. In the Americas the

Fiskars branded products’ distribution, logistics and consumer

preferences are managed centrally for the business units. In

the Europe & Asia-Pacific area the markets and distribution

are more diversified, but from the customer point of view the

business units operate in a common environment.

ADDITIONAL INFORMATION ABOUT

GEOGRAPHICAL AREAS

EUR MILLION 2020 2019

Net sales in Finland 94.3 112.9

Net sales in the U.S. 455.5 411.1

Net sales in other countries 566.3 566.4

Total 1,116.2 1,090.4

EUR MILLION 2020 2019

Assets in Finland* 262.6 280.0

Assets in the U.S.* 61.8 161.2

Assets in other countries* 47 7.4 421.6

Total 801.8 862.8

* Non-current assets other than deferred tax assets.

Accounting principles

Other operating income includes income other than that

associated with the sale of goods or services, such as gain on

disposal or sale of fixed assets, rental income, releases of certain

provisions and other similar income not classified to revenue.

EUR MILLION 2020 2019

Net gain on disposal of fixed

assets 0.7 0.5

Compensations from

insurance company 4.6 0.0

Rental income 0.3 0.3

Other income 0.9 1.2

Total 6.5 2.0

2.2 Other operating income

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2.3 Total expenses

TOTAL EXPENSES BY NATURE

EUR MILLION 2020 2019

Materials and supplies 439.1 440.7

Change in inventory 16.7 -9.2

External services 57. 5 62.2

Employee benefits 263.8 311.9

Depreciation and amortization 64.7 59.6

Impairments 11.4

Other expenses 171.5 1 67. 1

Total 1,024.7 1,032.3

OTHER OPERATING EXPENSES

DEPRECIATION, AMORTIZATION AND IMPAIRMENT

BY ASSET CLASS

EUR MILLION 2020 2019

Buildings 2 7.7 26.1

Machinery and equipment 19.3 20.3

Intangible assets 17. 3 11.9

Investment property 0.4 0.5

GW and trademark impairment 11 .4 0.8

Total 76.1 59.6

FEES PAID TO COMPANIES’ AUDITORS

EUR MILLION 2020 2019

Audit fees 1.3 1.1

Audit related fees 0.0 0.0

Tax consultation 0.1 0.2

Other non-audit fees 0.0 0.0

Total 1.4 1.3

The appointed auditor for the financial year 2020 and 2019

was Ernst & Young. Ernst & Young Oy has provided non-audit

services to the entities of Fiskars Group in total of EUR 0.1

million during the financial year 2020.

Accounting principles

Other operating expenses include losses on the disposal or sale

of fixed assets, integration costs and other similar expenses not

classified to other cost items.

EUR MILLION 2020 2019

Loss on sale of fixed assets 0.0 0.1

Loss on scrap of fixed assets 0.6 0.2

Other operating costs 0.1 -0.1

Total 0.8 0.3

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2.4 Employee benefits and

number of personnel

EMPLOYEE BENEFITS

EUR MILLION 2020 2019

Wages and salaries 213.3 247. 5

Other compulsory personnel costs 27. 6 36.1

Pension costs, defined contribution plans 14.5 17.4

Pension costs, defined benefit plans 1.3 1.6

Other post employment benefits 1.3 1.1

Termination benefits 4.9 8.2

Total 262.9 311.9

PERSONNEL AT THE END OF PERIOD

EUR MILLION 2020 2019

Finland 1,062 1,132

Slovenia 659 788

Poland 417 414

UK 334 402

Other Europe 781 859

USA 840 984

Indonesia 734 749

Thailand 627 657

Other 957 999

Total 6,411 6,984

PERSONNEL (FTE) IN AVERAGE

EUR MILLION 2020 2019

Direct 2,213 2,453

Indirect 3,891 4,387

Total 6,104 6,840

Fiskars Group has adopted the following definitions for employee

reporting:

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.

Direct = production staff

Indirect = other employees than production staff

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2.5 Share based payments

Long-term incentive plan 2018–2022,

settled in shares

In February 2018, the Board of Directors approved the

establishment of a new Performance Share Plan for years

2018–2022. The Plan has three performance periods

of three calendar years each; 2018–2020, 2019–2021

and 2020–2022. The Board of Directors will decide

separately for each performance period the participants

and the minimum, target and maximum rewards for

each participant, as well as the performance criteria and

related targets. The targets for the plan are based on total

shareholder return, net sales growth and cumulative EBITA

and net working capital, with EBITA cutter to the net sales

growth criterion.

The rewards for both plans will be paid in the company’s

shares, after the deduction of the relevant cash

proportion that is required for covering taxes and tax-

related costs due on the basis of the reward. Shares to

be awarded under all the plans will be acquired in public

trading arranged by Nasdaq Helsinki, and thus the share

plan is not expected to have a diluting effect on the

ownership of the company’s shareholders.

AMOUNT OF SHARE INCENTIVES AND TERMS AND ASSUMPTIONS IN THE FAIR VALUE CALCULATION

EUR MILLION

PERFORMANCE SHARE PLAN 2018–2022

2020–2022

PERFORMANCE

PERIOD

2019–2021

PERFORMANCE

PERIOD

2018–2020

PERFOMANCE

PERIOD

Maximum number of shares granted, at the end the year 509,900 169,760 178,476

Grant date share price, EUR 10.28

Estimated realization of share price after vesting and restriction period 14.98

Expense recorded during the financial year (EUR million) 0.5

Cumulative expense recorded to equity at the end of the financial year (EUR million) 0.4

Vesting period starts Jan 1, 2020 Jan 1, 2019 Jan 1, 2018

Vesting period ends Dec 31, 2022 Dec 31, 2021 Dec 31, 2020

Number of participants 43 37 24

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2.6 Financial income and

expenses

2.7 Income taxes

EUR MILLION 2020 2019

Dividends received from investments through

other comprehensive income and at fair value

through profit and loss 7.8

Interest income on cash and bank 0.0 0.0

Net change in fair value of other investments

at fair value through profit or loss -0.1 3.8

Other foreign exchange gains 0.0 1.6

Financial income total -0.1 13.2

Interest expenses on debt at amortized cost -2.9 -1.4

Interest cost on lease liability at amortized

cost -2.4 -2.8

Derivative revaluation losses, at fair value

through profit or loss -0.4

Foreign exchange losses on commercial

hedges -1 .7 -3.7

Other foreign exchange losses -0.6 0.0

Other financial expenses -1.2 -1.5

Financial expense total -8.8 -9.8

Financial income and expenses total -8.9 3.4

INCOME TAX IN THE INCOME STATEMENT

EUR MILLION 2020 2019

Current taxes -24.2 -16.5

Deferred taxes 2.9 5.7

Total income tax expense -21.3 -10.8

Accounting principles

The group’s tax expense comprises current and deferred taxes.

The current tax charge is calculated using the tax rate enacted

or substantively enacted at the end of the reporting period.

Deferred tax liabilities and deferred tax assets are accounted

for temporary differences between the carrying amounts and

tax basis of assets and liabilities using tax rates enacted or

substantively enacted at the end of the reporting period. A

deferred tax liability is recorded to its full amount on taxable

temporary differences. Deferred tax assets are recognized

for deductible temporary differences, unutilized tax losses

and unused tax credits to the extent that it is probable that

taxable profit or taxable temporary differences will be available

against which the deductible temporary differences, unutilized

tax losses and unused tax credits can be utilized. Deferred tax

assets are assessed for realizability at the end of each reporting

period. If it is no longer probable that sufficient taxable profit

will be available to allow deferred tax asset utilization, carrying

amount of deferred tax asset is reduced. Correspondingly, if

it is probable that sufficient taxable profit will be available,

reduction to deferred tax asset value is reversed.

INCOME TAX RECONCILIATION

Reconciliation of income taxes at statutory tax rate

in Finland (20%) and income taxes recognized in the

consolidated income statement.

EUR MILLION 2020 2019

Profit before taxes 89.8 63.2

Income taxes at Finnish statutory tax rate -18.0 -12.6

Difference between Finnish and foreign

tax rates -2.8 -0.5

Effect of deferred taxes not recognized -4.8 -3.9

Benefit arising from previously unrecognized

deferred tax asset 0.0 5.0

Prior year income taxes 1.5 -2.6

Effect of changes of tax rates -0.6 0.0

Income taxes on undistributed earnings 3.6 0.2

Tax exempt dividends 0.0 1.6

Other items -0.2 2.1

Total income tax expense -21.3 -10.8

Deferred taxes

DEFERRED TAX ASSETS

EUR MILLION 2020 2019

Intangible assets and property,

plant and equipment 12.3 14.1

Inventories 3.1 4.1

Post-employment liabilities 2.8 2.8

Tax loss carried forward 10.4 15.6

Other temporary differences 16.9 14.3

Total 45.4 50.9

Offset against deferred tax liabilities -18.0 -23.0

Total deferred tax assets 27.4 27.9

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DEFERRED TAX LIABILITIES

EUR MILLION 2020 2019

Intangible assets and property,

plant and equipment 34.9 35.9

Investments at fair value 4.7 5.6

Undistributed earnings 3.6 7.2

Other temporary differences 6.0 7.0

Total 49.2 55.8

Offset against deferred tax assets -18.0 -23.0

Total deferred tax liabilities -31.2 32.8

Net deferred tax assets(+) and liabilities(-) -3.8 -4.9

Deferred tax assets and liabilities are offset when there

is a legally enforceable right to offset current tax assets

against current tax liabilities and when the deferred taxes

relate to the same fiscal authority.

Deferred tax liability has been booked fully on

undistributed earnings of subsidiaries.

MOVEMENTS IN THE NET DEFERRED TAX BALANCE

EUR MILLION 2020 2019

Net defered tax asset(+)/liability (-) at

January 1 -4.9 -13.7

Recognized in income statement 2.9 5.7

Recognized in other comprehensive income 0.3 3.7

Recognized in equity -1.3 0.0

Translation differences -0.8 -0.5

Net defered tax asset(+)/liability (-) at

December 31 -3.8 -4.9

Amount of tax losses carried forward, tax credits and

temporary differences for which no deferred tax asset has

been recognized due to uncertainty of utilization:

TAX LOSSES CARRIED FORWARD

EUR MILLION 2020 2019

Expiring within 10 years 0.4 0.5

No expiry 163.1 150.3

Total 163.6 150.8

TAX CREDITS

EUR MILLION 2020 2019

Expiring within 10 years 0.5 0.8

Temporary differences 0.0 0.0

Taxes in other comprehensive income

2020

EUR MILLION GROSS TAX NET

Translation differences -25.3 0.0 -25.3

Cash flow hedges 0.3 0.0 0.3

Defined benefit plan actuarial gains

(losses) -0.2 0.3 0.2

Fair value measurement 0.0 0.0 0.0

Total other comprehensive income -25.2 0.3 -24.8

2019

EUR MILLION GROSS TAX NET

Translation differences 9.3 0.0 9.3

Cash flow hedges 0.2 0.0 0.2

Defined benefit plan actuarial gains

(losses) 2.4 -0.4 2.0

Fair value measurement -28.4 4.1 -24.3

Total other comprehensive income -16.6 3.7 -12.9

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2.8 Earnings per share

The basic earnings per share is the annual net profit

attributable to ordinary shareholders of the parent

company divided by the weighted average number of

shares outstanding during the year. Fiskars Group does

not have any current share option programs or other

diluting financial instruments, so the diluted earnings per

share is the same as basic.

2020 2019

Net profit attributable to the ordinary

shareholders of the Parent company,

EUR million 67. 6 51 .7

Number of shares 81,905,242 81,905,242

Weighted average number of shares

outstanding 81,560,233 81,603,359

Earnings per share, EUR (basic and

diluted) 0.83 0.63

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Intangible and tangible assets

.Intangible assets 

.Property, plant and equipment 

.Right-of-use assets 

.Biological assets 

.Investment property 

OTHER FINANCIAL

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3.1 Intangible assets

Accounting principles

An intangible asset is initially capitalized in the balance sheet at

cost if the cost can be measured reliably and it is probable that

the expected future economic benefits that are attributable to the

asset will flow to the group. Residual values and expected useful

lives are reassessed at least at each financial year-end and, if

necessary, are adjusted to reflect changes in the expected future

economic benefits. Those borrowing costs directly attributable to

the acquisition, construction or production of a qualifying asset are

capitalized as part of the cost of that asset.

GOODWILL

Goodwill represents the group’s share of difference between the

cost of the acquisition and the fair value of the net identifiable

assets, liabilities, and contingent liabilities acquired measured

at the acquisition date. Goodwill is stated at historical cost less

any accumulated impairment losses. Goodwill is not amortized

but is tested for impairment at least annually. For this purpose

goodwill has been allocated to cash-generating units or, in case of

an associate, the goodwill is included within the carrying amount

of the associate in question. The recoverable amount of the

unit is compared annually or more often if there are indications

of impairment, with its carrying amount to determine potential

impairment.

Contingent consideration will be measured at fair value and

subsequently re-measured through profit or loss. All acquisition-

related costs, such as experts’ fees, will be expensed instead of

capitalization. There is a choice on an acquisition-by-acquisition

basis to measure the non-controlling interest in the acquiree either

at fair value or at the non-controlling interest’s proportionate share

of the acquiree’s net assets.

RESEARCH AND DEVELOPMENT COSTS

Research and development costs are expensed as they are incurred,

except for those development costs that are capitalized if the

criteria in IAS  are met. Capitalized development costs consisting

of mainly direct labor costs and external services are recognized as

intangible assets. In , research and development expenses

amounted to EUR . million (: .).

Intangible assets not yet available for use are tested annually

for impairment. Subsequent to initial recognition capitalized

development costs are measured at cost less accumulated

amortization and accumulated impairment losses. They are amortized

on a straight-line basis over their useful lives, from  to  years.

OTHER INTANGIBLE ASSETS

Other intangible assets include among other patents, capitalized

development costs, software, as well as trademarks and customer

relationships acquired in business combinations. Intangible

assets are stated at cost less accumulated amortization and

any accumulated impairment. Intangible assets in this class are

amortized on a straight-line basis over their known or expected

useful lives. Residual values and expected useful lives are

reassessed at least at each financial year-end and, if necessary,

are adjusted to reflect changes in the expected future economic

benefits. The estimated useful lives are as follows:

• Software 3–10 years

• Customer relationships 5–15 years

• Other 3–10 years

Intangible assets with an indefinite useful life such as trademarks

or brand names acquired in business combinations are not

amortized but they are tested at least annually for impairment.

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2020

EUR MILLION GOODWILL

TRADEMARKS,

PATENTS AND

DOMAIN NAMES

SOFTWARE

OTHER

INTANGIBLE

ASSETS

CONSTRUCTION

PROGRESS

TOTAL

Historical cost, Jan 1 232.1 250.9 103.0 59.2 10.5 655.7

Translation differences -5.1 -4.2 -2.5 -1 .4 -0.3 -13.5

Additions 0.7 10.8 0.0 0.1 11.6

Decreases 0.0 -0.7 -1.9 -0.2 -2.8

Transfers between asset groups 1.0 0.2 -1.2 -0.1

Historical cost, Dec 31 226.9 247.4 111.7 56.0 8.9 650.9

Accumulated amortization and impairment, Jan 1 12.5 12.3 76.9 45.8 0.0 147. 6

Translation differences 0.7 -1.2 -2.3 -0.8 -3.7

Amortization for the period 1.0 11.3 3.9 16.3

Impairment for the period 0.0 11.4 0.0 0.0 11.4

Decreases 0.0 0.0 -0.7 -1.9 -2.6

Accumulated amortization and impairment, Dec 31 13.2 23.6 85.2 47. 0 169.0

Net book value, Dec 31 213.7 223.8 26.4 9.0 8.9 481.9

Investment commitments for intangible assets 0.0

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2019

EUR MILLION GOODWILL

TRADEMARKS,

PATENTS AND

DOMAIN NAMES

SOFTWARE

OTHER

INTANGIBLE

ASSETS

CONSTRUCTION

PROGRESS

TOTAL

Historical cost, Jan 1 229.8 244.8 83.1 58.6 13.0 629.4

Translation differences 2.3 5.5 0.7 1.1 0.0 9.5

Additions 0.8 9.2 0.0 7.9 17. 8

Decreases -0.2 -0.6 -0.5 0.1 -1.2

Transfers between asset groups 10.6 0.0 -10.6 0.1

Historical cost, Dec 31 232.1 250.9 103.0 59.2 10.5 655.7

Accumulated amortization and impairment, Jan 1 12.4 9.6 67.4 42.1 0.0 131.5

Translation differences 0.1 2.1 0.7 1.3 4.1

Amortization for the period 0.8 9.4 2.6 12.7

Impairment for the period 0.0 0.0 0.0 0.0 0.0

Decreases 0.0 -0.2 -0.5 -0.1 -0.8

Accumulated amortization and impairment, Dec 31 12.5 12.3 76.9 45.8 147. 6

Net book value, Dec 31 219.6 238.6 26.1 13.4 10.5 508.2

Investment commitments for intangible assets 0.0

Goodwill impairment test in cash-generating units

Accounting principles

The group operations have been divided into cash-generating

units (CGU) that are similar to the primary reporting segments.

The carrying amounts of the assets relating to these CGUs are

reviewed for impairment indicators annually at the end of the

reporting period. The recoverable amounts of the following

assets are also estimated annually irrespective whether there is

any indication for impairment: goodwill, intangible assets with

indefinite useful lives and unfinished intangible assets.

To determine a potential impairment the carrying amount of the

asset is compared or the carrying amounts of the CGU’s net assets

are compared against the recoverable amount of that asset or

CGU. The recoverable amount is the higher of the present value

of the future cash flows (value in use) and the fair value less costs

to sell. An impairment loss is recognized for an asset when its

carrying amount exceeds its recoverable amount. An impairment

loss previously recognized for items of property, plant, and

equipment as well as for intangible assets other than goodwill

is reversed subsequently only if there has been a change in the

estimates used to determine the asset’s recoverable amount since

the last impairment loss was recognised. An impairment loss is

reversed only to the extent that the asset’s carrying amount does

not exceed the carrying amount that would have been determined,

net of amortization or depreciation, if no impairment loss had

been recognized for the asset in prior years. An impairment loss

recognized for goodwill is not reversed.

Goodwill is not amortized but is tested at least annually

for impairment. Goodwill has been allocated to cash-

generating units as follows:

EUR MILLION 2020 2019

Vita 209.7 217.8

Terra

Crea 4.0 1.8

Total 213.7 219.6

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KEY PARAMETERS APPLIED IN IMPAIRMENT TESTING

2020 2019

GOODWILL TRADEMARKS* GOODWILL TRADEMARKS*

Increase in net sales on average 3.1 2.5 2.7 1.0

Steady growth rate in projecting terminal value 1.0 1.0 1.0 1.0

Discount rate, pre-tax, average 7.4 9.4 6.4 8.0

* Used one percentage point higher risk premium than in goodwill testing.

Goodwill from acquisitions is allocated to Cash Generating

Units (CGU). The primary reporting segments, which

form the CGUs, are Vita, Terra and Crea. The recoverable

amounts from CGUs are determined with value in use

method, using fiveyear discounted cash flow projections,

based on strategic plans approved by management for

years 2021-2023, and after this cash flows are estimated

for two year period before calculating the terminal value.

Cash flows for the period extending over the five year

planning period are calculated using the terminal value

method. The discount rate is the weighted average post-

tax cost of capital (WACC) as defined by Fiskars Group.

The components of the WACC are risk-free rate, market

risk premium, company-specific risk premium, industry

specific equity beta, cost of debt and debt to equity ratio.

On the basis of the impairment calculations made, there

has been no need for impairment of goodwill for any CGU

for the period ended December 31, 2020 and 2019.

Fiskars Group has 9 trademarks whose aggregate carrying

amount is EUR 202.8 million (2019: 214.3). Total EUR

106.9 million of trademarks, patents and domain names

was recorded in the consolidated balance sheet with

relation of WWRD acquisition in 2015. Since the benefits

from trademarks are indefinite, they are not amortized

but are tested at least annually for impairment using a

relief from royalty method. An exception for this principle

is trademark Hackman for which amortization has begun

during 2017 (amortization period 20 years). Cash flows

attributable to trademarks are derived by identifying

revenues from sales of products belonging to each

trademark. The value in use of trademarks is determined

on a discounted cash flow method basis, derived from

five-year cash flow projections, based on strategic plans

approved by the management. Cash flows for the period

extending over the planning period are calculated using

the terminal value method. On the basis of the impairment

calculations made, Waterford trademark was impaired

with EUR 10.4 million and Gingher trademark with EUR

1.0 million for the period ended December 31, 2020.

After impairment, the carrying amount of the Waterford

trademark amounts to EUR 38.1 million and Gingher

trademark to EUR 2.3 million. For the period ended

December 31, 2019, there was no need for impairment of

trademarks.

Customer relationships recognized as intangible assets

in the WWRD acquisition in 2015 have been reassessed

for their useful life. As a result, the amortization has been

accelerated and this generated an additional one-off

amortization of EUR 2.5 million in the second quarter of

2020.

Sensitivity analyses

Sensitivity analyses of goodwill have been carried out for

the valuation of each CGU by making downside scenarios

for key parameters. The management views that no

reasonably possible change in any of the key parameters

would lead to impairment as the recoverable amounts

exceed the carrying amounts. The recoverable amount

exceeds the carrying amounts after changes in the key

parametres.

Sensitivity analyses of trademarks have been carried out

for the valuation of each trademark by making downside

scenarios for key parameters. The management views

that excluding the Waterford and Gingher trademarks, no

reasonably possible change in any of the key parameters

would lead to impairment. For Waterford trademark, a

decrease of 1.0 percentage in terminal growth or an

increase of 0.5 percentage point in pre-tax discount

rate would result in the recoverable amount being lower

than the carrying amount. The recoverable amount of the

Gingher trademark currently exceeds its carrying amount

of EUR 2.3 million by EUR 0.3 million, and a decrease of

2.0 percentage in terminal growth or an increase of 1.5

percentage point in pre-tax discount rate would result

in the recoverable amount being lower than the carrying

amount.

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3.2 Property, plant and equipment

Accounting principles

Property, plant, and equipment are stated at historical cost less

accumulated depreciation and any accumulated impairment

losses, if applicable. Those borrowing costs directly attributable to

the acquisition, construction or production of a qualifying asset are

capitalized as part of the cost of that asset.

Depreciation is charged to the income statement on a straight-line

basis over the estimated useful lives of the assets. Residual values

and expected useful lives are reassessed at least at each financial

year-end and, if necessary, are adjusted to reflect changes in the

expected future economic benefits. The estimated useful lives are

as follows:

• Buildings 20–40 years

• Machinery and equipment 3–10 years

• Land and water No depreciation

Gains and losses on sales and disposals of items of property, plant,

and equipment are presented under other operating income and

other operating expenses.

2020

EUR MILLION

LAND AND

WATER

BUILDINGS

MACHINERY

AND

EQUIPMENT

CONSTRUCTION

PROGRESS

TOTAL

Historical cost, Jan 1 22.4 92.0 125.7 10.7 250.8

Translation differences -0.5 -3.9 -7. 5 -1 .7 -13.5

Additions 0.8 5.3 12.1 18.3

Decreases 0.0 -6.8 -42.0 -0.4 -49.2

Transfers between asset groups 3.4 11 .4 -15.5 -0.7

Historical cost, Dec 31 21.8 85.7 93.0 5.2 205.7

Accumulated depreciation and amortization, Jan 1 0.8 26.4 62.7 -1.2 88.6

Translation differences -0.7 -6.2 0.7 -6.3

Depreciation for the period 5.1 17.3 22.4

Impairment for the period 0.0 0.0

Decreases -6.8 -41.4 -48.1

Transfers between asset groups 0.0 1.7 -1.8 0.0

Accumulated depreciation and impairment, Dec 31 0.8 23.9 34.1 -2.3 56.5

Net book value, Dec 31 21.1 61 .7 58.9 7.5 149.2

Investment commitments for tangible assets 2.2

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2019

EUR MILLION

LAND AND

WATER

BUILDINGS

MACHINERY

AND

EQUIPMENT

CONSTRUCTION

PROGRESS

TOTAL

Historical cost, Jan 1 22.3 85.0 138.4 18.8 264.6

Translation differences 0.1 1.2 2.2 -0.3 3.2

Additions 2.7 7.0 14.1 23.8

Decreases 0.0 -4.0 -36.6 -0.2 -40.8

Transfers between asset groups 7.0 14.7 -21.7 0.0

Historical cost, Dec 31 22.4 92.0 125.7 10.7 250.8

Accumulated depreciation and amortization, Jan 1 0.8 26.0 78.0 104.8

Translation differences -0.3 -0.3 -0.6

Depreciation for the period 4.9 18.4 23.3

Impairment for the period 0.0 0.0

Decreases -4.2 -33.5 -1.2 -38.9

Transfers between asset groups 0.0 0.0 0.0

Accumulated depreciation and impairment, Dec 31 0.8 26.4 62.7 -1.2 88.6

Net book value, Dec 31 21.6 65.7 63.0 11.9 162.2

Investment commitments for tangible assets 2.4

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3.3 Right-of-use assets

Accounting principles

Fiskars Group assesses at contract inception whether a contract

is, or contains, a lease. That is, if the contract conveys the right

to control the use of an identified asset for a period of time in

exchange for consideration. The Group applies a single recognition

and measurement approach for all leases, except for short-term

leases and leases of low-value assets. The Group recognizes

lease liabilities to make lease payments and right-of-use assets

representing the right to use the underlying assets.

RIGHT-OF-USE ASSETS

Fiskars Group recognizes right-of-use assets at the

commencement date of the lease (i.e., the date the underlying

asset is available for use). Right-of-use assets are measured at

cost, less any accumulated depreciation and impairment losses,

and adjusted for any remeasurement of lease liabilities. The cost

of right-of-use assets includes the amount of lease liabilities

recognized, initial direct costs incurred, and lease payments made

at or before the commencement date less any lease incentives

received.

Right-of-use assets are depreciated on a straight-line basis over

the shorter of the lease term and the estimated useful lives of the

assets, generally as follows:

• Real estate 3–15 years

• Other leases 3–5 years

LEASE LIABILITIES

At the commencement date of the lease, Fiskars Group recognizes

lease liabilities measured at the present value of lease payments

to be made over the lease term. The lease payments include fixed

payments (including in substance fixed payments) less any lease

incentives receivable, variable lease payments that depend on an

index or a rate, and amounts expected to be paid under residual

value guarantees. The lease payments also include the exercise

price of a purchase option reasonably certain to be exercised by

the Group and payments of penalties for terminating the lease,

if the lease term reflects the Group exercising the option to

terminate. Variable lease payments that do not depend on an index

or a rate are recognized as expenses (unless they are incurred to

produce inventories) in the period in which the event or condition

that triggers the payment occurs.

In calculating the present value of lease payments, the Group

uses its incremental borrowing rate at the lease commencement

date because the interest rate implicit in the lease is not readily

determinable. After the commencement date, the amount of

lease liabilities is increased to reflect the accretion of interest and

reduced for the lease payments made. In addition, the carrying

amount of lease liabilities is remeasured if there is a modification,

a change in the lease term, a change in the lease payments (e.g.,

changes to future payments resulting from a change in an index

or rate used to determine such lease payments) or a change in the

assessment of an option to purchase the underlying asset.

SHORT-TERM LEASES AND LEASES OF LOW-VALUE

ASSETS

The Group applies the short-term lease recognition exemption

to its short-term leases (i.e., those leases that have a lease term

of  months or less from the commencement date and do not

contain a purchase option). It also applies the lease of low-value

assets recognition exemption to leases that are considered to be

low value (i.e., those leased assets with asset value below 

euros). Lease payments on short-term leases and leases of low

value assets are recognized as expense on a straight-line basis

over the lease term.

IFRS 16 AMENDMENT - COVID-19 RELATED RENT

CONCESSIONS

The amendment issued by the IASB provides a relief to

lessees from applying IFRS  guidance on lease modification

accounting for rent concessions arising as a direct consequence

of the COVID- pandemic. Some lessors have provided rent

concessions to lessees as a result of the COVID- pandemic.

These concessions can include rent holidays or rent reductions for

a period of time, possibly followed by in creased rent payments in

future periods. As a practical expedient, a lessee may elect not to

assess whether a COVID- related rent concession from a lessor

is a lease modification in accordance with IFRS . Fiskars Group

has decided to use the practical expedient to all rent concessions

that meet the conditions for the practical expedient.

Fiskars Group has lease contracts for various items of

real estate, machinery, vehicles and other equipment

used in its operations. Real estate leases generally have

lease terms between 3 and 15 years, while other leases

generally have lease terms between 3 and 5 years.

The Group also has certain leases of machinery with

lease terms of 12 months or less and leases of office

equipment with low value. The Group applies the “short-

term lease” and “lease of low-value assets” recognition

exemptions for these leases.

The Group’s obligations under its leases are secured

by the lessor’s title to the leased assets. Generally, the

Group is restricted from assigning and subleasing the

leased assets. There are several lease contracts that

include extension and termination options and variable

lease payments.

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EUR MILLION 2020 2019

Fair value, Jan 1 43.4 43.6

Increase due to growth 2.1 1.9

Decrease due to harvested timber -1 .7 -1.3

Change in fair value 0.3 -0.8

Fair value, Dec 31 44.1 43.4

Fiskars Group has around 11,000 hectares of productive

forest land in Finland. Biological assets consist of growing

stock. The harvested amount in 2020 was approximately

56,000 m

(2019: 46,000 m

CARRYING AMOUNTS OF RIGHT-OF-USE ASSETS

2020

EUR MILLION

REAL

ESTATE

OTHER TOTAL

Book value, Jan 1 104.7 4.0 108.6

Currency translation adjustment -2.5 -0.2 -2.7

Additions 17. 1 1.6 18.7

Depreciation -22.6 -2.0 -24.7

Decreases -9.6 -0.1 -9.8

Book value, Dec 31 86.9 3.3 90.2

2019

EUR MILLION

REAL

ESTATE

OTHER TOTAL

Book value, Jan 1 115.6 3.7 119.3

Currency translation adjustment 0.8 -0.1 0.7

Additions 22.8 2.4 25.2

Depreciation -21.1 -1.8 -22.9

Decreases -13.6 -0.2 -13.7

Book value, Dec 31 104.7 4.0 108.6

CARRYING AMOUNTS OF LEASE LIABILITIES

EUR MILLION 2020 2019

Book value, Jan 1 111.3 120.7

Currency translation adjustment -2.9 0.9

Additions 19.7 25.2

Accretion of interest -2.4 -2.8

Payments -21.3 -18.9

Disposals -9.9 -13.7

Book value, Dec 31 94.5 111.3

Current lease liability 22.7 22.9

Non-current lease liability 71.8 88.4

Maturity analysis of lease liabilities is included in note 5.4

Financial and lease liability table Maturity of liabilities.

AMOUNTS RECOGNISED IN INCOME STATEMENT

EUR MILLION 2020 2019

Depreciation expense of right-of-use assets -25.1 -18.0

Interest expense on lease liabilities -2.4 -2.8

Expense relating to short-term leases -0.3 -0.6

Expense relating to leases of low-value assets -0.2 -0.3

Total amount recognised in profit or loss - 2 7.9 -21.8

In 2020 Fiskars Group had total cash outflows for lease

of EUR -24.0 (-21.6) million. The Group has recognized

in profit or loss EUR -1.0 million of costs that arise

from lease payments effected by COVID-19 related

concessions. Related to these the practical expedient

given by IFRS 16 COVID-19 related amendment has

been applied. The future cashflows relating to lease

that have not yet commenced are disclosed in note 6.5

Commitments.

3.4 Biological assets

Accounting principles

Biological assets are measured at their fair value less costs to

sell them. Biological assets consist of growing stock of Group’s

forest assets in Finland. The change in fair value resulting from

both growth and change in the market value of standing timber

is presented as a separate line item in the income statement

after operating profit (EBIT). The revenue from the sale of

standing timber is presented in the income statement within

the operating profit.

There are no existing active markets for forest assets.

Therefore, the biological asset valuation is made by using

the discounted future cash flows. Cash flows are based on

forest management plan taking into account forestry costs

and harvesting incomes from one growth cycle. For valuing

harvesting incomes, Fiskars applies a three-year rolling average

price of standing timber, based on the statistics provided by

the Natural Resources Institute Finland, adjusted with company

specific price components.

The fair value measurements of biological assets are

categorized within level  of the fair value hierarchy.

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EUR MILLION 2020 2019

Historical cost, Jan 1 11.1 10.9

Translation differences 0.0 0.1

Additions 0.1 0.2

Decreases -0.1

Transfers from tangible assets 0.7 0.0

Historical cost, Dec 31 11 .7 11.1

Accumulated depreciation, Jan 1 7. 5 7.0

Translation differences 0.0 0.0

Depreciation and impairment for the period 0.4 0.5

Decreases -0.1

Accumulated depreciation and

impairment, Dec 31 7. 8 7.5

Net book value, Dec 31 4.0 3.6

Investment Property comprises the parent company’s

buildings and zoned and unbuilt lots for detached houses

in Fiskars Village, Finland.

Fair value

Properties in Fiskars Village are unique in their cultural and

historical values. Therefore it is not possible to determine

a comparable market value on those properties. The book

value of these properties, located in Finland, were EUR 4.0

million in 2020 (2019: 3.6).

3.5 Investment property

Accounting principles

The properties that are not used in the group’s operations

or which are held to earn rental revenue or increase in value

are classified as investment property. These properties

are measured at cost less accumulated depreciation and

impairment. Investment properties are depreciated over –

years on a straight-line basis. Land is not depreciated.

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Operational assets

and liabilities

.Inventories 

.Trade and other receivables 

.Trade and other payables 

.Employee defined benefit obligations 

.Provisions 

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EUR MILLION 2020 2019

Raw materials and consumables 24.3 22.6

Work in progress 15.6 17.3

Finished goods 189.4 214.0

Advance payments 0.1 0.3

Gross value of inventories 229.4 254.2

Write-down to the carrying value of

inventories -22.0 -22.1

Total, Dec 31 207.4 232.1

An impairment on inventories of EUR 0.1 (2.1) million was

recognised during financial period.

4.1 Inventories 4.2 Trade and other

receivables

EUR MILLION 2020 2019

Trade receivables 183.7 177.4

Derivatives 0.0 0.0

Other receivables 6.9 7. 2

Prepaid expenses and accrued income 23.2 18.6

Total, Dec 31 213.8 203.2

AGING OF TRADE RECEIVABLES

EUR MILLION 2020 2019

Not fallen due 158.0 154.7

1–30 days past due 20.4 17.6

31–60 days past due 3.1 3.0

61–90 days past due 1.9 1.6

91–120 days past due 1.4 0.8

Over 120 days past due 4.4 4.1

Less provision for bad debts, Dec 31 -5.5 -4.4

Total, Dec 31 183.7 177.4

Trade receivables’ payment terms vary, but average is 45

days.

Accounting principles

Inventories are carried at the lower of cost and net realizable

value. Cost is determined using the first-in first-out (FIFO)

method. The cost of finished goods and work-in-progress

comprise direct purchase and manufacturing cost, other direct

costs and a proportion of the related production overheads

based on normal operating capacity. Net realizable value is the

estimated amount that can be realized from the sale in normal

course of business less the estimated costs of completion and

the estimated costs necessary to make the sale. Inventories are

presented net of an impairment loss recognized for obsolete

and slow-moving inventories.

TRADE RECEIVABLES IN CURRENCIES

EUR MILLION 2020 2019

US Dollars (USD) 72.5 65.9

Euros (EUR) 32.8 33.5

Danish Krones (DKK) 22.9 21.2

United Kingdom Pounds (GBP) 3.9 5.0

Swedish Kronas (SEK) 12.8 11.2

Japanese Yens (JPY) 7. 6 7.2

Australian Dollars (AUD) 8.8 4.7

Norwegian Krones (NOK) 5.8 7. 1

Other currencies 16.8 21.6

Total, Dec 31 183.7 177.4

Trade receivables are widely spread geographically. The

biggest customers are major retailers with solid credit

ratings. Credit loss risks are estimated to be moderate.

The maximum exposure to credit risk is the carrying

amount of the trade receivables.

ALLOWANCE FOR IMPAIRMENT OF TRADE

RECEIVABLES

EUR MILLION 2020 2019

Allowance on Jan 1 -4.4 -4.6

Additions -3.0 -0.8

Deductions 1.6 0.8

Recognised impairment losses 0.3 0.1

Recovery of doubtful receivables -0.1 0.0

Allowance on Dec 31 -5.5 -4.4

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4.3 Trade and other

payables

EUR MILLION 2020 2019

Trade payables 100.2 96.3

Other debt 38.2 24.2

Accrued expenses and deferred income

Interests 1.9 2.7

Wages, salaries and social costs 48.0 40.3

Customer rebates and commissions 62.1 49.5

Other 59.4 54.7

Total, Dec 31 309.8 267.7

Other accrued expenses and deferred income comprise

periodization of bought materials and supplies, annual

rebates for clients and other accrued items.

4.4 Employee defined

benefit obligations

Accounting principles

Group companies have various pension plans in accordance

with local conditions and practices in the countries in which

they operate. The plans are classified as either defined

contribution plans or defined benefit plans. Under a defined

contribution plan the group pays fixed contributions into a

separate entity. If the entity does not hold sufficient assets to

pay all employees the benefits in question, the group will have

no legal or constructive obligation to pay further contributions.

All other plans not meeting the above criteria are classified as

defined benefit plans. Most of the plans that group companies

have are classified as defined contribution plans and related

contributions are charged to the income statement in the year

in which the payment obligation has arisen.

The costs for defined benefit pension plans are calculated

and recognized under the terms of the plan based on actuarial

calculations. Pension costs are recognized as expenses

over the employees’ service period. The pension obligation

is measured as the present value of the estimated future

contributions deducted by the fair value of plan assets at the

end of the reporting period. Changes in the estimates in the

actuarial calculations may influence the reported pension

obligations and pension costs. Actuarial gains and losses are

recognized in other comprehensive income.

Most of Fiskars Group’s pension plans are defined

contribution plans. Vita business area has defined benefit

plans in Indonesia, Japan and Slovenia. The defined

benefit plans in the U.S., UK and Germany are closed

plans, and future pay increases will not impact the

valuation. The Group also has supplementary pension

plans in Finland which are classified as defined benefit

plans. Each plan is operated in accordance with local

conditions and practices of the respective country.

Authorized actuaries have performed the actuarial

calculations for the defined benefit plans.

The main unfunded plans are in the U.S., Germany,

Indonesia, Japan and Slovenia. Plan in Finland is taken

care of by local pension insurance company. The Group

estimates its contributions to the plans during 2021 to be

EUR 1.0 (0.9) million.

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CHARACTERISTICS OF THE DEFINED BENEFIT PLANS AND RISKS ASSOCIATED WITH THEM

Plan 2020 2019 DESCRIPTION AND RISKS

Finland 0.1 0.1

There are 28 eligible members in the Finnish pension plans. The plans are either funded insured pension plans, which are closed, or unfunded pension promises. Benefits of the

plans are old age pension, disability pension, family pension and funeral grant. Pension increases are based on either insurance companies' own indexes or TyEL index. Main

risks are changes in bond yields, increase in life expectancy and inflation risk.

Germany 1.0 1.1

There are 73 eligible members in the German pension plans. The plans are either unfunded individual pension promises, or unfunded pension plans, which are closed. Benefits

of the plans are old age pension, disability pension and widow's/widower's pension. Pension increases, if any, are based on inflation. Main risks are changes in bond yields,

increase in life expectancy and inflation risk.

Thailand 0.9 0.5

There are 612 eligible members in the Thai pension plan, which is a retirement benefit plan. Benefit of the plan is severance pay. There are no pension increases. Main risks are

changes in bond yields and inflation risk.

UK 0.0 0.0

There are 173 eligible members in the British pension plan, which is a closed pension fund. The plan has surplus (asset) of GBP 2.9 (2.9) million at end of 2020, which is

not recognized as an assets due to asset ceiling. Benefits of the plan are old age pension, early retirement pension, widow's/widower's pension and death benefit. Pension

increases are based on inflation. Main risks are volatility of equity instruments, changes in bond yields, increase in life expectancy and inflation risk.

UK legislation requires the board to carry out actuarial valuations at least every three years and to target full funding against a basis that prudently reflects the fund’s risk

exposure, including the strength of the covenant offered to the fund by Fiskars UK Limited. The most recent actuarial valuation was carried out as at March 31, 2017. From 31

July, 2017 the Company has agreed with the Trustee of the scheme a revised schedule of contributions for the scheme to reduce the annual contributions payable to GBP nil

per annum. On 5 December, 2017 the Company completed a buy-in of £ 14.5 million of UK Scheme liabilities underwritten by the purchase of the annuity contract. The buy-in

policy provides cash flows to match the benefits of the members covered, and is valued at higher than the present value of the defined benefit obligation for those members.

The Fund administration costs at the end of 2017 has been recognized as an expense in the company’s income statement, and under rules of IAS 19 applicable to the scheme,

has been offset with recognition of other comprehensive income to generate nil impact on company reserves for in the period.

U.S. 4.9 5.3

There is one eligible member in the American pension plan, which is an unfunded pension obligation. Benefits of the plan are old age pension and widow's/widower's pension.

There are no pension increases. Main risks are changes in bond yields and increase in life expectancy.

Indonesia 3.8 3.4

There are 735 eligible members in the Indonesian pension plan, which is an unfunded retirement benefit plan. Benefits of the plan are severance pay, death benefit and

disability benefit. There are no pension increases. Main risks are changes in bond yields and inflation risk.

Japan 0.8 1.0

There are 80 eligible members in the Japanese pension plan, which is a funded and insured pension and retirement allowance plan. Benefits of the plan are old-age pension,

death benefit and retirement allowance. There are no pension increases. Main risks are changes in bond yields, increase in life expectancy and inflation risk.

Slovenia 1.6 1 .4

There are 719 eligible members in the Slovenian pension plans, which are unfunded retirement benefit plans. Benefit of the plan is severance pay. There are no pension

increases. Main risks are changes in bond yields and inflation risk.

Total net liability 13.1 13.2

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CHANGES IN NET DEFINED BENEFIT LIABILITY

EUR MILLION

PRESENT

VALUE OF

OBLIGATION

FAIR VALUE OF

PLAN ASSETS

TOTAL

ADDITIONAL

LIABLITY AND

EFFECT OF

ASSET CEILING

TOTAL

Jan 1, 2020 31.8 -22.0 9.8 3.4 13.2

Current service cost 0.7 0.7 0.7

Interest expense (+) or income (-) 0.7 -0.3 0.4 -0.3 0.1

Administration expenses 0.2 0.2 0.2

Past service cost and gains and losses from

settlements 0.0 0.0 0.0 0.0

Total included in personnel expenses (Note 2.4) 1.3 -0.1 1.3 -0.3 0.9

Return on plan assets, excluding amounts

included in interest, (gain -) and (loss +) -0.8 -0.8 -0.8

Actuarial gains (-) and losses (+) arising from

changes in demographic assumptions 0.0 0.0 0.0

Actuarial gains (-) and losses (+) arising from

changes in financial assumptions 1.3 1.3 1.3

Experience adjustment gains (-) and losses (+) 0.3 0.3 0.3

Changes in asset ceiling, excluding amounts

included in interest 0.0 -0.2 -0.2

Remeasurement gains (-) and losses (+) included

in OCI 1.5 -0.8 0.6 -0.2 0.4

Translation differences -1.8 1.1 -0.7 0.2 -0.5

Employer contributions -0.9 -0.9 -0.9

Benefits paid -1.8 1.8 0.0 0.0

Other changes 0.0 0.0 0.0 0.0

Dec 31, 2020 31.1 -21.0 10.1 3.0 13.1

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CHANGES IN NET DEFINED BENEFIT LIABILITY

EUR MILLION

PRESENT

VALUE OF

OBLIGATION

FAIR VALUE OF

PLAN ASSETS

TOTAL

ADDITIONAL

LIABLITY AND

EFFECT OF

ASSET CEILING

TOTAL

Jan 1, 2019 29.2 -20.4 8.7 3.5 12.2

Current service cost 0.7 0.7 0.7

Interest expense (+) or income (-) 1.0 -0.5 0.5 0.1 0.6

Administration expenses 0.2 0.2 0.2

Past service cost and gains and losses from

settlements 0.2 0.4 0.5 0.5

Total included in personnel expenses (Note 2.4) 1.8 0.0 1.9 0.1 2.0

Return on plan assets, excluding amounts

included in interest, (gain -) and (loss +) -1.5 -1.5 -1.5

Actuarial gains (-) and losses (+) arising from

changes in demographic assumptions -0.1 -0.1 -0.1

Actuarial gains (-) and losses (+) arising from

changes in financial assumptions 2.7 2.7 2.7

Experience adjustment gains (-) and losses (+) 0.1 0.1 0.1

Changes in asset ceiling, excluding amounts

included in interest 0.0 -0.3 -0.3

Remeasurement gains (-) and losses (+) included

in OCI 2.7 -1.5 1.2 -0.3 0.9

Translation differences 1.2 -1.0 0.2 0.2 0.4

Employer contributions -2.0 -2.0 -2.0

Benefits paid -2.9 2.9 0.0 0.0

Other changes 0.0 0.0 0.0 -0.1 -0.1

Dec 31, 2019 31.8 -22.0 9.8 3.4 13.2

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PRINCIPAL ACTUARIAL ASSUMPTIONS AT THE BALANCE SHEET DATE

% 2020 2019

Discount rate

UK 1.65 1.95

USA 1.90 2.60

Indonesia 7.02 7.68

Slovenia 0.80 0.80

Other countries 0.30-2.10 0.37-2.20

Future salary increases

UK n/a n/a

USA n/a n/a

Indonesia 5.00 5.00

Slovenia 2.50 2.50

Other countries n/a / 0.0–4.0 n/a / 0.0–5.0

Future pension increases

UK 2.9 2.7

USA 0.0 0.0

Indonesia 5.0 5.0

Slovenia n/a n/a

Other countries 0.82 1.52

PLAN ASSETS BY ASSET CATEGORY

EUR MILLION

2020 2019

QUOTED UNQUOTED QUOTED UNQUOTED

Equity instruments 0.0 0.0

Bonds 0.7 0.7

Property 0.0 0.0

Insurance contracts 17.7 18.3

Cash and cash equivalents 2.7 3.0

Total 3.3 17.7 3.7 18.3

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Sensitivity analysis

The sensitivity analyses below have been determined

based on reasonably changes of the respective

assumptions occurring at the end of the reporting period

and may not be representative of the actual change. It is

based on a change in the key assumption while holding

all other assumptions constant. A linear extrapolation

of these amounts based on alternative changes in the

assumptions as well as an addition of combined changes

in the individual assumptions is not possible. There are

no changes in the way the sensitivity analyses were

performed compared to the previous years.

PLAN ASSETS BY ASSET CATEGORY

EUR MILLION

2020 2019

DEFINED BENEFIT OBLIGATION DEFINED BENEFIT OBLIGATION

INCREASE DECREASE INCREASE DECREASE

Discount rate (0.5% change) -1.0 1.2 -1.0 1.1

Future salary (0.5% change) n/a n/a n/a n/a

Future pension (0.25% change) 0.1 -0.2 0.1 -0.1

Other Group companies, total

Discount rate (0.5% change) -0.7 0.7 -0.7 0.8

Future salary (0.5% change) 0.5 -0.4 0.5 -0.4

Future pension (0.25% change) 0.0 -0.0 0.0 -0.0

The weighted average of the duration of the defined benefit obligation: 12.2 (11.7)

Although the analysis does not take account of the full distribution of cash flows expected under the plan, it does

provide an approximation of the sensitivity of the assumptions shown.

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2020

NON-CURRENT PROVISIONS

EUR MILLION

WARRANTY

PROVISION

RESTRUCTURING

PROVISION

ONEROUS

CONTRACTS

AND

OTHER

PROVISIONS

TOTAL

Provisions, Jan 1 0.4 0.1 3.7 4.1

Translation differences 0.0 -0.1 -0.1

Additions 0.2 0.0 0.2

Used provisions -0.0 -0.0

Change in estimates 0.0 0.0

Reversals -0.6 -0.6

Provisions, Dec 31 0.5 0.1 3.0 3.6

CURRENT PROVISIONS

EUR MILLION

WARRANTY

PROVISION

RESTRUCTURING

PROVISION

ONEROUS

CONTRACTS

AND

OTHER

PROVISIONS

TOTAL

Provisions, Jan 1 2.5 0.0 1.7 4.1

Translation differences -0.1 -0.0 -0.2

Additions 0.0 0.6 0.8 1.4

Used provisions -0.0 -0.1 -0.3 -0.5

Change in estimates 0.0 0.2 0.2

Reversals -0.1 -0.1 -0.2

Provisions, Dec 31 2.2 0.6 2.1 4.9

2019

NON-CURRENT PROVISIONS

EUR MILLION

WARRANTY

PROVISION

RESTRUCTURING

PROVISION

ONEROUS

CONTRACTS

AND

OTHER

PROVISIONS

TOTAL

Provisions, Jan 1 0.4 0.3 4.5 5.1

Translation differences 0.0 0.0 0.0 0.0

Additions 0.2 0.2

Used provisions -0.2 -0.2

Change in estimates 0.0 0.0

Reversals -1.0 -1.0

Provisions, Dec 31 0.4 0.1 3.7 4.1

CURRENT PROVISIONS

EUR MILLION

WARRANTY

PROVISION

RESTRUCTURING

PROVISION

ONEROUS

CONTRACTS

AND

OTHER

PROVISIONS

TOTAL

Provisions, Jan 1 3.7 -0.0 1.7 5.4

Translation differences 0.0 0.0 0.0 0.1

Additions 0.0 0.1 0.2

Used provisions -0.1 0.0 -0.1 -0.2

Change in estimates 0.2 0.2

Reversals -1.5 -0.0 -1.5

Provisions, Dec 31 2.5 0.0 1 .7 4.1

4.5 Provisions

Accounting principles

A provision is recognized when the group as a result of a past

event has a present legal or constructive obligation, it is probable

that the obligation will be realized and a reliable estimate can be

made of the amount of the obligation. A provision for restructuring

is recognized when a detailed formal plan has been prepared and

when there is a valid expectation relating those affected that the

plan will be carried out. The amount recognized as a provision is

the best estimate of the expenditure required to settle the present

obligation at the end of the reporting period. If it is possible to

receive compensation for part of the obligation from a third party,

the compensation is recognized as a separate asset, but only when

receipt of the compensation is virtually certain.

Fiskars Group may be a party to lawsuits and legal processes

concerning the group’s business operations. A related provision

is recognized in the financial statements when the amount of the

expenditure can be estimated reliably and it is more likely than not

that they will be realized. Otherwise these contingent liabilities are

disclosed in the notes.

Warranty provisions relate to products sold and are

reviewed and adjusted regularly to reflect the estimated

cash outflows to settle the warranty claims. Other

provisions include, among others, provisions for legal

expenses and estimated costs for refurbishment of

premises.

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Capital structure and

financial instruments

.Financial risk management 

.Financial assets 

.Share capital 

.Financial and lease liabilities 

.Derivatives 

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5.1 Financial risk

management

Financial risks are managed by the Group Treasury

in accordance with the risk management principles

approved by the Board of Directors.

Currency risk

Currency risk refers to changes in the value of result,

cash flow, balance sheet and competitiveness of Fiskars

Group due to changes in exchange rates. Fiskars Group’s

transaction and translation positions are managed

separately.

Transaction risk

Transaction risk arises from foreign currency denominated

cash flows. The objective of managing the transaction

risk is to reduce the impact of changes in exchange rates

on the budgeted profit and cash flows of the Group.

Group companies are responsible for managing the

currency risks associated with their commercial cash

flows. Group companies hedge their exposure using

currency forwards entered into with the Group Treasury.

Transaction risk is measured as net of commercial and

financial receivables and payables denominated in foreign

currencies. The net position is hedged by currency

derivatives in accordance with the Treasury policy

approved by the Board of Directors. Currency forwards

and swaps are the most widely used instruments in

hedging currency risks.

Less than 20% of Fiskars Group’s commercial cash flows

are exposed to fluctuations in foreign exchange rates. The

most significant risks relate to appreciation of IDR, THB

and USD, and to depreciation of AUD, JPY, and SEK. Fiskars

Group is exposed to rate changes in the local currencies

of its suppliers, of which the most important is CNH.

Fiskars Group does not apply hedge accounting as defined

in IFRS 9. All gains and losses resulting from currency

derivatives are booked in the income statement. Had

hedge accounting been applied to currency derivatives,

Fiskars Group’s consolidated profit before tax for 2020

would have been EUR 1.0 million above the reported

figure (2.8 million above reported in 2019).

Translation risk

Translation risk refers to the impact of changes in

exchange rates on the consolidated income statement,

consolidated statement of cash flows and consolidated

balance sheet. These changes can also impact key

indicators, such as equity ratio and gearing. Translation

risk is not hedged.

Interest rate risk

Interest rate risk refers to possible changes in cash flow

and in the value of assets and liabilities resulting from

changes in interest rates. Interest rate risk is measured by

the average interest rate reset period of financial assets

and liabilities. The average reset period reflects the time

it takes on average for the change in interest rates to

impact the interest costs of the net debt portfolio. The

risk is quantified in monetary terms as the change in

interest costs during the observation period caused by a

permanent one percentage point rise in interest rates. The

shorter the average reset period, the more unpredictable

are the interest costs.

Derivatives are used in the management of interest rate

risks, and hedge accounting on interest derivatives is

applied. The objective is to maintain the average reset

period within the agreed limits of 4 to 48 months as

set out in the Treasury policy. As of December 31, 2020

the Group did not have any interest rate derivatives

outstanding (2019: EUR 50.0 million). The Group’s

interest-bearing net debt as of December 31, 2020 was

EUR 49.6 million (149.8). Of the total debt 55% (69%)

was linked to variable interest rates. The average interest

rate reset period of interest-bearing debt was 11 months

(4).

Sensitivity of interest expenses on changes in market

rates has been calculated by assuming permanent one

percentage point increase in market rates and assuming

no change in net debt during the year. The calculated

impact on the consolidated result before tax would be

EUR 0 million (1.1) in 2021.

Liquidity and refinancing risk

Liquidity risk refers to the risk of the Group’s financial

assets and sources of funding proving insufficient to

fund its business operations or the risk of a situation

where arranging such funding would result in substantial

additional costs. The objective of liquidity risk

management is to maintain an optimal amount of liquidity

to fund the business operations of the Group at all times

while minimizing interest costs. Liquidity is considered

to be the sum of cash and cash equivalents and available

committed credit lines.

Refinancing risk refers to exposure to unavailability or

prohibitively expensive price of financing at the time

of maturity of expiring financing lines. The objective of

refinancing risk management is to minimize the risk by

diversifying the maturity structure of the debt portfolio.

The Group has extensive unused credit facilities at its

disposal to guarantee its liquidity. As of the end of the

year, the unutilized committed revolving credit facilities

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totaled EUR 300 million (2019: 300) and overdraft

facilities EUR 45 million (37). In addition, the Group’s

parent company in Finland has a commercial paper

program amounting to EUR 400 million, of which none

was utilized as of the end of the year.

Commodity risk

Fiskars may use derivatives to hedge its exposure to

commodity price fluctuations where appropriate. At

the end of the year, the Group held no outstanding

commodity derivative contracts.

Credit risk

Group Treasury is responsible for evaluating and

monitoring financial counterparty risk. The Group

minimizes this risk by limiting its counterparties to

creditworthy banks and financial institutions and by

working within defined counterparty limits. Sales function

is responsible for monitoring customer credit risks.

The Group’s clientele is extensive and even the largest

customers represent less than 10% of the outstanding

receivables. As of the end of the year, the Group’s trade

receivables totaled EUR 183.7 million (177.4). The financial

statements include provisions for bad debt related to

trade receivables totaling EUR 5.5 million (4.5).

Management of capital

Fiskars is not subject to any externally imposed capital

requirements (other than possible local company law

requirements effective in the jurisdictions where Fiskars

Group companies are active).

The Group’s objectives when managing capital are:

• to safeguard the Group’s capacity to fund its

operations and take care of its obligations

• to maintain a balanced business and investment

portfolio that provides return both on short and long

term to its shareholders

• to maintain possibilities to act on potential investment

opportunities

5.2 Financial assets

Accounting principles

FINANCIAL ASSETS

Fiskars Group classifies its financial assets in the following

categories: financial assets at fair value through profit or loss,

financial assets at fair value through other comprehensive income,

and loans and other receivables. Financial assets are classified at

initial recognition based on their purpose of use. For investments

not at fair value through profit or loss, the directly attributable

transaction costs are included in the original costs of the financial

assets. All purchases or sales of financial assets are recognized

or derecognized using trade date accounting. The Group

derecognizes financial assets when it has lost its right to receive

the cash flows or when it has transferred substantially all the risks

and rewards to an external party.

FINANCIAL ASSETS AT FAIR VALUE THROUGH

PROFIT OR LOSS AND VIA OTHER COMPREHENSIVE

INCOME

Financial assets at fair value through profit or loss include financial

assets that are held for trading or are designated as financial

assets at fair value through profit or loss upon initial recognition

(the fair value option). In Fiskars Group this category comprises

investments in listed securities and derivative instruments for

which hedge accounting is not applied.

Financial assets at fair value through profit or loss are measured at

fair value both at initial recognition and subsequently. The fair values

of the listed securities are based on quoted rates at the end of the

reporting period, and both realized and unrealized gains and losses

are recognized in the income statement under financial items. The

fair value measurement principles of derivative instruments are

described below under Derivatives and hedge accounting.

Based on the new IFRS  standard that Fiskars Group adopted on

January , , Fiskars Group recorded the change in fair value

of the Wärtsilä holding in other comprehensive income instead of

recognizing fair value changes in the income statement.

LOANS AND OTHER RECEIVABLES

Loans and other receivables are non-derivative financial assets

with fixed or determinable payments that are not quoted in an

active market. They are not held for trading or designated as

available for sale upon initial recognition. This category comprises

trade receivables and other receivables under current receivables

as well as non-current loan receivables that are presented under

the item Other investments in the consolidated balance sheet.

Loans and other receivables are measured at amortized cost.

The estimate made for doubtful receivables is based on the risks

of individual items. Resulting from this assessment the carrying

amounts of receivables are adjusted to measure their probable

value. Loans and receivables are included in current or non-current

assets based on their nature; in the latter class for maturities

greater than  months after the end of the reporting period.

CASH AND CASH EQUIVALENTS

The balance sheet item Cash and cash equivalents includes cash,

i.e. cash in hand and deposits held at call with banks, and cash

equivalents. Cash equivalents comprise highly liquid investments

that are readily convertible to a known amount of cash and subject

to an insignificant risk of changes in value. The items included

in cash equivalents have original maturities of maximum three

months from the date of acquisition. Bank overdrafts are included

within current interest-bearing financial liabilities.

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FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT

OR LOSS

LEVEL 3

EUR MILLION 2020 2019

Book value, Jan 1 28.9 25.3

Additions 1.9 8.2

Decreases -4.1 -1 .7

Change in fair value -2.3 -2.9

Book value, Dec 31 24.4 28.9

Investments at fair value through profit or loss comprise

unlisted funds. The fair value of unlisted funds is based on

the market value reported by the funds (level 3). Changes

in the fair value are recognized in the income statement.

Wärtsilä shares were reclassified to Investments at fair

value through other comprehensive income (next table) in

connection with the adoption of IFRS 9 on Jan 1, 2018.

INVESTMENTS AT FAIR VALUE THROUGH OTHER

COMPREHENSIVE INCOME

LEVEL 1

EUR MILLION 2020 2019

Book value, Jan 1 453.6

Decreases -433.3

Change in fair value -20.3

Book value, Dec 31 0.0

Investments at fair value through other comprehensive

income consist of holdings in Wärtsilä Corporation. Listed

shares have been recognized at their fair value based on

quotation at the end of the reporting period (fair value

hierarchy level 1).

In June 2019 Fiskars distributed 32,614,026 of its

Wärtsilä shares as an extra dividend to shareholders.

Market value of the shares on the date of distribution

was EUR 432.9 million and the change in value has been

reported in other comprehensive income. The remaining

31,317 shares were sold in September 2019.

OTHER INVESTMENTS

EUR MILLION

LEVEL 1 LEVEL 3

2020 2019 2020 2019

Book value, Jan 1 0.3 0.4 7.6 8.4

Decreases -0.4

Change in fair value -0.1 -0.1 0.3 -0.4

Book value, Dec 31 0.2 0.3 7.9 7.6

Other investments comprise listed and unlisted shares as

well as non-current receivables. Listed shares have been

recognized at their fair value based on quotation at the

end of the reporting period (level 1). Unlisted shares and

other investments are measured at the lower of cost and

fair value (level 3).

CASH AND CASH EQUIVALENTS

EUR MILLION 2020 2019

Cash at bank 62.5 9.4

Other current investments 0.0 0.0

Total, Dec 31 62.5 9.4

OTHER FINANCIAL

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PROPOSAL

AUDITOR’S

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5.3 Share capital

2020 2019 2020 2019

PCS 1000 PCS 1000

EUR

MILLION

EUR

MILLION

Share capital

Jan 1 81,905.2 81,905.2 77. 5 77.5

Share capital, Dec 31 81,905.2 81,905.2 77. 5 77.5

Treasury shares

Jan 1 408.7 332.6 6.9 5.7

Change 25.0 76.1 0.3 1.1

Treasury shares, Dec 31 433.7 408.7 7. 2 6.9

NUMBER OF SHARES AND VOTES

DEC 31, 2020 DEC 31, 2019

NUMBER OF

VOTES

SHARE CAPITAL

EUR

NUMBER OF

VOTES

SHARE CAPITAL

EUR

Shares (1 vote/share) 81,905,242 81,905,242 77,510,200 81,905,242 81,905,242 77,510,200

Total 81,905,242 81,905,242 77,510,200 81,905,242 81,905,242 77,510,200

Fiskars Corporation has a single class of shares. Shares have no nominal value.

OTHER FINANCIAL

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LEASE LIABILITY

EUR MILLION 2020 2019

Lease liabilities are payable as follows:

Less than one year 22.7 22.9

Between one and five years 48.5 58.5

More than five years 23.3 29.8

Minimum lease payments, total 94.5 111.3

EUR MILLION 2020 2019

Present value of minimum lease payments:

Less than one year 21.0 20.6

Between one and five years 37. 2 46.2

More than five years 28.9 34.4

Present value of minimum lease payments,

total 87. 1 101.1

Future finance charges 7.4 10.2

5.4 Financial and lease

liabilities

Accounting principles

FINANCIAL LIABILITIES AND BORROWING

COSTS

Fiskars Group classifies its financial liabilities in the following

categories: financial liabilities at fair value through profit or loss

(includes derivative liabilities) and financial liabilities measured

at amortized cost. A financial liability is recognized initially at

fair value. For financial liabilities measured at amortized cost,

the directly attributable transaction costs are included in the

original cost. Subsequently financial liabilities are carried at

amortized cost using the effective interest method, except for

derivative liabilities that are measured at fair value. Financial

liabilities are classified as non-current or current; the latter

group comprises all those financial liabilities for which the

Group does not have an unconditional right to defer settlement

of the liability for at least  months after the end of the

reporting period. The Group removes a financial liability (or a

part of it) from its balance sheet only when it is extinguished,

i.e. when the obligation specified in the contract is discharged

or cancelled or expires.

Arrangement fees related to loan commitments are treated as

transaction costs to the extent it is likely that the loans will not

be drawn down. Remaining arrangement fees are amortized

over the expected loan term.

NON-CURRENT INTEREST BEARING DEBT

EUR MILLION

2020 2019

FAIR

VALUE

CARRYING

AMOUNT

FAIR

VALUE

CARRYING

AMOUNT

Loans from

credit

institutions 50.0 50.0 50.0 50.0

Lease liability

(note 3.3) 66.1 71.8 80.6 88.4

Other non-

current debt 1.2 1.2 1.4 1 .4

Total, Dec 31 1 17. 3 123.0 132.0 139.8

Interest-bearing debts are valued at amortized cost. The

fair values of interest-bearing debts have been calculated

by discounting the cash flow of the debt by the market

rate at the end of reporting period (fair value hierarchy

level 2).

CURRENT INTEREST BEARING DEBT

EUR MILLION

2020 2019

FAIR

VALUE

CARRYING

AMOUNT

FAIR

VALUE

CARRYING

AMOUNT

Bank

overdrafts 0.9 0.9 8.4 8.4

Loans from

credit

institutions 60.0 60.0 100.0 100.0

Lease liability

(note 3.3) 21.0 22.7 20.6 22.9

Other 0.3 0.3 0.3 0.3

Total, Dec 31 82.2 83.9 129.2 131.6

OTHER FINANCIAL

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CHANGES IN LIABILITIES ARISING FROM FINANCING ACTIVITIES

2020

EUR MILLION JAN 1 LEASE CHANGES CASH FLOWS FX DIFFERENCE OTHER DEC 31

Non-current loans and borrowings 51 .4 39.9 -40.1 51.2

Non-current lease liability (note 3.3) 88.4 0.0 0.0 -2.4 -14.2 71.8

Current loans and borrowings 108.7 -84.5 -3.0 40.0 61.2

Current lease liability (note 3.3) 22.9 10.2 -24.0 -0.4 14.1 22.7

Total 271 .4 10.2 -68.6 -5.8 -0.3 206.9

2019

EUR MILLION

FINANCIAL LEASE

LIABILITY JAN 1

IFRS 16 LEASE

LIABILITY JAN 1

LEASE CHANGES CASH FLOWS FX DIFFERENCE OTHER DEC 31

Non-current loans and borrowings 151.2 -99.8 51 .4

Non-current lease liability (note 3.3) 0.2 99.3 5.5 -0.1 0.7 -17.3 88.4

Current loans and borrowings 9.3 -1.3 0.7 100.0 108.7

Current lease liability (note 3.3) 0.2 21.2 5.8 -21.4 0.2 17. 1 22.9

Total 160.9 120.5 11.2 -22.7 1.6 0.0 271 .4

OTHER FINANCIAL

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MATURITY OF LIABILITIES

As of December 31, 2020 the Group had unused credit facilities EUR 300 million

(300) at its disposal to guarantee its liquidity. The average maturity of the credit limit

agreements as of December 31, 2020 was 3.4 years (3.6). Agreements concerning

credit facilities and long term loans include a covenant for the solidity. Non-compliance

with the covenant would lead to a premature expiry of the agreements. Breach of

covenant would require material deterioration of the solidity from the current.

2020

EUR MILLION 2021 2022 2023 2024 2025 LATER TOTAL

Bank overdrafts 0.9 0.9

Other debt 0.3 0.4 0.4 0.4 1.5

Loans from credit institutions 60.0 50.0 110.0

interests 0.9 0.3 1.2

Lease liabilities (note 3.3) 21.0 16.7 12.8 7.7 7. 3 21.6 87. 1

interests 1.8 1 .4 1.1 0.8 0.7 1.7 7.4

Trade payables 100.2 100.2

Derivative liabilities 0.4 0.4

Total, Dec 31 185.4 68.8 14.2 8.9 8.0 23.3 308.7

60.1% 22.3% 4.6% 2.9% 2.6% 7.5 % 100.0%

2019

EUR MILLION 2020 2021 2022 2023 2024 LATER TOTAL

Bank overdrafts 8.4 8.4

Other debt 0.3 0.5 0.5 0.5 1.7

Loans from credit institutions 100.0 50.0 150.0

interests 1.0 0.5 0.4 1.9

Lease liabilities (note 3.3) 20.6 18.6 16.0 11.6 7.0 27.4 101.1

interests 2.4 1.9 1.5 1.1 0.9 2.4 10.2

Trade payables 96.3 96.3

Derivative liabilities 0.7 0.7

Total, Dec 31 229.7 21.4 68.3 13.2 7.9 29.8 370.2

62.0% 5.8% 18.5% 3.6% 2.1% 8.0% 100.0%

OTHER FINANCIAL

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PROPOSAL

AUDITOR’S

REPORT

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SENSITIVITY ANALYSIS OF CURRENCY EXPOSURE

The exchange rate sensitivity analysis in accordance with IFRS 7 indicates how

the profit before taxes or consolidated Group equity would be impacted by a 10%

depreciation of a currency. Impact from a 10% appreciation of a currency would

be the opposite. The analysis of impact on profit includes internal and external

foreign currency denominated financial items of the parent company in the selected

currencies. Estimated commercial cash flows of the Group companies consist of net

purchases and sales in foreign currencies during the subsequent year. Derivatives

include transactions to hedge the estimated commercial flows. Other financial items

include foreign currency denominated loans, deposits and investments. The selected

currencies represent approximately 90% of the commercial net foreign currency flows.

The sensitivity analysis on the consolidated Group equity illustrates translation risk

related to the foreign currency denominated equity.

2020

2020 2019

IMPACT ON RESULT BEFORE TAXES IMPACT ON RESULT BEFORE TAXES

EUR MILLION

ESTIMATED

COMMERCIAL

CASH FLOWS

DERIVATIVES

OTHER

FINANCIAL

ITEMS

IMPACT

ON GROUP

EQUITY

ESTIMATED

COMMERCIAL

CASH FLOWS

DERIVATIVES

OTHER

FINANCIAL

ITEMS

IMPACT

ON GROUP

EQUITY

AUD -1.1 0.8 0.4 -1 .4 -1.5 2.1 -0.5 -1 .7

CAD -1.0 0.9 0.1 -0.5 -1 .4 1.2 0.2 -0.7

GBP -0.8 6.7 -5.9 -3.4 -1 .4 6.1 -4.7 -3.8

IDR 1.1 -1.2 0.0 1 .4 -1 .4 0.0

JPY -1.0 2.3 -1.2 -2.0 -1 .7 2.7 -1.1 -2.1

SEK -2.0 1.1 0.9 -0.6 -2.0 1.7 0.3 -0.7

THB 3.3 -2.5 -0.8 -1.5 3.6 -2.7 0.9 -1.9

USD 2.4 -1.6 -0.8 -19. 1 1.2 -5.8 4.9 -28.7

OTHER FINANCIAL

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AUDITOR’S

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AVERAGE INTEREST RATES AND SENSITIVITY ANALYSIS OF INTEREST EXPENSES

The sensitivity of interest expenses on changes in interest rates has been presented

by simulating a permanent one percentage unit raise in interest rates at the end of the

reporting year. The Group’s net interest bearing debt excluding financial leases as of

December 31, 2020 was EUR 49.6 million (149.8) and the average interest reset period

of interest-bearing debt was 11 months (4). A permanent one percentage point raise

in all interest rates would increase the corporation’s annual interest costs by EUR 0.0

million (1.1) assuming no change in the amount of the net debt.

The table below shows the Group’s net interest bearing debt, currency derivatives,

average interest rates on loans and interest rate sensitivity by major currencies.

2020

EUR MILLION EUR USD GBP DKK OTHER TOTAL

External loans and deposits 84.1 -9. 2 1.1 -5.5 -21.0 49.6

Currency derivatives -53.2 -16.3 66.7 3.4 -0.2 0.4

Net debt and currency derivatives 30.9 -25.5 67.9 -2.1 -21.2 4 9.9

Average interest rate on loans (p.a.) 0.9%

Interest rate sensitivity -0.2 -0.3 0.7 0.0 -0.2 0.0

2019

EUR MILLION EUR USD GBP DKK OTHER TOTAL

External loans and deposits 140.0 5.1 5.1 2.1 -2.5 149.8

Currency derivatives 9.4 -51.2 60.4 - 37. 5 19.4 0.5

Net debt and currency derivatives 149.4 -46.1 65.5 -35.4 16.9 150.3

Average interest rate on loans (p.a.) 0.9%

Interest rate sensitivity 1.1 -0.5 0.7 -0.4 0.2 1.1

FAIR VALUE OF FINANCIAL INSTRUMENTS

Accounting principles

FAIR VALUE CATEGORIES

Hierarchy level 1 includes financial assets that are publicly quoted in an active

market. This category includes listed shares. Level 2 includes financial assets and

liabilities measured using directly observable market inputs. All interest bearing

debts and derivatives fall within this category. Level 3 includes financial assets

and liabilities measured using non-market observable inputs. The asset classes in

this category are unlisted equity investments and funds.

2020

EUR MILLION LEVEL 1 LEVEL 2 LEVEL 3 TOTAL

Investments at fair value through profit or loss 24.4 24.4

Other investments 0.2 7.9 8.1

Total assets 0.2 32.2 32.4

Derivative liabilities 0.4 0.4

Total liabilities 0.4 0.4

2019

EUR MILLION LEVEL 1 LEVEL 2 LEVEL 3 TOTAL

Investments at fair value through profit or loss 28.9 28.9

Other investments 0.3 7.6 7.9

Total assets 0.3 36.4 36.7

Derivative liabilities 0.7 0.7

Total liabilities 0.7 0.7

OTHER FINANCIAL

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NOMINAL AMOUNTS OF DERIVATIVES

EUR MILLION 2020 2019

Derivatives not designated in hedge

accounting:

Foreign exchange forwards and swaps 223.6 316.6

Cash flow hedges:

Interest rate swaps* 50.0

* Hedged instrument: EUR 50 million floating rate long term loan with

identical interest rate periods and rates

5.5 Derivatives

Accounting principles

DERIVATIVES AND HEDGE ACCOUNTING

Derivatives not designated as hedging instruments are

recognized at fair value through profit and loss. Derivatives

are initially valued at cost and subsequently at fair value

determined at the end of each reporting period. The fair value

of derivatives is based on prevailing market rates or rates

derived from the prevailing market rates at the end of the

reporting period (fair value hierarchy level ). Fair value changes

are recognized in financial items.

Fiskars Group applies hedge accounting to changes in the fair

value of derivatives designated, qualifying and effective as cash

flow hedges. There were no such derivatives outstanding on

balance sheet date.

FAIR VALUE OF DERIVATIVES

EUR MILLION 2020 2019

Derivatives not designated in hedge

accounting:

Foreign exchange forwards and swaps -0.4 -0.4

Cash flow hedges:

Interest rate swaps -0.3

Derivative agreements the Group enters into are governed

by International Swaps and Derivatives Association’s

Master Agreements (ISDA). In case of a credit event as

defined by the ISDA the other agreement party may

demand early termination and set-off. Gross amounts

of derivative assets and liabilities subject to early

termination and set-off are presented in the following

table.

EUR MILLION 2020 2019

Foreign exchange forwards and swaps

Assets 0.6 0.1

Liabilities -1.0 -0.5

Net -0.4 -0.4

MATURITY OF DERIVATIVES

2020

EUR MILLION 2021 2022 LATER TOTAL

Foreign exchange forwards and

swaps 223.6 223.6

Interest rate swaps 0.0 0.0

Total, Dec 31 223.6 223.6

2019

EUR MILLION 2020 2021 LATER TOTAL

Foreign exchange forwards and

swaps 316.6 316.6

Interest rate swaps 50.0 50.0

Total, Dec 31 366.6 366.6

OTHER FINANCIAL

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PROPOSAL

AUDITOR’S

REPORT

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Consolidation

and other notes

.Consolidated financial statements 

.Subsidiaries and other participations 

. Related party transactions 

.Acquisitions and divestments 

.Commitments and contingencies 

.Subsequent events 

OTHER FINANCIAL

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6.1 Consolidated financial statements

The consolidated financial statements include the parent company, Fiskars

Corporation, and all the subsidiaries in which it holds, directly or indirectly, over 50%

of the voting rights or over which it otherwise has control. Acquired or established

subsidiaries are included in the consolidated financial statements from the date control

commences until the date that control ceases.

Subsidiaries are consolidated using the acquisition method. Intra-group transactions,

profit distribution, receivables, liabilities and unrealized gains between group

companies are eliminated in consolidation. The profit or loss for the financial year

attributable to the owners and non-controlling interest is presented in the income

statement and the total comprehensive income for the financial year attributable to the

owners and non-controlling interest is presented in the statement of comprehensive

income. The non-controlling interest in equity is presented within equity, separately

from the equity of the owners of the parent.

Investments in associates in which Fiskars Group has a significant influence but not

control are accounted for using the equity method. Significant influence usually exists

when the group holds over 20% of the voting power of the entity or when the group

otherwise has significant influence but not control.

SHARES IN SUBSIDIARIES

DOMICILE

% OF

CAPITAL

% OF

VOTING

POWER

NATURE

OF MAIN

ACTIVITIES

Fiskars Americas Holding Oy Ab Raseborg FI 100.0 100.0 H

Fiskars Brands, Inc. Madison, WI US 100.0 100.0 P

Fiskars Canada, Inc. Toronto CA 100.0 100.0 S

Consumer Brands (Hong Kong) Co.,

Limited Hongkong HK 1.0 1.0 H

Fiskars Europe Holding Oy Ab Raseborg FI 100.0 100.0 H

Consumer Brands

(Hong Kong) Co., Limited Hong Kong HK 99.0 99.0 H

Fiskars (Thailand) Co.,Limited Bangkok TH 98.0 98.0 H

Fiskars Trading (Shanghai) Co., Ltd Shanghai CN 100.0 100.0 H

Fiskars Finland Oy Ab Helsinki FI 100.0 100.0 P

Fiskars Brands Rus JSC St. Petersburg RU 100.0 100.0 P

Fiskars (Thailand) Co., Limited Bangkok TH 1.0 1.0 H

Fiskars Sweden AB Höganäs SE 100.0 100.0 S

Fiskars Estonia AS Tallinn EE 100.0 100.0 S

Fiskars Benelux B.V. Oosterhout NL 100.0 100.0 S

iittala BVBA Antwerpen BE 0.5 0.5 S

iittala BVBA Antwerpen BE 99.5 99.5 S

Fiskars Denmark A/S Glostrup DK 100.0 100.0 P

Royal Copenhagen GmbH Cologne DE 100.0 100.0 S

Fiskars Japan Co., Ltd Tokyo JP 100.0 100.0 S

Royal Copenhagen Korea Ltd Seoul KR 100.0 100.0 S

Fiskars Taiwan Limited Taipei TW 100.0 100.0 S

Royal Copenhagen Thailand Ltd Saraburi TH 60.0 60.0 P

Fiskars Gardening Equipment

(Ningbo), Co., Ltd. Ningbo CN 100.0 100.0 P

RC Heritage Center Ltd, Thailand Saraburi TH 99.0 99.0 P

Fiskars Hong Kong Ltd Hong Kong HK 100.0 100.0 S

Fiskars Deutschland GmbH Herford DE 100.0 100.0 D

6.2 Subsidiaries and other participations

OTHER FINANCIAL

INFORMATION

FINANCIAL

STATEMENTS

BOARD’S

PROPOSAL

AUDITOR’S

REPORT

REPORT BY THE

BOARD OF DIRECTORS

DOMICILE

% OF

CAPITAL

% OF

VOTING

POWER

NATURE

OF MAIN

ACTIVITIES

Fiskars France S.A.S. Wissous FR 100.0 100.0 P

Fiskars France Sucursal en España Madrid ES 100.0 100.0 S

Fiskars Germany GmbH Herford DE 100.0 100.0 S

iittala GmbH Solingen DE 100.0 100.0 S

Fiskars Italy S.r.l. Premana IT 100.0 100.0 P

Fiskars Norway AS Oslo NO 100.0 100.0 P

Fiskars Polska Sp. z o.o. Slupsk PL 100.0 100.0 P

Fiskars Polska Sp. z.o.o. Hungarian

Branch Office Budapest HU 100.0 100.0 D

Fiskars Polska Sp. z.o.o.

Czech Branch Office Prague CZ 100.0 100.0 D

Fiskars Form Limited Bridgend GB 100.0 100.0 S

Fiskars Commercial (Shanghai) Co., Ltd. Shanghai CN 100.0 100.0 S

UAB Fiskars Lithuania Vilnius LT 100.0 100.0 S

Fiskars Latvia SIA Riga LV 100.0 100.0 S

Fiskars Living Canada, Inc New Brunswick CA 100.0 100.0 S

WWRD UK/Ireland, Ltd. Stoke-on-Trent GB 100.0 100.0 D

WWRD Ireland IPCo LLC Wilmingtom, DE US 100.0 100.0 H

WWRD IPCo. LLC Wilmingtom, DE US 100.0 100.0 H

Wedgwood/Doulton USA Acqco 1 Inc. Wilmingtom, DE US 100.0 100.0 H

Wedgwood/Doulton USA Acqco 2 Inc. Wilmingtom, DE US 100.0 100.0 H

Fiskars Living US, LLC Wilmingtom, DE US 100.0 100.0 S

Fiskars UK Limited Stoke-on-Trent GB 100.0 100.0 P

WWRD Ireland Limited Waterford IE 100.0 100.0 P

Steklarna Rogaška d.o.o. Rogaška Slatina SI 100.0 100.0 P

Steklarski HRAM d.o.o. Rogaška Slatina SI 100.0 100.0 S

Rogaška Kristal d.o.o. Zagreb HR 100.0 100.0 S

Fiskars Australia Pty Ltd

Arndell Park,

NSW AU 100.0 100.0 S

Fiskars Australia Pty Ltd

(New Zealand Branch) Auckland NZ 100.0 100.0 S

A.C.N. 083 550 681 Pty Ltd Melbourne AU 100.0 100.0 S

Josiah Wedgwood & Sons Pty Ltd

Arndell Park,

NSW AU 100.0 100.0 D

Waterford Wedgwood Australia

Limited Stoke-on-Trent GB 100.0 100.0 D

DOMICILE

% OF

CAPITAL

% OF

VOTING

POWER

NATURE

OF MAIN

ACTIVITIES

Fiskars Online Oy Ab Helsinki FI 100.0 100.0 S

WWRD Netherlands MidCo B.V. Amsterdam NL 100.0 100.0 H

Waterford Wedgwood Trading

Singapore Pte Limited Singapore SG 100.0 100.0 H

Wedgwood Consulting Shanghai Ltd.

PRC Shanghai CN 100.0 100.0 D

PT Doulton (Indonesia) Tangerang ID 96.2 96.2 P

Ab Åbo Båtvarf - Turun Veneveistämö Oy Turku FI 100.0 100.0 D

Fiskars (Thailand) Co.,Limited Bangkok TH 1.0 1.0 H

Holding, management or services H

Production and sales P

Sales S

Dormant D

OTHER FINANCIAL

INFORMATION

FINANCIAL

STATEMENTS

BOARD’S

PROPOSAL

AUDITOR’S

REPORT

REPORT BY THE

BOARD OF DIRECTORS

6.3 Related party

transactions

Fiskars Group’s related parties are members of the Fiskars

Group Board of Directors and Fiskars Group Leadership

Team, other key management persons, and individual

shareholders with control or significant influence over the

company, as well as entities controlled or significantly

influenced by them. In addition, associated companies

of Fiskars and members of the family of the above-

mentioned individuals are also regarded as related parties.

Fiskars Finland Oy Ab rents real estate from its associate

Koy Iittalan Lasimäki and has granted a capital loan to the

company at inception.

Fiskars Group had no significant transactions, liabilities or

receivables with related parties during 2020.

EUR MILLION 2020 2019

Rent 0.2 0.2

Capital loan 0.2 0.2

OTHER FINANCIAL

INFORMATION

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BOARD’S

PROPOSAL

AUDITOR’S

REPORT

REPORT BY THE

BOARD OF DIRECTORS

SHAREHOLDINGS OF THE BOARD AND KEY MANAGEMENT, DECEMBER 31

Includes holding of corporations under controlling power together with a family member.

2020 2019

OWN

HOLDINGS

HOLDINGS OF

CONTROLLED

CORPORATIONS

TOTAL

OWN

HOLDINGS

HOLDINGS OF

CONTROLLED

CORPORATIONS

TOTAL

Ehrnrooth Paul 0 10,930,961 10,930,961 0 10,732,841 10,732,841

Fromond Louise 601,135 10,567,417 11,168,552 601,135 10,567,417 11,168,552

Luomakoski Jyri 1,500 0 1,500 1,500 0 1,500

Mero Inka 700 0 700 0 0 0

Månsson Fabian 0 2,000 2,000 0 2,000 2,000

Sjölander Peter 0 0 0 0 0 0

Sotamaa Ritva 3,000 0 3,000 3,000 0 3,000

Ehrnrooth Albert 855,372 13,051,880 13,907,252 855,372 13,051,880 13,907,252

Ahlström Nathalie

5000 0 5000

Pohjonen Sari 170 0 170 170 0 170

Andersson Tina

0 0 0

Bachler Christian

0 0 0 0 0 0

Brouillard James

0 0 0

Gaggl Risto 0 0 0 0 0 0

Hedberg Johan

0 0 0 0 0 0

Hyyryläinen Tuomas 0 0 0 0 0 0

Lindholm Niklas 0 0 0 0 0 0

Taimi Maija 400 0 400 0 0 0

Timonen Päivi 0 0 0 0 0 0

Tuominen Jaana

23,736 0 23,736

Lettijeff Ulla

0 0 0

Halak Michael

0 0 0

The Directors and the CEO do not have any debts to the company; nor has the company given pledges

or taken on other responsibilities in their names. The shareholdings of the Board and key management

represent in total 44.6% of the outstanding shares of the company.

The President & CEO of the company has been Jaana Tuominen until April 21,2020, interim President &

CEO Sari Pohjonen as of April 21, 2020 to November 29, 2020 and President & CEO Nathalie Ahlström as

of November 30, 2020.

Member of the Board of Directors as of March 11, 2020 until November 29, 2020. Member of the

Fiskars Group Leadership team as of November 30, 2020.

Member of the Fiskars Group Leadership Team as of March 17, 2020

Member of the Fiskars Group Leadership Team as of December 4, 2019

Member of the Fiskars Group Leadership Team as of April 20, 2020

Member of the Fiskars Group Leadership Team until April 21, 2020

Member of the Fiskars Group Leadership Team until August 6, 2019

Member of the Fiskars Group Leadership Team as of April 1, 2019 until December 3, 2019

OTHER FINANCIAL

INFORMATION

FINANCIAL

STATEMENTS

BOARD’S

PROPOSAL

AUDITOR’S

REPORT

REPORT BY THE

BOARD OF DIRECTORS

REMUNERATION OF THE BOARD AND KEY MANAGEMENT

EUR THOUSANDS

2020 2019

SALARIES AND FEES STATUTORY PENSION

SUPPLEMENTARY

PENSION*

SALARIES AND FEES STATUTORY PENSION

SUPPLEMENTARY

PENSION*

Ehrnrooth Paul 138.8 127. 5

Luomakoski Jyri 89.1 81.5

Fromond Louise 65.0 58.8

Mero Inka 66.4 58.5

Månsson Fabian 80.6 81.0

Sjölander Peter 83.3 79.0

Sotamaa Ritva 83.7 80.0

Ehrnrooth Albert 65.0 59.0

Ehrnrooth Alexander 3.0 4.5

Ahlström Nathalie

45.5

Gripenberg Gustaf

15.0

Jonasson Blank Ingrid

19.3

Ahlström Nathalie

41.3 10.0

Tuominen Jaana 394.4 95.4 84.3 592.4 144.0 109.5

Pohjonen Sari 565.8 136.9 45.9

Fiskars Group Leadership Team,

excluding CEO and President 3,400.5 414.3 183.0 1,955.9 475.3 226.9

Total 5,122.1 656.6 313.2 3,212.3 619.2 336.4

Member of the Board of Directors as of March 11, 2020 until November 29, 2020. Member of the

Fiskars Group Leadership team as of November 30, 2020.

Member of the Board of Directors until March 13, 2019

The key management consists of the Board of Directors, the President & CEO and the members of

Corporate Management Team (Fiskars Group Leadership Team). The figures are presented on an accrual

basis.

Fiskars Group Leadership Team belongs to the long-term incentive plans to which participants are

selected by the Board of Directors annually. In 2020 there is one plan in place for years 2018-2022,

which includes performance periods 2018-2020, 2019-2021 and 2020-2022. The Board of Directors

confirms the targets separately for each performance period and they are based on the company’s

total shareholder return, EBITA and net sales (performance period 2018-2020) and the company’s total

shareholder return, net sales and net working capital (performance periods 2019-2021 and 2020-2022)

during the vesting period. No reward will be paid if targets are not met or if the participant’s employment

ends before reward payment. The expense recorded during the financial year for the corporate

management team is included in the salaries and fees figures above.

Fiskars Group Leadership Team has a collective supplementary pension insurance, which includes an old-

age pension at the retirement age, vested rights under certain conditions and indemnity payable at death.

The amount of pension income is based on the insurance savings. The employer’s contribution to the

insurance plan is 20% of the preceding year’s income, excluding bonuses, for CEO and 16%-20% of the

preceding year’s income, excluding bonuses, for Fiskars Group Leadership Team excl. CEO.

The President and CEO’s compensation consists of base salary, annual short-term incentive plan and

long-term incentive plan. The President and CEO participates on a pro rata basis (according to time) in the

ongoing performance periods 2019-2021 and 2020-2022 of the long-term incentive plan. The President

and CEO’s employment contract will end by the time of the statutory retirement age. The President and

CEO and the Company have a notice period of six months. Remuneration upon dismissal by the Company

equals annual base salary, in addition to the salary for the six-month notice period.

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6.4 Acquisitions and divestments

Accounting principles

A non-current asset (or a disposal group) as well as assets and

liabilities associated with a discontinued operation are classified as

held for sale if their carrying amount will be recovered principally

through a sale transaction rather than through continuing use. The

recognition criteria are regarded to be met when a sale is highly

probable, the asset (or a disposal group) is available for immediate

sale in its present condition subject only to terms that are usual

and customary, the management is committed to the plan to sell

the asset and the sale is expected to take place within one year

from the date of classification.

As from classification date a non-current asset (or a disposal group)

held for sale is measured at the lower of its carrying amount and

fair value less costs to sell, and it is not depreciated or amortized

any more. Assets classified as held for sale, disposal groups, items

recognized in other comprehensive income associated with the

assets classified as held for sale as well as liabilities included in the

disposal group are presented separately in the balance sheet.

A discontinued operation is a component of the group’s business

that has been disposed of or will be disposed of in accordance

with a coordinated plan. It represents a separate major line of

business or geographical area of operations. The profit or loss of a

discontinued operation is reported separately from the continuing

operations in the consolidated statement of comprehensive

income.

2020

No acquisitions or divestments were closed in 2020.

On 1 December 2020, Fiskars Group entered into an

agreement to divest its watering assembly plant and

related operations in Ningbo, China to Daye (Ningbo Daye

Garden Industry Co. Ltd). The assets and liabilities of

Ningbo are not significant on December 31, 2020 and

the sale is not expected to have a significant impact on

Fiskars Group’s financial position or result during 2021.

2019

Fiskars Group sold Leborgne business to MOB MONDELIN

on April 1, 2019, consisting of manufacturing and sale of

hand tools to construction and gardening customers in

France. The transaction was structured as an asset sale

and included the Leborgne brand, inventory, fixed assets

and personnel working for the business. Transaction did

not have significant impact on Fiskars Group’s financial

position or result during 2019.

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6.5 Commitments and

contingencies

6.6 Subsequent events

On 22 Jan 2021 Fiskars Group has completed the sale of the

watering assembly plant and related operations in Ningbo,

China to Daye (Ningbo Daye Garden Industry Co. Ltd.).

The sale is not expected to have a significant impact on

Fiskars Group’s financial position or result during 2021.

CONTINGENCIES AND PLEDGED ASSETS

EUR MILLION 2020 2019

Guarantees 11.5 14.7

Other contingencies* 1.9 4.3

Total pledged assets and contingencies,

Dec 31 13.4 19.0

* Other contingencies include a commitment of USD 1.7 million (3.0)

to invest in private equity funds.

At 31 December 2020, the Group had a lease contract

that has not yet commenced. Start date of the contract is

in the beginning of 2022 and at its start date it will create

a right-of-use asset and corresponding lease liability to

the Group. Lease term of the contract is 12 years and the

future lease payments for the contract is EUR 0 million

within one year, EUR 9.6 millions within five years and EUR

19.3 millions thereafter.

Litigation

Fiskars Grop is involved in a number of legal actions,

claims and other proceedings. The final outcome of these

matters cannot be predicted. Taking into account all

available information to date the outcome is not expected

to have material impact on the financial position of the

Group.

Fiskars Group entities are subject to tax audits in

certain countries. It is possible that tax audits may lead

to reassessment of taxes. In 2016 the Finnish Large

Taxpayers’ office raised a tax reassessment claim, which

obliged the company to pay a total of EUR 28.3 million

in additional tax, interest expenses and punitive tax

increases. The administrative court of Helsinki upheld

the Large Taxpayers’ Offices decision and Fiskars has

sought to continue the appeal process in the Supreme

Administrative court. The dispute concerns intra-group

loans forgiven by the company in 2003 and their tax

treatment in subsequent tax years.

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Parent company financial statements, FAS

PARENT COMPANY INCOME STATEMENT

EUR NOTE 2020 2019

Net sales 2 77,675,276.92 78,477,220.50

Cost of goods sold 4 -2,794,053.85 -2,546,187.62

Gross profit 74,881,223.07 96% 75,931,032.88 97%

Administration expenses 4.6 -58,138,623.47 -58,261,691.61

Other operating income 3 650,506.58 1,085,509.45

Other operating expenses 4 - 87,4 47.4 6 -683,042.19

Operating profit (loss) 17,305,658.72 22% 18,071,808.53 23%

Financial income and expenses 7 563,983.45 9,643,868.15

Profit (loss) before appropriations

and taxes 17,869,642.17 27,715,676.68

Appropriations 8

Group contribution -9,147, 159. 00 -7,267,259.67

Income taxes 9 -1,991,345.09 -1,481,766.30

Profit (loss) for the financial year 6,731,138.08 18,966,650.71

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PARENT COMPANY BALANCE SHEET

EUR NOTE DEC 31, 2020 DEC 31, 2019

ASSETS

NON-CURRENT ASSETS

Intangible assets 10 35,119,455.24 37,225,174.72

Tangible assets 11

Land and water 35,856,295.59 35,881,486.83

Buildings 14,377,181.38 11,734,291.10

Machinery and equipment 2,374,287.71 2, 149,579.96

Construction in progress 1,175,757.55 3,528,612.06

Tangible assets total 53,783,522.23 53,293,969.95

Investments 12

Holdings in subsidiaries 639,943,547.27 639,994,066.93

Other shares 22,117,604.35 21,353,244.24

Investments total 662,061,151.62 661,347,311.17

Non-current assets total 750,964,129.09 74% 751,866,455.84 76%

CURRENT ASSETS

Non-current loan receivables 38,706.18 43,973.70

Current receivables

Trade receivables 4,561.76 4,731.24

Receivables from subsidiaries 13 207,180,197.19 209,002,388.36

Other receivables 28,585,784.03 26,797,803.72

Prepayments and accrued income 14 6,327,498.49 5,338,744.94

Current receivables total 242,098,041.47 241,143,668.26

Cash and cash equivalents 15 27,929,098.03 172,771.13

Current assets total 270,065,845.68 26% 241,360,413.09 24%

Assets total 1,021,029,974.77 100% 993,226,868.93 100%

EUR NOTE DEC 31, 2020 DEC 31, 2019

SHAREHOLDERS' EQUITY

AND LIABILITIES

SHAREHOLDERS' EQUITY 16

Share capital 77,510,200.00 77,510,200.00

Revaluation reserve 3,737,397.19 3,738,507.26

Fair value reserve -285,017.25

Treasury shares -7,181,414.46 -6,877,330.29

Other reserves 3,204,313.18 3,204,313.18

Retained earnings 389,823,227.03 416,508,426.43

Profit (loss) for the financial year 6,731,138.08 18,966,650.71

Shareholders' equity total 473,824,861.02 46% 512,765,750.04 52%

LIABILITIES

Non-current 17

Loans from credit institutions 50,685,342.45 50,720,928.49

Liabilities to subsidiaries 2,398.36 2,398.36

Non-current liabilities total 50,687,740.81 50,723,326.85

Current

Loans from credit institutions 60,868,395.10 109,002,888.34

Trade payables 5,692,686.95 6,636,887.93

Liabilities to subsidiaries 18 404,796,108.26 295,138,480.55

Income tax payable 1,881,183.48

Other payables 14,482,674.45 11,050,422.76

Accruals and deferred income 19 8,796,324.70 7,909,112.46

Current liabilities total 496,517,372.94 429,737,792.04

Liabilities total 547,205,113.75 54% 480,461,118.89 48%

Shareholders' equity and liabilities

total 1,021,029,974.77 100% 993,226,868.93 100%

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PARENT COMPANY STATEMENT OF CASH FLOWS

EUR 2020 2019

CASH FLOW FROM OPERATING ACTIVITIES

Profit before appropriations and taxes 8,722,483.17 20,448,418.01

Adjustments for

Depreciation, amortization and impairment 14,218,651.79 11,883,171.52

Investment income -451,320.38 -190,156.15

Interest income and dividends -5,860,662.24 -19,166,316.25

Unrealized exchange gains and losses 1,040,591.93 -1,075,300.16

Interest expenses and other financial costs 4,256,086.86 4,224,432.15

Impairment of shares in and receivables from subsidiaries -1,469,082.29

Group contributions 9, 147, 159. 00 7,267,259.67

Change in provisions and other non-cash items 189,790.08 6,917,598.35

Cash flow before changes in working capital 31,262,780.21 28,840,024.85

Changes in working capital

Change in current assets, non-interest bearing -16,339,614.68 -30,937,192.01

Change in inventories 374,487.98

Change in current liabilities, non-interest bearing 4,308,009.47 -136,041.02

Cash flow from operating activities before financial items and

taxes 19,231,175.00 -1,858,720.20

Dividends received 7,842,398.40

Financial income received 5,851,805.46 10,882,424.05

Financial expenses paid -5,296,120.81 -3,630,099.13

Taxes paid -1,755,518.80 -733,644.05

Cash flow from operating activities (A) 18,031,340.85 12,502,359.07

EUR 2020 2019

CASH FLOW FROM INVESTING ACTIVITIES

Investments in other subsidiaries -13,480,547.88

Liquidation loss from subsidiaries -50,519.66

Investments in financial assets -1,893,517.26 -8,164,757.16

Investments in intangible assets and property, plant &

equipment -12,730,935.91 -19,891,812.23

Proceeds from sale of property, plant & equipment and other

investments 632,143.21 648,396.93

Sale of other holdings 1,129,157.15 1,702,424.16

Change in long term loan receivables -95,415.00 5,800,000.00

Cash flow from investing activities (B) -13,009,087.47 -33,386,296.18

CASH FLOW FROM FINANCING ACTIVITIES

Purchase of treasury shares -304,084.17 -1,143,681.20

Change of non-current debt 140,002.30 261,766.04

Change in current debt 58,661,852.39 57,467,712.81

Change in current receivables 17,155,412.78 4,356,027.64

Dividends paid -45,651,850.11 -50,906,679.88

Group contribution received/paid -7,267,259.67 -464,472.39

Cash flow from financing activities (C) 22,734,073.52 9,570,673.02

Change in cash and cash equivalents (A+B+C) 27,756,326.90 -11,313,264.09

Cash and cash equivalents at beginning of period 172,771.13 11,486,035.22

Cash and cash equivalents at end of period 27,929,098.03 172,771.13

OTHER FINANCIAL

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Notes to

the parent

company

financial

statements

OTHER FINANCIAL

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1. Parent company

accounting principles, FAS

The financial statements of Fiskars Corporation have

been prepared in accordance with the Finnish Accounting

Act and Ordinance and other statutes regulating the

preparation of financial statements (Finnish Accounting

Standards, FAS). The financial statements are presented

in euro.

The preparation of financial statements in conformity with

regulations in force and generally accepted accounting

principles requires management to make estimates

and assumptions that affect the valuation of assets and

liabilities and reported amounts of revenues and expenses.

Actual results could differ from those estimates.

Transactions in foreign currencies

Transactions in foreign currencies are recorded at the

rates of exchange prevailing at the date of the transaction.

At the end of the reporting period balances in foreign

currencies are translated using the exchange rate

prevailing at the end of the reporting period. Foreign

exchange derivatives are recognized at market values and

changes in market values are recognized in the income

statement.

Net sales

Net sales are defined as invoiced amount less indirect

taxes, rebates and exchange rate differences related to

sales. Revenue is recognized when all significant risks

and rewards of ownership have been transferred to the

buyer, i.e. when a product has been delivered to the

client in accordance with the terms of delivery. Royalty

income from trademarks held by Fiskars Corporation

is recorded as net sales. Revenue from the sale of

securities, dividends and other corresponding income

from securities classified as inventories and other income

such as service revenue are also recorded as net sales.

Leasing arrangements

Lease payments are expensed as incurred. Future leasing

payment obligations are reported as contingent liabilities.

Rent income, when the company acts as a lessor, is

recorded as net sales.

Pension benefit plans

The statutory and possible supplementary pension plans

for the Finnish companies’ employees are funded through

payments to independent pension insurance companies.

Income taxes

Income taxes consist of the aggregate current tax

expense based on the Finnish tax rules and adjustments

to prior year taxes. The parent company does not account

for deferred taxes as a stand-alone entity.

Derivatives and hedge accounting

Derivatives not designated as hedging instruments

are recognized at fair value through profit and loss.

Derivatives are initially valued at cost and subsequently at

fair value determined at the end of each reporting period.

The fair value of derivatives is based on prevailing market

rates or rates derived from the prevailing market rates

at the end of the reporting period. Fair value changes are

recognized in financial items.

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 fair value reserve in equity. On balance

sheet date, such derivatives consisted of interest

derivatives hedging certain loans.

Tangible and intangible assets and other

long-term investments

Tangible and intangible assets are stated at cost less

accumulated depreciation according to plan. Certain land

holdings have been revalued.

Revaluations are based on market values at time of

the revaluation. Revaluation reserves are adjusted for

decreases in the market value of land holdings. When

revalued real estate is sold, the respective share in the

revaluation reserve is transferred to retained earnings.

Tangible and intangible assets are depreciated and

amortized over their expected useful lives. The following

expected useful lives are applied:

• Intangible assets 3–10 years

• Buildings 20–40 years

• Vehicles 4 years

• Machinery and equipment 3–10 years

• Land and water No depreciation

Investments in subsidiaries are stated in the balance

sheet at cost or at net realizable value if the net realizable

value is significantly and permanently impaired. An

impairment loss may be reversed until the original

acquisition cost, when the value of the investment has

been restored.

Inventories

nventories are stated at the lower of cost and net

realizable value. Cost includes both direct and indirect

costs. Cost is determined on a first-in first-out (FIFO)

basis. Net realizable value is the estimated selling price in

the ordinary course of business less the estimated costs

of completion and the estimated costs necessary to make

the sale. Financial assets in inventories are stated at the

lower of cost and fair value.

OTHER FINANCIAL

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2. Net Sales

EUR 2020 2019

Dividens from financial

assets in inventories 7,842,398.40

IC Service fee 47,001,882.92 43,367,846.56

Royalties 24,925,625.80 21,430,311.32

Lease income 1,894,521.72 1,889,416.51

Other 3,853,246.48 3,947,247.71

Total 77,675,276.92 78,477,220.50

3. Other operating income

EUR 2020 2019

Net gain on sale of property,

plant and equipment 538,767.84 531,119.23

Other income 111 ,738.74 554,390.22

Total 650,506.58 1,085,509.45

4. Total expenses

TOTAL EXPENSES BY NATURE

EUR 2020 2019

Materials and supplies -8,502.93 -9,989.74

Employee benefits -17,001,540.05 -18,404,593.37

Depreciation, amortization

and impairment -14,218,651.79 -11,883,172.52

IT expenses -17,903,148.10 -16,166,853.47

Consulting fees -4,539,897.98 -5,007,594.66

External services -1,857,831.10 -2,011,156.04

Other -5,403,105.37 -7,324,519.43

Total -60,932,677.32 -60,807,879.23

OTHER OPERATING EXPENSES

EUR 2020 2019

Scrapping of fixed assets -36,927.80 -340,963.08

Liquidation of subsidiary

shares -50,519.66

To subsidiaries -342,079.11

Total - 87,4 47.46 -683,042.19

Receivables

Receivables are valued at the lower of book value and

recoverable value.

Provisions

Provisions are recognised when the group has a present

legal or constructive obligation as a result of past events,

it is probable that an outflow of resources will be required

to settle the obligation and a reliable estimate of the

amount of the obligation can be made. These are booked

as provisions in Balance sheet and as corresponding items

in Income statement.

Appropriations

Appropriations in the parent company balance sheet

consist of depreciation in excess of plan and possible

given or received group contributions.

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8. Appropriations

EUR 2020 2019

Group contribution paid -9,147,159. 00 -7,267,259.67

Total -9, 147,159.00 -7,267,259.67

9. Income taxes

EUR 2020 2019

Current year taxes for profit

before extraordinary items -1,987,893.36 -1,825,276.60

Income tax for previous

periods -3,451.73 343,510.30

Income taxes per income

statement -1,991,345.09 -1,481,766.30

10. Intangible assets

EUR 2020 2019

Historical cost, Jan 1 98,660,218.04 82,474,169.54

Additions 10,620,035.31 16,389,395.02

Transfers -363,792.18 -203,346.52

Historical cost, Dec 31 108,916,461.17 98,660,218.04

Accumulated amortization

according to plan, Jan 1 61,435,043.32 51,517,180.77

Amortization for the period 12,361,962.61 9,917,862.55

Accumulated amortization

and impairment, Dec 31 73,797,005.93 61,435,043.32

Net book value, Dec 31 35,119,455.24 37,225,174.72

7. Financial income and

expenses

EUR 2020 2019

Interest and financial

income from non-current

investments

From group companies 3,024,801.32 11,091,670.67

Interest and financial

income from non-current

investments, total 3,024,801.32 11,091,670.67

Other interest and financial

income

From third parties 6,658,140.06 8,277,023.70

Other interest and financial

income, total 6,658,140.06 8,277,023.70

Interest and financial

income, total 9,682,941.38 19,368,694.37

Interest and other financial

expenses

To subsidiaries

Interest expenses -463,108.70 -1,417,417.13

Loss on disposal of

financial assets -5,320,670.09

Interest and other

financial expenses to

other parties -8,655,849.23 -2,986,739.00

Interest and other financial

expenses, total -9,118,957.93 -9,724,826.22

Total financial income and

expenses 563,983.45 9,643,868.15

Net exchange gains and

losses included in financial

items 1,040,591.93 1,075,300.16

5. Fees paid to company’s

auditors

EUR 2020 2019

Audit fees -299,012.00 -266,500.00

Other -66,709.00 -11,090.00

Total -365,721.00 -277,590.00

6. Personnel costs and

number of employees

PERSONNEL COSTS

EUR 2020 2019

Wages and salaries -14,410,521.18 -15,258,218.91

Pension costs -1,993,758.21 -2,611,135.34

Other personnel costs -597,260.66 -535,239.12

Total -17,001,540.05 -18,404,593.37

NUMBER OF EMPLOYEES

2020 2019

Average (FTE) 170 175

End of period 171 179

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11. Tangible assets

2020

EUR LAND AND WATER BUILDINGS

MACHINERY AND

EQUIPMENT

CONSTRUCTION IN

PROGRESS

TOTAL

Historical cost, Jan 1 26,216,240.57 35,047,058.44 7,379,267.65 3,528,612.06 72,171,178.72

Additions 624,124.53 386,862.18 1,099,913.89 2,110,900.60

Decreases -24,081.17 -36,664.96 -449,759.85 -510,505.98

Transfers 3,317,948.40 498,612.18 -3,452,768.40 363,792.18

Historical cost, Dec 31 26,192,159.40 38,952,466.41 7,814,982.16 1,175,757.55 74,135,365.52

Accumulated depreciation and impairment, Jan 1 23,312,767.34 5,229,687.69 28,542,455.03

Depreciation for the period 1,299,182.65 557,506.53 1,856,689.18

Decreases -36,664.96 -346,499.77 -383,164.73

Accumulated depreciation and impairment, Dec 31 24,575,285.03 5,440,694.45 30,015,979.48

Revaluation, Jan 1 9,665,246.26 9,665,246.26

Decreases -1,110.07 -1,110.07

Revaluation, Dec 31 9,664,136.19 9,664,136.19

Book value Dec 31 35,856,295.59 14,377,181.38 2,374,287.71 1,175,757.55 53,783,522.23

OTHER FINANCIAL

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2019

EUR LAND AND WATER BUILDINGS

MACHINERY AND

EQUIPMENT

CONSTRUCTION IN

PROGRESS

TOTAL

Historical cost, Jan 1 26,234,653.74 33,058,905.67 6,847,129.83 2,976,525.17 69,117,214.41

Additions 465,015.92 374,776.92 2,662,624.37 3,502,417.21

Decreases -18,413.17 -477,985.63 -155,400.62 -651,799.42

Transfers 2,001,122.48 312,761.52 -2,110,537.48 203,346.52

Historical cost, Dec 31 26,216,240.57 35,047,058.44 7,379,267.65 3,528,612.06 72,171,178.72

Accumulated depreciation and impairment, Jan 1 22,327,510.69 4,848,815.67 27,176,326.36

Depreciation for the period 1,122,279.20 443,030.77 1,565,309.97

Decreases -137,022.55 -62,158.75 -199,181.30

Accumulated depreciation and impairment, Dec 31 23,312,767.34 5,229,687.69 28,542,455.03

Revaluation, Jan 1 9,670,868.92 9,670,868.92

Decreases -5,622.66 -5,622.66

Revaluation, Dec 31 9,665,246.26 9,665,246.26

Book value Dec 31 35,881,486.83 11,734,291.10 2, 149,579.96 3,528,612.06 53,293,969.95

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12. Investments

2020

EUR HOLDINGS IN SUBSIDIARIES RECEIVABLES FROM SUBSIDIARIES OTHER SHARES TOTAL

Historical cost, Jan 1 913,794,066.93 22,157,965.70 935,952,032.63

Additions 1,893,517.26 1,893,517.26

Decreases -92,850,519.66 -1,129,157.15 -93,979,676.81

Historical cost, Dec 31 820,943,547.27 22,922,325.81 843,865,873.08

Write-downs, Jan 1 -273,800,000.00 -804,721.46 -274,604,721.46

Reversal 92,800,000.00

Write-downs, Dec 31 -181,000,000.00 -804,721.46 -181,804,721.46

Book value Dec 31, 2020 639,943,547.27 22,117,604.35 662,061,151.62

2019

EUR HOLDINGS IN SUBSIDIARIES RECEIVABLES FROM SUBSIDIARIES OTHER SHARES TOTAL

Historical cost, Jan 1 900,313,519.05 5,800,000.00 15,695,632.70 921,809,151.75

Additions 13,480,547.88 8,164,757.16 21,645,305.04

Decreases -5,800,000.00 -1,702,424.16 -7,502,424.16

Historical cost, Dec 31 913,794,066.93 0.00 22,157,965.70 935,952,032.63

Write-downs, Jan 1 -273,400,000.00 -804,721.46 -274,204,721.46

Decreases -400,000.00 -400,000.00

Write-downs, Dec 31 -273,800,000.00 -804,721.46 -274,604,721.46

Book value Dec 31 639,994,066.93 0.00 21,353,244.24 661,347,311.17

OTHER FINANCIAL

INFORMATION

FINANCIAL

STATEMENTS

BOARD’S

PROPOSAL

AUDITOR’S

REPORT

REPORT BY THE

BOARD OF DIRECTORS

SHARES IN SUBSIDIARIES

NUMBER

OF SHARES

DOMICILE % OF SHARE CAPITAL % OF VOTING POWER BOOK VALUE

Fiskars Americas Holding Oy Ab 1,000 Raseborg FI 100.0 100.0 110,071,862.76

Fiskars Europe Holding Oy Ab 11,000 Raseborg FI 100.0 100.0 529,866,752.57

Fiskars (Thailand) Co., Ltd. 100 Bangkok TH 1.0 1.0 2,409.12

Ab Åbo Båtvarf - Turun Veneveistämö Oy 150 Turku FI 100.0 100.0 2,522.82

Total Dec 31, 2020 639,943,547.27

OTHER SHARES

EUR BOOK VALUE

Other shares owned by the parent company 22,117,604.35

Total, Dec 31, 2020 22,117,604.35

13. Receivables from

subsidiaries

EUR 2020 2019

Trade receivables 41,831,293.82 32,328,625.24

Loan receivables 107,768,321.69 110,129,821.56

Other receivables 53,673,223.48 63,072,140.13

Prepayments and accrued

income 3,907,358.20 3,471,801.43

Total, Dec 31 207,180,197.19 209,002,388.36

14. Prepayments and

accrued income

EUR 2020 2019

Prepaid and accrued

interest 1,905,102.16 1,905,099.36

Other prepayments and

accruals 4,422,396.33 3,433,645.58

Total, Dec 31 6,327,498.49 5,338,744.94

15. Cash and cash

equivalents

EUR 2020 2019

Cash and cash equivalents 27,929,098.03 172,771.13

Total, Dec 31 27,929,098.03 172,771.13

OTHER FINANCIAL

INFORMATION

FINANCIAL

STATEMENTS

BOARD’S

PROPOSAL

AUDITOR’S

REPORT

REPORT BY THE

BOARD OF DIRECTORS

16. Shareholders’ equity

EUR 2020 2019

Share capital

Jan 1 77,510,200.00 77,510,200.00

Share capital, Dec 31 77,510,200.00 77,510,200.00

Revaluation reserve

Jan 1 3,738,507.26 3,744,129.92

Decrease -1,110.07 -5,622.66

Revaluation reserve, Dec 31 3,737,397.19 3,738,507.26

Fair value reserve

Jan 1 -285,017.25 -556,170.26

Decrease 285,017.25 271,153.01

Fair value reserve, Dec 31 0.00 -285,017.25

Treasury shares

Jan 1 -6,877,330.29 -5,733,649.09

Increase -304,084.17 -1,143,681.20

Treasury shares, Dec 31 -7,181,414.46 -6,877,330.29

Other reserves

Jan 1 3,204,313.18 3,204,313.18

Other reserves, Dec 31 3,204,313.18 3,204,313.18

Retained earnings

Jan 1 435,475,077.14 900,392,050.31

Dividends -45,651,850.11 -483,883,623.88

Net profit 6,731,138.08 18,966,650.71

Retained earnings, Dec 31 396,554,365.11 435,475,077.14

Distributable earnings,

Dec 31 389,372,950.65 428,597,746.85

Shareholders' equity total,

Dec 31 473,824,861.02 512,765,750.04

17. Non-current liabilities

EUR 2020 2019

Loans from credit

institutions payable

Between one and five

years 50,685,342.45 50,720,928.49

Loans from credit

institutions, total 50,685,342.45 50,720,928.49

EUR 2020 2019

Liabilities to subsidiaries

Between one and five

years 2,398.36 2,398.36

Liabilities to subsidiaries,

total 2,398.36 2,398.36

Non-current liabilities, total 50,687,740.81 50,723,326.85

18. Liabilities to subsidiaries

EUR 2020 2019

Trade payables -220,599.05 -12,138.95

Other liabilities 405,013,524.11 295,125,392.03

Accruals and deferred

income 3,183.20 25,227.47

Total, Dec 31 404,796,108.26 295,138,480.55

19. Accruals and

deferred income

EUR 2020 2019

Interests 662,481.22 1,694,790.90

Wages, salaries and social

costs 5,646,113.41 4,587,462.70

Other 2,487,730.07 1,626,858.86

Total, Dec 31 8,796,324.70 7,909,112.46

OTHER FINANCIAL

INFORMATION

FINANCIAL

STATEMENTS

BOARD’S

PROPOSAL

AUDITOR’S

REPORT

REPORT BY THE

BOARD OF DIRECTORS

20. Lease obligations

EUR 2020 2019

Payments next year 1 ,9 17, 0 97. 0 0 1,933,358.80

Payments later 30,355,509.00 31,523,064.10

Total, Dec 31 32,272,606.00 33,456,422.90

21. Contingencies and

pledged assets

EUR 2020 2019

As security for own

commitments 1,358,000.00 3,041,013.00

Guarantees as security for

subsidiaries' commitments 11,516,000.00 14,749,357.00

Total, Dec 31 12,874,000.00 17,790,370.00

22. Derivative contracts

Nominal value, EUR 2020 2019

Foreign exchange forwards

and swaps 388,659,837.70 492,249,356.52

Interest rate swaps 50,000,000.00

Total, Dec 31 388,659,837.70 542,249,356.52

Fair value, EUR 2020 2019

Foreign exchange forwards

and swaps 745,738.81 911,338.51

Interest rate swaps -285,017.00

Total, Dec 31 745,738.81 626,321.51

OTHER FINANCIAL

INFORMATION

FINANCIAL

STATEMENTS

BOARD’S

PROPOSAL

AUDITOR’S

REPORT

REPORT BY THE

BOARD OF DIRECTORS

Board’s proposal for distribution of profits and

signatures

Proposal on the use of the profit shown

on the balance sheet and the payment of

dividend in the form of cash

Fiskars’ aim is to distribute a stable, over time increasing

dividend, to be paid biannually. According to the balance

sheet of the parent company at the end of the financial

period 2020, the distributable equity of the parent

company was EUR 389.4 million (2019: EUR 428.6

million).

The Board of Directors proposes to the Annual General

Meeting that a dividend of EUR 0.60 per share shall be

paid for the financial period that ended on December 31,

2020. The dividend shall be paid in two instalments. The

ex-dividend date for the first instalment of EUR 0.30 per

share shall be on March 12, 2020. The first instalment

shall be paid to a shareholder who is registered in the

shareholder register of the company maintained by

Euroclear Finland Oy on the dividend record date March

15, 2021. The payment date proposed by the Board of

Directors for this instalment is March 22, 2021.

The second instalment of EUR 0.30 per share shall be paid

in September 2021. The second instalment shall be paid

to a shareholder who is registered in the shareholders’

Oy on the dividend record date, which, together with the

payment date, shall be decided by the Board of Directors

in its meeting scheduled for September 9, 2021. The

ex-dividend date for the second instalment would then

be September 10, 2021, the dividend record date

September 13, 2021 and the dividend payment date

September 20, 2021, at the latest.

On the date of this financial statement release, the

number of shares entitling their holders to a dividend

was 81,471,565. The proposed distribution of dividends

would thus be EUR 48.9 million (EUR 45.7 million). This

would leave EUR 340.5 million (EUR 383.0 million) of

distributable earnings in the parent company.

No material changes have taken place in the financial

position of the company since the end of the financial

period. The financial standing of the company is good

and, according to the Board of Directors’ assessment,

distributing the proposed dividend will not compromise

the company’s solvency.

OTHER FINANCIAL

INFORMATION

FINANCIAL

STATEMENTS

BOARD’S

PROPOSAL

AUDITOR’S

REPORT

REPORT BY THE

BOARD OF DIRECTORS

Signatures to the Financial Statements and

the Board of Directors’ Report

Helsinki, February 4, 2021

Albert Ehrnrooth Paul Ehrnrooth

Louise Fromond Jyri Luomakoski

Inka Mero Fabian Månsson

Peter Sjölander Ritva Sotamaa

Nathalie Ahlström

President and CEO

The Auditor’s Note

Our auditor’s report has been issued today.

Helsinki, February 4, 2021

Ernst & Young Oy

Kristina Sandin

Authorized Public Accountant, KHT

OTHER FINANCIAL

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FINANCIAL

STATEMENTS

BOARD’S

PROPOSAL

AUDITOR’S

REPORT

REPORT BY THE

BOARD OF DIRECTORS

Auditor’s Report

(Translation of the Finnish original)

To the Annual General Meeting of Fiskars Oyj Abp

Report on the Audit of Financial Statements

Opinion

We have audited the financial statements of Fiskars Oyj

Abp (business identity code 0214036-5) for the year

ended 31 December, 2020. The financial statements

comprise the consolidated balance sheet, income

statement, statement of comprehensive income,

statement of changes in equity, statement of cash flows

and notes, including a summary of significant accounting

policies, as well as the parent company’s balance sheet,

income statement, statement of cash flows and notes.

In our opinion

• the consolidated financial statements give a true and

fair view of the group’s financial position as well as its

financial performance and its cash flows in accordance

with International Financial Reporting Standards (IFRS)

as adopted by the EU.

• the financial statements give a true and fair view of the

parent company’s financial performance and financial

position in accordance with the laws and regulations

governing the preparation of financial statements in

Finland and comply with statutory requirements.

Our opinion is consistent with the additional report

submitted to the Audit Committee.

Basis for Opinion

We conducted our audit in accordance with good auditing

practice in Finland. Our responsibilities under good

auditing practice are further described in the Auditor’s

Responsibilities for the Audit of Financial Statements

section of our report.

We are independent of the parent company and of

the group companies in accordance with the ethical

requirements that are applicable in Finland and are

relevant to our audit, and we have fulfilled our other

ethical responsibilities in accordance with these

requirements.

In our best knowledge and understanding, the non-audit

services that we have provided to the parent company

and group companies are in compliance with laws and

regulations applicable in Finland regarding these services,

and we have not provided any prohibited non-audit

services referred to in Article 5 (1) of regulation (EU)

537/2014. The non-audit services that we have provided

have been disclosed in note 6 to the consolidated

financial statements.

We believe that the audit evidence we have obtained

is sufficient and appropriate to provide a basis for our

opinion.

Key Audit Matters

Key audit matters are those matters that, in our

professional judgment, were of most significance in our

audit of the financial statements of the current period.

These matters were addressed in the context of our audit

of the financial statements as a whole, and in forming our

opinion thereon, and we do not provide a separate opinion

on these matters.

We have fulfilled the responsibilities described in the

Auditor’s responsibilities for the audit of the financial

statements section of our report, including in relation

to these matters. Accordingly, our audit included the

performance of procedures designed to respond to our

assessment of the risks of material misstatement of the

financial statements. The results of our audit procedures,

including the procedures performed to address the

matters below, provide the basis for our audit opinion on

the accompanying financial statements.

We have also addressed the risk of management override

of internal controls. This includes consideration of

whether there was evidence of management bias that

represented a risk of material misstatement due to fraud.

OTHER FINANCIAL

INFORMATION

FINANCIAL

STATEMENTS

BOARD’S

PROPOSAL

AUDITOR’S

REPORT

REPORT BY THE

BOARD OF DIRECTORS

KEY AUDIT MATTER

HOW OUR AUDIT ADDRESSED

THE KEY AUDIT MATTER

Revenue recognition

Refer to note 2.1 of the consolidated financial

statements.

According to the Group’s accounting policies

revenue is recognized when control of the good or

service is transferred to the customer. Customer

discounts and credits are considered when

determining the revenue.

Assessing subsequent discounts and credits

require management judgment both at the time of

revenue recognition as well as at the end of each

reporting period. Due to the multitude and variety

of contractual terms across the group’s markets

management judgment is needed to account

for the revenue, and therefore, revenue could be

subject to misstatement, whether due to fraud or

error. Based on above revenue recognition was a

key audit matter.

This matter is also a significant risk of material

misstatement as defined by EU Regulation No

537/2014, point (c) of Article 10(2).

Our audit procedures to address the risk of material

misstatement in respect of correct timing of revenue

recognition included among others:

• Assessment of the compliance of the group’s

accounting policies over revenue recognition,

including those relating to discounts and credits,

with applicable accounting standards.

• Assessment of the revenue recognition process

and testing controls relating to timing of revenue

recognition, and calculation of discounts and

credits.

• Testing the accuracy of cut-off with analytical

procedures and test of details on a transaction

level on either side of the balance sheet date

• Analyzing credit notes issued after the balance

sheet date.

• Assessment of the Group’s disclosures in respect

of revenues.

KEY AUDIT MATTER

HOW OUR AUDIT ADDRESSED

THE KEY AUDIT MATTER

Valuation of goodwill

Refer to note 3.1 of the consolidated financial

statements.

The value of goodwill at the date of the financial

statements amounted to 213,7 million euro

representing 16 % of total assets and 28 % of

equity.

Valuation of goodwill was a key audit matter

because the assessment process is complex and

is based on numerous judgmental estimates and

because the amount of goodwill is significant to

the financial statements.

Valuation of goodwill is based on management’s

estimate about the value in use calculations of

the cash generating units. There are a number of

underlying assumptions used to determine the

value in use, including development of revenue

and profitability and the discount rate applied on

cash flows.

Estimated value in use of the cash generating

units may vary significantly when the underlying

assumptions are changed. Changes in above-

mentioned individual assumptions may result in an

impairment of goodwill.

Valuation of goodwill is also a significant risk

of material misstatement as defined by EU

Regulation No 537/2014, point (c) of Article

10(2).

Our audit procedures to address the risk of material

misstatement in respect of valuation of goodwill

included among others:

• Involvement EY valuation specialists to assist

us in evaluating methodologies, impairment

calculations and underlying assumptions applied

by the management in impairment testing.

• Testing of the mathematical accuracy of the

impairment calculations.

• Comparing the key assumptions applied by

management in impairment tests to approved

budgets and forecasts, information available

in external sources and our independently

calculated industry averages such as weighted

average cost of capital used in discounting the

cashflows. In addition, we compared the outcome

of the impairment test with Fiskars’ market

capitalization.

• Assessment of the Group’s disclosures in respect

of impairment testing.

OTHER FINANCIAL

INFORMATION

FINANCIAL

STATEMENTS

BOARD’S

PROPOSAL

AUDITOR’S

REPORT

REPORT BY THE

BOARD OF DIRECTORS

KEY AUDIT MATTER

HOW OUR AUDIT ADDRESSED

THE KEY AUDIT MATTER

Valuation of trademarks

Refer to note 3.1 of the consolidated financial

statements.

The Group has 9 trademarks, for which the value

at the date of the financial statements amounted

to 223,8 million euro representing 17 % of

total assets and 29 % of equity. An impairment

amounting to 11,4 million euro has been

recognized in 2020.

Trademarks with indefinite useful life are tested

for impairment at least annually.

Valuation of trademarks is based on

management’s estimate about the value in use

calculations of the trademarks. Management

prepares the impairment tests of trademarks

based on the “relief from royalty” -method. There

are a number of underlying assumptions used to

determine the value in use, including development

of revenue for individual trademarks and the

discount rate applied on cash flows.

Valuation of trademarks was a key audit matter

because the assessment process is complex and

is based on numerous judgmental estimates and

because the amount of trademarks is significant

to the financial statements.

Estimated value in use of the trademarks may vary

significantly when the underlying assumptions are

changed. Changes in above-mentioned individual

assumptions may result in an impairment of

trademarks.

Valuation of trademarks is also a significant

risk of material misstatement as defined by EU

Regulation No 537/2014, point (c) of Article

10(2).

Our audit procedures to address the risk of material

misstatement in respect of valuation of trademarks

included among others:

• Involvement EY valuation specialists to assist

us in evaluating methodologies, impairment

calculations and underlying assumptions applied

by the management in impairment testing.

• Testing of the mathematical accuracy of the

impairment calculations.

• Comparing the key assumptions applied by

management in impairment tests to approved

budgets and forecasts, information available

in external sources and our independently

calculated industry averages such as weighted

average cost of capital used in discounting the

cashflows. In addition, we compared the outcome

of the impairment test with Fiskars’ market

capitalization.

• Assessment of the Group’s disclosures in respect

of impairment testing.

KEY AUDIT MATTER

HOW OUR AUDIT ADDRESSED

THE KEY AUDIT MATTER

Valuation of inventories

Refer to note 4.1 of the consolidated financial

statements.

Inventories are valued at the lower of cost or net

realizable value. Inventories are presented net of

an impairment loss recognized for obsolete and

slow-moving inventories. At the balance sheet

date, the total value of inventory and related

provision for obsolete goods amounted to 229,4

million euro and 22,0 million euro, respectively

(net 207,4 million euro).

Valuation of inventories was a key audit matter

because the carrying value of inventories and

related provisions are material to the financial

statements, and because valuation of inventories

requires management judgment relating to future

sales and the level of provision for obsolete goods.

Our audit procedures included among others:

• Assessment of the Group’s accounting policies

over inventory valuation from the perspective of

applicable accounting standards

• Evaluation of the analyses and calculations made

by management with respect to slow moving and

obsolete stock and the expected demand and net

realizable value related to the inventoried items

• Assessment of the Group’s disclosures in respect

of valuation policies and balance sheet date value

of inventories.

OTHER FINANCIAL

INFORMATION

FINANCIAL

STATEMENTS

BOARD’S

PROPOSAL

AUDITOR’S

REPORT

REPORT BY THE

BOARD OF DIRECTORS

Responsibilities of the Board of Directors

and the Managing Director for the Financial

Statements

The Board of Directors and the Managing Director are

responsible for the preparation of consolidated financial

statements that give a true and fair view in accordance

with International Financial Reporting Standards (IFRS)

as adopted by the EU, and of financial statements that

give a true and fair view in accordance with the laws

and regulations governing the preparation of financial

statements in Finland and comply with statutory

requirements. The Board of Directors and the Managing

Director are also responsible for such internal control as

they determine is necessary to enable the preparation

of financial statements that are free from material

misstatement, whether due to fraud or error.

In preparing the financial statements, the Board of

Directors and the Managing Director are responsible for

assessing the parent company’s and the group’s ability

to continue as going concern, disclosing, as applicable,

matters relating to going concern and using the going

concern basis of accounting. The financial statements

are prepared using the going concern basis of accounting

unless there is an intention to liquidate the parent

company or the group or cease operations, or there is no

realistic alternative but to do so.

Auditor’s Responsibilities for the Audit of

Financial Statements

Our objectives are to obtain reasonable assurance on

whether the financial statements as a whole are free from

material misstatement, whether due to fraud or error,

and to issue an auditor’s report that includes our opinion.

Reasonable assurance is a high level of assurance, but is

not a guarantee that an audit conducted in accordance

with good auditing practice will always detect a material

misstatement when it exists. Misstatements can arise

from fraud or error and are considered material if,

individually or in aggregate, they could reasonably be

expected to influence the economic decisions of users

taken on the basis of the financial statements.

As part of an audit in accordance with good auditing

practice, we exercise professional judgment and maintain

professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement

of the financial statements, whether due to fraud

or error, design and perform audit procedures

responsive to those risks, and obtain audit evidence

that is sufficient and appropriate to provide a basis

for our opinion. The risk of not detecting a material

misstatement resulting from fraud is higher than for

one resulting from error, as fraud may involve collusion,

forgery, intentional omissions, misrepresentations, or

the override of internal control.

• Obtain an understanding of internal control relevant

to the audit in order to design audit procedures that

are appropriate in the circumstances, but not for the

purpose of expressing an opinion on the effectiveness

of the parent company’s or the group’s internal control.

• Evaluate the appropriateness of accounting policies

used and the reasonableness of accounting estimates

and related disclosures made by management.

• Conclude on the appropriateness of the Board of

Directors’ and the Managing Director’s use of the going

concern basis of accounting and based on the audit

evidence obtained, whether a material uncertainty

exists related to events or conditions that may cast

significant doubt on the parent company’s or the

group’s ability to continue as a going concern. If we

conclude that a material uncertainty exists, we are

required to draw attention in our auditor’s report to

the related disclosures in the financial statements or, if

such disclosures are inadequate, to modify our opinion.

Our conclusions are based on the audit evidence

obtained up to the date of our auditor’s report.

However, future events or conditions may cause the

parent company or the group to cease to continue as a

going concern.

• Evaluate the overall presentation, structure and

content of the financial statements, including the

disclosures, and whether the financial statements

represent the underlying transactions and events so

that the financial statements give a true and fair view.

• Obtain sufficient appropriate audit evidence regarding

the financial information of the entities or business

activities within the group to express an opinion on the

consolidated financial statements. We are responsible

for the direction, supervision and performance of the

group audit. We remain solely responsible for our audit

opinion.

We communicate with those charged with governance

regarding, among other matters, the planned scope and

timing of the audit and significant audit findings, including

any significant deficiencies in internal control that we

identify during our audit.

We also provide those charged with governance with a

statement that we have complied with relevant ethical

requirements regarding independence, and communicate

with them all relationships and other matters that may

reasonably be thought to bear on our independence, and

where applicable, related safeguards.

From the matters communicated with those charged with

governance, we determine those matters that were of

most significance in the audit of the financial statements

of the current period and are therefore the key audit

OTHER FINANCIAL

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FINANCIAL

STATEMENTS

BOARD’S

PROPOSAL

AUDITOR’S

REPORT

REPORT BY THE

BOARD OF DIRECTORS

matters. We describe these matters in our auditor’s report

unless law or regulation precludes public disclosure about

the matter or when, in extremely rare circumstances, we

determine that a matter should not be communicated in

our report because the adverse consequences of doing

so would reasonably be expected to outweigh the public

interest benefits of such communication.

Other Reporting Requirements

INFORMATION ON OUR AUDIT ENGAGEMENT

We were first appointed as auditors by the Annual

General Meeting on March 13, 2019 and our appointment

represents a total period of uninterrupted engagement of

two years.

OTHER INFORMATION

The Board of Directors and the Managing Director

are responsible for the other information. The other

information comprises the report of the Board of Directors

and the information included in the Annual Report

but does not include the financial statements and our

auditor’s report thereon. We have obtained the report of

the Board of Directors prior to the date of this auditor’s

report, and the Annual Report is expected to be made

available to us after that date.

Our opinion on the financial statements does not cover

the other information.

In connection with our audit of the financial statements,

our responsibility is to read the other information

identified above and, in doing so, consider whether the

other information is materially inconsistent with the

financial statements or our knowledge obtained in the

audit, or otherwise appears to be materially misstated.

With respect to report of the Board of Directors, our

responsibility also includes considering whether the

report of the Board of Directors has been prepared in

accordance with the applicable laws and regulations.

In our opinion, the information in the report of the Board

of Directors is consistent with the information in the

financial statements and the report of the Board of

Directors has been prepared in accordance with the

applicable laws and regulations.

If, based on the work we have performed on the other

information that we obtained prior to the date of this

auditor’s report, we conclude that there is a material

misstatement of this other information, we are required to

report that fact. We have nothing to report in this regard.

Helsinki, February 4, 2021

Ernst & Young Oy

Authorized Public Accountant Firm

Kristina Sandin

Authorized Public Accountant

OTHER FINANCIAL

INFORMATION

FINANCIAL

STATEMENTS

BOARD’S

PROPOSAL

AUDITOR’S

REPORT

REPORT BY THE

BOARD OF DIRECTORS

Other financial information

Items affecting

comparability

Exceptional and material transactions outside the

ordinary course of business are treated as items affecting

comparability. These include items such as gains and

losses on disposal of business operations, impairments,

costs of discontinued significant business operations,

restructuring costs and costs of integrating acquired

businesses, major product recalls and fines and penalties.

Gains and losses are presented in the income statement

as an income or expense on the relevant line item and

function. Impairments have been presented in the income

statement in depreciation, amortization and impairment

of the relevant function or on line impairment when

the impairment concerns goodwill. Write-downs are

presented in other operating expenses.

Restructuring program

Fiskars Group launched a company-wide Restructuring

Program, announced in December 2019, aimed at

reducing costs. The savings are expected to come

from a wide range of areas, including the removal of

overlaps in the organization, simplified processes and

ways of working, and reduction of workforce. As part of

the program, the company is looking for synergies and

efficiencies in the selling and administrative spending. In

addition, the company is evaluating the entire supply and

distribution network for efficiency improvements.

The program will target annual net cost savings of

approximately EUR 20 million, subject to the full

implementation of the program. The targeted cost

savings are expected to be achieved gradually, and the

majority of the savings are expected to materialize in the

Group’s results during the program, which is estimated to

be completed by the end of 2021. The total costs of the

program are expected to be approximately EUR 30 million

by the end of 2021, of which EUR 8.5 million had been

recorded by the end of 2020, which will be recorded as

items affecting comparability (IAC).

Transformation program

In October 2018, Fiskars Group launched a Transformation

program in its former Living segment aimed at increasing

efficiency, reducing complexity and accelerating long-

term strategic development.

The program will target annual cost savings of

approximately EUR 17 million, subject to the full

implementation of the program. The targeted cost

savings are expected to be achieved gradually, and the

majority of the savings are expected to materialize in the

Group’s results after the program is completed, which is

estimated to be by the end of 2021. The total costs of the

program are approximately EUR 40 million in 2018–2021,

of which EUR 22.5 million had been recorded by the end

of the December 2020. The costs are recorded as items

affecting comparability (IAC).

Other items affecting comparability in

2020

Leborgne divestment costs amounted to EUR 0.2 million.

Other adjustments to operating profit totalled EUR -0.3

million in 2020.

EUR MILLION 2020 2019

Operating profit (EBIT) 98.0 60.1

Amortization -27.8 -12.9

EBITA 125.8 72.9

Items affecting comparability in EBITA

Restructuring Program 8.1 0.4

Transformation program 3.0 17. 0

Leborgne divestment 0.2 0.8

Alignment program -0.2

Other adjustments to operating profit -0.3 -0.3

Total items affecting comparability in EBITA 11.0 17.7

Comparable EBITA 136.8 90.6

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Financial indicators

FIVE YEARS IN FIGURES

EUR MILLION 2020 2019 2018 2017 2016

Net sales EUR million 1,116.2 1,090.4 1,118.5 1,185.5 1,204.6

of which outside Finland EUR million 1,021.9 977. 5 1,006.6 1,073.1 1,102.0

in percent of net sales % 91.5 89.6 90.0 90.5 91.5

export from Finland EUR million 20.1 20.2 19.5 22.8 24.3

Percentage change of net

sales % 2.4 -2.5 -5.6 -1.6 8.8

Gross profit EUR million 452.0 447.3 485.1 512.2 502.9

in percent of net sales % 40.5 41.0 43.4 43.2 41.7

EBITA EUR million 125.8 72.9 112.5 113.2 96.7

in percent of net sales % 11.3 6.7 10.1 9.5 8.0

Comparable EBITA EUR million 136.8 90.6 121.7 1 19.0 1 07. 1

Change in fair value of

biological assets EUR million 0.7 -0.2 2.0 0.7 -0.5

Financial items net EUR million -8.9 3.4 9.4 1 19.3 10.5

in percent of net sales % -0.8 0.3 0.8 10.1 0.9

Profit before taxes EUR million 89.8 63.2 103.0 217.8 92.8

in percent of net sales % 8.0 5.8 9.2 18.4 7.7

Income tax EUR million -21.3 -10.8 -21.1 -50.8 -27.4

Profit for the period

attributable to the equity

holders of the company EUR million 67. 6 51.7 81.6 166.4 64.1

in percent of net sales % 6.1 4.7 7.3 14.0 5.3

Non-controlling interests'

share of profit EUR million 0.8 0.7 0.2 0.7 1.3

Employee benefits EUR million 262.9 311.9 3 07.9 315.3 337. 1

Depreciation, amortization

and impairment EUR million 76.1 59.6 43.8 38.8 37.4

in percent of net sales % 6.8 5.5 3.9 3.3 3.1

EUR MILLION 2020 2019 2018 2017 2016

Cash flow from operating

activities EUR million 199.2 96.5 105.9 103.8 83.8

Capital expenditure EUR million 30.0 40.0 46.2 32.8 37.6

in percent of net sales % 2.7 3.7 4.1 2.8 3.1

Research and development

costs in income statement EUR million 16.5 18.4 18.4 18.8 18.0

in percent of net sales % 1.5 1.7 1.6 1.6 1.5

Capitalized development

costs EUR million 0.0 0.0 0.0 0.0 0.0

Equity attributable to

equity holders of the

company EUR million 75 7. 8 760.9 1,207.0 1,269.4 1,218.1

Non-controlling interest EUR million 3.8 3.6 2.7 2.8 1.9

Equity total EUR million 761.6 764.5 1,209.7 1,272.1 1,220.1

Net interest bearing debt EUR million 143.7 261.1 135.4 147.7 152.4

Working capital EUR million 134.2 194.4 1 97.0 195.9 217.8

Balance sheet total EUR million 1,342.0 1,364.3 1,719.2 1,837.9 1 ,760.1

Return on investment % 9.9 6.0 7.9 15.4 6.8

Return on equity % 9.0 5.3 6.6 13.4 5.4

Equity ratio % 56.8 56.0 70.4 69.2 69.3

Net gearing % 18.9 34.2 11.2 11.6 12.5

Personnel (FTE), average 6,104 6,840 7,219 7,70 9 8,000

Personnel, end of period 6,411 6,984 7,615 7,9 3 2 8,560

of which outside Finland 5,348 5,852 6,581 6,806 7,336

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SHARE RELATED FIGURES

EUR MILLION 2020 2019 2018 2017 2016

Share capital EUR million 77. 5 77.5 77.5 77. 5 77.5

Earnings per share

(basic and diluted)

€/share 0.83 0.63 1.00 2.04 0.78

Dividend per share €/share 0,60

0.56 0,54+5,31

0.72 0,71+0,35

Dividend EUR million 48.9

45.60 44.0 58.8 86.6

Equity per share € 9.30 9.34 14.80 15.53 14.91

Average price €/share 11 .47 15.40 19.37 20.84 17.11

Lowest price per share €/share 7.80 11.16 14.48 17.67 15.00

Highest price per share €/share 15.02 20.60 25.00 24.00 18.74

Price per share, Dec 31 €/share 14.98 11.26 15.04 23.96 17.60

Market value of shares EUR million 1,220.4 917.7 1,226.9 1,954.5 1,438.2

Number of shares,

1,000 pcs 81,905.2 81,905.2 81,905.2 81,905.2 81,905.2

Number of treasury

shares, 1,000 pcs 433.7 408.7 332.6 191.5 187.8

Number of shares traded,

1,000 pcs 11,112.7 9,148.1 3,149.5 5,217.9 2,838.0

Price per earnings 18.1 17. 8 15.1 11 .7 22.5

Dividend per earnings in

percent % 72,3

88.4 54.1 35.4 135.5

Dividend yield in percent % 4,0

5.0 3.6 3.0 6.0

Number of shareholders,

Dec 31 25,968 23,495 20,013 19,536 18,643

Reported earnings per share figures for fiscal years 2016-2017 include net changes in the fair value of

the investment portfolio.

Board’s proposal.

Wärtsilä shares distributed as dividends.

Basic and diluted earnings per share are equal, as the company has no potential ordinary shares.

CALCULATION OF FINANCIAL INDICATORS

EBITA = Operating profit + amortization + impairment

Return on investment

in percent

Profit for the period + income taxes

+ interest and other financial expenses

x 100

Equity, total + interest-bearing liabilities

(average of beginning and end of year amounts)

Return on equity

in percent

Profit for the period

x 100

Equity, total (average of beginning and end of year amounts)

Equity ratio in percent =

Equity, total

x 100

Balance sheet total

Net gearing in percent =

Interest bearing debt - cash and bank

x 100

Equity, total

Earnings per share =

Profit attributable to equity holders of the company

Weighted average number of outstanding ordinary shares, Dec 31

Equity per share =

Equity attributable to equity holders of the company

Number of outstanding ordinary shares, Dec 31

Adjusted average

share price

Value of shares traded during the period

Number of shares traded during the period, adjusted for emissions

Market capitalization = Number of outstanding ordinary shares Dec 31 x market quotation Dec 31

Price per earnings (P/E) =

Market quotation per share, Dec 31

Earnings per share

Dividend per earnings

in percent

Dividend paid

x 100

Profit attributable to equity holders of the company

Dividend per share =

Dividend paid

Number of outstanding shares, Dec 31

Dividend yield

in percent

Dividend per share

x 100

Market quotation, Dec 31 adjusted for emissions

100

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CHANGES IN THE NUMBER OF SHARES, 2016–2020

TOTAL

Total shares, Dec 31, 2016 81,905,242

Total shares, Dec 31, 2017 81,905,242

Total shares, Dec 31, 2018 81,905,242

Total shares, Dec 31, 2019 81,905,242

Total shares, Dec 31, 2020 81,905,242

Treasury shares Dec 31, 2020 433,677

Number of shares, votes and share capital

Fiskars Corporation’s shares are traded in the Large Cap

segment of Nasdaq Helsinki. The Company has one series

of shares FSKRS. All shares carry one vote each and have

equal rights.

The total number of shares at the end of 2020

81,905,242 (81,905,242). The share capital remained

unchanged in 2020 at EUR 77,510,200.

SHARE DETAILS

Market Nasdaq Helsinki

ISIN FI0009000400

Trading code FSKRS

Segment Large Cap

Industry 3000 Consumer Goods

Supersector 3700 Personal & Household Goods

Shares as of Dec 31, 2020 81,905,242

*Wärtsilä shares distributed as extra dividend in June 2019. The value

of the share dividend was EUR 5.31 per Fiskars share.

Treasury shares

As of the end of the year, Fiskars owned 433,677

treasury shares, corresponding to 0.5% of the

Corporation’s shares and votes. The Company has

acquired the shares at the Nasdaq Helsinki in accordance

with the authorizations of the general meetings of the

shareholders.

Board authorizations

The Annual General Meeting for 2020 decided to

authorize the Board to acquire and convey a maximum

4,000,000 of Fiskars’ own shares.

20182017 20202019

EUR

FISKARS SHARE PRICE DEVELOPMENT

EUR, Jan 1, 2017–Dec 31, 2020

101

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Shareholders

Fiskars Corporation had 25,968 (23,495) shareholders as

of the end of the year. Approximately 5.4% (3.1) of the

share capital was owned by shareholders outside Finland

or nominee-registered shareholders.

Management shareholding

On December 31 2020, the Board members, the

President & CEO and the CFO and their controlled entities

and their managed entities together with a family

member, owned a total of 35,821,015 (35,839,501)

shares corresponding to 43.7% (43.8) of the Company’s

shares and votes. The Company did not have any share

option programs.

SHARE OWNERSHIP, DECEMBER 31, 2020

NUMBER OF

SHAREHOLDERS

NUMBER OF

AND VOTES

Private

companies 672 2.59 28,298,314 34.55

Financial and

insurance

institutions 42 0.16 14,622,874 17.85

Public sector

organizations 6 0.02 4,086,522 4.99

Non-profit

organizations 215 0.83 5,910,192 7.22

Households 24,902 95.89 27,879,561 34.04

Outside

Finland 131 0.50 1,107,779 1.35

Nominee

registered 12 0.05 3,319,973 4.05

Total 25,968 100.00 81,905,242 100.00

DISTRIBUTION OF SHARES, DECEMBER 31, 2020

Number of shares NUMBER OF SHAREHOLDERS % NUMBER OF SHARES AND VOTES %

1–100 12,971 49.95 596,267 0.73

101–500 8,700 33.50 2,257,326 2.76

501–1,000 2,056 7.92 1,582,880 1.93

1,001–5,000 1,773 6.83 3,778,157 4.61

5,001–10,000 218 0.84 1,505,783 1.84

10,001–50,000 163 0.63 3,298,889 4.03

50,001–100,000 27 0.10 1,756,487 2.14

100,001–500,000 33 0.13 8,030,390 9.80

500,001–999,999,999,999 27 0.10 59,099,063 72.16

Total 25,968 100.00 81,905,242 100.00

MAJOR SHAREHOLDERS, DECEMBER 31, 2020

TOTAL SHARES % OF SHARES AND VOTES

1 Virala Oy Ab 12,650,000 15.44

2 Turret Oy Ab 10,885,961 13.29

3 Holdix Oy Ab 10,165,537 12.41

4 Bergsrådinnan Sophie von Julins stiftelse 2,556,000 3.12

5 Oy Julius Tallberg Ab 2,554,350 3.12

6 Gripenberg Gerda Margareta Lindsay Db 1,982,000 2.42

7 Ilmarinen Mutual Pension Insurance Company 1,776,305 2.17

8 Varma Mutual Pension Insurance Company 1,719,326 2.10

9 von Julin Sofia Margareta dödsbo 1,560,000 1.90

10 Wrede Anna Helena Sophie dödsbo 928,684 1.13

11 Ehrnrooth Albert 855,372 1.04

12 Lindsay von Julin & Co Ab 750,000 0.92

13 Hartwall Peter Johan 748,450 0.91

14 Therman Anna Maria Elisabeth 722,436 0.88

15 Åberg Albertina 711,063 0.87

16 Fromond Louise 601,135 0.73

17 Fromond Anna 600,518 0.73

18 von Limburg Stirum Mariana Brita Lovisa 596,298 0.73

19 Ehrnrooth Jacob Robert Göran 576,929 0.70

20 Elo Mutual Pension Insurance Company 575,591 0.70

20 major shareholders 53,515,955 65.32

102

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Making the everyday extraordinary

Fiskars Group’s vision is to create a positive, lasting impact on our quality of life.

Our brands Fiskars, Gerber, Iittala, Royal Copenhagen, Waterford, and Wedgwood are present in people’s

everyday lives – at home, in the garden, and outdoors. This gives us an opportunity to make the everyday

extraordinary today, and for future generations.

We have a presence in 30 countries, and our products are available in more than 100 countries.

Our shares are listed on the Nasdaq Helsinki (FSKRS). Please visit us at www.fiskarsgroup.com

for more information and follow us on Twitter, @fiskarsgroup