Risks and business uncertainties

InvestorsFiskars Group as an investmentRisks and business uncertainties

Fiskars Group’s operations are subject to risks and uncertainties arising from the Group’s operations or changes in the operating environment. The most significant risks and business uncertainties that may have an adverse impact on the company’s business and financial performance have been identified. Sustainability related uncertainties are reviewed as a part of Fiskars Group’s annual enterprise risk management process . However, risks that are presently either unidentified or deemed immaterial to the company could emerge as material concerns in the future. Fiskars Group’s risk management framework is further explained in a separate Corporate Governance Statement.

Risk category	Risk name	Risk description	Risk mitigation actions	Risk trend
Strategic risks
	Adaptation to external environment	The risk related to changes in the external environment, such as a shift in consumer behavior and demand, consumer buying power, retail customers’ and competitors’ actions, trade partners´ financial position, regulatory actions, climate change and macroeconomic environment, can result in decreased net sales and profit.	Fiskars Group has a diversified commercial footprint, both in terms of geography and product portfolio, which enables effective portfolio management. The company adapts its procedures to the changing external environment. For example, in the volatile business environment seen in 2023, the company has safeguarded cash flow and profitability by focusing on cost management and prudent spending. By adjusting the company’s organizational structure and operating model to enhance agility, the company enables swift adaptation of business plans to respond promptly to evolving external circumstances. Fiskars Group’s long-term strategy aims to effectively position the company to capitalize on the opportunities arising from the evolving landscape while concurrently addressing threats emerging from the external environment.	up from previous year
	Geopolitics	The potential risks arising from geopolitical interactions, including trade relationships, supply chains and territorial disputes between countries, may lead to reduced net sales due to factors such as sanctions, import restrictions and shifts in consumer behavior. The escalation of geopolitical tension could hinder business operations, impacting both net sales and sourcing in affected markets. In terms of sourcing, potential disruptions in the supply chain could increase costs of raw materials and sourced goods or affect their availability. Moreover, changes in the geopolitical environment can influence business dealings with specific countries, affecting value chains and potentially causing a loss of net sales.	Fiskars Group’s diversified commercial footprint enhances the company’s resilience in navigating uncertainties and challenges by diversifying risks across multiple dimensions. The Group’s production strategy is based on a combination of its own manufacturing and carefully selected supply partners. The Group’s own manufacturing takes place in Europe, Asia and the United States, and most of the suppliers are located in Asia. The company is dedicated to fostering enduring partnerships with reliable suppliers who align with the Group’s corporate values. Multiple suppliers are engaged to avoid reliance on a single source, and potential alternative suppliers, including those in different regions, are proactively mapped to enhance supply chain resilience. The company can also maintain safety stocks to buffer against potential disruptions in the supply chain to ensure product availability during challenging geopolitical situations.	up from previous year
Operational risks
	IT systems and cybersecurity	conflicting or missing data, budget overspend, and project delays can affect business negatively. Operating against IT best practices such as following poor lifecycle management may leave systems vulnerable and cause compromised security. The risk applies both to the Group’s own and suppliers’ or other third parties’ IT environment. Fiskars Group increasingly depends on centralized information technology systems and suppliers that hold and process critical business information. Breaches, malfunctions, cyber attacks and fraud attempts directed at Fiskars Group or its suppliers may cause interruptions in the company’s operations at either a regional or global level. Such an interruption may have a material adverse effect on the net sales, profit and reputation of the Group. Risks related to major system implementations such as conflicting or missing data, budget overspend, and project delays can affect business negatively. Operating against IT best practices such as following poor lifecycle management may leave systems vulnerable and cause compromised security. The risk applies both to the Group’s own and suppliers’ or other third parties’ IT environment.	Fiskars Group continuously mitigates IT-related risks by deploying high quality IT solutions and by maintaining, developing, and testing their function and integrity in accordance with internal IT control framework and industry best practices. Critical service and technology providers are required to have continuity and recovery plans for their services in the event of disruptions. Changes to new and existing IT systems are made in accordance with standard processes and procedures. Fiskars Group’s information and cyber security governance works to integrate risks into corporate decision making. Security posture and capabilities are ensured with various security technologies, including network, endpoint and cloud detection and response, firewalls, threat intelligence, and security operations. The security awareness program develops and promotes a cyber security and data privacy mindset in all the Group’s employees.	same level as previous year
	Environment and climate change	The impact of climate change and loss of biodiversity on well-functioning ecosystems, temperatures and sea levels may cause unforeseen challenges to Fiskars Group. Regulations aiming to decrease dependence on fossil fuels and to reduce emissions, including the introduction of new tax policies, may raise energy prices and other associated costs. As regulations are tightening, and public awareness and expectations are growing, past measures to reduce the environmental impact may prove insufficient. The increasing frequency of natural catastrophes such as floods and typhoons and loss of biodiversity may interrupt and impact the operations of Fiskars Group. Water scarcity and resource scarcity related to exhaustible fossil materials are increasing long term global challenges, leading to increased materials costs and the risk of production interruptions. Currently, the challenge is the limited availability and higher prices of more sustainable raw materials such as certified wood materials, renewable plastics and recycled raw materials.	Fiskars Group is constantly increasing its sustainability efforts and aims to minimize environmental risks through systematic risk management. Fiskars Group is committed to promoting the circular economy, combating climate change by taking actions to reduce emissions, reducing the use of energy and promoting renewable energy sources. An example of Fiskars Group’s commitment to ESG is the recent issuance of the sustainability-linked bond framework, with the aim of aligning the company’s long-term financing strategy with its sustainability targets. Multiple source contracts and ongoing research on alternative sustainable materials are utilized for managing price and availability risks. The financial implications of business interruptions caused by natural hazards are mitigated by insurance.	same level as previous year
	Seasonality and weather	The demand for Fiskars Group’s products across categories can be influenced by both seasonal variations and weather conditions. For Business Area Fiskars, the first half of the year is important for the gardening category. The demand for garden tools can be significantly influenced by weather conditions. Unfavorable weather, i.e., a cold and rainy spring, can negatively impact the sales of these products, while favorable conditions can boost their sales. In the winter months, a snowless winter can negatively impact sales of snow tools and vice versa. The back-to-school season during the second and third quarters of the year is also important for the scissors category in Business Area Fiskars. For Business Area Vita, the second half, in particular the fourth quarter is the most important time of year due to the holiday season. Any negative developments related to product availability, demand or increased costs in manufacturing or logistics during the important seasons can significantly affect the full-year net sales and profit. The seasonality of demand can differ from a typical year due to volatile market conditions. Extreme weather conditions, for example, storms and wildfires, are expected to increase in the future due to climate change and may also have a local impact on business operations.	Fiskars Group balances the impact of seasonality and changing weather conditions by having an extensive and diverse product portfolio and broad geographical footprint. The company can maintain safety stocks as a buffer against possible supply chain disruptions. Additionally, the company relies on multiple source contracts to manage both price and availability risks. The financial implications of property damage and business interruptions caused by natural hazards are mitigated by comprehensive insurance cover.	same level as previous year
	People	People are at the core of Fiskars Group’s strategy as the most important asset and enabler. The effective execution of the Growth Strategy relies heavily on having the right individuals in the right roles. A failure to maintain a competitive employer brand poses challenges to attracting and retaining the skilled and dedicated professionals essential for the strategy’s success in the competitive job market. Inadequate efforts to cultivate an inspiring and motivating work environment may result in the loss of critical competencies and the departure of key employees from strategic positions. Addressing the evolving demands of modern work life is crucial to preventing a decline in employee engagement, increased absenteeism, and a rise in turnover rates. Occupational health and safety risks carry the potential for severe harm to employees and pose a threat to the continuity of operations. Failing to address these risks may lead to a decline in employee motivation and well-being, along with possible reputational and financial repercussions for the company.	Employee engagement is promoted notably by providing opportunities for professional growth through leadership training and skills development and by committing to a diverse and inclusive culture. The Group regularly conducts “Our Voice” employee surveys to monitor engagement and well-being. Additionally, employees’ commitment to the company is enhanced through “MyFiskars,” a voluntary employee share savings plan where participating employees are granted a gross reward of one free matching share for every two shares acquired, assuming the employee remains employed at Fiskars Group at the end of the plan period, and they have kept the shares acquired until this date. At the Group level, the company’s target is zero lost time accidents. Fiskars Group applies multiple approaches such as conducting risk assessment workshops and LTA review boards to achieve this goal.	same level as previous year
	Brand reputation due to ESG	As consumer expectations of ESG matters rise, a failure to meet these standards or a lack of transparency in the supply chain or suppliers’ actions can adversely affect Fiskars Group’s brand reputation and erode consumer trust and loyalty, potentially leading to a decline in net sales.	Sustainability is a key element and one of the strategic growth enablers for Fiskars Group, and the company has set concrete ESG targets and linked them to decision making. Sustainability, beyond posing a risk, represents an opportunity for Fiskars Group to further strengthen the reputation and increase brand love. More comprehensive information about the Group’s sustainability work and results can be found in the 2023 Sustainability Report, Reporting of non-financial information and Corporate Governance Statement, published as part of Fiskars Group’s Annual Report. Fiskars Group strives to build strong and long-term relationships with trusted suppliers that live up to the Group’s corporate values. All suppliers and business partners must comply with the Supplier Code of Conduct, which outlines non-negotiable minimum standards on topics such as health and safety, environmental protection, and human and labor rights. Suppliers are instructed to adopt similar requirements for their suppliers and to monitor their supply chains. The company conducts assessments on its finished goods suppliers. For raw material and component suppliers, as well as out-licensing partners, the company uses third-party audit services to complement internal assessments.	up from previous year
	Acquisitions	Acquisitions are not a central part of the strategy of Fiskars Group; however, the company may also grow through acquisitions, as seen in 2023, when Fiskars Group acquired the Danish luxury lifestyle brand Georg Jensen. All acquisitions and integrations of acquired businesses include risks. Acquired businesses may not perform as expected, key individuals may decide to leave the company, the costs of integration may exceed expectations, and synergy effects may be lower than expected. Employee uncertainty during the integration process may arise, as the need to harmonize disparities in company cultures, ways of working, processes, tools and practices requires careful consideration. This transitional phase may lead to frustration and disengagement, impacting overall performance.	Fiskars Group follows an acquisition strategy characterized by a systematic and disciplined approach to identifying potential targets. The strategy ensures that only those targets that are closely aligned with the company’s and its Business Areas’ objectives and business goals are considered for acquisition. In the acquisition due diligence process, Fiskars Group conducts a thorough investigation of the target company’s business, market, financial, operational, legal and regulatory aspects. This is a crucial step in evaluating the value and potential of the target company, enhancing the likelihood of a successful acquisition. In this phase of the acquisition, Fiskars Group formulates an integration pre-plan, outlining the key steps needed for successful integration and synergy realization for post-acquisition. The post-acquisition integration program features multiple streams, each with detailed action plans and assigned responsible persons to ensure a structured and coordinated approach to successful integration.	up from previous year
	Product safety and liability	Fiskars Group is committed to offering high quality and functional products that are safe to use and fit for purpose. As a manufacturer and seller of an extensive portfolio, including sharp cutting tools, food contact items and children’s products with a broad distribution, there is a risk that the company’s products and packaging fail to meet or do not comply with safety, quality and legal requirements, causing a possible halt to deliveries or a product recall, reputation loss, indemnities, and lost sales.	Fiskars Group seeks to ensure all its products meet the pre-set high standards for quality, compliance and product safety. The product development process at Fiskars Group is based on continuous testing and learning, and the company has invested in product development and quality assurance resources to mitigate against any potential product safety concerns in an early stage of product development. Comprehensive insurance cover and a product recall policy are in place to mitigate the financial impact of a recall and to precipitate the process of recalling potentially harmful products from the markets.	up from previous year
Compliance risks
	Legal and regulatory compliance	As a global company with operations in multiple countries, the changing legal and regulatory environment, both regional and supraregional, may expose Fiskars Group to compliance and litigation risks regarding competition compliance, corruption, tax, customs or export controls, for example. Furthermore, environmental, social and governance (ESG) related legislation and regulations are increasing and may affect the company’s supply chain management and choices regarding product materials and manufacturing techniques, for example. If the company is not predictive in identifying changes in laws and regulations and fails to implement necessary changes consistently in its business operations, this may cause financial or reputational damage and exposure to criminal liability. Fiskars Group registers, processes, stores and uses personal data in the course of its business operations, specifically regarding personal data related to consumers. There are increasing regulatory requirements for data protection, as well as accelerating changes in technology and heightened consumer and public expectations. If the company fails to fulfill its control obligations or processes or prevent or detect unauthorized access to personal information causing a violation of the GDPR or other applicable law or leakage of personal data, this may result in reputational damage and/or fines.	Fiskars Group is committed to ethical and responsible business practices and to respecting human rights. To enhance legal and regulatory compliance, Fiskars Group has implemented various compliance programs, policies and processes. There is a mandatory Code of Conduct training program for all employees and other mandatory trainings for targeted employee groups. All finished goods suppliers need to comply with Fiskars Group’s Supplier Code of Conduct requirements. Fiskars Group has established a cross-functional body to lead and govern its privacy and cyber security related policies, processes and practices. To ensure accountability, a whistle blowing channel allows anonymous reporting of any misconduct, with the company committed to taking swift corrective action when necessary.	same level as previous year
	Intellectual property rights	The well-known and strong Fiskars Group’s brands are exposed to infringement of intellectual property rights (IPR). There is a risk that the company, its agents or suppliers can be harmed by employees, agents or third parties using company trade secrets or intellectual property to the Group’s detriment. Counterfeit products may present quality and safety risks to consumers and may damage consumer confidence in the Group’s products. Fiskars Group is also exposed to the risk of unintentionally violating other parties’ intellectual property rights. Infringement of IPRs may lead to a loss of net sales and profit.	Potential IPR infringements are monitored through cross-functional processes and through online monitoring and systems. Fiskars Group has an enforcement policy in place that governs the enforcement actions that are taken to protect the exclusivity of Fiskars Group’s IPRs. Fiskars Group has a good understanding of the competitive landscape and provides its employees with training in IPRs.	same level as previous year
Financial risks
	Currency rates	With a significant part of the business in the United States and in other countries outside the eurozone, Fiskars Group is exposed to fluctuations in foreign currency rates. A change in the exchange rate may have a material impact on the reported financial figures. A change in the exchange rate may also negatively impact the local competitiveness of a Fiskars Group company. The most significant transaction risks are related to the appreciation of THB, DKK and USD and the depreciation of SEK, AUD and JPY. The most significant translation risks are related to the depreciation of USD.	Currency risks related to commercial cash flows are first managed by offsetting cash flows denominated in the same foreign currency. Purchases of production inputs and the sales of products are primarily denominated in the local currencies of the Fiskars Group companies. The remaining net exports or imports in foreign currencies are hedged up to 15 months in advance using currency forwards and swaps.	same level as previous year
	Tax and customs	Fiskars Group entities are subject to tax and customs audits in several countries. The risk that the company fails to comply with international or local tax or customs regulation may lead to additional tax obligations and changes in tax or import duty liabilities and may cause loss of profit, penalties and interest, and a negative reputational impact.	Fiskars Group closely monitors changes in tax and customs regulations and international agreements to proactively manage risks related to taxes and duties. Processes and controls are actively developed and maintained to ensure compliance with any local and international requirements. Fiskars Group promotes an open dialog with the tax and customs authorities and may seek advance rulings and other advance processes where necessary to secure its tax positions and customs compliance.	same level as previous year
	Financial investments	The financial investment portfolio of Fiskars Group consists mainly 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. Financial investments are treated at fair value through profit or loss.	The foreign exchange risk is hedged up to 15 months in advance using currency forwards and swaps.	same level as previous year

Short-term risks and business uncertainties 2024

Short-term risks and business uncertainties (as in the January-September 2024 Interim Report, published on October 24, 2024)

Fiskars Group’s business, net sales and financial performance may be affected by several internal and

external uncertainties.

Fiskars Group has presented the overall business risks and risk management more broadly in its Annual Report and on the company’s website at www.fiskarsgroup.com/investors. These risks still apply. The most significant updates to risks and business uncertainties since the publication of the Annual Report are related to current global affairs, a cybersecurity incident and a certain legal proceeding.

The operating environment is expected to remain challenging in 2024 and impact demand for the Group’s products. If the difficult market conditions persist for longer than anticipated or worsen further, they may impact net sales and financial performance more than currently expected. Additionally, the outcomes of numerous elections globally in 2024 may affect the Group’s operations, as political uncertainties and policy changes can further impact market conditions and regulatory environment.

The general industrial relations climate in Finland and parts of the U.S. has been unpredictable this year. For example, strikes causing significant disruptions to the Group’s manufacturing operations or to logistics operations may affect the Group’s net sales or profit negatively.

The demand for Fiskars Group’s products across categories can be influenced by both seasonal variations and weather conditions.

For Business Area Fiskars, the first half of the year is important for the gardening category. The demand for garden tools can be significantly influenced by weather conditions. Unfavorable weather, i.e. a cold and rainy spring, can negatively impact the sales of these products, while favorable conditions can boost their sales. The back-to-school season during the second and third quarters of the year is also important for the scissors category in Business Area Fiskars.

For Business Area Vita, the second half, particularly, the fourth quarter, is the most important time of the year due to the holiday season.

Any negative developments related to product availability, demand, or increased costs in manufacturing or logistics during the important seasons can significantly affect the full-year net sales and profit.

Geopolitical risks such as the continuing war in Ukraine and ongoing conflicts in the Middle East may result in further macroeconomic uncertainty, impact market demand and supply chains, and accelerate inflation. Further, importing goods with China-origin to the U.S. may continue to be subject to increasing tariffs and duty rates. Despite careful sensitivity analysis and mitigation planning through optimizing Supply Chain, e.g. with alternative sourcing in Southeast Asia or own manufacturing in Europe, the company may not be able to fully mitigate the potential adverse impact of geopolitical risks on the net sales and profit of the Group.

As the company continues to invest in key strategic building blocks, especially Direct-to-Consumer and digital, risks related to major system implementations such as business disruptions, conflicting or missing data, budget overspend, and project delays may negatively affect the Group’s business.

Fiskars Group has been subject to a cybersecurity incident earlier this year which has impacted a small number of the company’s systems in the U.S. The company’s operations have not been affected, and its business continues to operate as usual. The investigation of the incident and implementing necessary next steps are in their final phases. There is a reputational risk associated with this incident, as negative findings could affect stakeholder confidence.

Despite a careful due diligence process, all acquisitions and integrations 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 is involved in a number of legal actions, claims and other proceedings. Due to the nature of these proceedings, the final outcome of these cases cannot be predicted. Taking into account the available information to date, the outcome is not expected to have a material impact on the operations and financial position of the Group nor impact the guidance for 2024. It is possible that based on later information, the view may be reconsidered. In particular, Fiskars Group’s well-known and strong brands are exposed to e.g. infringement of intellectual property rights and therefore enforcement actions are part of ordinary business. Fiskars Group considers that investments made in enforcement actions are essential in order to protect and maintain the competitive edge created by our unique designs, innovations and strong brands. Among others, Fiskars Group has initiated legal proceedings in 2022 against a third party and a few former Fiskars Group employees, regarding patent infringements, trade secret misappropriation, false advertising, and tortious interference, and breach of contract, filed in Wisconsin, USA. The counterparty filed a response and counterclaim to Fiskars Group’s lawsuit including patent infringement, false advertising and tortious interference. In August, through Summary Judgment the Court dismissed all Fiskars claims and many of the counterparty’s claims. A trial regarding the remaining claims is expected to commence in week 43 2024. Fiskars Group (and its advisors) continue to believe in the merits of Fiskars’ claims and position. Fiskars will continue to timely assess, defend and enforce its legal rights. Based on Fiskars Group’s current understanding there is no reason to believe that the lawsuit would have a material impact on the Group’s operations or financial position. It is possible this view may be reconsidered as the litigation proceeds.

Short-term risks and business uncertainties (as in the Half-year Financial Report 2024, published on July 18, 2024)

Fiskars Group’s business, net sales and financial performance may be affected by several internal and external uncertainties.

Fiskars Group has presented the overall business risks and risk management more broadly in its Annual Report and on the company’s website at www.fiskarsgroup.com/investors. These risks still apply. The update to risks and business uncertainties since the publication of the Annual Report concerns the elections year, a cyber security incident and a certain legal proceeding. The operating environment is expected to remain

challenging in 2024 and impact demand for the Group’s products. If the difficult market conditions persist for longer than anticipated or worsen further, it may impact net sales and financial performance more than currently expected. Additionally, the outcomes of numerous elections globally in 2024 may affect the Group’s operations, as political uncertainties and policy changes can further impact market conditions and regulatory environment.

Wage inflation is expected to remain elevated in 2024. If it accelerates more than anticipated, it may have a negative impact on the Group’s full-year profit. Additionally, the general industrial relations climate in Finland has been unpredictable this year. For example, strikes causing significant disruptions to the Group’s manufacturing operations or to logistics operations in Finland may affect the Group’s net sales or profit negatively.

The demand for Fiskars Group’s products across categories can be influenced by both seasonal variations and weather conditions.

For Business Area Vita, the second half, particularly, the fourth quarter, is the most important time of the year due to the holiday season.

As the company continues to invest in key strategic building blocks, especially direct-to-consumer anddigital, risks related to major system implementations such as business disruptions, conflicting or missing data, budget overspend, and project delays may negatively affect the Group’s business.

investigation into the incident and impact to data is ongoing. There is a reputational risk associated with this incident, as negative findings could affect stakeholder confidence.

Fiskars Group is involved in a number of legal actions, claims and other proceedings. Due to the nature of these proceedings, the final outcome of these cases cannot be predicted. Taking into account the available information to date, the outcome is not expected to have a material impact on the operations and financial position of the Group nor impact the guidance for 2024. It is possible that based on later information, the view may be reconsidered. In particular, the well-known and strong Fiskars Group’s brands are exposed to e.g. infringement of intellectual property rights and therefore enforcement actions are part of ordinary business. Among others, Fiskars Group has initiated legal proceedings in 2022 against a third party and a few former Fiskars Group employees, regarding patent infringements, trade secret misappropriation, false advertising, and tortious interference, and breach of contract, filed in Wisconsin, USA. The counterparty filed a response and counterclaim to Fiskars Group’s lawsuit including patent infringement, false advertising and tortious interference. Currently this lawsuit is in a discovery phase and a trial is expected to commence in October 2024. Based on Fiskars Group’s current understanding there is no reason to believe that the lawsuit would have a material impact on the Group’s operations or financial position. It is possible this view may be reconsidered as the litigation proceeds.

Short-term risks and business uncertainties (as in the Interim Report Q1 2024, published on April 25, 2024)

Fiskars Group’s business, net sales and financial performance may be affected by several internal and external uncertainties.

Fiskars Group has presented the overall business risks and risk management more broadly in its Annual Report and on the company’s website at www.fiskarsgroup.com/investors. These risks still apply. The update to risks and business uncertainties since the publication of the Annual Report concerns the general industrial relations climate in Finland.
The operating environment is expected to remain challenging in 2024 and impact demand for the Group’s products. If the difficult market conditions persist for longer than anticipated or worsen further, it may impact net sales and financial performance more than currently expected.

The challenging operating environment may also increase the risk of credit losses. Challenges in obtaining funding have also resulted in payment delays by one of the company’s trade partner and increased the risk of credit losses. Fiskars Group has paid particular attention to securing and collecting receivables. Based on the information available to date, there is no reason to believe that the Group would not be able to collect most of them. It is possible that based on later information, this view may need to be reconsidered.

Wage inflation is expected to remain elevated in 2024. If it accelerates more than anticipated, it may have a negative impact on the Group’s full-year profit. Additionally, the general industrial relations climate in Finland is currently unpredictable. For example, strikes causing significant disruptions to the Group’s manufacturing operations or to logistics operations in Finland may affect the Group’s net sales or profit negatively.

The demand for Fiskars Group’s products across categories can be influenced by both seasonal variations and weather conditions.

For Business Area Fiskars, the first half of the year is important for the gardening category. The demand for garden tools can be significantly influenced by weather conditions. Unfavorable weather, i.e. a cold and rainy spring, can negatively impact the sales of these products, while favorable conditions can boost their sales. The back-to-school season during the second and third quarters of the year is also important for the scissors category in Business Area Fiskars.

For Business Area Vita, the second half, particularly, the fourth quarter, is the most important time of the year due to the holiday season.

Any negative developments related to product availability, demand, or increased costs in manufacturing or logistics during the important seasons can significantly affect the full-year net sales and profit.

Geopolitical risks such as the continuing war in Ukraine and ongoing conflicts in the Middle East may result in further macroeconomic uncertainty, impact market demand and supply chains, and accelerate inflation, which may have an adverse impact on the net sales and profit of the Group.

As the company continues to invest in key strategic building blocks, especially direct-to-consumer and digital, risks related to major system implementations such as business disruptions, conflicting or missing data, budget overspend, and project delays may negatively affect the Group’s business.

Despite a careful due diligence process, all acquisitions and integrations 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 is involved in a number of legal actions, claims and other proceedings. Due to the nature of these proceedings, the final outcome of these cases cannot be predicted. Taking into account the available information to date, the outcome is not expected to have a material impact on the financial position of the Group.

Short-term risks and business uncertainties (as in the Financial Statement Release 2023, published on February 8, 2024)

Fiskars Group’s business, net sales and financial performance may be affected by several internal and external uncertainties.

The challenging operating environment may also increase the risk for credit losses. Challenges in obtaining funding have also resulted payment delays by one of the company’s trade partner and increased the risk of credit losses. Fiskars Group has paid particular attention to securing and collecting receivables. Based on the information available to date, there is no reason to believe that the Group would not be able to collect most of them. It is possible that based on later information, this view may need to be reconsidered.

Wage inflation is expected to remain elevated in 2024. If it accelerates more than anticipated, it may have a negative impact on the Group’s full-year profit.

The demand for Fiskars Group’s products across categories can be influenced both by seasonal variations and weather conditions.

For Business Area Fiskars, the first half of the year is important for the gardening category. The demand for garden tools can be significantly influenced by weather conditions. Unfavorable weather, i.e. a cold and rainy spring, can negatively impact the sales of these products, while favorable conditions can boost their sales. The back-to-school season during second and third quarter of the year is also important for the scissors category in Business Area Fiskars.

For Business Area Vita, the second half, in particular the fourth quarter is the most important time of the year due to the holiday season.

Any negative developments related to product availability, demand or increased costs in manufacturing or logistics during the important seasons can significantly affect the full-year net sales and profit.

Geopolitical risks such as the continuing war in Ukraine and ongoing conflicts in the Middle East may result in further trade sanctions and impact supply chains and market demand, as well as accelerate inflation, which may have an adverse impact on the net sales and profit of the Group.

As the company continues to invest in key strategic building blocks, especially direct-to-consumer and digital, risks related to major system implementations such as business disruptions, conflicting or missing data, budget overspend, and project delays may negatively affect the Group’s business.