FISKARS CORPORATION INTERIM REPORT JANUA

FISKARS CORPORATION INTERIM REPORT JANUARY–JUNE 2003
(Unaudited)

DIFFICULT SECOND QUARTER FOR FISKARS – CASH FLOW STABLE

Consolidated, April–June (3 months)
– Net sales EUR 180 million (232)
– Operating profit EUR 9.0 million (23.7)
– Pre-tax profit EUR 6.8 million (19.6)

Consolidated, January–June (6 months)
– Corporate net sales EUR 354 million (432)
– Operating profit EUR 18.9 million (22.0)
– Investment income EUR 27.7 million (58.4)
– Pre-tax profit EUR 39.4 million (71.0)
– Earnings per share EUR 0.51 (0.83)
– Operational cash flow EUR 47 million (55)
– Average US dollar rate weakened by 23% against euro

OPERATIONAL RESULTS

Fiskars Brands Inc.

April–June
Fiskars Brands Inc. net sales in the second quarter totaled EUR 171
million (222), which is a decrease of 23% compared to the previous
year. Calculated at unchanged currency rates the decrease in net sales
was 8%, in North America the decrease was 11% and in Europe 5%. In US
dollars, the company’s net sales totaled USD 194 million (204).

Fiskars Brands operating profit in the second quarter was EUR 8.8
million (21.8), non-recurring costs totaling EUR 5.7 million (3.3).
Most of the non-recurring costs were attributable to write-downs of
fixed assets within the restructuring program for the pottery product
line.

January–June
Fiskars Brands net sales for the first six months was EUR 336 million,
or 19% less than the previous year (413); calculated at unchanged
currency rates the decrease was 5%. In US dollars, the company’s net
sales were USD 371 million (372), i.e. they remained almost unchanged.

Fiskars Brands operating profit for the first six months of the year
was EUR 19.0 million (20.6) after non-recurring costs of EUR 8.7
million (19.0).

The market was good for garden tools sold in North America under the
FISKARS brand. There was a continued strong growth in sales of GERBER
products. School, office and craft products are still an important
part of the economic backbone of Fiskars Brands, even though the
markets have become more challenging in the United States. The
difficult market situation for plastic flowerpots and outdoor
furniture was reflected in both net sales and profitability in North
America. A decrease in sales volumes and the high costs of raw
materials weakened results despite the restructuring measures taken
adjustments made to accommodate the market situation.

In Finland sales of consumer products remained on a good level, but on
all other main European markets the economic situation in Europe was
reflected as a decrease in sales.

Inha Works

Inha Works net sales for the second quarter totaled EUR 7.3 million,
a decrease of 7% from the previous year (7.8). Net sales for the first
six months of the year however increased to EUR 14.8 million (14.0).
Demand for Buster boats has continued to be good in both the domestic
and the export markets. The domestic demand for hinges was good.
Inha Works operating profit during the second quarter was EUR 1.1
million (1.2). For the first six months the operating profit was EUR
2.1 million (1.6).

The Real Estate operations continued to post a stable performance.

Income from investment operations totaled EUR 27.7 million (58.4)
and mainly consisted of dividends received from Wärtsilä in the first
quarter.

NEW CORPORATE PRESIDENT AND CEO

Mr. Heikki Allonen, M.Sc. (Eng.), was appointed CEO of Fiskars and
Corporate President in April and assumed his post on June 16, 2003.
Mr. Bertel Langenskiöld resigned as CEO on May 15, 2003, and Mr.
Ingmar Lindberg, Corporate Executive Vice President, acted as
President during the May 16–June 15 interim.

CORPORATE MANAGEMENT

Mr. Johan Landsdorff, LL.M., was appointed Corporate Vice President
and Legal Counsel as from April 1, 2003. Mr. Jukka Suonperä, M.Sc.
(Eng.) assumed his post as new President of Inha Works on April 1,
2003, when Mr. Vesa Koivula resigned as President.

PERSONNEL

The corporate workforce totaled 4,272 people at the end of June
(4,601); 2,328 of these worked in North America and 1,006 in Finland.

CAPITAL EXPENDITURE AND INVESTMENTS

In the first half of the year, investments in industrial fixed assets
totaled EUR 15.1 million (15.4) and EUR 10.9 million (1.0) was placed
in long-term investments, mainly in the holdings of Wärtsilä. At the
end of the period, Fiskars holds 19.2% of Wärtsilä’s share capital and
24.4% of votes.

At the end of June, the market value of Fiskars’ portfolio of Wärtsilä
shares was EUR 126 million.

In addition, Fiskars has other long-term holdings of EUR 25 million in
capital investment funds.

BALANCE SHEET AND FINANCING

The balance sheet total was EUR 792 million, which is a decrease of
11% from June 2002 (889). The cash flow from operations continued to
be strong and amounted to EUR 47 million (55). The equity ratio was
52% (48) and gearing 58% (76). The Corporation’s liquidity is good.
Net financing costs decreased to a total of EUR 7.2 million (9.4).

ANNUAL GENERAL MEETING 2003

The Fiskars Corporation Annual General Meeting, held on March 13,
2003, decided to declare a dividend of EUR 0.70/A-share and EUR 0.68/K-
share, in total EUR 38.4 million.

The Articles of Association were amended to provide that the minimum
number of Board members shall be five and the maximum number nine,
and the maximum number of deputy members shall be three. Their term of
office will be from their election to the end of the following Annual
General Meeting.

The retiring members Mr. Göran J. Ehrnrooth and Dr. Thomas Tallberg
and the deputy members, Mr. Paul Ehrnrooth and Mr. Alexander Ehrnrooth
were reelected. The term of all Board members and deputy members will
end at the close of the Annual General Meeting in 2004.

KPMG Wideri Oy Ab was appointed auditor.

The Annual General Meeting authorized the Board of Directors to
acquire and dispose of not more than 1,962,303 A-shares and not more
than 805,918 K-shares in the company. The corresponding previous
authorizations were revoked. The authorization has not been exercised.

SHARE PRICES

At the end of June, the price of one Fiskars A-series share on the
Helsinki Exchange was EUR 8.20, compared to 7.80 at the beginning of
the year, and the price of one K-series share was EUR 9.00 (8.10).
The market capitalization of the company was EUR 467 million (437).

OUTLOOK

The outlook for retail marketssales is uncertain both in the US and in
Europe. Despite successful launches of new FISKARS and GERBER
products, the corporate net sales for the whole year will be clearly
below the previous year’s level.

However, the operating profit for the whole year is expected to remain
at the same level as the previous year, due among other things to the
restructuring programs in process. Should theIf demand continues to
further weaken it is possible that the present programs will prove
insufficient.

The net results for the whole year will remain below the level of the
previous year, mainly because the income from investments is ca EUR 20
million euros lower than in 2002.

NEXT INTERIM REPORT

Fiskars Corporation will publish its interim report for
January–September on November 11, 2003.

Heikki Allonen
President and CEO

CONSOLIDATED 4-6 4-6 1-6 1-6 change 1-12
INCOME STATEMENT 2003 2002 2003 2002 % 2002
MEUR MEUR MEUR MEUR MEUR

NET SALES 180.4 232.1 354.0 432.0 -18 725.5

Cost of goods sold -124.0 -159.7 -242.2 -298.2 -19 -501.5
GROSS PROFIT 56.4 72.4 111.8 133.9 -16 224.0

Other operating costs -41.7 -45.4 -84.2 -92.9 -9 -176.6
RESULT BEFORE
RESTRUCTURING ITEMS 14.7 27.0 27.6 41.0 -33 47.4

Restructuring cost -5.7 -3.3 -8.7 -19.0 -54 -19.5
OPERATING PROFIT 9.0 23.7 18.9 22.0 -14 27.9

Income from investments 1.2 0.0 27.7 58.4 -53 59.0
Other financial income 0.3 0.1 0.4 0.2 163 1.5
Financial expense -3.6 -4.2 -7.6 -9.6 -21 -16.3
RESULT BEFORE TAX 6.8 19.6 39.4 71.0 -44 72.1

Taxes for the period -1.0 -7.9 -11.2 -24.8 -55 -22.5
PROFIT FOR THE PERIOD 5.9 11.7 28.2 46.2 -39 49.6

Earnings per share, euro 0.11 0.21 0.51 0.83 0.90

CONSOLIDATED BALANCE SHEET 6/03 6/02 change 12/02
MEUR MEUR % MEUR
ASSETS

Fixed assets 255.3 301.5 -15 280.1
Long-term investments 219.6 209.4 5 211.4
Inventories 136.7 166.0 -18 160.2
Financial assets 180.8 212.3 -15 157.6
TOTAL 792.4 889.2 -11 809.3

EQUITY AND LIABILITIES

EQUITY
Share capital 55.4 55.4 0 55.4
Other equity 360.3 372.8 -3 373.7

PROVISIONS 7.7 10.0 -24 5.5
LIABILITIES
Long-term 135.4 229.9 -41 183.5
Short-term 233.7 221.1 6 191.3
TOTAL 792.4 889.2 -11 809.3

Diluted equity /share, euro 7.51 7.73 -3 7.75
Equity ratio 52% 48% 9 53%
Net gearing 58% 76% -24 57%

GROSS INVESTMENTS 26.0 16.4 59 35.2
AVERAGE NUMBER OF EMPLOYEES 3987 4527 -12 4095

4-6 4-6 1-6 1-6 change 1-12
2003 2002 2003 2002 % 2002
Currency rates:
USD average rate (I/S) 1.14 0.92 1.10 0.90 23 0.95
USD end-of-period (B/S) 1.14 1.00 1.14 1.00 15 1.05

CONSOLIDATED STATEMENT 4-6 4-6 1-6 1-6 1-12
OF CASH FLOWS 2003 2002 2003 2002 2002
MEUR MEUR MEUR MEUR MEUR
From oper. activities 35.9 23.5 46.5 54.7 130.0
From investm. activities -7.9 -8.4 -22.6 -15.3 -29.6
From financing -28.3 -23.4 -27.0 -48.6 -89.6
CHANGE IN CASH -0.3 -8.3 -3.0 -9.2 10.9
Cash at beginning of period 16.5 8.7 19.5 9.5 9.5
Currency transaction adjustm 0.3 -0.4 0.0 -0.3 -0.8
CASH AT END OF PERIOD 16.4 0.0 16.4 0.0 19.5

NET SALES BY BUSINESS AREA 4-6 4-6 1-6 1-6 change 1-12
2003 2002 2003 2002 % 2002
MEUR MEUR MEUR MEUR MEUR
Fiskars Brands 171 222 336 413 -19 693
Inha Works 7 8 15 14 5 23
INDUSTRY TOTAL 179 230 351 427 -18 717
Corporate & real estate 3 3 5 6 -18 12
Eliminations -1 -1 -1 -1 9 -3

CORPORATE TOTAL 180 232 354 432 -18 725

RESULT BY BUSINESS SEGMENT 4-6 4-6 1-6 1-6 change 1-12
2003 2002 2003 2002 % 2002
MEUR MEUR MEUR MEUR MEUR
Fiskars Brands 8.8 21.8 19.0 20.6 -8 27.3
Inha Works 1.1 1.2 2.1 1.6 32 2.5
INDUSTRY TOTAL 9.9 22.9 21.1 22.2 -5 29.8
Corporate & real estate -0.9 0.8 -2.2 -0.2 -1033 -1.9

OPERATING PROFIT 9.0 23.7 18.9 22.0 -14 27.9
Income from investments 1.2 0.0 27.7 58.4 -53 59.0
CONSOLIDATED SEGMENTAL RESUL 10.2 23.7 46.6 80.4 -42 86.9

NET SALES BY MARKET AREA 4-6 4-6 1-6 1-6 change 1-12
2003 2002 2003 2002 % 2002
MEUR MEUR MEUR MEUR MEUR
Finland 11 11 21 22 -1 37
Scandinavia 15 17 31 34 -9 63
Other Europe 37 41 75 82 -9 130
North America 114 157 219 284 -23 473
Other 4 5 8 10 -22 23
CORPORATE TOTAL 180 232 354 432 -18 725

Export from Finland 14 14 32 28 12 51

Short delivery times are a prerequisite in Fiskars' fields
of operations. Therefore, the backlog of orders and changes
in it are not of significant importance.

CONTINGENCIES 6/03 6/02 12/02
MEUR MEUR MEUR
FOR THE COMPANY'S OWN
COMMITMENTS
Real estate mortgages 1 3 1
Pledged assets 0 0 0
Bills of exchange 0 0 1
Lease contingencies 61 71 70
Other contingencies 1 0 1
TOTAL CONTINGENCIES 63 75 72

NOMINAL VALUES OF DERIVATIVE
INSTRUMENTS

Forward exch. contracts 178 213 167
Interest rate swaps 88 110 105
FRA's 9 70 29

MARKET VALUES OF DERIVATIVE INSTRUMENTS
COMPARED TO NOMINAL VALUES

Interest rate swaps -7 -8 -10
FRA's 0 0 0

Nominal values also include closed contracts.