FISKARS CORPORATION INTERIM REPORT JANUA

FISKARS CORPORATION INTERIM REPORT JANUARY – MARCH 2003
(Unaudited)

FISKARS NET SALES DECLINED AND OPERATINS PROFIT IMPROVED

– Corporate net sales EUR 173.6 million (199.9)
– Operating profit EUR 9.9 million (-1.7)
– Investment income EUR 26.5 million (58.4)
– Pre-tax profit EUR 32.6 million (51.4)
– Earnings per share EUR 0.40 (0.62)
– Average dollar rate weakened by 22 % against euro

OPERATIONAL RESULTS

Fiskars Brands Inc.’s net sales declined by 14 % from the previous
year to EUR 165 million (191). EUR 24 million of this decrease was
attributable to the weakening in the value of the US dollar. Sales
of school, office and craft products marketed in the USA under the
FISKARS brand increased, and sales of GERBER products also grew
significantly. The difficult market situation of plastic garden
products (flowerpots and outdoor furniture) continued.

In Europe, Nordic sales remained on the same level as previous
year but total European sales declined slightly because of the
depressed German market. Strong demand for Finnish and US made
garden tools prevailed both in the USA and Europe. The spring
marketing season of garden products has been slightly delayed due
to the exceptionally cold weather.

Fiskars Brands’ operating profit for the first quarter was EUR
10.2 million (-1.2), and non-recurring costs totaled EUR 3.0
million (15.6). These costs mainly consist of relocations and
closings of factories in Germany and Mexico.

Inha Works’ net sales grew by 21 % from the previous year to EUR 8
million (6). Demand for boats was good, and the strong sales
growth in the first quarter compared with the previous year is
partly explained by the earlier time of boat deliveries. Demand
for hinges continued to be good. Inha Works’ operating profit was
EUR 1.0 million (0.4). The radiator operations were divested in
March, allowing Inha Works to focus even more clearly on its core
business. The deal will have little impact on Inha Works’ net
sales and operating profit.

The Real Estate operations posted a stable performance.

Income from investment operations totaled EUR 26.5 million (58.4)
in the first quarter and mainly consisted of dividends received
from Wärtsilä.

NEW CORPORATE PRESIDENT AND CEO
Mr. Heikki Allonen, M.Sc. (Eng.), was appointed the new Corporate
President and CEO in April. He will assume his new duties on June
16, 2003. Fiskars’ present President and CEO, Mr. Bertel
Langenskiöld will resign on 15 May 2003, and Mr. Ingmar Lindberg,
Corporate Executive Vice President, will act as interim President.

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

The corporate workforce totaled 4,385 persons at the end of March
(4,206 at the year-end); 2,469 of these worked in North America
and 938 in Finland.

CAPITAL EXPENDITURE; INVESTMENTS
In the first quarter, investments in industrial fixed assets
totaled EUR 7 million (8) and EUR 10 million (0) was invested in
the strategic holding of Wärtsilä.

BALANCE SHEET; FINANCING
The Corporation’s liquidity was good. The balance sheet total
decreased by 15 % from March 2002 to EUR 824 million (970); this
is attributable to a strong cash flow and partly to a change in
the value of the US dollar. Equity ratio is 50 % (44) and gearing
68 % (91).

Net financing costs decreased significantly from previous year and
totaled EUR 3.8 million (5.3).

ANNUAL GENERAL MEETING 2003
Fiskars Corporation’s Annual General 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 5 and the maximum number
9, and the maximum number of deputy members shall be 3. 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 of the company. The corresponding
previous authorizations were revoked. The authorization has not
been exercised.

The Annual General Meeting decided to increase the share capital
by not less than EUR 100 and not more than EUR 525,000 under a
rights issue to holders of the 1998 option warrants.

SHARE PRICES
At the end of March, the price of Fiskars share of series A on the
Helsinki Exchanges was EUR 7.50 (7.80 at the end of 2002), and the
price of the share of series K was EUR 8.25 (8.10). The market
capitalization of the company was EUR 427 million (437).

OUTLOOK
The development of retail sales has been weak during the first
quarter both in the USA and Europe and it is not expected to
improve during the next few months.

Due to the weak dollar in relation to the euro, corporate net
sales will decrease this year although new product launches are
expected to boost particularly the sales of FISKARS branded garden
tools and GERBER products towards the end of the year.

The restructuring program for the pottery product line, which was
approved in May, which comprises the consolidation of production
units and a partial outsourcing of the production will cause non-
recurring costs that will be booked in their entirety in the
second quarter.

Due to the above-mentioned factors, the result for the second
quarter will be below the previous year’s level.

It is estimated, however, that the possibilities for improving the
operating profit for the whole year still remain good.

No major income from long-term investments is expected towards the
end of the year, and thus the result for the year will be below
the previous years level.

NEXT INTERIM REPORT
Fiskars Corporation will publish its interim report for January –
June on August 12, 2003.

Bertel Langenskiöld
President and CEO

CONSOLIDATED 1-3 1-3 change 1-12
INCOME STATEMENT 2003 2002 % 2002
MEUR MEUR MEUR

NET SALES 173.6 199.9 -13 725.5

Cost of goods sold -118.2 -138.5 -15 -501.5
GROSS PROFIT 55.4 61.4 -10 224.0

Other operating costs -42.5 -47.5 -10 -176.6
RESULT BEFORE
RESTRUCTURING ITEMS 12.9 13.9 -8 47.4

Restructuring cost -3.0 -15.6 -81 -19.5
OPERATING PROFIT 9.9 -1.7 685 27.9

Income from investments 26.5 58.4 -55 59.0
Other financial income 0.1 0.1 92 1.5
Financial expense -3.9 -5.4 -26 -16.3
RESULT BEFORE TAX 32.6 51.4 -37 72.1

Taxes for the period -10.2 -16.9 -40 -22.5
PROFIT FOR THE PERIOD 22.4 34.5 -35 49.6

Earnings per share, euro 0.40 0.62 0.90

CONSOLIDATED BALANCE SHEET 3/03 3/02 change 12/02
MEUR MEUR % MEUR
ASSETS

Fixed assets 269.5 333.5 -19 280.1
Long-term investments 219.5 209.0 5 211.4
Inventories 151.8 205.8 -26 160.2
Financial assets 183.3 221.6 -17 157.6
TOTAL 824.2 969.9 -15 809.3

EQUITY AND LIABILITIES

EQUITY
Share capital 55.4 55.4 0 55.4
Other equity 355.8 369.9 -4 373.7

PROVISIONS 7.0 10.3 -32 5.5

LIABILITIES
Long-term 146.7 287.4 -49 183.5
Short-term 259.4 246.8 5 191.3
TOTAL 824.2 969.9 -15 809.3

Diluted equity /share, euro 7.43 7.68 -3 7.75
Equity ratio 50% 44% 14 53%
Net gearing 68% 91% -26 57%

GROSS INVESTMENTS 17.3 7.9 119 35.2
AVERAGE NUMBER OF EMPLOYEES 4127 4600 -10 4095

1-3 1-3 change 1-12
2003 2002 % 2002
Currency rates:
USD average rate (I/S) 1.07 0.88 22 0.95
USD end-of-period (B/S) 1.09 0.87 25 1.05

CONSOLIDATED STATEMENT 1-3 1-3 1-12
OF CASH FLOWS 2003 2002 2002
MEUR MEUR MEUR
From oper. activities 10.7 31.2 130.0
From investm. activities -14.7 -6.9 -29.6
From financing 1.3 -25.2 -89.6
CHANGE IN CASH -2.7 -0.9 10.9
Cash at beginning of period 19.5 9.5 9.5
Currency transaction adjustm -0.3 0.1 -0.8
CASH AT END OF PERIOD 16.5 8.7 19.5

NET SALES BY BUSINESS AREA 1-3 1-3 change 1-12
2003 2002 % 2002
MEUR MEUR MEUR
Fiskars Brands 165 191 -14 693
Inha Works 8 6 21 23
INDUSTRY TOTAL 172 197 -13 717
Corporate & real estate 2 3 -28 12
Eliminations -1 -1 5 -3

CORPORATE TOTAL 174 200 -13 725

RESULT BY BUSINESS SEGMENT 1-3 1-3 change 1-12
2003 2002 % 2002
MEUR MEUR MEUR
Fiskars Brands 10.2 -1.2 969 27.3
Inha Works 1.0 0.4 125 2.5
INDUSTRY TOTAL 11.2 -0.7 1620 29.8
Corporate & real estate -1.3 -1.0 -32 -1.9

OPERATING PROFIT 9.9 -1.7 685 27.9
Income from investments 26.5 58.4 -55 59.0
CONSOLIDATED SEGMENTAL RESUL 36.4 56.7 -36 86.9

NET SALES BY MARKET AREA 1-3 1-3 change 1-12
2003 2002 % 2002
MEUR MEUR MEUR
Finland 11 10 4 37
Scandinavia 16 17 -3 63
Other Europe 37 41 -10 130
North America 105 127 -17 473
Other 4 5 -16 23
CORPORATE TOTAL 174 200 -13 725

Export from Finland 18 14 26 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 3/03 3/02 12/02
MEUR MEUR MEUR
FOR THE COMPANY'S OWN
COMMITMENTS
Real estate mortgages 1 3 1
Pledged assets 0 29 0
Bills of exchange 0 0 1
Lease contingencies 61 82 70
Other contingencies 1 0 1
TOTAL CONTINGENCIES 63 114 72

NOMINAL VALUES OF DERIVATIVE
INSTRUMENTS

Forward exch. contracts 193 211 167
Interest rate swaps 92 126 105
FRA's 46 69 29

MARKET VALUES OF DERIVATIVE INSTRUMENTS
COMPARED TO NOMINAL VALUES

Interest rate swaps -9 -7 -10
FRA's 0 0 0

Nominal values also include closed contracts.