Corporate Net Sales decreased by 6 % from the previous
corresponding period to EUR 143 million (151). Most of the sales
decrease was attributable to the weakening dollar rate in relation
to the euro.

Operating profit was EUR  –0.3 million (+1.3). The result for the
period includes an extra goodwill depreciation of EUR 3.2 million
related to the restructuring of certain businesses. Exeptional
items during the same period previous year amounted to EUR –0.8
million. The comparable operating profit was thus EUR 3.0 million
(2.1), which is slightly better than previous year.

Corporate result after financial items in October-December was EUR
–2.3 million (-2.5). The corporate result after taxes was EUR 1.6
million (-4.5). The result was clearly better than during the
corresponding period last year, even though modest due to the
cyclical nature of business. The improvement was significantly
enhanced by lower taxes EUR 3.9 million (-2.0) and net financial
costs, EUR -2.0 million (-3.8).


Both in the United States and Europe the market situation was
strained in the consumer products sector. Corporate net sales
declined by 5 % from the previous year and totaled EUR 725 million
(762). Most of the sales decrease was attributable to the
weakening dollar against the euro.

Operating profit from the corporation’s industrial operations
improved significantly and amounted to EUR 28 million (12). Income
from investments increased to EUR 59 million (51). Result after
financial items was EUR 72 million (36).

Profit for the year was EUR 50 million (23) and earnings per share
amounted to EUR 0.90 (0.41).

The Board of Directors proposes an increase of dividend to EUR
0.70 (0.31) per share of series A and EUR 0.68 (0.29) per share of
series K. Thus the dividend distribution would be EUR 38.4 million


Fiskars Brands Inc.

Net sales from consumer products, which is the Corporation’s
overwhelmingly largest industrial operation, decreased by 5 % to
EUR 693 million (731). Dollar denominated sales remained

Most of the sales of consumer products, i.e. 68 % of total net
sales, were generated in North America; Europe accounted for 29 %
of the total figure.

In North America, dollar denominated sales of school, office and
craft products sold mainly under the FISKARS brand increased by
nearly 6 %, which was a good result in the prevailing difficult
market conditions.
The sales trend of leisure products, which mainly consisted of
Gerber branded products, was also positive while the heterogeneous
development of garden products continued.
Sales of Fiskars branded hand tools grew as much as 8 % supported
by innovative new products and it is noteworthy that the
production volume in Billnäs plant in Finland grew with 20 %.
However, the garden sector’s total sales growth remained negative
due to continued weak demand for volume products such as flower
pots, rubber mats, outdoor furniture and plastics products.

In the European marketplace, sales of consumer products increased
over the previous year to EUR 214 million (206). Fiskars retained
its strong position in the Nordic countries and increased its
market share. Sales in the Central European euro area and UK
remained unchanged from the previous year despite of the
particularly difficult market situation. Growth in new areas such
as Poland and Russia exceeded 10 %; however, for the time being,
they represent a small share of the total market.

The non-recurring costs of programs aimed at improving
profitability remained high at EUR 20 million (34). The biggest
cost items relate to restructuring measures taken in the UK and
Germany, where operations were closed and activities were focused
on the strongest Fiskars Brands products. Amortization of goodwill
increased to EUR 14 million (11); the figure includes an
extraordinary write-down of EUR 3.2 million in connection with the
above-mentioned restructuring measures. Fiskars Brands’ operating
profit was EUR 27 million (11).

Inha Works

Inha Works’ net sales grew by 7 % to EUR 23 million (22), mainly
thanks to boat sales that increased both in Finland and export
markets. Especially the renewed Buster Magnum gained great
popularity. Demand for hinges remained on the previous years

Inha Works’ operating profit was EUR 2.5 million (2.6).

Result from the Real Estate Operations improved clearly from the
previous year and was good.

Income from Long-term Investments totaled EUR 59 million (51) and
mainly consisted of extra dividends from Wärtsilä.


In North America, the number of personnel decreased by 342 and in
Europe by 12. The total number of corporate personnel decreased by
8 % from the previous year and was 4,206 at the year-end (4,556).


Investments in industrial operations amounted to EUR 31 million
(31). The most significant single capital expenditure item was the
resource planning system (ERP), currently being installed in the
United States; implementation of the system will continue in 2003.

Investments made in capital investment funds totaled EUR 4 million


Measures aimed at improving management of working capital
continued during the year, and EUR 21 million (56) was released
from working capital.

Fiskars Corporation’s cash flow was good at EUR 130 million (100).
Thanks to the strong cash flow and weaker dollar rates, the
corporation’s interest-bearing liabilities decreased to EUR 266
million (400).

The balance sheet total decreased by 13 %; the decrease in working
capital was attributable to the positive cash flow and the weaker
dollar rates. Fixed assets, expressed in euros, decreased
correspondingly. Like in previous years, long-term investments in
fixed assets, mainly Wärtsilä shares, are shown at cost.

Solvency was good, and the corporation had significant unused
available credit limits as well as liquid assets totaling EUR 20

Finance net decreased considerably, thanks to lower average
interest rates and a significantly lower amount of interest-
bearing capital, and totaled EUR 15 million (28). Gearing improved
to 57 % (96). Equity ratio increased to 53 % (44) of the balance
sheet total.


In January, Fiskars Corporation’s President and CEO, Mr. Bertel
Langenskiöld, announced his resignation in order to join another
company during the spring of 2003. Mr. Vesa Koivula, Inha Works’
President, will join another company in May 2003.

Fiskars Brands’ Management Team led by CEO Mr. William J. Denton
has during the year successfully restructured the business and the
organization of the consumer products operations.


Responsibilities of the Board of Directors

The duties and responsibilities of the Board of Directors are
governed by the Finnish Companies Act and the Corporation’s
Articles of Association. The Board of Directors is responsible for
the corporate administration and proper organization of the
affairs of the corporation. The Board also appoints the President
and a sufficient number of other managers and determines their
The Board of Directors convened eleven times during 2002.

Composition of the Board of Directors

The Board of Directors comprised six ordinary members and two
deputy members. None of the ordinary or deputy members are
employed in the company.

Remuneration of the Board members

The Annual General Meeting determines the remuneration of the
Board of Directors. The fees paid to the Board Chairman in 2002
totaled EUR 45,420 and the fees paid to the Vice Chairman EUR
34,065; fees of ordinary members were EUR 22,710 and those of
deputy members EUR 11,355 during the year. In addition, Board
members and deputy members are paid an attendance fee of EUR 510
per meeting, and receive compensation for their travel expenses
and other expenses incurred due to their activities in the
interest of the company.
Board committees

The Board of Directors has appointed three committees among its
members: Audit Committee, Compensation Committee and Planning

1. The Audit Committee supervises and controls corporate income
reporting and auditing. The members of the Audit Committee were
Mr. Göran J. Ehrnrooth, Mr. Thomas Tallberg, Mr. Gustaf Gripenberg
and Mr. Paul Ehrnrooth.
2. The Compensation Committee prepares matters connected with
corporate remuneration and award systems. Its members were Mr.
Göran J. Ehrnrooth, Mr. Mikael von Frenckell and Mr. Olli

3. The Planning Committee prepares matters associated with the
future operations and strategy of the corporation. Its members
were Mr. Göran J. Ehrnrooth, Mr. Mikael von Frenckell and Mr.
Robert G. Ehrnrooth.

Insiders of the corporation

Fiskars has been applied the insider regulations approved by the
Helsinki Exchanges since 1 January 2000. On the basis of the
Finnish Securities Markets Act, the permanent insiders include the
Board members, the corporate President and CEO, Executive Vice
President and the auditors. In addition, the extended insiders
include the Vice President, Corporate Control; the Vice President,
Corporate Finance; the Vice President, Legal Councel; the Vice
President, Corporate Communications; the members of the Board of
Fiskars Brands, Inc., The President and SEO of Fiskars Brands,
Inc. and the members of the Corporate Board of Management. Fiskars
maintains a list of its insiders in the SIRE system of the Finnish
Central Securities Depository Ltd.


The corporate auditor is KPMG Wideri Oy Ab, Corporation of
Authorized Public Accountants, with Mr. Sixten Nyman, APA, as
auditor with main responsibility. Fiskars Brands, Inc.’s auditor
is PriceWaterhouseCoopers, with Mr. Douglas C. Calvin as auditor
with main responsibility.


Fiskars Corporation’s Annual General Meeting held on 14 March 2002
decided to distribute a dividend of EUR 0.31 per share of series A
and EUR 0.29 per share of series K, in total EUR 16.8 million.

The resigning Board members Mr. Robert G. Ehrnrooth and Mr. Mikael
von Frenckell were reelected for a term expiring in 2005. Board
members Mr. Stig Stendahl and Mr. Juha Toivola announced their
desire to resign as Board members. Mr. Olli Riikkala was elected
as a new member for a term expiring in 2004.

KPMG Wideri Oy Ab was reelected auditor of the corporation.

The Board of Directors was granted authorization to purchase and
convey not more than 1,962,303 A-shares and not more than 805,918
K-shares of the corporation. The previous corresponding
authorizations were canceled. The granted authorization has not
been used.


The price of Fiskars A-share at the year-end was EUR 7.80 (8.50)
and the price of K-share EUR 8.10 (8.00). The market value of
Fiskars shares decreased by 5.6 % from the previous year and was
EUR 436.7 million (462.5).
A total number of 3.9 million A-shares and 1.3 million K-shares
were traded for a total value of EUR 45 million (10) during the
year. This represented 9.5 % of the entire share capital (2.4).


The profitability improvement measures implemented in the
corporation in recent years will enhance the possibilities to
improve operating profit also this year. However, in the uncertain
market situation the efforts continue to be focused on
profitability. Net sales is expected to be lower than in 2002 due
to the weakening of the US dollar.
The global uncertanity makes it difficult to estimate the result

Significant income from investments is anticipated also this year
in the form of extra dividends from Wärtsilä.

The financial structure of the corporation will remain stable.

Bertel Langenskiöld
President & CEO

CONSOLIDATED                  10-12  10-12   1-12   1-12 change
INCOME STATEMENT               2002   2001   2002   2001      %
                               MEUR   MEUR   MEUR   MEUR

NET SALES                     142.9  151.4  725.5  762.3     -5

Cost of goods sold            -99.0 -105.5 -501.5 -538.1     -7
GROSS PROFIT                   43.9   45.9  224.0  224.2      0

Other operating costs         -44.1  -40.9 -176.6 -178.4     -1
RESTRUCTURING ITEMS            -0.1    4.9   47.4   45.7      4

Restructuring cost             -0.2   -3.6  -19.5  -33.6    -42
OPERATING PROFIT               -0.3    1.3   27.9   12.1    130

Income from investments        -0.1    0.8   59.0   51.1     16
Other financial income          1.1    0.0    1.5    1.1     28
Financial expense              -3.0   -4.6  -16.3  -28.6    -43
RESULT BEFORE TAX              -2.3   -2.5   72.1   35.7    102

Taxes for the period            3.9   -2.0  -22.5  -13.1     71
PROFIT FOR THE PERIOD           1.6   -4.5   49.6   22.6    120

Earnings per share, euro       0.03  -0.08   0.90   0.41

CONSOLIDATED BALANCE SHEET    12/02  12/01 change
                               MEUR   MEUR      %

Fixed assets                  280.1  335.0    -16
Long-term investments         211.4  208.7      1
Inventories                   160.2  214.3    -25
Financial assets              157.6  170.6     -8
TOTAL                         809.3  928.7    -13


Share capital                  55.4   55.4      0
Other equity                  373.7  351.4      6

PROVISIONS                      5.5    3.8     44
Long-term                     183.5  274.5    -33
Short-term                    191.3  243.6    -21
TOTAL                         809.3  928.7    -13

Diluted equity /share, euro    7.75   7.35      5
Equity ratio                    53%    44%     21
Net gearing                     57%    96%    -40

GROSS INVESTMENTS              35.2   39.6    -11
AVERAGE NUMBER OF EMPLOYEES    4095   4489     -9

                              10-12  10-12   1-12   1-12 change
                               2002   2001   2002   2001      %
Currency rates:
USD average rate (I/S)         1.00   0.90   0.95   0.90      6
USD end-of-period (B/S)        1.05   0.88   1.05   0.88     19

CONSOLIDATED STATEMENT        10-12  10-12   1-12   1-12
OF CASH FLOWS                  2002   2001   2002   2001
                               MEUR   MEUR   MEUR   MEUR

From oper. activities          13.9    2.7  130.0   99.9
From investm. activities       -9.1   -9.0  -29.6   30.1
From financing                  1.5   -3.6  -89.6 -129.9
CHANGE IN CASH                  6.4   -9.9   10.9    0.1
Cash at beginning of period    13.4   19.3    9.5    9.3
Currency transaction adjustm   -0.2    0.1   -0.8    0.1
CASH AT END OF PERIOD          19.5    9.5   19.5    9.5

Consumer Products               136    145    693    731     -5
Inha Works                        5      4     23     22      7
INDUSTRY TOTAL                  141    149    717    753     -5
Corporate & real estate           3      4     12     12     -4
Eliminations                     -1     -1     -3     -3      3

CORPORATE TOTAL                 143    151    725    762     -5

Consumer Products               0.5    1.6   27.3   11.0    148
Inha Works                      0.5    0.0    2.5    2.6     -4
INDUSTRY TOTAL                  1.0    1.6   29.8   13.6    119
Corporate & real estate        -1.4   -0.3   -1.9   -1.5    -29

OPERATING PROFIT               -0.3    1.3   27.9   12.1    130
Income from investments        -0.1    0.8   59.0   51.1     16
CONSOLIDATED SEGMENTAL RESUL   -0.4    2.1   86.9   63.2     37

Finland                           8      6     37     36      2
Scandinavia                      17     18     63     62      1
Other Europe                     21     23    130    132     -1
North America                    90     99    473    508     -7
Other                             6      6     23     23     -2
CORPORATE TOTAL                 143    151    725    762     -5

Export from Finland              13     11     51     40     27

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                 12/02  12/01
                               MEUR   MEUR
Real estate mortgages             1      3
Pledged assets                    0     32
Bills of exchange                 1      0
Lease contingencies              70     92
Other contingencies               1      0
TOTAL                            72    128
COMMITMENTS                       0      1

TOTAL CONTINGENCIES              72    129


Forward exch. contracts         167    218
Interest rate swaps             105    136
FRA's                            29    119


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

Nominal values also include closed contracts.