Stock exchange release
February 14, 2006
FISKARS CORPORATION'S RESULTS 2005
FISKARS CORPORATION'S RESULTS 2005
RESULT FOR THE FOURTH QUARTER 2005
Corporate net sales for October December remained unchanged from the
corresponding period previous year and totaled EUR 127.0 million (126.6). In
spite of lower volume in the United States the stronger dollar rate reduced the
impact on euro denominated sales. Sales in other markets were slightly up
from the corresponding quarter previous year.
Non-recurring costs for the quarter amounted to EUR 5.4 million; about EUR
1 million related to credit losses from the sale of a business activity in the US,
and 4.4 million were write-downs on fixed assets connected with restructuring
announced in October 2005.
Operating profit was EUR -0.5 million (7.9); before non-recurring items, the
operating result would be EUR 4.9 million (7.3). The income from associated
company was EUR 11.7 million (12.9) and net financing costs were EUR 2.3
million (0.9). Profit before taxes was EUR 8.9 million (19.9) and the net profit
for the review period was EUR 9.4 million (18.0).
Report by the Board of Directors 2005
Fiskars Corporation's net sales were EUR 551.1 million (565.6) and declined
thus by 2.5% from the previous financial year. A decision was taken in fall
2005 to restructure parts of the US operations of the largest division, Fiskars
Brands, Inc. The plans will be implemented during two financial years and
will cause non-recurring costs of approximately EUR 50 million. Of these
restructuring costs, EUR 39.7 million were booked in 2005 . Operating results
after these items were a loss of 2.0 million (52.1). The bookings, around half
of which related to goodwill impairment, had a minor negative impact of EUR
1.0 million on cash flows. Operating profit before non-recurring items was
EUR 37.7 million (51.5).
Fiskars income from associated company Wärtsilä's profit was EUR 28.6
million (26.7). Sales of Wärtsilä B-shares during the year yielded a gain of
EUR 49.8 million. Wärtsilä A-shares were acquired for EUR 30.2 million
during the financial year, after which Fiskars' share of the votes in Wärtsilä
increased to over 30 percent.
Net profit for the year was EUR 62.1 million (54.6) and earnings per share
EUR 0.80 (0.71). Return on Equity was 16.8% (15.8) and Return on
Investment 14.5% (14.9).
The Board proposes a dividend of EUR 0.45 per share of series A and EUR
0.43 per share of series K, i.e. a total dividend of EUR 34.4 million, for 2005.
The Corporate structure was streamlined during the financial year by merging
and dissolving inactive administrative companies.
OPERATIONS
Fiskars Brands, Inc.
Production restructuring
The change in the markets and the competitive structure in the United States
continued, and a decision was taken to adapt Fiskars Brands' operations to
better respond to the challenges of the situation. Fiskars Brands, Inc. decided
to carry out an extensive restructuring of its production in the North American
markets where today a continuosly increasing part of products will be
subcontracted. Own correctly sized manufacture, rapid introduction of new
innovations to the markets, tight control of the supply-chain, and timely
response to customers' quickly changing expectations are critical success
factors.
According to the restructuring plans, by the end of 2006 some of the present
production capacity will be closed down or converted into logistics centers,
and production volumes at some plants will be adapted to better match
demand of the markets. These measures will impact the number of personnel
towards the end of 2006.
As a consequence of the plans, the 2005 financial statements include write-
offs on inventories and fixed assets, particularly goodwill impairment as well
as amortizations due to shorter depreciation period of certain of fixed assets.
The bookings total USD 49.3 million, equaling EUR 39.7 million.
The estimate of the total restructuring costs is approximately EUR 50 million
prevails. The remainder of the restructuring costs will accrue in 2006. Cost
savings as a result of the structural changes will, however start accruing
towards the end of 2006 when new sourced products manufactured with a
lower cost base will start to be delivered to the customers.
Goodwill impairment
For goodwill impairment testing, Fiskars Brands has been divided into cash
generating units to which the goodwill in the consolidated balance sheet has
been allocated. The goodwill in the units is tested annually for impairment by
calculating the values in use of the cash generating units based on estimated
future cash flows. On the basis of these calculations, the goodwill value of
Garden & Outdoor Living was impaired by EUR 19.7 million (1.5). After
impairment, the goodwill of the cash generating at the end of the financial
year was EUR 4.8 million. The management estimates that the fair market
value of this unit today equals or exceeds its book value EUR 43,0 million
after the impairment. There was no need for impairments in other cash-flow
generating units.
Fiskars Brands' business operations
Fiskars Brands' net sales were EUR 513.3 million (528.0). US sales accounted
for USD 372.0 million (396.9), corresponding to EUR 312.7 million (332.6), a
decrease of 6.3% from the previous financial year. European sales remained
on the previous year's level at EUR 185.6 million (186.0). Europe represented
36% (34) and the United States 59% (61) of total net sales.
Fiskars Brands' operating profit was EUR -1.6 million (48.5). Non-recurring
items mounted to EUR -39,7 million (+0.6). The earnings excluding non-
recurring items would have been EUR 38.1 million (47.9).
Prices of resin and steel increased during the year but their impacts on costs
could not entirely be transferred to sales prices due to the competitive
situation. This eroded profitability throughout the business, more so and
particularly in the United States.
Major retailers in the US market sell a significant volume of the products, and
prices are a more critical sales argument than quality. Especially imports of
products of high labour content grew, and the ability of local, traditional
production to compete on prices weakened, while the competitive position of
technically demanding and innovative products was still maintained. Only the
Consumer Electronics unit increased sales in the US market. Sales of the
School, Office and Craft and Garden and Outdoor Living declined and the low
utilization rate of the manufacturing capacity in rubber mats and pottery
businesses had adverse effect on profitability. Investments in marketing,
product development and sourcing were increased and the measures are
expected to have a positive impact on the profitability in the coming years.
In the European markets quality is a critical factor in addition to price level.
Development of a new generation of Housewares lines and launch of new
School Office and Craft products was intensified. Sales of Garden and
Outdoor Recreation products still represent the majority of European sales
which grew over the previous year. Housewares also play an important role in
sales which, however, decreased slightly due to supply difficulties in the
initial phase of the introduction of new product lines. Profitability in Europe
continued to be good in spite of the slight decline from the previous year.
Sales in other markets, the most important ones of them Canada and Australia,
increased by more than 20%, and profitability improved considerably.
Fiskars Brands invested in expansion and product innovations. The company
acquired the production and marketing assets of Gingher branded quality
scissors in the spring, and the Heidi Grace and Cloud9 branded scrap-booking
product lines in the fall to reinforce the growing craft products sales. Also
Superknife products were acquired during the fall as an addition to the Gerber
outdoor recreation operation. Investments in these acquisitions totaled EUR
11.9 million. Other investments amounted to EUR 12.2 million and mainly
related to product development, maintenance of production capacity and
improved efficiency of operations. The total investments in 2005 were EUR
24.1 million (15.8).
Inha Works
Inha Works' net sales increased by 11% to EUR 32.4 million (29.2).
Operating profit decreased slightly, due to start-up costs of the delays caused
by the implemented investments and to higher aluminum prices, and was
EUR 3.5 million (3.6). Demand for boats continued to grow strongly in the
main market areas, and sales of Buster boats increased especially in Finland
and Norway. The plant worked at capacity, and prodution capacity bottlenecks
restricted sales at times. The new painted boat models were well received by
customesr. Sales of other Inha products hinges and forged products - also
continued to be satisfactory.
Investments were made in increasing of boat production capacity and
rationalization of production. The investments totaled EUR 3.4 million (1.3).
Real Estate Group
The real estate operation consists of leasing of real estate properties to
corporate and external customers, as well as of management of the corporate
forest assets. In accordance with IFRS, the change in value of biological assets
is now reported instead of the realized timber sales. Price of standing timber
decreased during the year and contributed to the decrease of EUR 0.8 million
in reported revenues calculated with this method, which consequently
weakened profitability compared with the previous year. Previous year, the
increase of prices of standing timber had increased the value of biological
assets by EUR 1.6 million. Net sales from the real estate operations totaled
EUR 8.9 million (11.0) and operating profit was EUR 2.0 million (5.2).
Investments during the year related among other things to the new logistics
facility leased to Fiskars Brands' Billnäs factory. The total investments were
EUR 2.9 million (2.2).
A unit within the Real Estate Group, Hangon Sähkö Oy, which operates as
supplier of electrical installation services was sold to the operative
management in November. The transaction had no significant impact on the
result.
Associated company Wärtsilä
Fiskars' income from associate in 2005 was EUR 28.6 million (26.7).
During the year, Fiskars sold Wärtsilä B-shares for EUR 105.0 million and
acquired
A-shares for EUR 30.2 million. The Corporation's interest in the associated
company was thus 16.81% (20.54) of the share capital and 30.58% of the
votes (28.07) at December 31, 2005. The share transactions yielded a gain of
EUR 49.8 million. Dividends paid to Fiskars by Wärtsilä during the financial
year amounted to EUR 17.1 million (21,3). The book value of the holding at
the end of the financial year was EUR 231.9 million (219.1) and included
EUR 38.1 million (35.7) goodwill. The market capitalization of the shares at
the year-end was EUR 394 (295).
CORPORATE RESULT AND TAXES
Operating profit was EUR -2.0 million (52.1). Net financing costs amounted
to EUR 7.1 million (3.8) and included EUR 2.5 million (6.3) of investment
income. Financing costs remained largely unchanged from the previous year.
Profit after financial items, inclusive income from the associated company
Wärtsilä and the gain from the sale of shares, was EUR 69.4 million (75.0).
Taxes for the year totaled EUR 7.3 million (15.2).
The gain from the sale of the Wärtsilä shares is tax exempt.
The profit for the year was EUR 62.1 million (54.6) and earnings per share
EUR 0.80 (0.71).
BALANCE SHEET AND FINANCIAL POSITION
Cash flow from operations was EUR 62.7 million (88.1). Working capital was
on the same level as in the previous financial year. Inventories increased to
some extent. Investments, exclusive of the acquisition of Wärtsilä shares,
were below the annual depreciation made on fixed assets. Only a very minor
part of the restructuring costs (EUR 1.0 million) had an impact on the cash
flow. Purchases and sales of Wärtsilä shares generated a net cash flow of
about EUR 74 million.
The Corporation's net interest-bearing debt decreased by EUR 66 million to
EUR 140.0 million (206.1). The capital loan of EUR 45.1 million issued to
shareholders at the end of 2004 is included in interest-bearing long-term
liabilities.
The Corporation's liquidity remained good. Cash at the end of the year totaled
EUR 21.7 million (15.6), in addition to which there are considerable unused
credit limits at hand.
Consolidated shareholders' equity was EUR 402.7 million (335.8). Dividends
paid during the year totaled EUR 22.8 million. The net gearing ratio was good
at 57% (49).
Total assets were on the previous year's level at EUR 702.7 million (691.7).
Non-current assets amounted to EUR 458.5 million (469.7). Consolidated
goodwill in the balance sheet totaled EUR 12.8 million (28.9), all of which
related to Fiskars Brands' operations. All the biological assets of EUR 29.9
million (30.4) were situated in Finland. Investment properties included real
estate leased to external parties by the Real Estate Group as well as those
leased by Fiskars Brands in the United States that were no longer used by the
Corporation. The investment in associated company Wärtsilä in the balance
sheet total was EUR 231.9 million (219.1).
PERSONNEL
At the end of the year, the total number of personnel was 3,284 (3,448). The
number in the United States decreased by 111 and in Finland by 72. The
attrition in the United States was mainly attributable to increased sourcing; in
Finland, the divestment of Hangon Sähkö Oy led to a personnel decrease of
52. As a result of the codetermination negotiations with personnel at the
Billnäs factory in the fall, the number of personnel will decrease by 75 by
summer 2006. At Inha Works, the number of personnel increased by 23
during the year.
MANAGEMENT
There were no changes in the corporate management during the period. Heikki
Allonen continued as CEO and President.
CORPORATE GOVERNANCE
Fiskars complies with the administrative and corporate governance rules for
stock exchange listed entities published by Helsinki Exchanges, the Central
Chamber of Commerce and the Confederation of Finnish Industries, effective
in 2004. Fiskars also complies with the new insider rules of Financial
Supervision and Helsinki Exchanges adopted on July 1, 2005. The
Corporation further also applies its internal insider guidelines.
RISKS AND RISK MANAGEMENT
Fiskars hedges its financial risks in accordance with the practice approved by
the Corporation's Board of Directors. Investments are made only in solid
financial institutions and other low-risk companies or funds. Other receivables
mainly consist of trade receivables and are relatively widely spread
geographically and between customers.The credit ratings of major customers
are high. Insurance policies are used to cover property risks and significant
operational risks. Other risks associated with balance sheet values are
estimated to be minor. The Corporation has not used raw-material derivative
instruments.
Risks connected with information technology and systems were analyzed
during the financial year, and the level of risk management was increased. The
most important operational risks relate to raw-material prices and changes in
the markets and demand.
PURCHASES AND SALES OF OWN SHARES
The Board of Directors has an authorization to purchase and sell the
Corporation's shares provided that the total nominal value of such shares and
the votes carried by them do not exceed five (5) percent of the share capital
and the total votes in the company. The Board did not exercise its
authorization during the year. At December 31, 2005, the company held in
total 127,512 of its own A-shares and 420 K-shares. The holding has not
changed during the review period, and the number of shares equals 0.2% of
the entire share capital of the company.
ANNUAL GENERAL MEETING 2005
Fiskars Corporation's annual general meeting held on March 23, 2005
declared a dividend of EUR 0.30 per A-share and EUR 0.28 per K-share, i.e. a
total dividend of approximately EUR 22.8 million.
The number of Board members was set at seven. Göran J. Ehrnrooth, Mikael
von Frenckell, Gustaf Gripenberg, Olli Riikkala, Paul Ehrnrooth, Ilona
Ervasti-Vaintola and Alexander Ehrnrooth were re-elected. The mandate of
the Board members ends at the 2006 annual general meeting.
At their meeting held after the annual general meeting, the Board elected
Göran J. Ehrnrooth as Chairman and Mikael von Frenckell as Vice Chairman.
KPMG Oy Ab was reappointed as auditor.
The annual general meeting authorized the Board of Directors to decide on the
acquisition of a maximum of 2,619,712 A-shares and 1,127,865 K-shares and
on the disposal of a maximum of 2,747,224 A-shares and 1,128,285 K-shares
as from March 23, 2005.
EXTRAORDINARY GENERAL MEETING 2005
The extraordinary general meeting held on September 27, 2005 set the number
of Board members at nine. Kaj-Gustaf Bergh and Karl Grotenfelt were elected
as new Board members. The mandate of the new members also ends at the
2006 annual general meeting.
SHARE PRICES
At the end of December 2005, the price of Fiskars A-share at the Helsinki
Exchanges was EUR 9.60 (7.90) and the price of K-share EUR 9.90 (7.90).
The market value of the share capital increased by 23% during the year to
EUR 751 million (612) at the end of the year).
In the new industry classification of Helsinki Exchanges, Fiskars shares were
transferred to the Consumer Goods and Services category as from July 1,
2005.
ADAPTION OF IFRS REPORTING
Since January 1, 2005 Fiskars applies the International Financial Reporting
Standards (IFRS), approved by EU, to the preparation of its consolidated
financial statements. Also the comparison data for 2004 have been adjusted in
accordance with the new accounting standard. The financial statements of the
parent company Fiskars Corporation will also henceforth be prepared in
accordance with the relevant Finnish regulations.
OUTLOOK
Fiskars will implement an extensive restructuring program in its US
operations in 2006, in this connection some products will be manufactured by
sub-suppliers and the production capacity will be adjusted to meet the
demand.
The market situation remains tight, and more resources than previous year will
be dedicated to sales and marketing in all core areas. The sale of sourced
products will increase above all in the US market.
For the first part of the current year the profitability of the Corporation's
wholly owned industrial operations is expected to follow the level of the
previous corresponding period.
The impact of the structural measures is expected to take effect gradually in
the latter part of the year, however, mainly during 2007.
As in previous years, the consolidated result from associated company
Wärtsilä constitutes an important part of Fiskars Corporation's result.
Heikki Allonen
President and CEO
CONSOLIDATED 10-12 10-12 chg 1-12 1-12 chg
INCOME STATEMENT 2005 2004 % 2005 2004 %
MEUR MEUR MEUR MEUR
NET SALES 127.0 126.6 0 551.1 565.6 -3
Cost of goods sold -91.6 -88.6 3 -397.0 -388.1 2
GROSS PROFIT 35.3 38.0 -7 154.1 177.5 -13
Other income 0.3 1.9 -86 2.3 3.6 -35
Sales and marketing expenses -16.7 -15.7 7 -68.9 -63.5 9
Administration expenses -11.0 -13.4 -18 -46.5 -58.0 -20
Research and development costs -1.5 -1.1 41 -5.6 -4.8 16
Other expenses -6.8 -1.8 -37.4 -2.7
OPERATING PROFIT -0.5 7.9 -2.0 52.1
Income from Associates 11.7 12.9 -9 28.6 26.7 7
Gain on sale of Wärtsilä shares 49.8
Financial income and expenses -2.3 -0.9 -7.1 -3.8
PROFIT BEFORE TAXES 8.9 19.9 -55 69.4 75.0 -8
Taxes 0.5 -1.5 -7.3 -15.2
PROFIT FROM CONTINUING OPERATIONS 9.4 18.4 -49 62.1 59.8 4
Profit from discontinued operations -0.5 -5.3
PROFIT (LOSS) FOR THE PERIOD 9.4 18.0 -48 62.1 54.6 14
Earnings per share, euro 0.12 0.23 0.80 0.71
continuing operations 0.12 0.24 0.80 0.77
discontinued operations -0.01 -0.07
Earnings per share is undiluted. The company has no open otion programs.
CURRENCY RATES 1-12 1-12 chg
2005 2004 %
USD average rate (I/S) 1.24 1.24 0
USD end-of-period (B/S) 1.18 1.36 -13
CONSOLIDATED BALANCE SHEET 12/05 12/04 chg
MEUR MEUR %
ASSETS
Tangible assets 120.3 133.1 -10
Intangible assets 26.3 34.7 -24
Biological assets 29.9 30.4 -2
Investments in associates 231.9 219.1 6
Other investments 6.0 5.0 21
Avoir fiscal tax receivable 9.0 10.8 -16
Deferred tax assets 35.0 36.6 -4
LONG-TERM TOTAL 458.5 469.7 -2
Inventories 129.3 109.7 18
Financial assets 115.0 112.3 2
CURRENT TOTAL 244.2 222.0 10
ASSETS TOTAL 702.7 691.7 2
EQUITY AND LIABILITIES
Equity 402.7 335.8 20
L/t interest bear.debt 124.5 144.3 -14
L/t non-interest bear.debt 21.0 19.7 7
Deferred tax liabilities 17.6 20.4 -14
LONG-TERM LIABILITY TOTAL 163.1 184.4 -12
S/t interest bear.debt 37.2 77.4 -52
S/t non-interest bear.debt 99.7 94.1 6
CURRENT LIABILITY TOTAL 136.9 171.5 -20
EQUITY AND LIABILITIES TOTAL 702.7 691.7 2
KEYFIGURES 12/05 12/04 chg
%
Equity/share, euro 5.20 4.34 20
Equity ratio 57% 49%
Net gearing 35% 61%
Equity, meur 402.7 335.8 20
Net interest bear.debt, meur 140.0 206.1 -32
Average number of employees 3476 3567 -3
CONSOLIDATED STATEMENT 1-12 1-12
OF CASH FLOW 2005 2004
MEUR MEUR
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before taxes 69.4 75.0
Adjustments for
Depreciation 58.7 25.1
Income from associate -28.6 -26.7
Investment income (net) -52.3 -6.3
Interest expense (net) 9.5 10.0
Chg in value of biological assets 0.5 -2.0
Dividends from assoc.comp. 17.1 21.3
Dividends received, other 0.1 0.9
Financial costs paid (net) -8.3 -9.7
Taxes paid -6.7 -2.3
Change in interest free assets 8.1 -2.6
Change in inventories -7.8 -3.5
Change in interest free liability 3.0 8.8
NET CASH FROM OPERATING ACTIVITIES(A) 62.7 88.1
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisitions -11.9
Transact. in assoc. comp. shares 74.4 -22.2
Capital expenditure -19.0 -19.8
Proceeds from sale of fixed asset 2.9 2.7
Sale of other l/t investments 1.7 25.4
Purchase of other l/t investments -0.2 -1.2
Cash flow from discontinued operations 8.4
NET CASH USED IN INVESTING ACTIVITIES(B) 47.9 -6.7
CASH FLOWS FROM FINANCING ACTIVITIES
Purchase of own shares -0.3
New long term loans 45.3
Amortization of l/t loans -32.8 -51.6
Changes in short term loans -39.8 3.2
Financial leases, payments -3.7 -2.8
Other financing items -3.1 -1.2
Dividends paid -22.8 -71.8
NET CASH FLOW FROM FINANC. ACTIVITIES(C) -102.3 -79.2
Translation difference (D) -2.3 -3.4
CHANGE IN CASH (A+B+C+D) 6.1 -1.2
Cash at beginning of period 15.6 16.8
Cash at end of period 21.7 15.6
STATEMENT OF CHANGES IN Share Other
CONSOLIDATED EQUITY ATTRIBUTABLE Sharepremium Own reser-Transl.Retain.
TO EQUITY HOLDERS OF THE PARENT capitalaccount shares vesadjustm earn. Total
MEUR MEUR MEUR MEUR MEUR MEUR MEUR
Jan.01,2004 IFRS 55.4 21.3 -0.6 0.0 0.0 278.6 354.6
Translation differences -1.4 -1.4
NET INCOME RECOGNISED DIRECTLY
IN EQUITY -1.4 -1.4
Net profit for the period 54.6 54.6
TOTAL RECOGNISED INCOME AND
EXPENSE FOR THE PERIOD -1.4 54.6 53.2
Bonus issue 22.1 -21.3 -0.9 0.0
Acquisition and sale of own shares -0.3 -0.3
Dividend distribution -71.8 -71.8
Dec.31,2004 IFRS 77.5 0.0 -0.9 0.0 -1.4 260.5 335.8
Adoption of IAS 39
Fiskars Corporation -0.4 0.4 0.1
Associated company Wärtsilä 37.8 37.8
Jan.01,2005 77.5 0.0 -0.9 37.5 -1.4 261.0 373.7
Translation differences 1.4 1.4
Change in fair value reserve 0.4 0.4
Chg in investment in associates* -6.9 -6.9
Other changes in assoc. company -6.3 1.2 -0.1 -5.2
NET INCOME RECOGNISED DIRECTLY
IN EQUITY -12.8 2.5 -0.1 -10.3
Net profit for the period 62.1 62.1
TOTAL RECOGNISED INCOME AND
EXPENSE FOR THE PERIOD -12.8 2.5 62.1 51.8
Dividend distribution -22.8 -22.8
Dec.31,2005 IFRS 77.5 0.0 -0.9 24.7 1.2 300.3 402.7
Fiskars share of associated company Wärtsiläs fair value reserve and its changes
are specified in the other reserves above.
* Fair value reserve effect from the sale of shares in associate booked
in the income statement. The fair value reserve that was booked
in the Fiskars Group opening balance in 2005 has been
dissolved during the year as Fiskars does not apply hedge accounting.
SEGMENTINFORMATION 10-12 10-12 chg 1-12 1-12 chg
NET SALES 2005 2004 % 2005 2004 %
MEUR MEUR MEUR MEUR
Fiskars Brands 119.4 118.1 1 513.3 528.0 -3
Inha Works 7.3 6.4 14 32.4 29.2 11
Real Estate 1.5 2.8 -48 8.9 11.0 -19
Eliminations -1.2 -0.7 60 -3.5 -2.6 33
CORPORATE TOTAL 127.0 126.6 0 551.1 565.6 -3
Export from Finland 12.4 14.6 -15 55.5 56.2 -1
SEGMENTINFORMATION 10-12 10-12 1-12 1-12
RESULT 2005 2004 2005 2004
MEUR MEUR MEUR MEUR
Fiskars Brands 1.4 6.6 -1.6 48.5
Inha Works 0.3 0.9 3.5 3.6
Real Estate 0.0 1.8 2.0 5.2
Eliminations and other oper. -2.3 -1.4 -5.8 -5.2
OPERATING PROFIT -0.5 7.9 -2.0 52.1
Associated company Wärtsilä 11.7 12.9 28.6 26.7
Gain on sale of Wärtsilä shares 49.8
Financial cost net -2.3 -0.9 -7.1 -3.8
RESULT AFTER FINANCIAL ITEMS 8.9 19.9 69.4 75.0
SEGMENTINFORMATION 10-12 10-12 1-12 1-12
DEPRECIATION AND AMORTIZATION 2005 2004 2005 2004
ACCORDING TO PLAN MEUR MEUR MEUR MEUR
Fiskars Brands 7.5 6.4 55.9 22.7
Inha Works 0.3 0.2 1.0 0.8
Real Estate 0.4 0.4 1.3 1.3
Eliminations and other oper. 0.3 0.2 0.5 0.4
CORPORATE TOTAL 8.5 7.2 58.7 25.1
SEGMENTINFORMATION 10-12 10-12 1-12 1-12
INVESTMENTS 2005 2004 2005 2004
MEUR MEUR MEUR MEUR
Fiskars Brands 4.9 4.3 24.1 15.8
Inha Works 0.5 0.3 3.4 1.3
Real Estate 1.2 0.6 2.9 2.2
Assoc.comp.Wärtsilä 21.0 30.2 22.2
Other 0.0 0.1 0.4 0.6
CORPORATE TOTAL 27.6 5.3 60.9 42.2
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 12/05 12/04
MEUR MEUR
FOR THE COMPANY'S OWN
COMMITMENTS
Real estate mortgages 0
Pledged assets 1
Bills of exchange 0 0
Lease contingencies 23 31
Other contingencies 1 4
TOTAL CONTINGENCIES 24 36
NOMINAL VALUES OF DERIVATIVE
INSTRUMENTS
Forward exch. contracts 145 114
Interest rate swaps 22
FRA's 59 29
Currency options 4
Nominal values also include closed contracts.
RECONCILIATION OF NET PROFIT 1-12
2004
MEUR
NET PROFIT ACCORDING TO FAS 44.9
Change in biological assets 2.0
Revenue recognition -0.2
Inventory valuation -0.1
Employee benefits 3.1
Development costs 0.1
Goodwill amortization and impairment 2.5
Finance leases -0.5
Deferred tax effect -2.8
Assoc. comp. Wärtsilä 5.8
Other adjustments -0.2
NET PROFIT ACCORDING TO IFRS 54.6
RECONCILIATION OF EQUITY 1.1. 31.12.
2004 2004
MEUR MEUR
EQUITY ACCORDING TO FAS 348.3 318.8
Biological assets 28.7 30.4
Cancellation of revaluations -9.8 -9.8
Re-valuation of real estate 1.1 0.9
Revenue recognition -0.8 -0.8
Inventory valuation -2.6 -2.4
Employee benefits -9.7 -6.6
Development costs 2.5 2.5
Goodwill amortization and impairment 0.0 3.5
Financial leasing 0.0 -0.4
Deferred tax -2.9 -6.0
Assoc. company Wärtsilä 0.0 5.3
Other adjustments 0.0 0.3
TOTAL IFRS RESTATEMENT 6.3 16.9
EQUITY ACCORDING TO IFRS 354.6 335.8