FISKARS CORPORATION’S RESULTS 2006

FISKARS CORPORATION'S RESULTS 2006

FISKARS SALES INCREASED, PROFITABILITY IMPROVED


HIGHLIGHTS OF THE FISCAL YEAR 2006
   -   Net sales increased by 4.9% to EUR 534.9 million (509.9)
   -   Operating profit for wholly-owned operations before non-recurring items 
       increased to EUR 37.8 million (33.8)
   -   Income from associate Wärtsilä was EUR 58.6 million (28.6)
   -   Gain from sale of Power Sentry operations was EUR 13.0 million
   -   The Board proposes a dividend of EUR 0.60 per share of Series A and EUR 0.58 
       per share of Series K

HIGHLIGHTS OF THE FOURTH QUARTER
   -   Net sales increased by 8.7% to EUR 125.2 million (115.2)
   -   Operating profit for wholly-owned operations was EUR 2.3 million (-2.6)
   -   Operating profit was EUR 20.0 million (9.1)
   -   In the fourth quarter, non-recurring restructuring costs of EUR 4.2 million (5.9) 
       were booked
   -   Profit for the period was EUR 9.5 million (9.4)
   -    Extra dividends from Wärtsilä totaled EUR 23.7 million
   -   Extra dividend to shareholders totaled EUR 22.8 million


FISCAL YEAR 2006 IN BRIEF
The business operations of Fiskars Corporation consists of the consumer goods 
operations managed by Fiskars Brands, the boat and metal products operations at Inha 
Works Ltd, and the Real Estate Group. In addition, Fiskars has a significant holding in 
the associated company Wärtsilä.
During the fiscal year 2006, Fiskars acquired the Swedish Silva Group and divested its 
Power Sentry operations in the United States. The Corporation is also completing the 
large-scale reorganization of its US manufacturing operations.


REPORT BY THE BOARD OF DIRECTORS 2006

Net sales of Fiskars Corporation increased by 4.9% in the fiscal year and was EUR 534.9 
million (509.9). A total of 47.7% (43.1) of net sales were generated in Europe, and 44.1% 
(49.6) in the United States. The shift towards Europe was due to divestment and 
acquisition transactions, general development of the market and, to a lesser extent, to 
changes in currency exchange rates.

The costs of reorganizing the US operations of the Corporation's largest division, Fiskars 
Brands, announced in the Fall of 2005, were booked and totaled EUR 50.3 million, in 
accordance with the original plans.

The number of employees at the end of the year was 3,003 (3,220). The number of 
employees decreased particularly in the US, where three production plants were closed 
and two turned into predominantly packing and distribution centers. Outsourcing 
increased, particularly in the United States, and the newly launched products have been 
well received. Of the products for sale during early spring in 2007, however, a 
considerable proportion has been manufactured using production capacity that has 
subsequently been closed. The cost-effectiveness of outsourcing will not become visible 
until after the first quarter.

The Corporation's operating profit was EUR 85.8 million (22.7). The reported non-
recurring costs related to the reorganization were at the estimated level, EUR 10.6 million 
(39.7). Operating profit from wholly-owned operations before non-recurring items was 
EUR 37.8 million (33.8). Comparable profitability measured in operating profit per 
centage improved to 7.1% (6.6).

The Fiskars Corporation income from associate Wärtsilä results was EUR 58.6 million 
(28.6).
The profit before taxes for the fiscal year was EUR 76.7 million (65.4). The profit for 
2005 includes EUR 49.8 million in gains from the sale of Wärtsilä shares.

The Power Sentry operations divested during the fiscal year is now reported under 
discontinued operations, separate from continuing operations, and the Income Statement 
for 2005 has been adjusted accordingly.

The profit for the fiscal year was EUR 82.0 million (62.1). The earnings per share for the 
parent company shareholders was EUR 1.06 (0.80).

OPERATIONS

FISKARS BRANDS, INC.

Structural changes
At the end of June, Fiskars Brands sold the Power Sentry division, which marketed 
accessories for home appliances in the United States. The transaction was part of Fiskars 
Brands' strategy of focusing on core operations. The division had its own brands, and 
there was no significant operational connection to other operations of Fiskars Brands. Net 
sales for the Power Sentry division in 2005 were EUR 41.9 million, the number of 
employees 42, and the capital tied up in its operations was EUR 5.5 million. Gains from 
the sale of the division, together with the accrued profits for the first half of the year, 
EUR 15.2 million (3.9), is reported in discontinued operations. The Power Sentry 
division was sold for cash ; the transaction was final, and at the end of the fiscal year 
there were no open items relating to the sale.

The acquisition of the Swedish Silva Group was closed at the end of August 2006. The 
transaction comprised Silva Sweden AB, its US subsidiary The Brunton Company; the 
Group's European sales companies in the United Kingdom, France and Germany; and a 
majority in a production company in China. The investment was EUR 25.6 million. The 
Silva Group's annual net sales have been in excess of EUR 30 million. Silva and Brunton 
have strengthened the Fiskars Outdoor Recreation division by extending its product range 
to include, in particular, hiking products. The acquisition also brings Fiskars Brands new 
customers and distribution channels, particularly in the European markets. The wide 
product range of Silva and Brunton, including compasses, headlamps, and binoculars, are 
well respected brandnames with a good reputation. The figures for the Silva Group have 
been consolidated from the beginning of September.

The downsizing of the company's own manufacturing capacity, which was part of the 
reorganization begun in the US in the Fall, 2005, has in practice been completed, with 
non-recurring costs for the measures during the 2006 fiscal year totaling EUR 10.6 
million (39.7). Of these, some EUR 3.8 million were costs related to the reduction of 
personnel, with the remaining EUR 6.8 million being write-downs of fixed assets. The 
effects of the streamlining measures will become evident gradually during the first half of 
the year. As part of the reorganization scheme, Fiskars Brands discontinued 
manufacturing and marketing garden hoses and floor mats, and the two plants used for 
their manufacture were closed in the summer. The combined net sales of these operations 
in 2005 was some EUR 21 million and they employed 130 people.

Fiskars Brands has outsourced the manufacturing in the US of most of its craft products 
and a significant proportion of its garden tools. In future, the Craft and Garden divisions 
will focus more on product development and marketing. In these product categories, one 
plant has been closed down while two other factories have been converted into packaging 
and distribution centers. 

As a part of the streamlining of the Fiskars corporate structure, a holding company in 
Sweden was liquidated at the end of the fiscal year; and Fiskars Brands Europe Aps, 
which owns Fiskars Brands European subsidiaries, was transferred into direct ownership 
by the parent company. At the end of the fiscal year, a sales company was founded in 
Spain.

Fiskars Brands Operations
Fiskars Brands net sales grew by 3.8% and were EUR 489.9 million (472.0). In the main 
market areas, sales in Europe totaled EUR 214.3 million (185.6), with EUR 233.5 million 
(254.9) in the United States. The European share of sales increased, being 43.7% (39.3), 
while the US share was 47.7% (54.0). The Silva Group's contribution to the increase of 
net sales was EUR 12.5 million.

Fiskars Brands operating profit was EUR 21.1 million (-5.6). The non-recurring costs of 
the reorganization project totaled EUR 10.6 million (39.7). Excluding the non-recurring 
costs the operating profit was, as predicted, at last year's level at EUR 31.7 million 
(34.1). Related to sales, the operating profit was EUR 4.3% (-1.2).

Competition in the Fiskars product categories continued to be keen. In the US and the 
largest retail chains, there were some changes in the emphasis of product selection, not all 
of which were favorable to Fiskars. The shelf space of everyday commodities and 
perishables in the distribution channel is growing, while the space reserved for seasonal 
consumer goods is being reduced.

More effort than in previous years was put into developing and marketing new products 
during the fiscal year and marketing was brought closer to the consumers, particularly in 
the crafts sector. The supply chain has changed and become more demanding, so more 
was done to ensure the functionality of the supply chain while maintaining high quality. 
The costs of these measures had an effect on  profitability during the fiscal year.

European markets developed favorably; more than 10% of the 16% increase in sales was 
organic growth. Sales increased both in the traditionally strong market areas and in the 
countries of eastern central Europe. The favorable development of sales also showed in 
increased profitability. In other significant markets, such as Canada and Australia, sales 
grew and profitability improved.

Of the EUR 37.5 million (24.1) capital expenditure made by Fiskars Brands, the 
investment in the Silva Group was the largest at EUR 25.6 million. In 2005, some EUR 
11.9 million were spent on acquisitions. The remaining capital expenditure was mostly in  
tooling for new products, logistics centers, and the maintenance of production facilities. 
Due to the fact that more and more of the manufacturing is subcontracted, Fiskars aims to 
own the strategic tools and molds used in the manufacturing processes.

Research and development costs totaled EUR 5.5 million (4.9), which was some 1.1% of 
net sales (1.0). Capitalized product development cost totaled EUR 0.4 million (0.5). The 
most important new product innovations in garden tools were developed at the R&D unit 
in Billnäs, Finland, whereas most of the product development work done in the US is for 
new Craft and Outdoor Recreation products.

Fiskars Brands goodwill, which was increased by the acquisition of the Silva Group, 
totaled EUR 22.4 million at the end of the fiscal year (12.8). Goodwill impairments tests 
based on future cash flows are carried out annually for each of the cash generating units. 
On the basis of the calculations, there was no need for impairment.  In 2005, the goodwill 
of the Garden division in the US was impaired by EUR 19.7 million.

INHA WORKS
Net sales for Inha Works increased by 14.5%, totaling EUR 37.2 million (32.4). The 
operating profit was EUR 3.7 million (3.5). Profitability was constrained by continued 
sharp increase in the price of aluminum. The operating profit percentage was 9.9 (10.8). 
The demand for boats continued to grow healthily in the main market areas and the 
demand for Buster boats increased especially in Finland, Scandinavia, and Russia.

Production capacity was in full use throughout the year and the smaller boat models were 
contact manufactured. A new boat model, the Buster X, was launched in the Fall and 
sales got off to a good start. The new model has a variety of different layout options, and 
in size it comes between the earlier Buster L and Buster XL models.

Buster boats celebrate their 30th anniversary in 2007.

The sales of other Inha Works products, hinges and forged products, continued 
satisfactorily, as did the profitability of the operations.

During the year, capital expenditure of some EUR 1.2 million (3.4) was made, mostly in 
developing production and tools for new boat models. Research and development costs 
were EUR 0.6 million (0.5) or 1.6% of net sales (1.6). The costs were mostly related to 
the development of the boat range.

REAL ESTATE GROUP
In addition to leasing real estate to corporate and external customers, the Real Estate 
Group manages the Corporation's forests. The change in market value of biological assets 
is reported in profits from operating activities. During the 2006 fiscal year, the price of 
standing timber increased, whereas it had decreased during 2005. The value of standing 
timber increased by EUR 4.8 million (-0.8) over the year. The net sales for the Real 
Estate Group, of which the increase in the value of biological assets formed a significant 
part, was EUR 10.3 million (8.9) and the operating profit was EUR 7.6 million (2.0). 
Capital expenditure during the fiscal year totaled EUR 1.9 million (2.9).

ASSOCIATE WÄRTSILÄ
Income from Fiskars associate Wärtsilä was EUR 58.6 million (28.6). The considerable 
increase was due both to the favorable development of Wärtsilä's operations and the non-
recurring gains the associated company made through transactions. The latter were 
mostly gains from the sale of shares in Assa Abloy and Wärtsilä associate Ovako, their 
contribution to Fiskars' share of the profits being EUR 28.6 million (1.9).

At the end of the fiscal year, Fiskars share of Wärtsilä capital was 16.55% (16.81) and its 
share of the votes 30.44% (30.58). Wärtsilä's share capital and number of votes changed 
during the year, as holders of Wärtsilä options exercised their right to acquire shares. 
During the 2006 fiscal year, Fiskars did not trade in Wärtsilä stock; in 2005, selling 
Wärtsilä shares generated a gain of EUR 49.8 million.

Wärtsilä paid Fiskars a total of EUR 47.5 million in dividends (17.1). The book value of 
the Fiskars Wärtsilä holding at the end of the year was EUR 239.1 million (231.9), of 
which EUR 37.7 million was goodwill (38.1). The equity of Fiskars Corporation includes 
Fiskars' share of the  fair value reserve included in Wärtsilä's consolidated shareholders' 
equity, totaling EUR 21.6 million at the end of the year (24.7). The market value of 
Fiskars shares in Wärtsilä was EUR 645 million at the end of the year (394).


CORPORATE PROFIT AND TAXES
The operating profit of the Corporation, including Fiskars' income from associate 
Wärtsilä, was EUR 85.8 million (22.7). Net financial costs were EUR 9.1 million (7.1) 
and included investment income totaling EUR 0.8 million (2.5). Financial costs were at 
the same level as in the previous fiscal year.

Profit after financial items was EUR 76.7 million (65.4).

Taxes on continuing operations for the fiscal year were EUR 9.8 million (7.3). The gain 
from the sale of the Power Sentry division less the deferred tax assets are reported in 
discontinued operations together with the accumulated pre-sale profit from the Power 
Sentry operations. The income statement from the previous year was adjusted 
accordingly. 

Profit for the fiscal year was EUR 82.0 million (62.1). The share of new minority owners 
in the profits was negligible.

Earnings per share were EUR 1.06 (0.80) and continuing operations represented EUR 
0.86 of that (0.75).

BALANCE SHEET AND FINANCING
Cash flow from operations was EUR 99.0 million (58.6). Working capital decreased 
compared to the previous financial year. Inventories decreased by EUR 7.6 million 
despite that inventory tends to grow with a longer supply chain and supply periods.  The 
inventory management process was improved during the fiscal year. The restructuring 
costs influenced cash flow by EUR 3.8 million (1.0). Once again, dividends from 
Wärtsilä totaling EUR 47.5 million (17.1) were an important source of corporate cash 
flow.

Capital expenditure  totaled EUR 45.5 million (30.7). Of these, some EUR 26.0 million 
(11.9) were acquisitions and at EUR 19.5 million (18.8) capital expenditure in non-
current assets was less than the depreciation. The investment cash flow was EUR 10.1 
million (52.0) negative.

The Corporation's interest-bearing net debt decreased by EUR 38.1 million and was EUR 
101.9 million (140.0) at the year end. The capital loan of EUR 45.1 million at the end of 
2004 is reported in interest-bearing long-term liabilities.

The Corporation's liquidity remained good. Cash at the end of the year totaled EUR 44.9 
million (21.7), in addition to which there are considerable unused credit limits at hand.

Consolidated shareholders' equity was EUR 421.8 million (402.7) at the end of the year. 
Dividends paid during the year totaled EUR 57.1 million (22.8). The return on equity was 
19.9% (16.8). The equity to assets ratio increased and was 60% (57). Net gearing 
continued to decrease and was 24% (35).

Total assets were on the previous year's level at EUR 707.2 million (702.7). Non-current 
assets amounted to EUR 460.0 million (458.5). Non-current tax assets decreased by EUR 
13.6 million to EUR 30.4 million (44.0). Fiskars consolidated goodwill of EUR 22.4 
million was entirely related to Fiskars Brands. All the biological assets of EUR 35.0 
million (29.9) are in Finland. Investment properties comprise of buildings 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 operating units. The fixed assets of the two 
plants, closed down as part of the Fiskars Brands reorganization, have been sold during 
the fiscal year. The fixed assets of the two factories changed into logistics centers bear a 
book value of EUR 7.7 million,  the management's assessment is that there is no need for 
a write-off.

PERSONNEL
Corporate personnel numbered 3,003 employees at the end of the fiscal year (3,220). The 
comparable figure does not include the 42 people who worked in Power Sentry. Most of 
the planned changes in personnel caused by the restructuring of manufacturing at Fiskars 
Brands were realized during the 2006 year, decreasing the number of personnel by 400. 
Acquisition of the Silva Group increased the corporate staff by 273. The number of 
employees at the Billnäs plant in Finland decreased to 435 (529) while the number of 
employees at Inha Works increased by 30 to a total of 301 (271). The average number of 
employees was 3,167 (3,426), a decrease of 259.

During the fiscal year, a total of EUR 121.3 million (125.9) were paid in wages, salaries 
and benefits.

CORPORATE MANAGEMENT
Mr. Heikki Allonen was CEO and President. Ms. Jutta Karlsson was appointed general 
counsel for Fiskars Corporation and secretary to the Board on June 14, 2006. In 2006, the 
Board of Directors defined the basis for a 3-year bonus program for the CEO. The 
program is based on the development of the share price and it is capped. 

CORPORATE GOVERNANCE
Fiskars complies with the administrative and corporate governance rules for stock 
exchange listed entities published by the 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 January 1, 2006. The Corporation further applies internal insider 
guidelines as adopted on July 1, 2006.

MANAGEMENT OF RISKS AND UNCERTAINTIES
Fiskars most important operational risks relate to supply chain control, structural changes 
in the retail business environment and also partly to the development of raw-material 
prices. Supply chain control has been improved through increased quality control, close 
ties with suppliers and control of immaterial rights. Structural changes in distribution 
channels represents a risk mainly in the US. The impact of those changes is minimized 
through flexibility in marketing and careful forecasting. Changes in the cost of raw 
materials directly influences the cost of the company's own manufacturing processes and 
indirectly outsourcing. The Corporation has not used raw-material derivative instruments, 
but strives to make long-term contracts with key suppliers of raw materials. In order to 
generate growth, the ability to produce innovative new products responding to the needs 
of the customers is of particular importance.

The development of associate Wärtsilä's profitability has a significant impact on Fiskars' 
results, with the associated company's ability to pay dividends influencing Fiskars' cash 
flow. A significant decrease in Wärtsilä share prices might result in an impairment of the 
Corporation's book value.

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 generally high. No significant credit losses have 
materialized during the fiscal year.

Insurance policies are used to cover property risks and significant operational risks. Other 
risks associated with balance sheet values are estimated to be minor.

PURCHASE AND SALE OF OWN SHARES

The Board of Directors had an authorization to purchase and sell the Corporation's shares 
until the Annual General Meeting on March 20, 2006, provided that the total nominal 
value of such shares and the votes carried by them did not exceed five percent (5%) of 
the share capital and the total votes in the company.

At the Annual General Meeting, the Board was authorized to purchase and sell the 
Corporation's shares provided that the total number of such shares or of the votes carried 
by them did not exceed ten percent (10%) of the share capital and the total votes in the 
company. The Board did not exercise its authorization during the review period.

At December 31, 2006, 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 and 0.03% of the votes.


ANNUAL GENERAL MEETING 2006

Fiskars Corporation Annual General Meeting held on March 20, 2006 decided to 
distribute a dividend of EUR 0.45 per share of Series A, totaling EUR 24,667,641, and 
EUR 0.43 per share of Series K, totaling EUR 9,703,073.84.

It was decided that the number of Board members be seven. Mr. Kaj-Gustaf Bergh, Mr. 
Alexander Ehrnrooth, Mr. Paul Ehrnrooth, Ms. Ilona Ervasti-Vaintola, Mr. Gustaf 
Gripenberg, Mr. Karl Grotenfelt, and Mr. Olli Riikkala were elected. The term of the 
Board members will expire at the end of the Annual General Meeting in 2007.

KPMG Oy Ab was elected auditor.

The Annual General Meeting authorized the Board of Directors to acquire or divest a 
number of the company's own shares at the Helsinki Exchanges in a proportion deviating 
from the shareholders' existing proportionate holdings at share prices quoted on the 
Helsinki Exchanges at the time of such acquisition or divestment, provided that the total 
nominal value of such shares and the votes carried by them do not exceed ten percent 
(10%) of the share capital and the total votes in the company, whereby the authorization 
concerns a maximum of 5,494,449 of the company's own Series A shares and a 
maximum of 2,256,570 of Series K. The authorization is valid for a period of one year 
from March 20, 2006.


CONSTITUTIVE MEETING OF THE BOARD OF DIRECTORS

Convening after the Annual General Meeting, the Board elected Olli Riikkala its 
Chairman, and Alexander Ehrnrooth and Paul Ehrnrooth as Vice Chairmen. The Board 
appointed Gustaf Gripenberg Chairman of the Audit Committee and Alexander 
Ehrnrooth, Paul Ehrnrooth, and Ilona Ervasti-Vaintola as its other members. The Board 
appointed Olli Riikkala Chairman of the Compensation Committee and Kaj- Gustaf 
Bergh and Karl Grotenfelt as its other members.

On October 4, 2006, the Chairman of the Board Olli Riikkala notified the company that 
he would be on sick leave until the end of the year. At a meeting on October 5, 2006, the 
Board elected Kaj-Gustaf Bergh its Chairman for the remainder of the fiscal year.

On December 13, 2006, the Board decided to create a Nomination Committee. Kaj-
Gustaf Bergh was elected Chairman of the Nomination Committee, and Alexander 
Ehrnrooth and Paul Ehrnrooth its other members.


EXTRAORDINARY GENERAL MEETING

The Extraordinary General Meeting of Fiskars Corporation on December 12, 2006, 
decided to distribute an extra dividend for the fiscal year ending December 31, 2005. An 
extra dividend of EUR 0.30 per share of Series A, totaling EUR 16,445,094.00, and EUR 
0.28 per share of Series K, totaling EUR 6,318,280.64 was distributed.

SHARES AND SHARE PRICES
At the end of the 2006 fiscal year, Fiskars Corporation's share capital totaled EUR 
77,510,200 and there were no changes in the share capital or number of shares during the 
year. The Corporation has two series of shares, the A Series and the K Series, both of 
which are quoted on the Nordic List of the Helsinki Stock Exchange. The shares of Series 
A have one vote per share and the shares of Series K have 20 votes per share. The 
dividend per share paid out per share of Series A shall according to the Corporation's 
Articles of Association be a minimum of 2% higher than the dividend paid per a share of 
Series K.

On December 31, 2006, the number of shares of Series A was 54,944,492 while the 
number of shares of Series K was 22,565,708, totaling 77,510,200 shares. The shares of 
Series A had 54,944,492 votes and the shares of Series K had 451,314,160 votes, totaling 
506,258,652 votes.

At the end of December, the price of Fiskars A shares on the Helsinki Stock Exchange 
was EUR 12.29 (9.60 at the beginning of the year) and of K shares EUR 12.11 (9.90). 
The market value of the Corporation's share capital increased by 26% during 2006 and 
was EUR 947 million at the end of the year (750).


THE BOARD OF DIRECTORS' PROPOSAL FOR THE ANNUAL GENERAL 
MEETING

According to the consolidated balance sheet on December 31, 2005, the distributable 
equity amounts to 287,874,854.39  euro, of which 60,258,394.35  euro is profit from the 
fiscal year.

The Board of Directors proposes to the Annual General Meeting of the shareholders 
convening on March 21, 2007, that a dividend of 0.60 euro per outstanding share of 
Series A and 0.58 euro per outstanding share of Series K be paid. Thus the dividend 
distribution would be:
on 54,816,980 A shares, 0.60 euro per share, totaling	32,890,188.00euro
on 22,565,288 K shares, 0.58 euro per share, totaling	13,087,867.04 euro
Total dividend distribution				45,978,055.04 euro
Unused distributable funds of 241,896,799.35 euro remain in shareholders' equity.

Since the end of the 2006 fiscal year, no significant changes have occurred in the 
Corporation's financial position. The Corporation's liquidity is strong and the proposed 
distribution of equity does not in the Board's view endanger corporate liquidity.


OUTLOOK
The net sales and operating profit from Fiskars wholly-owned operations is expected to 
be on last year's levels during the first few months of the year. Net sales will increase 
slightly for the whole year and the result is expected to top the result for 2006 from the 
spring onwards.
Once again, the associated company Wärtsilä forms an important part of the 
Corporation's profit.


Heikki Allonen
President and CEO

 
 

CONSOLIDATED INCOME STATEMENT      10-12  10-12    chg   1-12   1-12    chg
                                    2006   2005      %   2006   2005      %
                                    MEUR   MEUR          MEUR   MEUR

NET SALES                          125.1  115.2      9  534.9  509.9      5

Cost of goods sold                 -87.3  -82.9      5 -375.4 -364.2      3
GROSS PROFIT                        37.8   32.3     17  159.6  145.6     10

Other operating income              -0.8    0.3   -421    1.3    2.3    -46
Sales and marketing expenses       -19.4  -16.2     20  -73.3  -65.9     11
Administration expenses            -11.3  -10.6      6  -45.3  -45.3      0
Research and development costs      -1.8   -1.5     18   -6.1   -5.3     15
Other operating expenses            -2.3   -6.8    -66   -9.0  -37.4    -76
Income from associate               17.7   11.7     51   58.6   28.6    105
OPERATING PROFIT                    20.0    9.1          85.8   22.7

Gain on sale of Wärtsilä shares                                 49.8
Financial income                     1.1    0.5    106    1.8    4.1    -57
Financial expenses                  -2.6   -2.8     -8  -10.9  -11.2     -3
PROFIT BEFORE TAXES                 18.5    6.9          76.7   65.4     17

Taxes                               -9.3    0.5          -9.8   -7.3     35
PROFIT FROM CONTINUING OPERATIONS    9.2    7.4          66.9   58.2     15

Profit from discontinued oper.       0.3    2.1    -85   15.2    3.9
PROFIT (LOSS) FOR THE PERIOD         9.5    9.4          82.0   62.1     32

Minority share                       0.0                  0.0
PROFIT FOR ORDINARY SHAREHOLDERS     9.5    9.4          82.0   62.1     32

Earnings for ordinary shareholders
per share, euro                     0.12   0.12          1.06   0.80
  continuing operations             0.12   0.10          0.86   0.75
  discontinued operations           0.00   0.03          0.20   0.05

Earnings per share is undiluted. The company has no open option programs or any other
financial instruments that would lead to dillution.

CURRENCY RATES                      1-12   1-12    chg
                                    2006   2005      %

USD average rate (I/S)              1.26   1.24      1
USD end-of-period (B/S)             1.32   1.18     12


CONSOLIDATED BALANCE SHEET         12/06  12/05    chg
                                    MEUR   MEUR      %
ASSETS

Intangible assets                   19.2   13.5     42
Goodwill                            22.4   12.8     75
Tangible assets                     98.7  110.9    -11
Biological assets                   35.0   29.9     17
Investment property                  8.7    9.4     -8
Investments in associates          239.1  231.9      3
Other shares                         5.0    4.8      5
Other investments                    1.5    1.3     20
Avoir fiscal tax receivables         5.5    9.0    -39
Deferred tax assets                 24.9   35.0    -29
LONG-TERM TOTAL                    460.0  458.5      0

Inventories                        114.6  129.3    -11
Trade receivables                   82.7   86.9     -5
Other receivables                    5.0    6.4    -22
Cash in hand and at bank            44.9   21.7    107
CURRENT TOTAL                      247.2  244.2      1

ASSETS TOTAL                       707.2  702.7      1

EQUITY AND LIABILITIES

Shareholders' equity               421.8  402.7      5

L/t interest bear.debt             120.7  124.5     -3
L/t non-interest bear.debt           2.6    2.7     -2
Deferred tax liabilities            20.8   17.6     18
Pension liability                   12.8   15.5    -17
Provisions                           4.2    2.9     46
LONG-TERM LIABILITY TOTAL          161.1  163.1     -1

S/t interest bear.debt              26.1   37.2    -30
Trade payable and
other non-interest bearing debt     92.6   94.6     -2
Income tax payable                   5.7    5.1     12
CURRENT LIABILITY TOTAL            124.4  136.9     -9

EQUITY AND LIABILITIES TOTAL       707.2  702.7      1


CONSOLIDATED STATEMENT                     1-12   1-12
OF CASH FLOW                               2006   2005
                                           MEUR   MEUR
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before taxes                        76.7   65.4
Adjustments for
  Depreciation                             28.6   58.5
  Income from associate                   -58.6  -28.6
  Investment income                        -0.8  -52.3
  Interest expense                          9.9    9.5
  Chg in value of biological assets        -5.0    0.5
Dividends from associates                  47.5   17.1
Dividends received, other                   3.6    0.1
Financial costs paid (net)                 -7.4   -8.2
Taxes paid                                 -5.1   -6.7
Change in interest free assets             -5.4    8.1
Change in inventories                       7.6   -7.8
Change in interest free liabilities         7.6    3.0
NET CASH FROM OPERATING ACTIVITIES(A)      99.0   58.6

CASH FLOWS FROM INVESTING ACTIVITIES
Acquisitions                              -26.0  -11.9
Transact. in assoc. comp. shares                  74.4
Capital expenditure                       -19.3  -18.8
Proceeds from sale of fixed assets          5.4    2.9
Sale of other l/t investments               2.2    1.7
Purchase of other l/t investments          -5.3   -0.2
Cash flow from discontinued operations     33.0    3.9
NET CASH USED IN INVESTING ACTIVITIES(B)  -10.1   52.0

CASH FLOWS FROM FINANCING ACTIVITIES
New long-term loans                        15.0
Amortization of l/t loans                  -4.6  -32.8
Changes in short-term loans               -21.4  -39.8
Financial leases, payments                 -2.8   -3.7
Other financing items                       0.1   -3.1
Dividends paid                            -57.1  -22.8
NET CASH FLOW FROM FINANC. ACTIVITIES(C)  -70.8 -102.3

Translation difference (D)                  5.0   -2.3
CHANGE IN CASH (A+B+C+D)                   23.2    6.1

Cash at beginning of period                21.7   15.6
Cash at end of period                      44.9   21.7


STATEMENT OF CHANGES IN EQUITY   Equity holders of the parent companMinorit  Total
                                                 Other              interest
                                   Share    Own reser-Transl.Retain.
                                 capital shares    vesadjustm  earn.
                                    MEUR   MEUR   MEUR   MEUR   MEUR   MEUR   MEUR
Dec.31,2004 IFRS                    77.5   -0.9    0.0   -1.4  260.5    0.0  335.8
Adoption of IAS 39
   Fiskars Corporation                            -0.4           0.4           0.1
   Associate Wärtsilä                             37.8                        37.8
Jan.1,2005 IFRS                     77.5   -0.9   37.5   -1.4  261.0    0.0  373.7
Translation differences                                   1.4                  1.4
Change in fair value reserve                       0.4                         0.4
Chg in investment in associate                    -6.9                        -6.9
Other changes in associate                        -6.3    1.2   -0.1          -5.2
NET INCOME RECOGNISED DIRECTLY IN EQUITY         -12.8    2.6   -0.1    0.0  -10.3
Net profit for the period                                       62.1          62.1
TOTAL RECOGNISED INCOME AND
EXPENSE FOR THE PERIOD                           -12.8    2.6   62.0    0.0   51.8
Dividend distribution                                          -22.8         -22.8
Dec.31,2005 IFRS                    77.5   -0.9   24.7    1.2  300.3    0.0  402.7
Translation differences                                  -2.0                 -2.0
Change in fair value reserve, associate           -3.1                        -3.1
Other changes in associate                               -0.7   -0.1          -0.8
Other changes                                                           0.0    0.0
NET INCOME RECOGNISED DIRECTLY IN EQUITY          -3.1   -2.7   -0.1    0.0   -5.9
Net profit for the period                                       82.0    0.0   82.0
TOTAL RECOGNISED INCOME AND
EXPENSE FOR THE PERIOD                            -3.1   -2.7   81.9    0.0   76.2
Dividend distribution                                          -57.1         -57.1
Dec.31,2006 IFRS                    77.5   -0.9   21.6   -1.5  325.0    0.0  421.8

Fiskars shares of associated company Wärtsilä's fair value reserve and its
changes are specified in the other reserves above.


KEY FIGURES                        12/06  12/05    chg
                                                     %
Equity/share, euro                  5.45   5.20      5
Equity ratio                         60%    57%
Net gearing                          24%    35%
Equity, meur                       421.8  402.7      5
Net interest bear.debt, meur       101.9  140.0    -27
Average number of employees         3167   3426     -8
Number of employees eop             3003   3220     -7

SEGMENT INFORMATION                10-12  10-12    chg   1-12   1-12    chg
NET SALES                           2006   2005      %   2006   2005      %
                                    MEUR   MEUR          MEUR   MEUR
Fiskars Brands                     113.0  107.6      5  489.9  472.0      4
Inha Works                           9.1    7.3     26   37.2   32.4     15
Real Estate                          3.6    1.5    143   10.3    8.9     15
Unallocated and eliminations        -0.6   -1.2    -49   -2.4   -3.5    -30
CORPORATE TOTAL                    125.1  115.2      9  534.9  509.9      5

Export from Finland                 15.7   12.4     27   58.9   55.5      6


SEGMENT INFORMATION                10-12  10-12          1-12   1-12
RESULT                              2006   2005          2006   2005
                                    MEUR   MEUR          MEUR   MEUR
Fiskars Brands                       0.0   -0.6          21.1   -5.6
Inha Works                           0.8    0.3           3.7    3.5
Real Estate                          2.4    0.0           7.6    2.0
Associate Wärtsilä                  17.7   11.7          58.6   28.6
Unallocated and eliminations        -1.0   -2.3          -5.2   -5.8
OPERATING PROFIT                    20.0    9.1          85.8   22.7


SEGMENT INFORMATION                10-12  10-12          1-12   1-12
DEPRECIATIONS                       2006   2005          2006   2005
                                    MEUR   MEUR          MEUR   MEUR
Fiskars Brands                       9.2    7.5          25.8   55.7
Inha Works                           0.3    0.3           1.2    1.0
Real Estate                          0.5    0.4           1.4    1.3
Unallocated and eliminations         0.0    0.3           0.1    0.5
CORPORATE TOTAL                     10.0    8.5          28.6   58.5


SEGMENT INFORMATION                10-12  10-12          1-12   1-12
CAPITAL EXPENDITURE                 2006   2005          2006   2005
                                    MEUR   MEUR          MEUR   MEUR
Fiskars Brands                       5.1    4.9          37.5   24.1
Inha Works                           0.6    0.5           1.2    3.4
Real Estate                          0.4    1.2           1.9    2.9
Associate Wärtsilä                         21.0                 30.2
Unallocated and eliminations         0.3    0.0           0.3    0.4
CORPORATE TOTAL                      6.3   27.6          40.8   60.9


GEOGRAPHICAL SEGMENT               10-12  10-12    chg   1-12   1-12    chg
NET SALES BASED ON CUSTOMER         2006   2005      %   2006   2005      %
LOCATION                            MEUR   MEUR          MEUR   MEUR
Europe                              64.4   49.2     31  256.2  219.3     17
USA                                 49.8   56.0    -11  235.2  253.3     -7
Rest of the world                   10.9   10.0      9   43.5   37.3     17
CORPORATE TOTAL                    125.1  115.2      9  534.9  509.9      5

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.


IMPACT OF ACQUISITIONS ON THE CONSOLIDATED
BALANCE SHEET

During the reporting period Fiskars has acquired Silva Sweden AB with
its subsidiaries and paid meur 0.4 additionally for Superknife in US

                                                        12/06
                                                         MEUR
Specification of Silva acquisition costs
Acquisition costs                                        25.6
Acquired assets                                         -14.6
GOODWILL                                                 11.1

Specification of acquired assets:
Tangible and intangible assets                           10.8
Inventories                                               8.4
Receivables                                               5.3
Cash and cash equivalents                                 0.2
Minority interest                                         0.0
Deferred tax liability                                   -3.1
Non-current liabilities                                  -1.0
Current liabilities                                      -6.0
TOTAL                                                    14.6


CONTINGENCIES                             12/06  12/05
                                           MEUR   MEUR
FOR THE COMPANY'S OWN COMMITMENTS
Bills of exchange                             0      0
Lease contingencies                          19     23
Other contingencies                           9      1
TOTAL                                        28     24

GUARANTEES AS SECURITY FOR
OTHER PARTIES' COMMITMENTS
Real estate mortgages                         2      2

TOTAL CONTINGENCIES                          30     26

NOMINAL AMOUNTS OF DERIVATIVES

Forward exch. contracts                      94    145
Currency options                                     4
FRA's                                               59

MARKET VALUE VS. NOMINAL AMOUNTS
OF DERIVATIVES

Forward exch. contracts                       0     -2
Currency options                                     0
FRA's                                                0

Forward exchange contracts have been valued at market in the financial statements.