
Stock exchange release
November 2, 2010
Fiskars' Interim Report January 1 - September 30, 2010
NET SALES AND OPERATING PROFIT CONTINUED TO GROW STRONGLY IN THE THIRD QUARTER Third quarter 2010 highlights: - Net sales increased 12% to EUR 159.5 million (Q3 2009: 142.0), at comparable currency rates growth was 6% - Operating profit increased to EUR 12.9 million (8.8) - Earnings per share were EUR 0.29 (0.22) - Cash flow from operating activities was EUR 18.3 million (30.6) - Outlook for 2010 unchanged: full-year net sales and operating profit, excluding non-recurring items, to increase compared to 2009 Fiskars President and CEO, Kari Kauniskangas: "Fiskars' overall performance continued strongly in the third quarter. I am pleased to see that our hard work and tighter focus on our businesses and brands are starting to pay off. All our business areas in Europe improved both their net sales and operating profit. Sales in the Americas developed positively, despite the divestments made in 2009. Favorable currency rates also contributed to higher net sales. We have launched a number of new exiting products and as a result, strengthened our brands and market position. We have improved our performance throughout the year. This gives us an excellent starting-point for the holiday season, which is important particularly for the Home business area." GROUP KEY FIGURES EUR million Q3 Q3 Change Q1-Q3 Q1-Q3 Change Q1-Q4 2010 2009 % 2010 2009 % 2009 Net sales 159.5 142.0* 12 525.3 487.7* 8 660.3* Operating profit (EBIT) 12.9 8.8 47 47.7 30.0 59 39.5 Share of profit from associate 17.3 14.7 17 35.9 46.7 -23 66.5 Change in the fair value of biological assets -0.6 -0.1 -1.8 -0.3 -0.4 Profit before taxes 26.6 20.6 29 76.3 63.2 21 91.4 Profit for the period 24.1 17.9 35 65.4 57.5 14 83.5 Earnings per share, EUR 0.29 0.22 0.80 0.73 1.05 Equity per share, EUR 6.57 5.80 6.16 Cash flow from operating activities 18.3 30.6 -40 63.0 77.9 -19 121.0 Equity ratio, % 55% 50% 52% Net gearing, % 41% 59% 47% Capital expenditure 3.5 3.1 11 11.0 11.1 -1 14.6 Personnel (FTE), average 3,631 3,921 -7 3,594 4,027 -11 3,867 *) The figures for 2009 include changes due to the reclassification of certain accounts. Please see the notes to the interim report. Further information: - President and CEO Kari Kauniskangas, tel. +358 204 39 5500 - CFO Teemu Kangas-Kärki, tel. +358 204 39 5703 News conference: An analyst and press conference on the third quarter results will be held on November 2, 2010 at 10:00 am at the company's headquarters: Fiskars Campus, Hämeentie 135 A, Helsinki. Presentation materials will be available at www.fiskarsgroup.com. FISKARS' INTERIM REPORT, JANUARY - SEPTEMBER 2010 (IFRS, unaudited) Group performance in Q3 2010 Fiskars' consolidated net sales in the third quarter of 2010 increased by 12% to EUR 159.5 million (Q3 2009: 142.0 million). At comparable currency rates, the sales increase was 6%. Net sales for EMEA (Europe, Middle East, and Asia-Pacific) were EUR 112.2 million (99.5) as a result of sales growth in all business areas. Net sales for the Americas were also higher, at EUR 49.2 million (43.7), due to the stronger US dollar and good performance in the Garden business. The Group's operating profit increased by 47% to EUR 12.9 million (8.8). The operating profit for EMEA was EUR 9.3 million (5.9), driven by better performance in the Home, Garden, and Boat businesses. The operating profit for the Americas was EUR 5.4 million (4.6), as a result of improved Garden and Outdoor businesses. Fiskars' share of profit from its associated company, Wärtsilä, during the third quarter was EUR 17.3 million (14.7), and the change in the fair value of standing timber was EUR -0.6 million (-0.1). Net financial costs were EUR -2.9 million (-2.8). The third-quarter profit before taxes was EUR 26.6 million (20.6). The profit for the third quarter was EUR 24.1 million (17.9), and earnings per share were EUR 0.29 (0.22). Group performance in January - September 2010 The Group's net sales in the reporting period increased by 8% to EUR 525.3 million (Q1-Q3 2009: 487.7 million). At comparable currency rates, the increase was 4%. Net sales for EMEA were EUR 359.1 million (326.1), and EUR 172.7 million (168.2) for the Americas. The Group's operating profit increased by 59% to EUR 47.7 million (30.0, including 0.5 million of non-recurring costs). The operating profit for EMEA was EUR 33.3 million (15.8) and EUR 22.8 million (21.7) for the Americas. Fiskars' share of profit from its associated company Wärtsilä was EUR 35.9 million (46.7), and the change in the fair value of standing timber was EUR -1.8 million (-0.3). Net financial costs were EUR -5.5 million (-13.2). In 2009 the valuation of currency derivatives increased financial costs. Profit before taxes was EUR 76.3 million (63.2) and profit for the period was EUR 65.4 million (57.5). Earnings per share were EUR 0.80 (0.73). Capital expenditure Capital expenditure was EUR 3.5 million (3.1) in the third quarter and depreciation was EUR 5.9 million (6.3). Investments were largely related to production-related replacements and new product development. Capital expenditure for January - September as a whole totaled EUR 11.0 million (11.1) and depreciation was EUR 17.5 million (21.6). Financing Cash flow from operating activities was EUR 18.3 million (30.6) in the third quarter. In 2009 a significant reduction of inventories increased the cash flow. Cash flow from operating activities in January - September was EUR 63.0 million (77.9). Dividends paid by associated company Wärtsilä in March totaled EUR 29.5 million (25.3). Cash flow from investing activities was EUR -3.5 million (-1.8) and cash flow after investing activities was EUR 14.8 (28.8) in the third quarter. Fiskars' working capital was EUR 114.7 million (125.1) as of the end of September. The equity ratio rose to 55% (50%) and net gearing was 41% (59%). In addition, the market value of Fiskars' shares in its associated company Wärtsilä was EUR 806.4 (461.3), which is EUR 479.5 million (165.8) higher than the book value of these shares. Cash and cash equivalents at the end of the period totaled EUR 5.2 million (7.0). Net interest-bearing debt amounted to EUR 221.7 million (279.3). Short-term borrowings totaled EUR 151.2 million (195.8) and long-term borrowings EUR 76.1 million (91.7). Short-term borrowings are mainly commercial papers issued by Fiskars Corporation. In addition, Fiskars had EUR 405.0 million (415.0) in unused, binding long-term credit facilities, mainly with major Nordic banks. Personnel The Group employed an average of 3,594 (4,027) full-time equivalent employees (FTEs) in January - September: 2,848 (3,127) employees in EMEA, 599 (786) in the Americas, and 147 (114) in Other. As of the end of September, the Group had altogether of 3,899 (3,897) employees in payroll. Operating segments Fiskars' operating segments are EMEA (Europe, Middle East, and Asia-Pacific), Americas, Wärtsilä (associated company), and Other (Real Estate, corporate headquarters and shared services). The company's business areas are Home (homeware and school, office & craft), Garden, and Outdoor (outdoor equipment and boats). EMEA in Q3 2010 EUR million Q3 Q3 Change Q1-Q4 2010 2009 % 2009 Net sales 112.2 99.5 13 451.6 Net sales, currency neutral 112.2 103.1 9 466.2 Operating profit 9.3 5.9 57 26.5 Capital expenditure 2.7 2.2 25 10.6 Personnel (FTE), average 2,858 3,052 -6 3,006 Net sales in EMEA in the third quarter increased 13% to EUR 112.2 million (99.5). Using comparable currency rates, sales were up 9%. The Home business area continued to perform strongly. Sales development was good in Finland and Norway in particular. The company's key international brands, Iittala and Fiskars, developed well. Sales of school, office, and craft products declined in the quarter. The Garden business area had strong overall development. Sales of Fiskars- branded products improved, primarily those of cutting tools. The launch of a new ax product range and marketing campaigns in Germany and France contributed to this growth. The Outdoor business area developed well. Sales of boats and outdoor equipment under the Silva and Gerber brands were up. The Buster brand continued as the market leader in boats in Finland with a record high market share. The segment recorded an operating profit of EUR 9.3 million (5.9). Better efficiency at production plants and outsourcing resulting from higher volumes contributed to an improved operating profit in the Home and Garden business areas. The profitability for the boat business developed favorably, but was still weak. Americas in Q3 2010 EUR million Q3 Q3 Change Q1-Q4 2010 2009 % 2009 Net sales 49.2 43.7 13 218.2 Net sales, currency neutral 49.2 48.6 1 233.1 Operating profit 5.4 4.6 16 23.9 Capital expenditure 0.6 0.6 0 2.8 Personnel (FTE), average 610 751 -19 742 Net sales in the Americas increased by 13% to EUR 49.2 million (43.7). A favorable currency rate against USD contributed to the growth in net sales. Using comparable currency rates, sales were up 1%. Net sales at the Garden business area developed well, and growth was particularly strong in Canada. Sales of garden tools and two new categories - rain barrels and reel mowers - continued to increase. Sales in the Home business area, which consists of school, office, and craft (SOC) products, developed positively, thanks to successful back-to-school campaigns. In the Outdoor business area, net sales decreased due to the Brunton divestment in December 2009. Gerber's product sales, however, grew during the quarter. The segment's operating profit rose to EUR 5.4 million (4.6) due to higher volumes in Garden and a better product mix and lower cost levels in the Outdoor business area. Other in Q3 2010 EUR million Q3 Q3 Change Q1-Q4 2010 2009 % 2009 Net sales 1.7 1.7 1 6.1 Operating profit -1.8 -1.7 2 -10.9 Capital expenditure 0.1 0.3 -66 1.2 Personnel (FTE), average 164 118 39 119 Fiskars' Other segment covers the Real Estate unit, corporate headquarters, and shared services. Net sales were EUR 1.7 million (1.7) in the third quarter and largely consisted of timber sales and rental income. The operating profit was EUR -1.8 million (-1.7). Wärtsilä in Q3 2010 Fiskars owns 17.1% of the shares and votes of its associated company, Wärtsilä Corporation. Fiskars' share of Wärtsilä's profit totaled EUR 17.3 million (14.7) during the third quarter. The market value of Fiskars' Wärtsilä shares was EUR 806.4 million (461.3) or EUR 9.85 (5.63) per Fiskars' share at the end of the period, with a closing price of EUR 47.87 (27.38) per Wärtsilä share. The book value of these shares in the consolidated balance sheet was EUR 326.9 million (295.4). Corporate governance Fiskars complies with the Finnish Corporate Governance Code issued by the Securities Market Association, which came into force on October 1, 2010. Fiskars' Corporate Governance Statement for 2009 in accordance with the Code was issued on February 11, 2010 as a separate report. Fiskars also complies with the insider regulations of NASDAQ OMX Helsinki, updated on October 9, 2009, and the company's internal insider guidelines were last updated on November 3, 2009. Share and shareholders Fiskars Corporation has one series of shares (FIS1V), following the combination of the company's series A and K shares in July 2009. All shares carry one vote each and equal rights. The total number of shares at the end of the period was 82,023,341, including 112,619 treasury shares. Treasury shares correspond to 0.14% of the Corporation's shares and votes. The Board of Directors has authorizations to acquire and/or convey 4,000,000 company shares. The Board may decide on the acquisition and conveyance of shares also in derogation of the pre-emptive right of shareholders to company shares. The authorizations were not used during the reporting period. The share capital remained unchanged at EUR 77,510,200. Shares are traded in the Large Cap segment of NASDAQ OMX Helsinki Ltd. The average share price during the quarter was EUR 12.89 (9.12). As of the end of September, the closing price was EUR 14.26 per share (10.65) and the shares' market capitalization, excluding treasury shares, was EUR 1,168.0 million (872.3). The number of shares traded during the period was 1.1 million (1.0), which is 1.4 % of the average number of shares outstanding. Fiskars paid on March 26, 2010 a dividend of EUR 0.52 per share, totaling EUR 42.6 million. The total number of shareholders was 12,102 (11,591) as of the end of September. Fiskars was not informed of any significant changes among its largest shareholders during the reporting period. Risks and business uncertainties Fiskars' business, sales, and financial performance may be affected by several uncertainties. The principal uncertainties are related to: - General market conditions and a potential decline in consumer demand in Fiskars' major market areas in Europe and North America - Loss of or reduced sales to major retail customers, retailers' financial difficulties, and disruptions in the activities of a distribution channel - Availability of products due to supply chain issues - Adverse weather conditions in the Garden business area - Seasonal variations, which can make predicting developments more difficult, especially in the Home business area, which is heavily geared towards the end of the year - Sudden fluctuations in raw material and energy prices; the most important raw materials being steel, aluminum, and plastic - Major changes in the profitability of associated company Wärtsilä or its ability to pay dividends. Outlook for 2010 Consumer confidence and retailer purchasing have improved in Europe, but market developments in the Americas remain cautious and more difficult to predict. Fiskars has strengthened its business and continued implementing measures designed to improve its profitability and competitiveness in 2010. Investments in brands and product development will continue to be increased, as the Group's capabilities in these areas are central to its success. The outlook for 2010 remains unchanged. Fiskars' net sales in 2010 are expected to be above 2009 levels. Full-year operating profit, excluding non- recurring items, is expected to increase compared to 2009. Associated company Wärtsilä will continue to have a major impact on Fiskars' profit and cash flow in 2010. Helsinki, Finland, November 1, 2010 Fiskars Corporation Board of Directors CONSOLIDATED INCOME STATEMENT 7-9 7-9 Change 1-9 1-9 Change 1-12 2010 2009* % 2010 2009* % 2009* MEUR MEUR MEUR MEUR MEUR NET SALES 159.5 142.0 12 525.3 487.7 8 660.3 Cost of goods sold -101.0 -92.1 10 -336.9 -325.1 4 -439.2 GROSS PROFIT 58.5 49.9 17 188.5 162.6 16 221.1 Other operating income 0.4 0.3 1.7 1.4 1.8 Sales and marketing expenses -28.5 -26.8 6 -88.7 -82.8 7 -114.2 Administration expenses -15.3 -12.9 19 -47.6 -44.6 7 -60.0 Research and development costs -2.0 -1.9 7 -6.0 -6.4 -6 -8.7 Other operating expenses -0.2 0.0 -0.2 -0.1 -0.5 OPERATING PROFIT (EBIT) 12.9 8.8 47 47.7 30.0 59 39.5 Change in fair value of biological assets -0.6 -0.1 -1.8 -0.3 -0.4 Share of profit from associate 17.3 14.7 17 35.9 46.7 -23 66.5 Other financial income and expenses -2.9 -2.8 3 -5.5 -13.2 -59 -14.2 PROFIT BEFORE TAXES 26.6 20.6 29 76.3 63.2 21 91.4 Income taxes -2.6 -2.7 -11.0 -5.7 -7.9 PROFIT FOR THE PERIOD 24.1 17.9 35 65.4 57.5 14 83.5 Attributable to: Owners of the Company 24.1 17.9 35 65.4 57.5 14 83.5 Earnings for owners of the Company per share, euro (basic and diluted) 0.29 0.22 0.80 0.73 1.05 OTHER COMPREHENSIVE INCOME 7-9 7-9 1-9 1-9 1-12 2010 2009 2010 2009 2009 MEUR MEUR MEUR MEUR MEUR Profit for the period 24.1 17.9 65.4 57.5 83.5 Translation differences -11.1 -2.2 7.4 -2.0 -1.9 Change in associate recognized directly in other comprehensive income 0.0 5.1 3.8 10.5 12.7 Cash flow hedges -0.2 -0.6 Equity net investment hedges after tax 0.6 1.2 1.3 Defined benefit plan, actuarial gains (losses), net of tax 0.0 0.0 0.0 -0.4 0.7 Other comprehensive income for the period, net of tax, in total -11.3 3.6 10.6 9.2 12.8 Total comprehensive income for the period 12.8 21.4 75.9 66.7 96.3 Attributable to: Owners of the Company 12.8 21.4 75.9 66.7 96.3 *) The previous year's figures include changes due to reclassification of certain accounts. Please see the notes to the interim financial statements. CONSOLIDATED BALANCE SHEET 9/2010 9/2009 Change12/2009 MEUR MEUR % MEUR ASSETS NON-CURRENT ASSETS Goodwill 99.8 99.3 0 99.4 Other intangible assets 126.3 126.9 0 124.9 Property, plant & equipment 92.4 104.8 -12 99.5 Biological assets 37.1 39.0 -5 38.9 Investment property 7.8 7.4 5 8.5 Investments in associates 326.9 295.4 11 316.8 Financial assets Shares at fair value through profit and loss 3.5 2.8 27 3.0 Other investments 1.8 2.5 -29 2.1 Deferred tax assets 15.5 21.3 -27 17.8 NON-CURRENT ASSETS TOTAL 711.0 699.2 2 710.9 CURRENT ASSETS Inventories 140.2 134.0 5 119.0 Trade and other receivables 108.3 97.7 11 101.9 Income tax receivables 6.2 6.2 0 2.9 Cash and cash equivalents 5.2 7.0 -26 38.6 CURRENT ASSETS, TOTAL 259.9 244.9 6 262.4 ASSETS TOTAL 970.9 944.1 3 973.3 EQUITY AND LIABILITIES Equity attributable to the owners of the Company 538.1 475.2 13 504.8 EQUITY TOTAL 538.1 475.2 13 504.8 NON-CURRENT LIABILITIES Interest bearing debt 76.1 91.7 -17 74.9 Other liabilities 2.4 1.0 143 0.9 Deferred tax liabilities 46.5 48.2 -3 47.2 Pension liability 8.8 9.0 -2 9.4 Provisions 5.2 9.1 -43 6.7 NON-CURRENT LIABILITIES TOTAL 139.1 159.0 -13 139.1 CURRENT LIABILITIES Interest bearing debt 151.2 195.8 -23 199.7 Provisions 2.5 1.4 75 2.4 Trade and other payables 130.2 103.8 25 121.3 Income tax payable 9.9 8.9 11 6.1 CURRENT LIABILITIES TOTAL 293.7 309.9 -5 329.4 EQUITY AND LIABILITIES TOTAL 970.9 944.1 3 973.3 CONSOLIDATED STATEMENT 7-9 7-9 1-9 1-9 1-12 OF CASH FLOWS 2010 2009 2010 2009 2009 MEUR MEUR MEUR MEUR MEUR CASH FLOW FROM OPERATING ACTIVITIES Profit before taxes 26.6 20.6 76.3 63.2 91.4 Adjustments for Depreciation 5.9 6.3 17.5 21.6 28.1 Share of profit from associate -17.3 -14.7 -35.9 -46.7 -66.5 Investment income 0.1 -0.3 -0.8 -0.3 0.3 Interest expenses 2.9 2.7 5.5 13.2 14.2 Change in fair value of biological assets 0.6 0.1 1.8 0.3 0.4 Change in provisions and other non-cash ite -3.0 -3.9 -4.8 -7.9 -12.4 Cash flow before changes in working capital 15.9 10.8 59.7 43.5 55.6 Changes in working capital Change in current assets, non-interest bearing 19.7 15.5 -1.4 3.4 -0.7 Change in inventories -6.2 14.5 -15.4 32.1 50.3 Change in current liabilities, non-interest bearing -7.4 -8.4 5.3 -13.3 4.1 Cash flow from operating activities before financial items and taxes 21.9 32.5 48.2 65.7 109.3 Dividends from associate 29.5 25.3 25.3 Financial costs paid (net) -1.5 -2.3 -6.6 -12.6 -13.8 Taxes paid -2.1 0.3 -8.1 -0.4 0.2 CASH FLOW FROM OPERATING ACTIVITIES (A) 18.3 30.6 63.0 77.9 121.0 CASH FLOW FROM INVESTING ACTIVITIES Acquisitions 0.0 -0.2 -0.2 Capital expenditure on fixed assets -3.7 -3.2 -11.1 -11.0 -14.5 Proceeds from sale of fixed assets 0.2 1.3 2.6 2.0 1.6 Cash flow from other investments 0.0 0.1 -0.2 0.2 4.2 CASH FLOW FROM INVESTING ACTIVITIES (B) -3.5 -1.8 -8.7 -9.0 -8.7 CASH FLOW FROM FINANCING ACTIVITIES Borrowings of non-current debt 40.0 40.0 Repayment of non-current debt 0.0 -11.0 -0.3 -76.8 -86.5 Change in current debt -21.9 -21.7 -44.6 3.6 2.0 Payment of financial lease liabilities -0.4 -0.6 -1.2 -1.8 -2.5 Cash flow from other financing items 1.1 1.6 -0.3 0.0 -0.1 Dividends paid -42.6 -38.2 -38.2 CASH FLOW FROM FINANCING ACTIVITIES (C) -20.0 -31.9 -87.8 -73.4 -85.4 CHANGE IN CASH (A+B+C) -5.2 -3.1 -33.5 -4.5 26.9 Cash at beginning of period 10.8 10.0 38.6 11.3 11.3 Translation difference -0.4 0.1 0.0 0.2 0.5 Cash at end of period 5.2 7.0 5.2 7.0 38.6 STATEMENT OF CHANGES IN Equity attributable to the Non-cont Total CONSOLIDATED EQUITY owners of the Company: rolling Trea- Cumul. interest Share sury transl. Retain. capital shares diff. earn. MEUR MEUR MEUR MEUR MEUR MEUR Dec 31, 2008 77.5 -0.8 -16.5 386.5 0.0 446.7 Total comprehensive income for the period 0.0 2.6 64.1 0.0 66.7 Dividends paid -38.2 -38.2 Acquisition of non-controlling interest 0.1 0.1 Sep 30, 2009 77.5 -0.8 -13.8 412.4 0.0 475.2 Total comprehensive income for the period 1.1 28.5 0.0 29.6 Dividends paid 0.0 0.0 Dec 31, 2009 77.5 -0.8 -12.8 440.9 0.0 504.8 Total comprehensive income for the period 0.0 9.3 66.6 0.0 75.9 Dividends paid -42.6 -42.6 Sep 30, 2010 77.5 -0.8 -3.5 464.9 0.0 538.1 KEY FIGURES * 9/2010 9/2009 Change12/2009 % Equity/share, euro 6.57 5.80 13 6.16 Equity ratio 55% 50% 10 52% Net gearing 41% 59% -30 47% Net interest bearing debt, EUR million 221.7 279.3 -21 235.7 Personnel (FTE), average 3,594 4,027 -11 3,867 Personnel, end of period 3,899 3,837 2 3,742 Number of shares outstanding end of period, in thousands 81,911 81,911 81,911 Weighted average number of outstanding shares during period, in thousands 81,911 78,406 79,289 *) Please see the annual financial statements 2009 for the calculation of key figures. CURRENCY RATES 1-9 1-9 Change 1-12 2010 2009 % 2009 USD average rate 1.32 1.36 -4 1.39 USD end-of-period 1.36 1.46 -7 1.44 NOTES TO THE INTERIM FINANCIAL STATEMENTS This interim financial statement bulletin is prepared in accordance with IAS 34 (Interim Financial Reporting) using the same accounting policies and methods of computation as in the previous annual financial statements. The interim financial statements are unaudited. All figures in the accounts have been rounded and consequently the sum of individual figures can deviate from the presented sum figure. The previous year's figures include changes due to reclassification of certain accounts. The main impacts of the reclassification for 2009 are summarized below: - net sales EUR -0.5 million in Q3 2009, EUR -1.7 in Q1-Q3 2009 and EUR -2.6 million in full year 2009 - gross profit EUR -1.1 million in Q3 2009, EUR -3.1 million in Q1-Q3 2009 and EUR -5.6 million in full year 2009 - the operating profit (EBIT) of 2009 is unchanged. Additionally, Fiskars has adopted following definitions for employee reporting in 2010: Personnel, end of period = active employees in payroll at the end of period. Personnel (FTE), average = full-time equivalent number of employees according to worked volume during the period. Fiskars has applied hedge accounting to changes in the fair value of derivatives designated, qualifying, and effective as cash flow hedges. The changes are recognized in Other comprehensive income. The share series of Fiskars Corporation were combined in July 2009. The earnings per share (EPS) in the comparison year´s second half includes the effect from the change in the number of shares after the combination. The Group has implemented new or amended IAS/IFRS standards and interpretations mandatory as of January 1, 2010. Of these the most important are: - Annual improvements to IFRS - Revised IFRS 3 Business Combinations - Amended IAS 27 Consolidated and Separate Financial Statements The adoption of the standards above had no impact on the reported results or financial position. Use of estimates: The preparation of the financial statements in accordance with IFRS requires management to make estimates and assumptions that affect the valuation of the reported assets and liabilities and other information, such as contingent liabilities and the recognition of income and expenses in the income statement. Although the estimates are based on the management's best knowledge of current events and actions, actual results may differ from the estimates. OPERATING SEGMENTS 7-9 7-9 Change 1-9 1-9 Change 1-12 NET SALES 2010 2009* % 2010 2009* % 2009* MEUR MEUR MEUR MEUR MEUR EMEA 112.2 99.5 13 359.1 326.1 10 451.6 Americas 49.2 43.7 13 172.7 168.2 3 218.2 Other 1.7 1.7 1 4.6 4.5 1 6.1 Inter-segment sales **) -3.7 -3.0 -11.0 -11.2 -15.5 GROUP TOTAL 159.5 142.0 12 525.3 487.7 8 660.3 OPERATING SEGMENTS 7-9 7-9 1-9 1-9 1-12 OPERATING PROFIT (EBIT) 2010 2009* 2010 2009* 2009* MEUR MEUR MEUR MEUR MEUR EMEA 9.3 5.9 57 33.3 15.8 111 26.5 Americas 5.4 4.6 16 22.8 21.7 5 23.9 Other and eliminations -1.8 -1.7 -8.4 -7.4 -10.9 GROUP TOTAL 12.9 8.8 47 47.7 30.0 59 39.5 OPERATING SEGMENTS DEPRECIATION, AMORTIZATION 7-9 7-9 1-9 1-9 1-12 AND IMPAIRMENT 2010 2009* 2010 2009* 2009* MEUR MEUR MEUR MEUR MEUR EMEA 4.0 4.1 -4 12.0 14.5 -18 20.5 Americas 1.5 1.8 -17 4.2 5.8 -27 7.8 Other and eliminations 0.4 0.4 1.4 1.3 -0.1 GROUP TOTAL 5.9 6.3 -6 17.5 21.6 -19 28.1 OPERATING SEGMENTS 7-9 7-9 1-9 1-9 1-12 CAPITAL EXPENDITURE 2010 2009 2010 2009 2009 MEUR MEUR MEUR MEUR MEUR EMEA 2.7 2.2 25 7.4 8.1 -9 10.6 Americas 0.6 0.6 0 2.8 2.1 31 2.8 Other and eliminations 0.1 0.3 0.9 0.9 1.2 GROUP TOTAL 3.5 3.1 11 11.0 11.1 -1 14.6 *) The previous year's figures include changes due to reclassification of certain accounts. Please see the notes to the interim financial statements. **) Inter-segment sales EMEA -1.8 -0.9 -6.2 -5.4 -7.9 Americas -1.3 -1.4 -3.0 -4.0 -5.2 Other -0.6 -0.6 -1.8 -1.8 -2.4 Short delivery times are a prerequisite in Fiskars' operations. Therefore, the backlog of orders and changes in it are not of significant importance. BUSINESS AREAS 7-9 7-9 Change 1-9 1-9 Change 1-12 NET SALES 2010 2009* % 2010 2009* % 2009* MEUR MEUR MEUR MEUR MEUR Home 78.8 73.7 7 213.8 204.4 5 297.3 Garden 50.0 42.3 18 217.7 190.9 14 230.9 Outdoor 29.5 24.9 18 91.0 89.7 2 128.4 Other 1.1 1.1 2.8 2.7 3.7 GROUP TOTAL 159.5 142.0 12 525.3 487.7 8 660.3 INTANGIBLE AND TANGIBLE ASSETS 9/2010 9/200912/2009 MEUR MEUR MEUR Intangible Assets and Goodwill Book value, Jan. 1 224.4 230.2 230.2 Currency translation adjustment 0.3 -0.3 -0.1 Acquisitions and divestments 0.3 0.2 -0.5 Additions 0.9 0.5 1.0 Amortization and impairment -4.3 -4.6 -6.0 Decreases and transfers 4.5 0.1 -0.2 Book value at end of period 226.0 226.2 224.4 9/2010 9/200912/2009 Tangible Assets and Investment Property MEUR MEUR MEUR Book value, Jan. 1 108.0 120.9 120.9 Currency translation adjustment 1.5 -0.4 0.1 Acquisitions and divestments 0.4 -0.2 -1.5 Additions 10.2 10.5 13.6 Depreciation and impairment -13.5 -16.6 -22.0 Decreases and transfers -6.4 -1.9 -3.0 Book value at end of period 100.2 112.2 108.0 CONTINGENCIES AND PLEDGED ASSETS 9/2010 9/200912/2009 MEUR MEUR MEUR As security for own commitments Lease commitments 53 59 60 Other contingencies 5 4 4 Total 57 63 65 Guarantees as security for third-party commitments Real estate mortgages 0 2 2 Pledged assets 0 0 2 Total 0 2 4 As security for subsidiaries' commitments Guarantees 10 10 9 Total contingencies and pledged assets 67 76 78 Fiskars is involved in a number of legal actions, claims and other proceedings. In certain cases the final outcome of these matters cannot be predicted. Taking account all available information to date the outcome is not expected to have material impact on the financial position of the Group. NOMINAL AMOUNTS OF DERIVATIVES Forward exchange contracts 184 135 151 Interest rate swaps 24 1 1 Electricity forward agreements 2 0 2 MARKET VALUE VS. NOMINAL AMOUNTS OF DERIVATIVES Forward exchange contracts -1 0 0 Interest rate swaps -1 0 0 Electricity forward agreements 0 0 0 Forward exchange contracts have been valued at market value. The Group has no material investment commitments for intangible assets or property, plant and equipment. EXCHANGE RATE SENSITIVITY OF THE OPERATIONS Approximately 10% of Fiskars' commerial cash flows are exposed to fluctuations in foreign exchange rates. The most significant risks relate to the depreciation of GBP, SEK and CAD against USD and EUR. Foreign exchange risks are hedged primarily through the use of currency forwards and swaps. Change in valuation of currency derivatives is included in the income statement without applying hedge accounting. MEUR USD GBP SEK CAD Operational currency position -23.4 7.3 16.5 12.3 Exchange rate sensitivity of the operations* 2.3 -0.7 -1.7 -1.2 *) Illustrates the impact of 10% exchange rate depreciation on the Group's annual profit before taxes. RELATED PARTY TRANSACTIONS The dividend from Wärtsilä EUR 29.5 million is reported as Dividends from associate in the Consolidated Statement of Cash Flows. The dividend was received during the first quarter of 2010. ACQUISITIONS AND DIVESTMENTS In 2010 there are no acquisitions nor divestments. The following acquisitions and divestments in 2009 have an impact on the comparability of the figures in 2010. Fiskars acquired a 30% minority share of Silva Far East Ltd in June 2009. After the minority share acquisition, the manufacturing company in China became a wholly owned subsidiary of Silva Sweden AB. Fiskars sold the Brunton business in Wyoming, USA in December 2009 to Fenix Outdoor AB (publ) of Sweden. Brunton was reported as a part of Fiskars´Outdoor business. Brunton´s net sales in 2009 were EUR 8.8 million. Fiskars divested its consumables product lines and the related brands Heidi Grace and Cloud9 to Colorbök, Inc in the U.S. in July 2009. Net sales of the business for January - June 2009 amounted to EUR 2.4 million.