HALF YEAR FINANCIAL REPORT JANUARY–JUNE 2016: In Q2 net sales increased – operating profit declined due to changes in seasonality of the business portfolio

Fiskars Corporation Half year financial report August 2, 2016 at 8.30 a.m. EET HALF YEAR FINANCIAL REPORT JANUARY–JUNE 2016: In Q2 net sales increased – operating profit declined due to changes in seasonality of the business portfolio This release is a summary of the Fiskars Corporation’s second quarter of 2016 and half year financial report January–June 2016 published today. The complete half year financial report with tables is attached to this release as a pdf-file. It is also available at http://fiskarsgroup.com/investors/reports-presentations/interim-reports and on the company website at www.fiskarsgroup.com. Investors should not rely on summaries of our interim reports only, but should review the complete interim reports with tables. Second quarter 2016 in brief: Net sales increased by 16% to EUR 293.5 million (Q2 2015: 253.5) Net sales decreased by 1.6% on a comparable basis1) Operating profit decreased to EUR 14.8 million (19.4) Adjusted operating profit2)decreased by 17% to EUR 17.3 million (20.8) Cash flow from operating activities before financial items and taxes increased to EUR 39.1 million (32.5.) Earnings per share (EPS) were EUR -0.26 (0.17). Operative earnings per share3) amounted to EUR 0.08 (0.15). Outlook for 2016 unchanged: Fiskars expects the Group’s 2016 net sales and adjusted operating profit to increase from the previous year January 1–June 30, 2016 in brief: Net sales increased by 22% to EUR 589.7 million (Q1–Q2 2015: 483.6) Net sales remained at the same level (-0.1%) on a comparable basis1)  Operating profit increased to EUR 38.5 million (35.1) Adjusted operating profit2) increased by 4% to EUR 39.2 million (37.8) Cash flow from operating activities before financial items and taxes increased to EUR 2.9 million (-19.4) Earnings per share (EPS) were EUR -0.25 (1.12). Operative earnings per share3) amounted to EUR 0.19 (0.29) 1) Using comparable exchange rates, excluding the acquired English & Crystal Living (WWRD) business and the divested boats and container gardening businesses 2) Adjustments include items such as restructuring costs, impairment charges, integration related costs, and profit impact from the sale of businesses 3) Operative earnings per share do not include net changes in the fair value of the investment portfolio and dividends received   President and CEO, Fiskars, Kari Kauniskangas: “Net sales increased during the second quarter thanks to our latest acquisition. I was pleased to see the net sales of the English & Crystal Living business increase from the previous year’s comparison period, driven by the Waterford and Wedgwood brands. Weak consumer demand in Japan and unfavorable weather conditions in the U.S. impacted our overall performance and the decline in comparable revenue was unsatisfactory.  Due to changes in the seasonality of our business portfolio, operating profit declined during the second quarter. The majority of the operating profit in the Living business is delivered during the second half of the year, whereas in the divested businesses all of the profits were delivered during the first half of the year. At constant currency rates and excluding the positive impact in Q2 2015 of the divested businesses, the adjusted operating profit would have increased.  Fiskars is transforming into a global integrated, branded consumer goods company. We took steps during the second quarter to move this process forward and streamlined our manufacturing and distribution footprint. In addition, our integration in the English & Crystal Living business and the watering business are progressing as planned. As the trade continues to consolidate the supplier base and aims to work with fewer suppliers, Fiskars is well positioned to serve our customers’ needs and to create value for them on a global scale.  While the business environment is expected to remain fragile both in Asia and Europe, we are moving fast to anticipate and adapt to the changing consumer needs, creating new innovative products and building our brands, in particular our key international brands, Fiskars, Gerber, Iittala, Royal Copenhagen, Waterford and Wedgwood.”    Group key figures EUR million     Q2 2016 Q2 2015 Change Q1‒Q2 2016 Q1‒Q2 2015 Change 2015 Net sales 293.5 253.5 16% 589.7 483.6 22% 1,107.1 Operating profit (EBIT) 14.8 19.4 -24% 38.5 35.1 10% 46.5 Adjustments to operating profit1) 2.5 1.4   0.7 2.7   18.6 Adjusted operating profit 17.3 20.8 -17% 39.2 37.8 4% 65.1 Adjusted EBITA 20.9 23.0 -9% 45.9 41.9 10% 75.7 Net change in the fair value of investment portfolio -34.9 8.3   -60.6 50.6   56.1 Profit before taxes -22.0 21.7   -18.8 119.3   125.5 Profit for the period -20.9 13.8   -19.3 91.8   86.4 Operative earnings/share, EUR2) 0.08 0.15 -46% 0.19 0.29 -36% 0.16 Earnings/share, EUR -0.26 0.17   -0.25 1.12   1.04 Equity per share, EUR       13.69 14.56 -6% 14.54 Cash flow from operating activities before financial items and taxes 39.1 32.5 20% 2.9 -19.4   50.2 Equity ratio, %       66% 66%   65% Net gearing, %       20% -7%   21% Capital expenditure 10.1 6.2 64% 18.4 11.9 54% 32.4 Personnel (FTE), average 8,030 4,478 79% 8,061 4,547 77% 6,303 1) In Q2 2016, adjustments include net costs related to the Supply Chain 2017 program, integration activities, and an adjustment to the gain from the sale of the boats business. In Q2 2015, costs related to EMEA restructuring program and integration activities 2) Excluding net change in the fair value of the investment portfolio and dividends received. The comparison period has been restated to also exclude the exchange rate gains related to the investment portfolio   IMPACT OF NEW ESMA GUIDELINES In accordance with the new guidelines on alternative performance measures issued by the European Securities and Markets Authority (ESMA) Fiskars Corporation has revised the terminology used in its financial reporting. Alternative Performance Measures (APM) are used to better reflect the operational business performance and to facilitate comparisons between financial periods. APMs should not be considered as a substitute for measures of performance in accordance with the IFRS. As of Q1 2016, the term “non-recurring items” (NRI) has been changed to the term “adjustments to operating profit”, however the definition remains the same. As before, adjustments are transactions that are not related to recurring business operations, such as restructuring costs, impairment charges, integration related costs, and profit impact from the sale of businesses. Correspondingly, “adjusted EBITA” is calculated from adjusted EBIT by adding back amortization. The adjustments are listed in a table on page 16 of this half year financial report. Fiskars also uses the APM “operative EPS”, which is earnings per share (EPS) excluding the effects of the dividends from and the change in the fair value of the investment portfolio.   Analysts and media conference: An analysts and media conference will be held at 10 a.m. on August 2, 2016, at the company’s headquarters, Fiskars Campus, Hämeentie 135 A, Helsinki. Presentation material will be available at www.fiskarsgroup.com. FISKARS CORPORATION Kari Kauniskangas President and CEO Further information: President and CEO Kari Kauniskangas, tel. +358 204 39 5500 COO and CFO Teemu Kangas-Kärki, tel. +358 204 39 5703 Corporate Communications, tel. +358 204 39 5031, communications@fiskars.com Fiskars – celebrating centuries of pride, passion and design. Every day. Established in 1649 as an ironworks in a small Finnish village, Fiskars has grown to be a leading consumer goods company with globally recognized brands including Fiskars, Gerber, Iittala, Royal Copenhagen, Waterford and Wedgwood. With iconic products, strong brands and global ambitions, Fiskars’ mission is to enrich people’s lives in home, garden and outdoor. Fiskars’ products are available in more than 100 countries and the company employs around 8,700 people in 30 countries. Fiskars is listed on Nasdaq Helsinki. www.fiskarsgroup.com