INTERIM REPORT JANUARY ? JUNE 2004

FISKARS CORPORATION
INTERIM REPORT JANUARY – JUNE 2004
(Unaudited)

FISKARS’ OPERATING PROFIT FOR SECOND QUARTER IMPROVED AND CASH
FLOW CONTINUED STRONG

– Operating profit improved from the previous corresponding period
to EUR 17.0 million (9.0)
– Net sales for second quarter was unchanged from previous year at
EUR 180.4 million (180.4)
– Fiskars increased its participation in Wärtsilä, which became an
associated company
– Holdings in EQT Funds were divested

FISKARS CORPORATION April – June
(3 months)
EUR million Q2/2004 Q2/2003
Net sales 180.4 180.4
Operating profit 17.0 9.0
Operating profit, % 9.4% 5.0%
Share of the result of
asociated company 4.2 0.0
Other investment income 4.4 1.2
Profit before taxes 22.5 6.9
Earnings per share 0.30 0.11
Cash flow from operations 33.7 35.9

FISKARS CORPORATION January – June
(6 months)
A change in Fiskars’ reporting structure, impacting the accounts
from the beginning of this year, took place following the increase
in holding in Wärtsilä at the beginning of April. Fiskars’ result
will now include a share of Wärtsilä’s result, while in the
previous years the dividends received annually from Wärtsilä were
recorded as income.
Fiskars’ share of Wärtsilä’s result for the first six months was
EUR 7.4 million. In the comparison period, the dividends received
represented EUR 25.6 million of the total investment income of EUR
27.7 million.

EUR million 6 mths/04 6 mths/03 2003
Net sales 335.9 354.0 620.3
Operating profit 29.4 18.9 -51.9
Operating profit, % 8.8% 5.3% -8.4%
Share of the result of
associated company 7.4 0.0 0.0
Other investment income 5.7 27.7 31.3
Profit before taxes 36.5 39.5 -30.0
Earnings per share 0.50 0.51 -0.23
Cash flow from operations 32.2 46.5 83.6

OPERATIONS

FISKARS BRANDS, INC.

April – June (3 months)

Fiskars Brands, Inc.’s dollar denominated net sales totaled USD
203.7 million and exceeded the sales of the previous corresponding
quarter by 5.0 per cent. Euro denominated sales remained unchanged
from the previous year. The positive profitability trend of
operations continued. Operating profit for the second quarter was
EUR 16.6 million and accounted for 9.8% of total sales (8.8 and
5.1%, respectively).
A visible trend in the operational environment was that major
retail chains particularly in the United States are now reducing
their product line inventories increasingly aggressively at the
end of each season. This makes forecasting of demand and planning
of production more difficult. Sales of garden furniture were more
lively than anticipated, but on the other hand, demand for garden
tools, although reasonably good, did not quite meet expectations.
Poor weather conditions in continental Europe had an adverse
impact on the sales.

January – June (6 months)

The net sales trend expressed in dollars was positive in the first
half-year, and sales increased by 4% to USD 386.3 million (371.1).
Euro denominated sales declined by 6% from the previous
corresponding period to EUR 315.3 million (335.8). Operating
result was EUR 28.6 million (19.0), or 9.1% of net sales (5.6).
The operating result of the 2003 comparison period was weakened by
non-recurring expenses of EUR 8.7 million.
The US market for Fiskars Brands’ products saw moderately positive
growth during the first half. Demand in Scandinavia and UK was on
the increase, while general consumer demand in Germany and Italy
remains weak.
The School, Office and Craft (FISKARS(R)) product lines are an
important operation, which, however, faces increasing competition
from low-cost imports to the US market. Fiskars Brands is a
leading supplier of these products in the United States and its
production is competitive in spite of the tighter market
situation.
Overall demand for Garden Tools and Accessories (FISKARS(R)) is
satisfactory, although there are variations between different
markets. Implemented structural and marketing improvement measures
improved competitiveness. As an individual product, the UpRoot(TM)
Weeder designed in Finland turned out to be a best-seller that won
recognition in a significant German design competition and reached
record-high sales levels already in the first months. The garden
line is a sector where Fiskars products have considerable growth
potential. Flower pots, which today are largely sourced, were
included in the garden line from the beginning of the second
quarter.
Sales of Outdoor Recreation (GERBER(R)) products which are mainly
sold in the US markets continues their strong growth that started
last year. At the beginning of this year, Gerber launched numerous
successful new products which together with the LED lighting line
acquired in January have strengthened Gerber’s position as
supplier of a wide variety of recreation and outdoor products both
to major retailers and to specialty stores.
Sales of consumer electronics (Power-Sentry(R)) also developed
positively thanks to new products.
Sales of outdoor furniture manufactured by Syroco(R) remained
unchanged from the previous year. Profitability improved as a
result of structural measures taken but was still unsatisfactory.
Tight competition in the sector continued and raw material costs
remained high.
The European market is heterogeneous. Sales in Scandinavia
developed positively and particularly garden tools and kitchenware
sold well thanks to new product innovations. A principal European
market for Fiskars Brands is Germany that is showing the first
weak signals of a stabilizing market situation. Italy still
suffers from weak consumer demand, and the UK shows slight signs
of recovery.
Sales of Housewares (FISKARS(R)), solely concentrated in Europe,
developed well especially in the Nordic countries. Housewares
sales resources were dedicated to improving the utilization of the
European dealer network. The Fiskars Functional Form product line
gained new foothold in the market.

INHA WORKS

Inha Works’ net sales for the second quarter increased by 33% to
EUR 9.6 million (7.3) compared with the corresponding period
previous year. Net sales for the first six months grew by 17% and
amounted to EUR 17.3 million (14.8). Demand for Buster(R) boats
continued to be record-high, and their sales growth exceeded the
overall growth of the boat market. Strong demand continued both in
Finland and international markets. Exports increased during the
first half-year primarily in Sweden as well as in Estonia from
where some of the boats are delivered further to the growing
Russian market.
Steady demand for hinges continued both in domestic and export
markets thanks to lively construction activity.
Inha Works’ operating profit for the second quarter was EUR 1.3
million (1.1) and for the first six months EUR 2.3 million (2.1).

REAL ESTATE OPERATIONS

The net sales trend and profitability of the Real Estate
Operations developed positively.

WÄRTSILÄ

Wärtsilä is reported as an associated company in Fiskars’
consolidated financial statements since the beginning of 2004. The
six-month result includes a share of Wärtsilä’s result in
proportion of Fiskars’ holding the respective period deducted with
goodwill amortization.
Fiskars’ share of Wärtsilä’s result for the second quarter was EUR
4.2 million. At the end of the review period Fiskars held 20.5% of
Wärtsilä’s shares and 28.1% of votes.

INVESTMENT ACTIVITIES

Income from other investment activities totaled EUR 4.4 million
(1.2) and includes among other things proceeds of approximately
EUR 1 million from the sale of the company’s placements in EQT
Fund.
After the EQT transaction, placements in investment funds consist
of a minor holding in the American AEA Fund. According to its
strategy, Fiskars will concentrate on developing its direct
industrial holdings.

PERSONNEL

At the end of the period, the total number of corporate personnel
was 3,983 (4,272); 2,088 (2,328) of these worked in North America
and 958 (1,006) in Finland.

CAPITAL EXPENDITURE

Investments in industrial fixed assets during the first six months
amounted to EUR 9.9 million (15.1). Long-term investments were EUR
22.6 million (10.9), and mainly consisted of shares in the
associated company Wärtsilä.

BALANCE SHEET AND FINANCING

The balance sheet total was EUR 710 million (792). After the
closing of the previous financial year, the balance sheet total
has increased by EUR 32 million. This is in practice entirely
attributable to the cyclical nature of operations.
Cash flow and liquidity are strong. At the end of the review
period, equity ratio was unchanged from the year-end at 51%. Net
gearing improved from 57% at the year-end to 55%. Interest-bearing
net liabilities were EUR 199 million at the end of the review
period.
Net financing costs decreased and were EUR 3.1 million (3.3) for
the second quarter and EUR 5.9 million (7.2) for the first six
months of the year.

PURCHASE AND TRANSFER OF OWN SHARES

The corporate Board of Directors had an authorization to acquire
the company’s own shares. It had exercised this authority by the
end of 2003 to acquire 62,219 A-shares and 300 K-shares for a
total price of EUR 615,007. During January 2 – 6, 2004, the same
authorization was exercised to buy a total of 30,281 A-shares for
an aggregate price of EUR 301,110. At July 31, 2004, the company
held in total 91,080 of its A-shares and 300 K-shares.

ANNUAL GENERAL MEETING 2004

The Annual General Meeting of Fiskars Corporation held on 16 March
2004 decided on a dividend payment of EUR 0.31/share on A-shares
and EUR 0.29/share on K-shares, in total EUR 16.8 million.
The Meeting determined that the number of Board members shall be
seven and the number of deputy members one. Board members Mr.
Göran J. Ehrnrooth, Mr. Mikael von Frenckell, Mr. Gustaf
Gripenberg, Mr. Olli Riikkala and Dr. Thomas Tallberg were
reelected, Mr. Paul Ehrnrooth and Ms. Ilona Ervasti-Vaintola were
elected as new members and Mr. Alexander Ehrnrooth was elected
deputy member. The term of the Board members and of the deputy
member expires at the Annual General Meeting 2005.
KPMG Wideri Oy Ab was elected auditor.
The Annual General Meeting authorized the Board of Directors to
decide during one year starting from 16 March 2004 on the purchase
and transfer of not more than 1,869,803 A-shares and not more than
805,618 K-shares.

SHARE PRICES

The price of Fiskars A-share on the Helsinki Exchanges at the end
of June was EUR 10.16 (9.40 at the beginning of the year) and the
price of K-share EUR 10.01 (10.45). The market capitalization of
the Company’s shares at the end of June was EUR 560 million.

IFRS

Fiskars will according to its earlier announcement introduce IFRS
as the standard for its accounting practice at the beginning of
2005.

OUTLOOK

For Fiskars Corporation the first part of the year was a period of
stable and quite positive growth. This is important also with a
view to the whole year’s result due to the cyclical nature of
operations. Despite some positive signs of improvement the market
trend is likely to continue uncertain.
Fiskars Corporation’s operational result for the third quarter
will remain on the previous years lever.
The operational result for the whole year is estimated to improve
from the previous year.

NEXT INTERIM REPORT

Fiskars will publish its interim report for January – September on
10 November 2004.

Heikki Allonen
President and CEO

CONSOLIDATED 4-6 4-6 1-6 1-6 change 1-12
INCOME STATEMENT 2004 2003 2004 2003 % 2003
MEUR MEUR MEUR MEUR MEUR

NET SALES 180.4 180.4 335.9 354.0 -5 620.3

Cost of goods sold -128.7 -130.9 -238.2 -255.0 -7 -448.3
GROSS PROFIT 51.6 49.4 97.7 99.0 -1 172.0

Other operating costs -34.6 -34.7 -68.4 -71.4 -4 -139.6
Restructuring cost 0.0 -5.7 0.0 -8.7 -84.2
OPERATING PROFIT 17.0 9.0 29.4 18.9 55 -51.9

Share of assoc.comp.result 4.2 0.0 7.4 0.0 0.0
Income from investments 4.4 1.2 5.7 27.7 -79 31.3
Other financial income 0.2 0.3 0.2 0.4 -52 2.1
Financial expense -3.3 -3.6 -6.1 -7.6 -19 -11.5
PROFIT BEFORE TAXES 22.5 6.9 36.5 39.5 -7 -30.0

Taxes for the period -5.9 -1.0 -8.8 -11.2 -22 17.2
PROFIT (LOSS) FOR THE PERIOD 16.7 5.9 27.8 28.3 -2 -12.8

Earnings per share, euro 0.30 0.11 0.50 0.51 -0.23

4-6 4-6 1-6 1-6 change 1-12
2004 2003 2004 2003 % 2003
Currency rates:
USD average rate (I/S) 1.20 1.14 1.23 1.10 11 1.13
USD end-of-period (B/S) 1.22 1.14 1.22 1.14 6 1.26

CONSOLIDATED BALANCE SHEET 6/04 6/03 change 12/03
MEUR MEUR % MEUR
ASSETS

Fixed assets 200.0 255.3 -22 173.6
Long-term investments 192.6 219.6 -12 215.9
Inventories 115.3 136.7 -16 124.4
Financial assets 202.6 180.8 12 164.6
TOTAL 710.5 792.4 -10 678.4

EQUITY AND LIABILITIES

EQUITY
Share capital 55.4 55.4 0 55.4
Other equity 304.8 360.3 -15 293.0

PROVISIONS 7.3 7.7 -5 8.9
LIABILITIES
Long-term 100.7 135.4 -26 123.4
Short-term 242.3 233.7 4 197.8
TOTAL 710.5 792.4 -10 678.4

KEYFIGURES 6/04 6/03 change 12/03
%
Equity/share, euro 6.51 7.51 -13 6.29
Equity ratio 51% 52% -3 51%
Net gearing 55% 58% -4 57%
Equity, meur 360.2 415.7 -13 348.3
Net interest-bear.debt, meur 198.7 239.7 -17 198.6
Gross investments, meur 32.5 26.0 25 37.8
Avarage number of employees 3982 3987 0 3633

CONSOLIDATED STATEMENT 4-6 4-6 1-6 1-6 1-12
OF CASH FLOWS 2004 2003 2004 2003 2003
MEUR MEUR MEUR MEUR MEUR
From oper. activities 33.7 35.9 32.2 46.5 83.6
From investm. activities -6.7 -7.9 -7.9 -22.6 -22.4
From financing -22.2 -28.3 -20.9 -27.0 -63.8
CHANGE IN CASH 4.8 -0.3 3.4 -3.0 -2.6
Cash at beginning of period 15.6 16.5 16.9 19.5 19.5
Currency transaction adjustm 0.0 0.3 0.2 0.0 -0.1
CASH AT END OF PERIOD 20.5 16.4 20.5 16.4 16.9

NET SALES BY BUSINESS AREA 4-6 4-6 1-6 1-6 change 1-12
2004 2003 2004 2003 % 2003
MEUR MEUR MEUR MEUR MEUR
Fiskars Brands 169 171 315 336 -6 589
Inha Works 10 7 17 15 17 24
INDUSTRY TOTAL 179 179 333 351 -5 613
Corporate & real estate 2 3 5 5 -2 10
Eliminations -1 -1 -1 -1 0 -3

CORPORATE TOTAL 180 180 336 354 -5 620

RESULT BY BUSINESS SEGMENT 4-6 4-6 1-6 1-6 change 1-12
2004 2003 2004 2003 % 2003
MEUR MEUR MEUR MEUR MEUR
Fiskars Brands 16.6 8.8 28.6 19.0 50 -51.4
Inha Works 1.3 1.1 2.3 2.1 11 2.5
INDUSTRY TOTAL 18.0 10.0 30.9 21.1 46 -48.9
Corporate & real estate -1.0 -0.9 -1.5 -2.2 30 -3.0

OPERATING PROFIT 17.0 9.0 29.4 18.9 55 -51.9
Share of assoc.comp.result 4.2 0.0 7.4 0.0 0.0
Income from investments 4.4 1.2 5.7 27.7 -79 31.3
CONSOLIDATED SEGMENTAL RESUL 25.6 10.2 42.5 46.6 -9 -20.6

NET SALES BY MARKET AREA 4-6 4-6 1-6 1-6 change 1-12
2004 2003 2004 2003 % 2003
MEUR MEUR MEUR MEUR MEUR
Finland 12 11 23 21 9 38
Scandinavia 17 15 32 31 5 57
Other Europe 36 37 71 75 -5 119
North America 110 114 199 219 -9 389
Other 5 4 10 8 23 18
CORPORATE TOTAL 180 180 336 354 -5 620

Export from Finland 13 14 31 32 -3 53

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 6/04 6/03 12/03
MEUR MEUR MEUR
FOR THE COMPANY'S OWN
COMMITMENTS
Real estate mortgages 0 1 1
Pledged assets 0 0 0
Bills of exchange 1 0 1
Lease contingencies 49 61 54
Other contingencies 6 1 8
TOTAL CONTINGENCIES 55 63 64

NOMINAL VALUES OF DERIVATIVE
INSTRUMENTS

Forward exch. contracts 107 178 91
Interest rate swaps 82 88 87
FRA's 16 9 36

MARKET VALUES OF DERIVATIVE INSTRUMENTS
COMPARED TO NOMINAL VALUES

Interest rate swaps -3 -7 -5
FRA's 0 0 0

Nominal values also include closed contracts.