Acquisition of Royal Copenhagen - Fiskars
Acquisition of Royal Copenhagen - Fiskars
Acquisition of Royal Copenhagen - Fiskars
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<strong>Acquisition</strong> <strong>of</strong> <strong>Royal</strong> <strong>Copenhagen</strong><br />
Kari Kauniskangas, President & CEO<br />
Helsinki, December 12, 2012
Agenda<br />
The acquisition<br />
<strong>Royal</strong> <strong>Copenhagen</strong> introduction<br />
Next steps<br />
Page 2
<strong>Fiskars</strong> acquires <strong>Royal</strong> <strong>Copenhagen</strong> – creates<br />
a portfolio <strong>of</strong> leading Scandinavian design brands<br />
Accelerates<br />
international<br />
expansion <strong>of</strong> Home<br />
business<br />
Page 3<br />
Creates unique<br />
portfolio <strong>of</strong><br />
Scandinavian<br />
dining brands<br />
Strong strategic fit<br />
& complementary<br />
<strong>of</strong>fering<br />
Strengthens<br />
position in<br />
Scandinavia<br />
and Asia<br />
Shared values and<br />
long heritages
Transaction in brief<br />
• <strong>Fiskars</strong> has signed a definitive agreement to acquire 100 % <strong>of</strong> the<br />
shares in “<strong>Royal</strong> <strong>Copenhagen</strong>” (<strong>Royal</strong> <strong>Copenhagen</strong> A/S and <strong>Royal</strong><br />
Scandinavian Modern KK Japan) from <strong>Royal</strong> Scandinavia A/S, whose<br />
controlling parent company is the Danish private equity group Axcel<br />
• The total consideration payable (debt free enterprise value) is DKK 490<br />
million, or appr. EUR 66 million, less net debt and working capital<br />
adjustments as per closing <strong>of</strong> the transaction<br />
• The transaction will be financed through<br />
<strong>Fiskars</strong>’ existing credit programs<br />
• Closing <strong>of</strong> the transaction is expected to<br />
take place in Q1 2013<br />
Page 4
Financial effects<br />
• <strong>Royal</strong> <strong>Copenhagen</strong> will be a part <strong>of</strong><br />
<strong>Fiskars</strong>’ Home Business Area<br />
• In 2011, <strong>Royal</strong> <strong>Copenhagen</strong>’s reported<br />
• net sales were DKK 492.3 million<br />
(EUR 66 million)<br />
• EBIT was DKK 38.7 million (EUR 5 million)<br />
• Balance sheet total was DKK 409.4 million<br />
(EUR 55 million)<br />
• The acquisition is expected to have a<br />
positive effect on <strong>Fiskars</strong> Group’s EBIT<br />
from 2013 onwards<br />
Page 5
By acquiring <strong>Royal</strong> <strong>Copenhagen</strong> <strong>Fiskars</strong> will<br />
• Create a unique consolidated portfolio <strong>of</strong> leading Scandinavian dining<br />
brands (Rörstrand, <strong>Royal</strong> <strong>Copenhagen</strong>, Arabia and Iittala)<br />
• Complement current <strong>of</strong>fering with hand-painted premium porcelain<br />
• Strengthen market presence in Denmark, Japan, Korea and Taiwan<br />
Page 6
A unique portfolio <strong>of</strong> Scandinavian dining brands with<br />
strong heritages<br />
Page 7<br />
Iittala<br />
1881<br />
Contemporary<br />
Scandinavian<br />
design<br />
Rörstrand<br />
1726<br />
Elegant<br />
Swedish<br />
dining<br />
<strong>Royal</strong><br />
<strong>Copenhagen</strong><br />
1775<br />
Hand-painted<br />
Danish<br />
dining<br />
Arabia<br />
1873<br />
Homey<br />
Finnish<br />
dining
ROYAL COPENHAGEN<br />
INTRODUCTION
<strong>Royal</strong> <strong>Copenhagen</strong> today<br />
Founded<br />
Location<br />
Employees<br />
Product base<br />
Industry<br />
Page 9<br />
Overview<br />
1775<br />
HQ, Glostrup, Denmark<br />
650 globally<br />
Porcelain<br />
Luxury products and gifts
Our heritage<br />
Page 10<br />
Back<br />
stamps<br />
through<br />
time….<br />
<strong>Royal</strong> <strong>Copenhagen</strong>’s unique positioning is the result <strong>of</strong> 235 years <strong>of</strong><br />
Danish design tradition and craftsmanship
Assortment<br />
Page 11
Core <strong>of</strong> Portfolio – the blue heritage<br />
Page 12<br />
The product line spans from classic porcelain such as the famous Blue<br />
Fluted service from 1775 to the new and modern version called Blue<br />
Fluted Mega, which was launched in 2001.<br />
Blue Fluted, <strong>Royal</strong> <strong>Copenhagen</strong> Blue Fluted Mega, <strong>Royal</strong> <strong>Copenhagen</strong>
Distribution with an even revenue split between<br />
Asia and Europe<br />
Page 13<br />
RC US<br />
Germany<br />
Norway<br />
Italy<br />
Sweden<br />
RC Japan<br />
RC Korea<br />
RC Taiwan
Today, <strong>Royal</strong> <strong>Copenhagen</strong> is slimmer,<br />
more streamlined and pr<strong>of</strong>itable<br />
• Successful transformation strategy since 2009<br />
– Pruning <strong>of</strong> markets<br />
– Pruning <strong>of</strong> concepts<br />
– Streamlined supplier base<br />
– Decision to relocate manufacturing to Thailand<br />
• <strong>Royal</strong> <strong>Copenhagen</strong> today<br />
Page 14<br />
– Focused and scalable business platform<br />
– Clear market strategy with focus on home<br />
markets and selected expansion markets<br />
– Clear product strategy<br />
– Production re-located to best-in-class-facility<br />
in Thailand<br />
– Focus on retail to further optimize the<br />
execution <strong>of</strong> the brand<br />
2011<br />
Sales<br />
DKK 492 m<br />
EBIT<br />
DKK 38.7 m
The assortment’s “inner logic” is used to bring clarity &<br />
uniqueness to consumers and the business system<br />
The Fluted<br />
Base<br />
The Elements<br />
Base<br />
• Flexible and strong business model<br />
• Only porcelain<br />
• Few platforms gives flexibility in production<br />
Page 15<br />
The Laced<br />
Base<br />
Three strong<br />
platforms<br />
Mix&Match<br />
Within platforms<br />
Trimmed narrow<br />
assortment<br />
maintaining<br />
depth in main<br />
concepts
Next steps<br />
• Closing <strong>of</strong> the transaction<br />
expected to take place in<br />
Q1 2013<br />
• <strong>Royal</strong> <strong>Copenhagen</strong> to be<br />
consolidated into <strong>Fiskars</strong>’<br />
financial reporting as <strong>of</strong><br />
closing<br />
• Progressive integration,<br />
in synch with <strong>Fiskars</strong>’<br />
internal change programs<br />
Page 16
Lasting everyday design,<br />
since 1649
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