Internal Auditors meeting at Fiskars Sari VuolaVuorinen 20

Internal Auditors meeting at Fiskars Sari Vuola-Vuorinen 20. 1. 2014

Introduction • Director Finance (FSF) • Group Accounting (global) • Shared Accounting Services (Europe) • Global process owner for Finance & Accounting • Record-to-Report • Order-to-Cash • Procure-to-Pay Sari Vuola-Vuorinen Head of Fiskars Services Finance • UP! Program business & content owner for Finance • Business transformation • Fiskars ERP implementation • UP! Program owner for GRC concept • Authorization concept • Process controls for Finance • Governance for Finance 2 Company confidential

Agenda Developing internal controls environment as part of Fiskars business transformation • Fiskars transformation program – UP! • Finance operating model and FSF • Expectations for Internal Audit and benefit from co-operative development • Questions? 3 Company confidential

Fiskars transformation program Need for change and change vehicle 4 Company confidential

Finance transition is part of UP! Program – organized to implement the strategic change FOCUS EFFICIENCY GROWTH Fiskars Operating Model People Structures Processes IT Systems Fiskars Services Finance (FSF) enabling centralized, scalable processing of finance transactions, and development of finance processes & systems Finance process & system harmonization Standardization and harmonization of finance transacting processes and systems

Questions / discussion • Business transformation program • Request to invest in controls? • Enabler for controls improvement? • New operating model – Matrix operations management • Benefits • Issues 6 Company confidential

Finance Operating Model Role of FSF in regards developing and managing controls 7 Company confidential

FSF value proposal to Service partners / customers Innovation Continuous development of finance transacting services (processes, systems, competences) Teamwork Solid and reliable partner for long-term co-operation. Shared strategy & objectives. Accountability Responsibility to perform services and manage controls, ensuring business continuity. Integrity Working according to Fiskars values, ensuring compliance & controls. Service partner to business by managing administrative finance and financial supply chain to unlock working capital, manage controls and continuous development. Page 8 2_Fiskars template. pptx 6/17/2021

Questions / discussion • Shared Finance Services´role • in project/program • in developing and managing internal controls 9 Company confidential

Internal Audit Expectations towards Internal Audit and benefit from co-operation 10 Company confidential

Fiskars initiatives to develop controls environment COSO as reference model Objectives: • Why to develop controls? • What is the benefit for business? • What is the focus/priorities in controls development? Organization: • What functions/operations to include? • What and how to prioritize? • Who should own the controls? • How to ensure continuous mgmt focus? Components: • Relevance and connection to business continuity • 1)Develop, 2) implement & 3) monitor • Include in Fiskars management system 11 Company confidential 1. Define common Fiskars controls framework 2. Align and implement governance 3. Design controls and mechanisms

Internal Audit role and co-operation in managing controls • ROLE: independent integrator between business functions • FOCUS: due to continuous internal audit process (business & risk reviews), ability to give guidance on focus • IMPACT: high visibility and influence on prioritization and investments required to improve compliance & controls 12 Company confidential