AMER SPORTS Q3/2012 October 25, 2012 // Heikki Takala, President and - - PDF document

▶
amer sports q3 2012
SMART_READER_LITE
LIVE PREVIEW

AMER SPORTS Q3/2012 October 25, 2012 // Heikki Takala, President and - - PDF document

Nov 06, 2022 387 likes •536 views

AMER SPORTS Q3/2012 October 25, 2012 // Heikki Takala, President and CEO Broad-based growth, offset by Winter Sports Equipment softness Net sales EUR 601.9 million (559.2), +2% in local currencies ( ), - Apparel +27%, Sports Instruments

slide-1
SLIDE 1

1

AMER SPORTS Q3/2012

October 25, 2012 // Heikki Takala, President and CEO

  • Net sales EUR 601.9 million (559.2), +2% in local currencies

Broad-based growth, offset by Winter Sports Equipment softness

( ),

  • Apparel +27%, Sports Instruments +24%, Fitness +10%, Tennis +8%,

Cycling +7%, Winter Sports Equipment -15%

  • Major retailer de-stocking in Europe, Footwear sales unchanged
  • Geographically, EMEA -2%, Americas +4% and APAC +12%
  • Own retail and e-commerce progressing fast
  • Gross margin 45.3% (45.3%)

Amer Sports Results Presentation

  • EBIT EUR 80.8 million (74.4)
  • Group-wide restructuring program to be started in order to drive

further scale and synergies and continue reallocating resources to sustain growth

2

slide-2
SLIDE 2

2

EBIT development Q3/2012 YoY, EUR million

8.3 80.8

80 82

6.7 4.9 7.5 1.5 1.5 1.1 80.8

80 82

74.4

66 68 70 72 74 76 78

74.4

66 68 70 72 74 76 78

Amer Sports Results Presentation

60 62 64

Q3/12 Other & FX OPEX Growth Q3/11

60 62 64

HQ Q3/12 Fitness Ball Sports W&O Q3/11

3

Cash flow improved, focus on working capital management

EUR million 7–9/12 7–9/11 Ch % Ch %* 2011 N t l 601 9 559 2 8 2 1 880 8 Net sales 601.9 559.2 8 2 1,880.8 Gross profit 272.9 253.4 8 2 817.4 Gross profit, % of net sales 45.3 45.3 43.5 EBIT 80.8 74.4 9 2 135.5 EBIT % 13.4 13.3 7.2 Net cash flow after investing activities

  • 78.1
  • 90.4
  • 21.4

* Change in local currencies

Amer Sports Results Presentation

Change in local currencies

4

slide-3
SLIDE 3

3

Balance sheet

EUR million Sep 30, 2012 Sep 30, 2011 Dec 31, 2011 Net debt 539.3 429.1 391.6 Shareholders’ equity 765 6 786 1 829 4 Shareholders equity 765.6 786.1 829.4 Capital employed* 1,115.2 1,004.3 1,027.3 Working capital 561.2 505.0 469.3 Gearing, % 70 55 47 Equity ratio, % 39.7 44.0 45.6

* 12 month rolling average

I i i i d t th d ti f th h b id b d i

Amer Sports Results Presentation 5

Increase in gearing is due to the redemption of the hybrid bond in March (impact 12 percentage points) Inventories are healthy

  • 2/3 of inventories are softgoods and Winter Sports Equipment
  • Of this, the vast majority is current or next season products
  • Cash reserves EUR 121.5

million

Mid-term refinancing needs covered

150,0m 175,0m

  • Unused credit facilities EUR

240.0 million.

  • Scheduled repayments of

long term debt EUR 45.2 million in calendar years of 2012 and 2013.

25,0m 50,0m 75,0m 100,0m 125,0m

Amer Sports Results Presentation

,0m 2012 2013 2014 2015 2016=>

Pension Loan Term Loan Bonds Commercial Papers Other

6

The average interest rate of loan portfolio: 3.4% (December 31, 2011: 3.6%)

slide-4
SLIDE 4

4

Winter and Outdoor in Q3/2012 (Q3/2011)

250 300 350 400 450

Net sales

40 60 80 100

EBIT excluding non-recurring items

MEUR MEUR

395.7 86.8 79.3 300.3 58.2 262.4 44.1 411.0

Net sales -1%

  • Winter Sports Equipment -15%: pre-orders down by 13%
  • Footwear at last year’s level: customer de-stocking in Europe
  • Apparel +27%: growth in both Salomon and Arc’teryx

C li +7%

50 100 150 200 250

  • 40
  • 20

20

Q3/10 Q3/11 Q3/09 Q3/10 Q3/09 Q3/11 Q3/12 Q3/12

Amer Sports Results Presentation

  • Cycling +7%
  • Sports Instruments +24%: early signs of turnaround continue

EBIT EUR 86.8 million (79.3)

  • Gross margins up EUR 6 million
  • Operating expenses up EUR 8 million, offset by foreign exchange gains

7 120 140 160 180

Net sales

20 25

EBIT exluding non-recurring items

MEUR MEUR

114.0 106.7 103 4 121.9

Ball Sports Q3/2012 (Q3/2011)

Net sales +4%

  • Individual Sports +8%
  • Team Sports -1%: US trade de-stocking bat inventories

20 40 60 80 100 120

  • 5

5 10 15 106.7

  • 1.1

3.5 103.4 2.4 Q3/09 Q3/10 Q3/09 Q3/10 Q3/11 Q3/11

  • 2.6

Q3/12 Q3/12

Amer Sports Results Presentation

  • Team Sports -1%: US trade de-stocking bat inventories
  • APAC +20%, Americas +3%, EMEA -3%

EBIT EUR -2.6 million (-1.1)

  • Decline in baseball margins

8

slide-5
SLIDE 5

5

Fitness Q3/2012 (Q3/2011)

60 70 80

Net sales

2 4 6

EBIT excluding non-recurring items

MEUR MEUR

56.8 52.6 2.8 4.2 44 8 2.8 69.0

Net sales +10%

  • Commercial gains, impact of strong innovation

10 20 30 40 50

  • 6
  • 4
  • 2

2

52.6 44.8 Q3/09 Q3/10 Q3/09 Q3/10 Q3/11 Q3/11 Q3/12

  • 1.4

Q3/12

Amer Sports Results Presentation

EBIT EUR 4.2 million (2.8)

  • Driven by higher sales volumes

9

OUTLOOK

slide-6
SLIDE 6

6

  • In 2012, Amer Sports’ net sales in local currencies are expected to increase

from 2011 in line with the company’s annual 5% growth target.

Outlook for 2012 unchanged

  • Amer Sports 2012 EBIT excluding non-recurring items is expected to be

approximately at the level of 2011.

  • The outlook is based on an unchanged view on Winter Sports Equipment,

Apparel and Footwear, and ongoing improvement in Sports Instruments and Fitness.

Amer Sports Results Presentation 11

WE CONTINUE MOVING

slide-7
SLIDE 7

7

  • Broad-based improvement
  • Expansion of softgoods

Investing into future growth

p g

  • Apparel +29% in Q1-Q3. Future brand/category expansions in the pipeline
  • Continuous improvement in Go to Market, including emerging markets
  • Own retail
  • 18 new stores in the past 12 months, already 23 e-commerce stores
  • Operational excellence

Amer Sports Results Presentation

  • Winter Sports Equipment: Focus project delivering target gross margin

benefits

13

  • Reminder from the CMD: cost and complexity remain a key

A Group-wide restructuring program to be started

p y y challenge

  • Growth continues guided by our long-term financial targets
  • We now accelerate integration further to achieve scale and

synergies and to sustain the growth

  • After the program (end 2014 onwards), estimated annual

savings EUR 20 million

Amer Sports Results Presentation

g

14

slide-8
SLIDE 8

8

Profitability, growth acceleration Build critical capabilities, allocate resources and reignite growth ~2013-

We stay the course

Clarify future direction & deliver the year reignite growth

  • Clarify priorities, set

direction

  • Continue to drive profit
  • Build capabilities:
  • Softgoods
  • Category based development
  • Go to market
  • Drive organic growth:

softgoods, Russia, China, BtoC,

  • Continued growth in

categories and countries

  • Big brands,

big countries, big categories ~2010 ~2011...2012

Amer Sports Results Presentation

p recovery, deliver the year

  • Continue the work on
  • perational efficiency &

margins improvement etc.

  • Operational excellence, WSE

efficiency & profitability

15

slide-9
SLIDE 9

9

APPENDIX

Net sales and EBIT

EUR million Q3/ 2012 Q3/ 2011 Ch % Ch %* 2011 2010 Ch % Ch %* NET SALES, TOTAL 1,880.8 1,740.4 8 9 Winter and Outdoor 411.0 395.7 4

  • 1

1,137.6 1,015.0 12 12 Winter Sports Equipment 163.7 185.4

  • 12
  • 15

448.4 438.4 2 2 Footwear 92.9 90.7 2 287.7 219.6 31 31 Apparel 95.0 69.5 37 27 191.6 156.6 22 22 Cycling 31.3 28.7 9 7 120.5 106.4 13 14 Sports Instruments 28.1 21.4 31 24 89.4 94.0

  • 5
  • 4

Ball Sports 121.9 106.7 14 4 511.0 520.6

  • 2

Individual Ball Sports 72.1 61.6 17 8 283.0 308.5

  • 8
  • 7

Team Sports 49.8 45.1 10

  • 1

228.0 212.1 7 11 Fitness 69.0 56.8 21 10 232.2 204.8 13 17 EBIT TOTAL 80 8 74 4 9 135 5 107 9** 26 local currencies rring items

Amer Sports Results Presentation

EBIT, TOTAL 80.8 74.4 9 135.5 107.9** 26 Winter and Outdoor 86.8 79.3 9 118.5 96.9 22 Ball Sports

  • 2.6
  • 1.1

25.0 32.2

  • 22

Fitness 4.2 2.8 50 10.3 2.7 Headquarters

  • 7.6
  • 6.6
  • 18.3
  • 23.9

Free cash flow

  • 78.1
  • 90.4
  • 21.4

50.1

18

* Comparable sales in ** Excluding non-recur

slide-10
SLIDE 10

10

Net sales and EBIT breakdown (MEUR)

NET SALES Q3/ 2012 Q2/ 2012 Q1/ 2012 2011 Q4/ 2011 Q3/ 2011 Q2/ 2011 Q1/ 2011 2010 Q4/ 2010 Q3/ 2010 Q2/ 2010 Q1/ 2010 Winter and Outdoor 411.0 150.9 256.5 1,137.6 375.0 395.7 133.4 233.5 1,015.0 416.5 300.3 116.5 181.7 Ball Sports 121.9 146.5 173.6 511.0 109.0 106.7 136.3 159.0 520.6 107.3 114.0 153.9 145.4 Fitness 69.0 56.4 59.7 232.2 72.9 56.8 45.9 56.6 204.8 59.6 52.6 47.1 45.5 Total 601.9 353.8 489.8 1,880.8 556.9 559.2 315.6 449.1 1,740.4 583.4 466.9 317.5 372.6 EBIT Q3/ 2012 Q2/ 2012 Q1/ 2012 2011 Q4/ 2011 Q3/ 2011 Q2/ 2011 Q1/ 2011 2010 Q4/ 2010 Q3/ 2010 Q2/ 2010 Q1/ 2010 Winter and Outdoor 86.8

  • 25.4

10.7 118.5 45.0 79.3 -15.1 9.3 96.9 51.2 58.2

  • 24.2

1.7 Ball Sports

  • 2.6

9.7 19.9 25.0

  • 0.7
  • 1.1

9.1 17.7 32.2

  • 5.4

3.5 17.0 14.4

Amer Sports Results Presentation

Fitness 4.2 1.0 3.9 10.3 4.5 2.8

  • 0.3

3.3 2.7 2.0 2.8

  • 3.7
  • 0.7

Headquarters

  • 7.6
  • 5.1
  • 5.5
  • 18.3
  • 2.5
  • 6.6
  • 4.6
  • 4.6
  • 23.9

0.6

  • 8.7
  • 6.0
  • 5.9

Total 80.8

  • 19.8

29.0 135.5 46.3 74.4 -10.9 25.7 107.9* 48.4 55.8

  • 16.9

9.5

19

* Excluding non-recurring items

Net sales by region (MEUR)

MEUR Q3/ 2012 Q2/ 2012 Q1/ 2012 2011 Q4/ 2011 Q3/ 2011 Q2/ 2011 Q1/ 2011 2010 Q4/ 2010 Q3/ 2010 Q2/ 2010 Q1/ 2010 EMEA 297.6 133.1 226.7 917.6 273.8 300.0 129.7 214.1 845.7 325.8 226.9 120.8 172.2 Americas 236.2 167.4 205.7 742.1 205.4 203.8 146.5 186.4 687.9 184.1 192.3 153.2 158.3 Asia Pacific 68.1 53.3 57.4 221.1 77.7 55.4 39.4 48.6 206.8 73.5 47.7 43.5 42.1 Total 601.9 353.8 489.8 1,880.8 556.9 559.2 315.6 449.1 1,740.4 583.4 466.9 317.5 372.6

Amer Sports Results Presentation 20

slide-11
SLIDE 11

11

Sales development by region in 1–9/2012

Americas EMEA Asia Pacific Total 1-9/12 Ch, YoY 1-9/12 Ch, YoY 1-9/12 Ch, YoY 1-9/12 Ch, YoY MEUR % %, LC MEUR % %, LC MEUR % %, LC MEUR % %, LC

22 % 12 %

Winter and Outdoor Ball Sports Fitness Total Winter and Outdoor 210.5 20 10 508.6

  • 1

99.3 28 18 818.4 7 4 Ball Sports 280.4 10 1 99.5 3 2 62.1 24 14 442.0 10 3 Fitness 118.4 12 3 49.3 29 24 17.4 10

  • 1

185.1 16 7 Total 609.3 14 4 657.4 2 1 178.8 25 15 1,445.5 9 4

13 % 9 % 12 %

2011

Amer Sports Results Presentation

22 % 66 %

1,137.6

65 % 22 %

511.0

68 % 23 % 232.2 39 % 49 % 12 %

1,880.8

Americas EMEA Asia Pacific

21

Balance sheet

MEUR Sep 30, 2012 Sep 30, 2011 Dec 30, 2011 Goodwill and other intangible non-current assets 503.0 490.7 510.2 Tangible non current assets and other non current Tangible non-current assets and other non-current assets 256.1 245.1 257.4 Inventories and work in progress 403.5 384.6 359.7 Receivables 645.3 590.5 611.9 Cash and cash equivalents 121.5 75.6 78.8 Shareholders’ equity 765.6 786.1* 829.4* Interest bearing liabilities 660 8 504 7 470 4

Amer Sports Results Presentation

Interest bearing liabilities 660.8 504.7 470.4

  • Long-term

414.8 330.0 251.4

  • Current

246.0 174.7 219.0 Other liabilities 503.0 495.7 518.2 Total 1,929.4 1,786.5 1,818.0

* Including hybrid bond

22

slide-12
SLIDE 12

12

  • Heikki Takala, President and CEO
  • tel. +358 9 7257 8210

Contact information

  • Jussi Siitonen, CFO
  • tel. +358 9 7257 8212
  • Päivi Antola, Director, Corporate Communications and IR
  • tel. +358 9 7257 8233

Amer Sports Results Presentation

  • www.amersports.com

23

www.amersports.com p

Disclaimer Statements in this presentation, which are not historical facts, such as expectations, anticipations, beliefs and estimates, are forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties which may cause actual results to materially differ from those expressed in such forward-looking statements. Amer Sports assumes no responsibility to update any of the forward-looking statements contained herein. No representation or warranty, express or implied, is made or given by or on behalf of Amer Sports or its employees or any other person as to the accuracy, completeness or fairness of the information or opinions contained in this presentation.

slide-13
SLIDE 13

13