AMER SPORTS Q3/2013 Good momentum continued, solid growth in - - PowerPoint PPT Presentation

October 24, 2013, Heikki Takala, President and CEO

AMER SPORTS Q3/2013

Good momentum continued, solid growth in strategic focus areas

Amer Sports Interim Report Presentation

• Net sales EUR 608.9 million (601.9), +7% in local currencies
• Apparel +19%, Sports Instruments +15%, Footwear +11% Fitness +10%

and Team Sports +10%, Winter Sports Equipment -3%

• EMEA +8%, Americas +4%, APAC +18%, Emerging markets +15%,

business to consumers +12 %

• Gross margin 45.0% (45.3%)
• Improvement in Winter Sports Equipment and Fitness was offset by

higher in-bound freight and negative FX impact, especially Japanese yen

• EBIT EUR 82.5 million or 13.5% of net sales (81.3 million or 13.5%)
• Sales volumes up EUR 17 million
• Gross margin down by 3 million
• OPEX up EUR 13 million related to higher distribution expenses and

investments

Good quarter, challenged by currencies

2

Amer Sports Interim Report Presentation

Business area net sales

MEUR Q3/ 2013 Q3/2012 Ch % Ch %* 2012 Winter Sports Equipment 151.6 163.7

• 7
• 3

425.0 Footwear 100.0 92.9 8 11 314.4 Apparel 105.4 95.0 11 19 248.6 Cycling 33.1 31.3 6 8 129.0 Sports Instruments 30.5 28.1 9 15 104.2 Individual Ball Sports 65.3 72.1

• 9
• 3

318.8 Team Sports 51.4 49.8 3 10 250.9 Fitness 71.6 69.0 4 10 273.1 Total 608.9 601.9 1 7 2,064.0

3

* Change in local currencies

Amer Sports Interim Report Presentation

Q3 cash flow reflects good topline momentum

EURm

4

• 150
• 125
• 100
• 75
• 50
• 25

25 50 75 100 125 150

Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13

Amer Sports Interim Report Presentation

Balance sheet remains healthy

EUR million Sep 30, 2013 Sep 30, 2012 Dec. 31, 2012 Net debt 573.4 539.3 434.3 Shareholders’ equity 729.4 740.2 731.8 Capital employed 1,302.8 1,279.5 1,166.1 Working capital 551,3 515,3 400.1 Gearing, % 79 73 59 Equity ratio, % 38 38 39

5

Amer Sports Interim Report Presentation

• Cash EUR 71.3 million and

unused committed facilities EUR 240 million (September 29, 2013)

• Commercial paper program

EUR 500 million, of which EUR 172.8 million issued

• Scheduled long-term

payments in 2013 EUR 37.1 million and in 2014 EUR 62.7 million

• Average interest rate of the

loan portfolio 3.4% (3.6)

6

No significant long-term refinancing needs

0m 25m 50m 75m 100m 125m 150m 175m 2013 2014 2015 2016 2017=>

Pension Loan Bonds Bank loans Commercial Papers Other

Amer Sports Interim Report Presentation

Foreign currency impacts

• Net buyer of USD due to sourcing in

Asia (USD denominated)

• Weakening USD vs. EUR has a positive

transaction impact on EBIT, with a certain delay due to the hedges

• The next 12 month net USD flow

exposed to EUR/USD differences is

• approx. USD 400 million
• At the end of Q3/2013 all 2013

EUR/USD cash flows are hedged at 1.31 and 90% of 2014 flows at 1.33

• Net seller in all other main currencies

(CAD, CHF, GBP, RUB and JPY) with net flows of EUR 30-50 million

Transaction difference Translation difference

• Translation differences mainly from

USD/EUR, recently also from YEN/EUR and RUB/EUR

• Weakening USD, YEN and RUB vs.

EUR has a negative P&L translation impact

• Change in local currency: Translation

impact eliminated

• Example: Japan YTD double-digit

growth in local currencies, negative in reported currencies

Amer Sports Interim Report Presentation

Net sales +7% in local currencies

• Winter Sports Equipment -3% due to shift in pre-order shipments to Q4
• Footwear +11%, Apparel +19%, Cycling +8%, Sports Instruments +15%

EBIT EUR 87.4 million (86.8 million)

• Sales volumes up EUR 14 million offset by lower gross margin of EUR 4 million and higher

distribution driven operating expenses of EUR 10 million

• Gross margin negatively affected by higher in-bound freight costs and currency impact,

especially Japanese yen

Winter and Outdoor Q3/2013 (Q3/2012)

8

58.2 79.3 86.8 87.4

• 50
• 25

25 50 75 100

300.3 395.7 411.0 420.6

100 200 300 400 500

EURm EURm

Net Sales EBIT excluding non-recurring items

Amer Sports Interim Report Presentation

Net sales +3% in local currencies

• Individual Ball Sports -3%, driven by a decline in tennis racquets partially
• ffset by strong growth in tennis balls
• Team Sports +10%, driven by strong growth in baseball bats (+28%)

EBIT EUR -2.1 million (-2.6 million )

Ball Sports Q3/2013 (Q3/2012)

9

3.5

• 1.1
• 2.6
• 2.1
• 5

5 10 15 20 25

114.0 106.7 121.9 116.7

50 100 150 200

EURm EURm

Net Sales EBIT excluding non-recurring items

Amer Sports Interim Report Presentation

Net sales +10% in local currencies

• Sales growth was particularly strong in the Americas and Asia Pacific
• Commercial business +9%, consumer business +14%

EBIT EUR 6.2 million (4.2 million )

• Increased sales volumes and improved gross margins partially offset by

higher distribution expenses

Fitness Q3/2013 (Q3/2012)

10

2.8 2.8 4.2 6.2

• 5

5 10

52.6 56.8 69.0 71.6

20 40 60 80 100

EURm EURm

Net Sales EBIT excluding non-recurring items

OUTLOOK

Amer Sports Interim Report Presentation

• In 2013, Amer Sports’ net sales growth in local currencies is

expected to meet at minimum the company’s long-term annual 5% growth target and EBIT margin excluding non- recurring items is expected to improve from 2012.

• Amer Sports expects the trading environment to remain

challenging in 2013.

• The company will continue to focus on softgoods growth,

consumer-driven product and marketing innovation, commercial expansion and operational excellence.

Outlook for 2013 unchanged

12

Amer Sports Interim Report Presentation

Prioritized, sequenced program

Clarify future direction & deliver the year Repeatable business model Build critical capabilities, allocate resources and reignite growth

• Clarify priorities, set

direction

• Continue to drive profit

recovery, deliver the year

• Continue the work on
• perational efficiency &

margins improvement

• Build capabilities:
• Softgoods
• Category-based

development

• Go to Market
• Drive organic growth:

Softgoods, Russia, China, B2C, etc.

• Operational excellence, WSE

efficiency & profitability

• Grow the core
• Hardgoods
• Big countries
• Add more
• Softgoods
• Emerging markets
• Own retail
• Learn for future
• Next growth

categories (accessories, action sports, Digital) ~2010 ~2011...2012 2013 –

APPENDIX

Amer Sports Interim Report Presentation

Key figures

EUR million Q3/13 Q3/12 1-9/13 1-9/12 2012 Net sales 608.9 601.9 1,479.1 1,445.5 2,064.0 Gross profit 273.9 272.9 655.9 641.7 900.6 Gross profit, % of net sales 45.0 45.3 44.3 44.4 43.6 EBIT excluding non-recurring items 82.5 81.3 90.2 91.7 138.7 EBIT % excluding non-recurring items 13.5 13.5 6.1 6.3 6.7 Non-recurring items

• 24.8

EBIT 82.5 81.3 90.2 91.7 113.9 EBIT % 13.5 13.5 6.1 6.3 5.5 Net cash flow after investing activities

• 119.6
• 78.1 -101.4
• 24.9

71.8

16

Amer Sports Interim Report Presentation

Foreign currency translation difference

EUR million Q3-2013 Q3-2012

Business Area Reported Reported Local currency Translation Difference Winter Sports Equipment 151.6 163.7 156.4

• 7.3

Footwear 100.0 92.9 89.8

• 3.1

Apparel 105.4 95.0 88.4

• 6.6

Cycling 33.1 31.3 30.6

• 0.7

Sports Instruments 30.5 28.1 26.6

• 1.5

Winter & Outdoor 420.6 411.0 391.9

• 19.1

Individual Ball Sports 65.3 72.1 67.3

• 4.8

Team Sports 51.4 49.8 46.6

• 3.2

Ball Sports 116.7 121.9 113.9

• 8.0

Fitness 71.6 69.0 65.2

• 3.8

Total 608.9 601.9 571.0

• 30.9

Amer Sports Interim Report Presentation

Net sales and EBIT breakdown (MEUR)

NET SALES Q3/ 2013 Q2/ 2013 Q1/ 2013 2012 Q4/ 2012 Q3/ 2012 Q2/ 2012 Q1/ 2012 2011 Q4/ 2011 Q3/ 2011 Q2/ 2011 Q1/ 2011 Winter and Outdoor 420.6 168.7 266.5 1,221.2 402.8 411.0 150.9 256.5 1,137.6 375.0 395.7 133.4 233.5 Ball Sports 116.7 144.2 164.0 569.7 127.7 121.9 146.5 173.6 511.0 109.0 106.7 136.3 159.0 Fitness 71.6 64.3 62.5 273.1 88.0 69.0 56.4 59.7 232.2 72.9 56.8 45.9 56.6 Total 608.9 377.2 493.0 2,064.0 618.5 601.9 353.8 489.8 1,880.8 556.9 559.2 315.6 449.1 EBIT Q3/ 2013 Q2/ 2013 Q1/ 2013 2012* Q4/ 2012* Q3/ 2012 Q2/ 2012 Q1/ 2012 2011 Q4/ 2011 Q3/ 2011 Q2/ 2011 Q1/ 2011 Winter and Outdoor 87.4 -27.1 14.2

113.8 41.7

86.8 -25.4 10.7 118.5 45.0 79.3

• 15.1

9.3 Ball Sports

• 2.1

7.8 17.4 28.0 1.0

• 2.6

9.7 19.9 25.0

• 0.7
• 1.1

9.1 17.7 Fitness 6.2 4.3

• 0.4

17.0 7.9 4.2 1.0 3.9 10.3 4.5 2.8

• 0.3

3.3 Headquarters

• 9.0
• 3.7
• 4.8
• 20.1
• 3.6
• 7.1
• 4.5
• 4.9
• 18.3
• 2.5
• 6.6
• 4.6
• 4.6

Total 82.5 -18.7 26.4 138.7 47.0 81.3 -19.2 29.6 135.5 46.3 74.4

• 10.9

25.7

18

* Excluding non-recurring items

Amer Sports Interim Report Presentation

Net sales by region

MEUR Q3/ 2013 Q2/ 2013 Q1/ 2013 2012 Q4/ 2012 Q3/ 2012 Q2/ 2012 Q1/ 2012 2011 Q4/ 2011 Q3/ 2011 Q2/ 2011 Q1/ 2011 EMEA 301.6 144.5 240.5 962.7 305.3 297.6 133.1 226.7 917.6 273.8 300.0 129.7 214.1 Americas 237.2 177.6 195.3 834.1 224.8 236.2 167.4 205.7 742.1 205.4 203.8 146.5 186.4 Asia Pacific 70.1 55.1 57.2 267.2 88.4 68.1 53.3 57.4 221.1 77.7 55.4 39.4 48.6 Total 608.9 377.2 493.0 2,064.0 618.5 601.9 353.8 489.8 1,880.8 556.9 559.2 315.6 449.1

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Amer Sports Interim Report Presentation

Sales development by region in Q3/2013

Winter and Outdoor Ball Sports Fitness Total

65 % 20 % 15 %

116.7

58 % 30 % 12 %

71.6

39 % 50 % 11 %

608.9

Americas EMEA Asia Pacific

20

EMEA Americas Asia Pacific Total MEUR Ch, %* MEUR Ch, %* MEUR Ch, %* MEUR Ch, %* Winter and Outdoor 256.8 4 119.6 9 44.2 26 420.6 7 Ball Sports 23.0

• 2

76.4 4 17.3 116.7 3 Fitness 21.8 6 41.2 10 8.6 24 71.6 10 Total 301.6 8 237.2 4 70.1 18 608.9 7

* In local currencies

28 % 61 % 11 %

420.6

Amer Sports Interim Report Presentation

25 % 63 % 12 %

Sales development by region in 1–9/2013

Winter and Outdoor Ball Sports Fitness Total

855.8

64 % 23 % 13 %

424.9

61 % 27 % 12 %

198.4

41 % 47 % 12 %

1,479.1

Americas EMEA Asia Pacific

21

EMEA Americas Asia Pacific Total MEUR Ch, %* MEUR Ch, %* MEUR Ch, %* MEUR Ch, %* Winter and Outdoor 535.9 7 219.0 9 100.9 12 855.8 8 Ball Sports 96.6

• 2

270.8

• 1

57.5 2 424.9

• 1

Fitness 54.1 13 120.3 5 24.0 52 198.4 11 Total 686.6 6 610.1 4 182.4 13 1,479.1 6

* In local currencies

Amer Sports Interim Report Presentation

Balance sheet MEUR

Sep 30, 2013 Sep 30, 2012 Goodwill and other intangible non-current assets 492.2 503.0 Tangible non-current assets and other non-current assets 286.7 268.8 Inventories and work in progress 412.2 403.5 Receivables 662.0 639.8 Cash and cash equivalents 71.3 121.5 Shareholders’ equity 729.4 740.2 Interest bearing liabilities 644.7 660.8

• Long-term

373.6 414.8

• Current

271.1 246.0 Other liabilities 550.3 533.6 Total 1,924.4 1,936.6

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Amer Sports Interim Report Presentation

• Heikki Takala, President and CEO, tel. +358 9 7257 8210
• Jussi Siitonen, CFO, tel. +358 9 7257 8212
• Samppa Seppälä, Corporate Communications and IR,
• tel. +358 9 7257 8233
• www.amersports.com

Contact information

23

www.amersports.com

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.