are delivering, solid view on H2 July 26, 2018 Heikki Takala, - PowerPoint PPT Presentation

Amer Sports Q2/2018 “Normal” Q2, strategic priorities are delivering, solid view on H2 July 26, 2018 – Heikki Takala, President and CEO

“Normal” Q2 • Net sales EUR 483.0 million (495.8), +2%* – Top line mostly in-season orders • EBIT excl. IAC EUR -25.5 million (-22.8) – Reflecting spending into H2 and beyond • EPS excl. IAC EUR -0.22 (-0.20) • Working Capital reflects inventory build-up for H2 * In local currencies The comparative figures for 2017 have been restated in accordance with IFRS 15 Revenue from contracts with customers and IFRS 9 Financial instruments 2 26 July 2018 Amer Sports Half Year Financial Report Presentation

Strategic priorities are delivering • Direct to Consumer +15% to EUR 50 million in sales: own retail +11% (same store growth +4%), e-commerce +22% • Modern sales channels ~30% of sales • Arc’teryx double -digit growth and strong order book • China +21% • US starting to rebound • Footwear distribution consolidation continues, expected to re-ignite growth in 2019 3 26 July 2018 Amer Sports Half Year Financial Report Presentation

Solid view on H2 • Double digit growth in pre-order/order book: – Winter Sports Equipment – Arc’teryx – Sports Instruments • Precor won its largest ever two-year customer contract • Peak Performance contributes to profit and growth as of Q3 4 26 July 2018 Amer Sports Half Year Financial Report Presentation

Peak Performance accelerates our transformation • Faster growth and profitability in Apparel, better asset efficiency 5 26 July 2018 Amer Sports Half Year Financial Report Presentation

Balance sheet June 30, June 30, Dec. 31, EUR million 2018 2017 2017 Net debt 820.2 584.4 460.7 Shareholders’ equity 841.9 837.8 885.4 Capital employed 1,662.2 1,422.3 1,346.0 Working capital 759.5 731.6 755.4 Capital turnover 1.83X 1.78X 1.87X ROCE*, % 15.0 13.4 14.8 Net debt/EBITDA* LTM 2.88 2.18 1.62 Net debt/equity 0.97 0.69 0.52 * Excluding IAC 6 26 July 2018 Amer Sports Half Year Financial Report Presentation

Development of Gross Margin and USD hedges EUR/USD 1.400 USD/EUR Hedges 1.350 Gross Margin 45.2% 1.300 1.250 1.200 46.3% 1.150 1.100 45.3% 44.9% Q2 LTM USD/EUR Spot 1.050 1.000 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 7 26 July 2018 Amer Sports Half Year Financial Report Presentation

H1 OPEX growth at last year level 18 Topline driven 14 3 • Sales/customer service personnel • Sales commissions Topline driven 6 17 • Retails stores (> 1year operative) • Outbound freight 2 13 • Warehousing costs • Marketing: sell-in, sell-through 5 • Warranties, bad debts 9 20 16 Investment driven Investment driven 4 • R&D • Sales personnel: distribution expansion 6 4 • New retail stores (< 1year operative) • Digital platform • Consumer marketing (acceleration) -6 -8 Maintenance driven Maintenance driven • G&A H1-17 H1-18 FY-17 6/18 LTM 8 26 July 2018 Amer Sports Half Year Financial Report Presentation

Outdoor Q2/2018 Net sales MEUR (Q2/2017) 600 500 400 Net sales EUR 244.1 million, +4%* 241.6 244.1 300 231.0 209.7 174.8 • Apparel +10%, driven by Arc’teryx 200 100 • Footwear -2%, consolidation of global 0 distribution footprint continued Q2/17 Q2/18 Q2/14 Q2/16 Q2/15 • Winter Sports pre-orders +10% EBIT excluding items affecting comparability MEUR • Sports Instruments +23% 120 100 • Cycling -10%: declined OEM orders, 80 low demand in wholesale channel 60 40 20 -16.0 -30.7 EBIT excl. IAC EUR -30.7 million (-29.4) -22.0 -18.7 -29.4 0 -20 -40 Q2/14 Q2/15 Q2/16 Q2/17 Q2/18 * In local currencies 9 26 July 2018 Amer Sports Half Year Financial Report Presentation

Net sales MEUR Ball Sports Q2/2018 200 169.4 169.8 180 165.5 159.0 (Q2/2017) 160 136.2 140 120 100 Net sales EUR 159.0 million, 80 at previous year’s level* 60 40 20 EBIT excl. IAC EUR 11.0 million (9.3) 0 Q2/18 Q2/14 Q2/15 Q2/17 Q2/16 Solid profitability improvement: EBIT excluding items affecting comparability MEUR EBIT margin excl. IAC 6.9% (5.5) 20 18 16 14 11.0 11.3 12 9.3 10 7.7 8 6.3 6 4 2 0 Q2/14 Q2/17 Q2/18 Q2/15 Q2/16 * In local currencies 10 26 July 2018 Amer Sports Half Year Financial Report Presentation

Net sales Fitness Q2/2018 MEUR 140 (Q2/2017) 120 100 84.4 82.0 80.9 79.9 Net sales EUR 79.9 million, 80 65.1 at previous year’s level* 60 • 40 Strong growth in China and Japan 20 • Significant new product and 0 customer expansions Q2/16 Q2/18 Q2/14 Q2/15 Q2/17 EBIT excluding items affecting comparability EBIT excl. IAC EUR 0.0 million (2.5) 16 14 • Sales and EBIT biased to the 12 second half of the year 10 Precor just closed the largest customer 8 5.1 contract ever with Planet Fitness, worth 6 4.5 4.1 at least USD 30 million over 2 years, 4 2.5 starting in Q4 2 0.0 0 Q2/14 Q2/17 Q2/15 Q2/16 Q2/18 * In local currencies 11 26 July 2018 Amer Sports Half Year Financial Report Presentation

Outlook unchanged – guided by our long term targets and strategies • In 2018, Amer Sports’ net sales in local currencies as well as EBIT excl. IAC are expected to increase from 2017. Due to ongoing wholesale market uncertainties, the quarterly growth and improvement are expected to be uneven. • The company will prioritize sustainable, profitable growth, focusing on its five strategic priorities (Apparel and Footwear, Direct to Consumer, China, US, and Connected Devices and Services) whilst continuing its consumer- led transformation. 12 26 July 2018 Amer Sports Half Year Financial Report Presentation

Appendix

Net sales and EBIT breakdown NET SALES Q2/ Q1/ Q4/ Q3/ Q2/ Q1/ Q4/ Q3/ Q2/ Q1/ (MEUR) 2018 2018 2017 2017 2017 2017 2017 2016 2016 2016 2016 2016 Outdoor 500.5 241.6 394.7 1,601.8 490.7 505.7 231.0 374.4 244.1 381.2 1,674.7 537.9 Ball Sports 159.0 164.2 659.0 163.0 141.2 169.8 185.0 671.1 171.9 147.0 165.5 186.7 Fitness 87.8 84.4 84.5 349.2 109.8 84.1 80.9 74.4 79.9 78.4 375.6 118.9 Total 483.0 623.8 2,709.3 819.8 729.5 495.8 664.2 2,622.1 772.4 736.8 477.4 635.5 EBIT Q2/ Q1/ Q4/ Q3/ Q2/ Q1/ Q4/ Q3/ Q2/ Q1/ (MEUR) 2018* 2018 2017* 2017* 2017* 2017* 2017* 2016* 2016* 2016* 2016 2016* Outdoor 100.1 -29.4 26.8 196.9 69.7 105.5 -16.0 37.7 -30.7 33.7 178.5 81.0 Ball Sports 6.3 9.3 15.8 44.8 12.8 5.3 7.7 19.0 11.0 14.9 45.2 13.8 Fitness 0.0 0.1 20.1 12.4 4.5 2.5 0.7 17.0 6.8 5.4 4.5 0.3 Headquarters -5.8 -8.3 -29.3 -9.5 -6.8 -5.2 -7.8 -37.0 -8.0 -9.7 -8.3 -11.0 Total -25.5 40.4 167.8 97.7 104.1 -22.8 35.5 221.7 81.3 106.5 -12.1 46.0 * Excl. IAC 15 26 July 2018 Amer Sports Half Year Financial Report Presentation

Net sales by Business Unit in Q2 Ch Ch MEUR % %* 2017 Q2/2018 Q2/2017 Footwear 101.3 96.4 -5 -2 500.8 Apparel 63.5 60.4 5 10 482.3 Winter Sports Equipment 14.4 15.6 8 13 415.2 Cycling 27.9 31.5 -11 -10 134.7 Sports Instruments 34.0 40.7 20 23 141.7 Individual Ball Sports 78.2 82.4 -5 0 296.9 Team Sports 87.4 80.8 -8 0 362.1 375.6 Fitness 79.9 84.4 -5 0 * In local currencies 16 26 July 2018 Amer Sports Half Year Financial Report Presentation

Sales development by region EMEA Americas APAC Total MEUR Ch, %* MEUR Ch, %* MEUR Ch, %* MEUR Ch, %* Outdoor 124.2 1 71.5 4 48.4 15 244.1 4 Ball Sports 31.0 -2 110.0 1 18.0 -3 159.0 0 Fitness 16.3 -6 47.5 -1 16.1 12 79.9 0 Total 171.5 0 229.0 1 82.5 10 483.0 2 Outdoor Total Ball Sports Fitness 16% 16% 35% 51% 11% 20% 20% 36% 20% 20% 17% 16% 35% 35% 79.9 244.1 159.0 483.0 69% 60% 49% 49% 29% 49% 47% EMEA Americas APAC * Change in local currencies 17 26 July 2018 Amer Sports Half Year Financial Report Presentation

Foreign currency translation difference Q2/2018 Q2/2017 Change Reported Reported Local FX Reported, % Local FX, % Footwear 96.4 101.3 98.0 -5% -2% Apparel 63.5 60.4 58.0 5% 10% Winter Sports Equipment 15.6 14.4 13.8 8% 13% Cycling 27.9 31.5 30.7 -11% -10% Sports Instruments 40.7 34.0 33.1 20% 23% Outdoor 244.1 241.6 233.6 1% 4% Individual Ball Sports 78.2 82.4 78.5 -5% 0% Team Sports 80.8 87.4 81.2 -8% 0% Ball Sports 159.0 169.8 159.7 -6% 0% Fitness 79.9 84.4 79.9 -5% 0% Total 483.0 495.8 473.0 -3% 2% 18 26 July 2018 Amer Sports Half Year Financial Report Presentation

Balance sheet MEUR June 30, 2018 June 30, 2017 December 31, 2017 Goodwill and other intangible non-current assets 932.0 679.9 649.2 Tangible non-current assets and other non- current assets 345.0 329.0 340.5 Inventories and work in progress 637.5 569.5 481.3 Receivables 594.0 547.9 772.2 Cash and cash equivalents 152.9 246.4 358.4 Shareholders’ equity 841.9 837.8 885.4 Interest bearing liabilities 973.1 830.8 819.1 - Long-term 592.7 828.9 632.8 - Current 380.4 1.9 186.3 Other liabilities 846.4 704.1 897.6 Total 2,661.4 2,372.7 2,602.1 19 26 July 2018 Amer Sports Half Year Financial Report Presentation