Broad-based improvement and acceleration July 29, 2015 - Heikki - - PDF document

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Broad-based improvement and acceleration July 29, 2015 - Heikki - - PDF document

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7/29/2015 Amer Sports Q2/2015 Broad-based improvement and acceleration July 29, 2015 - Heikki Takala, President and CEO Broad-based organic growth driven by strategic growth areas Net sales EUR 461.1 million (376.1), +9% in local

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Amer Sports Q2/2015

Broad-based improvement and acceleration

July 29, 2015 - Heikki Takala, President and CEO

Broad-based organic growth driven by strategic growth areas

  • Net sales EUR 461.1 million (376.1), +9% in local currencies

– Excluding Louisville Slugger acquisition, net sales increased by 7% – Growth driven by Footwear (+16%), Sports Instruments (+11%) and Apparel (+10%) – EMEA +6%, Americas +12%, APAC +13% – B2C +45%

  • Gross margin 44.1% (43.9%)
  • EBIT excl. NRI EUR -9.0 million (-17.6), driven especially by Ball Sports

– Significant acceleration investment in digital

  • Free cash flow EUR 11.5 million (-38.7)
  • Integration of Louisville Slugger and Sports Tracker ongoing. Acquisition of

Queenax (functional fitness) announced today.

29 July 2015 Amer Sports Interim Report Presentation 2

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Balance sheet

29 July 2015 Amer Sports Interim Report Presentation 3

EUR million June 30, 2015 June 30, 2014

  • Dec. 31, 2014

Free cash flow 11.5

  • 38.7

53.5 Net debt 546.3 455.0 419.1 Shareholders’ equity 804.4 719.7 842.8 Capital employed 1,350.7 1,174.7 1,261.9 Working capital 460.6 416.8 495.4 Net debt/equity 0.68 0.63 0.50 Equity ratio, % 37.7 40.6 38.8

29 July 2015 Amer Sports Interim Report Presentation 4

Outdoor Q2/2015 (Q2/2014)

29 July 2015 4

Net sales +13%

  • Footwear +16%, Apparel +10%
  • Winter Sports Equipment pre-orders -3%
  • Cycling at previous year’s level. Rider equipment +11%
  • Sports Instruments +11%

EBIT excl. NRI EUR -18.7 million (-22.0)

  • 40
  • 20

20 40 60 80 100

EBIT excluding non-recurring items

50 100 150 200 250 300 350 400 450 500

Net sales

MEUR MEUR

133.4

  • 25.4
  • 15.1

Q2/11 Q2/11 Q2/12 150.9 Q2/12

  • 27.1

Q2/13 168.7 Q2/13 Q2/14 174.8 Q2/14

  • 22.0

Q2/15 209.7 Q2/15

  • 18.7
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29 July 2015 Amer Sports Interim Report Presentation 5

Ball Sports Q2/2015 (Q2/2014)

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Net sales +7%. Excluding Louisville Slugger, net sales at previous year’s level.

  • Momentum in performance tennis rackets, offset by a decline in low margin items
  • Growth in baseball, American football and basketball

EBIT excl. NRI EUR 11.3 million (6.3)

  • Restructuring contributing positively, mix shifting toward higher margin items

Now acceleration in selected growth areas

20 40 60 80 100 120 140 160 180

Net sales

  • 5

5 10 15 20 25

EBIT excluding non-recurring items

MEUR MEUR

9.1 Q2/11 Q2/11 144.2 Q2/12 Q2/12 Q2/13 9.7 Q2/13 136.2 Q2/14 6.3 136.3 146.5 Q2/14 7.8 Q2/15 169.4 11.3 Q2/15

29 July 2015 Amer Sports Interim Report Presentation 6

Fitness Q2/2015 (Q2/2014)

29 July 2015 6

Net sales +6%, growth driven by Asia Pacific and EMEA EBIT excl. NRI EUR 5.1 million (4.1)

20 40 60 80 100 120

Net sales

MEUR

45.9 Q2/11 56.4 Q2/12 Q2/13 Q2/14 64.3 65.1 Q2/15 82.0

  • 2

2 4 6 8 10 12 14 16

EBIT excluding non-recurring items

MEUR

1.0 Q2/11 Q2/12 4.3 4.1 Q2/13 Q2/14

  • 0.3

Q2/15 5.1

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We accelerate in Fitness: Queenax acquisition

  • Expands Precor portfolio into the functional training category

– Complements Precor’s strength and cardio offerings – Enables Precor to offer complete package deals – Functional training is one of the fastest growing segments in the commercial fitness industry

  • Acquisition has no material impact on Amer Sports 2015 financial

results

29 July 2015 Amer Sports Interim Report Presentation 7

Outlook for 2015 unchanged

29 July 2015 Amer Sports Interim Report Presentation 8

  • In 2015, Amer Sports net sales in local currencies is expected to increase

and EBIT margin excluding non-recurring items to improve from 2014, despite challenging market conditions.

  • The company will continue to focus on apparel and footwear growth,

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

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Acceleration toward 2020

29 July 2015 Amer Sports Interim Report Presentation 9

Clarify future direction, build critical capabilities, allocate resources and reignite growth Deliver mid-term targets and prepare for acceleration

  • Sustainable Growth Model
  • Integration for scalable,

synergistic platform: acquisition readiness

  • Qualification of business cases

for future acceleration

  • On-going renewal and

restructuring

Sales acceleration at accretive profitability

Continuous portfolio transformation towards:

  • Faster growth
  • Higher profitability
  • Asset efficiency

~2010 – 2013 ~2014 – 2016 ~2017 – 2020

  • New strategy
  • Transformation from

Hardgoods to ”Hybrid”

  • Drive organic growth
  • Operational excellence
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APPENDIX

Key figures

29 July 2015 Amer Sports Interim Report Presentation 12

EUR million Q2/15 Q2/14 H1/15 H1/14 2014 Net sales 461.1 376.1 1,037.0 877.6 2,228.7 Gross profit 203.5 165.0 467.7 387.3 979.0 Gross profit, % of net sales 44.1 43.9 45.1 44.1 43.9 EBIT excluding non-recurring items

  • 9.0
  • 17.6

24.6 3.0 168.3 EBIT % excluding non-recurring items 2.4 0.3 7.6 Non-recurring items

  • 6.6
  • 1.2
  • 8.0
  • 1.2
  • 54.2

EBIT

  • 15.6
  • 18.8

16.6 1.8 114.1 EBIT % 1.6 0.2 5.1 Free cash flow 11.5

  • 38.7

54.5 5.5 53.5

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Net sales and EBIT breakdown

29 July 2015 Amer Sports Interim Report Presentation 13

* Excluding non-recurring items NET SALES (MEUR) Q2/ 2015 Q1/ 2015 2014 Q4/ 2014 Q3/ 2014 Q2/ 2014 Q1/ 2014 2013 Q4/ 2013 Q3/ 2013 Q2/ 2013 Q1/ 2013 Outdoor 209.7 341.9 1,371.2 456.7 452.2 174.8 287.5 1,289.5 433.7 420.6 168.7 266.5 Ball Sports 169.4 164.1 536.7 136.9 112.9 136.2 150.7 551.0 126.1 116.7 144.2 164.0 Fitness 82.0 69.9 320.8 111.7 80.7 65.1 63.3 296.0 97.6 71.6 64.3 62.5 Total 461.1 575.9 2,228.7 705.3 645.8 376.1 501.5 2,136.5 657.4 608.9 377.2 493.0 EBIT (MEUR) Q2/ 2015* Q1/ 2015* 2014* Q4/ 2014* Q3/ 2014* Q2/ 2014* Q1/ 2014 2013 Q4/ 2013 Q3/ 2013 Q2/ 2013 Q1/ 2013 Outdoor

  • 18.7

21.4 125.6 55.0 83.1

  • 22.0

9.5 127.0 52.5 87.4

  • 27.1

14.2 Ball Sports 11.3 18.3 35.9 12.5 3.9 6.3 13.2 27.0 3.9

  • 2.1

7.8 17.4 Fitness 5.1 1.3 29.7 14.9 7.3 4.1 3.4 24.4 14.3 6.2 4.3

  • 0.4

Headquarters

  • 6.7
  • 7.4
  • 22.9
  • 4.7
  • 6.7
  • 6.0
  • 5.5
  • 23.5
  • 6.0
  • 9.0
  • 3.7
  • 4.8

Total

  • 9.0

33.6 168.3 77.7 87.6

  • 17.6

20.6 154.9 64.7 82.5

  • 18.7

26.4

Net sales by region

29 July 2015 Amer Sports Interim Report Presentation 14

MEUR Q2/ 2015 Q1/ 2015 2014 Q4/ 2014 Q3/ 2014 Q2/ 2014 Q1/ 2014 2013 Q4/ 2013 Q3/ 2013 Q2/ 2013 Q1/ 2013 EMEA 168.0 270.6 1,064.0 336.9 321.9 156.1 249.1 1,025.2 338.6 301.6 144.5 240.5 Americas 224.7 230.2 874.3 270.1 249.0 166.0 189.2 839.4 229.3 237.2 177.6 195.3 Asia Pacific 68.4 75.1 290.4 98.3 74.9 54.0 63.2 271.9 89.5 70.1 55.1 57.2 Total 461.1 575.9 2,228.7 705.3 645.8 376.1 501.5 2,136.5 657.4 608.9 377.2 493.0

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Sales development by region Q2/2015

29 July 2015 Amer Sports Interim Report Presentation 15

Outdoor Fitness Total

EMEA Americas APAC

Ball sports EMEA Americas APAC Total MEUR Ch, %* MEUR Ch, %* MEUR Ch, %* MEUR Ch, %* Outdoor 119.1 9 56.9 18 33.7 20 209.7 13 Ball Sports 30.1

  • 9

118.8 13 20.5

  • 2

169.4 7 Fitness 18.8 10 49.0 1 14.2 22 82.0 6 Total 168.0 6 224.7 12 68.4 13 461.1 9 * Change in local currencies 209.7 169.4 82.0 461.1 16% 57% 68% 27% 12% 18% 70% 17% 23% 60% 15% 36% 49%

Free cash flow

29 July 2015 Amer Sports Interim Report Presentation 16

  • 150
  • 100
  • 50

50 100 150

Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15

Free cash flow = Cash flow from operating activities - net capital expenditures (total capital expenditure less proceeds from sale of assets)

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Balance sheet

29 July 2015 Amer Sports Interim Report Presentation 17

MEUR June 30, 2015 June 30, 2014 Goodwill and other intangible non-current assets 592.6 486.9 Tangible non-current assets and other non-current assets 326.5 274.0 Inventories and work in progress 517.8 454.2 Receivables 584.5 472.1 Cash and cash equivalents 109.6 86.9 Shareholders’ equity 804.4 719.7 Interest bearing liabilities 655.9 541.9

  • Long-term

480.8 358.0

  • Current

175.1 183.9 Other liabilities 670.7 512.5 Total 2,131.0 1,774.1

Next refinancing needs in H1 2016

29 July 2015 Amer Sports Interim Report Presentation 18

  • Cash EUR 109.6 million and

unused committed facilities EUR 150 million (June 30, 2015)

  • Commercial paper program

EUR 500 million, of which EUR 20.0 million issued

  • Scheduled repayments of

long-term loans in 2016 EUR 154.0 million

  • Average interest rate of loan

portfolio 2.8% (Dec 31, 2014 3.5%)

0,0 50,0 100,0 150,0 200,0 250,0 300,0 Bonds Bank loans Commercial Papers Other

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Contact information

  • Heikki Takala, President and CEO
  • Tel. +358 20 712 2510
  • Jussi Siitonen, CFO
  • Tel. +358 20 7122511
  • Päivi Antola, Director, Corporate Communications and IR
  • Tel. +358 20 712 2537
  • www.amersports.com

29 July 2015 Amer Sports Interim Report Presentation 19

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.

www.amersports.com

29 July 2015 Amer Sports Interim Report Presentation 20

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